EQT in Midstream Joint Venture with Blackstone Loan for Cash of $3.5 Billion

WASHINGTON (dpa-AFX) – Natural gas producer EQT Corporation (EQT) said Monday it has agreed to form a new midstream joint venture with approximately $8.8 billion in funds managed by Blackstone Credit & Insurance.

Under the agreement, BXCI will provide $3.5 billion in cash to EQT for non-controlling common shares in the joint venture. The joint venture provides EQT with a large-scale equity solution at an incremental cost of capital. Additionally, EQT will retain rights to growth projects associated with assets contributing to the joint venture, including the planned Mountain Valley Pipeline (MVP) expansion and the MVP Southgate project.

EQT intends to use the proceeds from this transaction to repay its term loan and revolving credit facility and to repurchase and tender senior notes.

This transaction underscores the ultra-high-quality nature of EQT’s regulated midstream assets, which serve one of the strongest energy demand growth regions in the United States and are supported by long-term contracts with the region’s leading utilities. Importantly, through this joint venture, EQT preserves the benefits of the Equitrans acquisition by capturing synergies and preserving long-term value from growth projects,” said Toby Z. Rice, EQT President and CEO.

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