EQT Corp To Sell West Virginia Gathering System To EQT Midstream For $1.05 Bln

(RTTNews) - EQT Corp (EQT) on Tuesday agreed to sell its Northern West Virginia Marcellus Gathering System to EQT Midstream Partners LP (EQM) for $1.05 billion, including a preferred interest in an EQT subsidiary.

As per the terms of the deal, EQT Corp will receive $997.5 million in cash and $52.5 million in common and general partner units. Also, EQT Midstream will fund about $370 million of system expansion projects over the next several years.

The gathering system was designed to gather natural gas production in the wet gas and dry gas regions of the Marcellus. The system includes about 70 miles of natural gas gathering pipeline and nine compressor units with 25,000 horsepower of compression.

Also the system includes a 30-mile, high-pressure wet gas header pipeline that moves wet gas from the development areas to the MarkWest Mobley processing facility. EQT Corp contracted for 10-years of firm capacity on the system.

EQT Midstream Partners LP expects to install about 100 miles of gathering pipeline and five compressor units with 23,700 horsepower of compression over the next several years.

EQT Corp holds about 76,000 net acres in northern West Virginia that surround the acquired gathering system, including 59,000 net undeveloped acres.