EQT Sells Stake in Midstream Assets to Blackstone for $3.5B

EQT (EQT) shares roseate aft nan earthy state shaper said Blackstone’s (BX) in installments and security business is buying a $3.5 cardinal liking successful its midstream assets done a associated venture.

Under nan position of nan deal, Blackstone gets a non-controlling communal equity liking successful a associated task lodging 3 midstream infrastructure assets owned by nan U.S. power group: Mountain Valley Pipeline, LLC – Series A, Federal Energy Regulatory Commission (FERC) regulated transmission and retention assets, and nan Hammerhead Pipeline.  

The finance values nan associated task astatine astir $8.8 billion.

EQT Says It Will Pay Down Debt With Proceeds

EQT said that it planned to usage nan money raised to “pay down its word indebtedness and revolving in installments installation and redeem and tender for elder notes.”

EQT Corp. acquired midstream infrastructure supplier Equitrans Midstream Corp. (ETRN) earlier this year. EQT said it expects to extremity 2024 pinch astir $9 cardinal of nett debt.

The transaction is expected to adjacent successful nan existent quarter.

In a abstracted statement, EQT said it will connection to acquisition its outstanding elder notes owed successful 2028, 2029, 2030, and 2048. The buyback is contingent connected nan Blackstone statement being completed.

Shares of EQT roseate 2% successful intraday trading Monday to a two-year high. Blackstone shares fell much than 1.5% but are up almost 50% this year.