EQT Corporation Enters Joint Venture Agreement with Blackstone Credit & Insurance

EQT Corporation, a Pennsylvania-based energy company, announced on November 22, 2024, that it has entered into a significant transaction through its subsidiaries, including EQM Midstream Partners, LP. This transaction involves a contribution agreement (referred to as the “Contribution Agreement”) with an affiliate of Blackstone Credit & Insurance to establish a new midstream joint venture known as the Joint Venture.

Key aspects of the Contribution Agreement include the contribution of various assets by EQM and its subsidiaries to the Joint Venture, including the Series A Membership Interests in Mountain Valley Pipeline, LLC (MVP Series A Interests), transmission and storage assets regulated by the Federal Energy Regulatory Commission, and the Hammerhead pipeline system. In exchange, 364,285,715 Class A Units will be issued to EQM while JV Investor will contribute $3.5 billion in cash for 350,000,000 Class B Units in the Joint Venture.

The transaction is subject to customary conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Moreover, the parties have established specified termination provisions, allowing for the termination of the Contribution Agreement if the Closing does not occur by March 22, 2025, with a possible extension not to exceed June 20, 2025.

Additionally, the Joint Venture will have a governance structure that includes quarterly distributions, a Series B Base Return target, redemption, buyout, and drag rights for the Class B Units, as well as governance controls by EQM.

In connection with this agreement, EQM secured a debt commitment from Royal Bank of Canada for a new senior unsecured bridge term loan facility. It is expected that a portion of the cash contributed by JV Investor will be used to repay the borrowings under the Bridge Facility, with the remainder distributed to EQM or its affiliates.

This news comes as EQT Corporation continues to advance its strategic initiatives and strengthen its position in the energy sector. For further details regarding this agreement and related transactions, interested parties are encouraged to refer to the detailed documents filed with the Securities and Exchange Commission.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read EQT’s 8K filing here.

EQT Company Profile

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services.