EQT Sells Stake in Midstream Assets to Blackstone for $3.5B | Global News Avenue

EQT (EQT) after natural gas producer said Blackstone’s (Bacchus) credit and insurance business is buying a $3.5 billion stake in its midstream assets through a joint venture.

Under the terms of the transaction, Blackstone acquired a non-controlling common equity interest in a joint venture that owns U.S. energy group Mountain Valley Pipeline, LLC – Series A, Federal Energy Regulatory Commission (FERC) Regulated transmission and storage assets and Hammerhead Pipeline.

The investment in the joint venture is valued at approximately US$8.8 billion.

EQT says it will use proceeds to pay down debt

EQT said it plans to use the proceeds to “repay the term loan and revolving credit facility, as well as redeem and tender senior notes.”

EQT Corp. acquires midstream infrastructure provider Equitrans Midstream Corp.ETRN) earlier this year. EQT said it expects to have net debt of about $9 billion by the end of 2024.

The transaction is expected to close this quarter.

EQT said in a separate statement that it would offer to purchase outstanding senior notes due in 2028, 2029, 2030 and 2048. The buyback is subject to completion of the Blackstone agreement.

EQT shares rose 2% intraday on Monday, hitting a two-year high. Blackstone shares fell more than 1.5%, but are up nearly 50% this year.