EQT, Blackstone Forge $3.5 Billion Deal for Mountain Valley Pipeline Stake
(P&GJ) — EQT Corporation announced a $3.5 billion joint venture (JV) with Blackstone Credit & Insurance (BXCI) focused on midstream assets, including stakes in the Mountain Valley Pipeline (MVP) and the Hammerhead Pipeline.
The deal underscores EQT’s strategic push to strengthen infrastructure and reduce debt.
Under the agreement, BXCI will acquire a non-controlling equity interest, valuing the JV at $8.8 billion. EQT will use proceeds to reduce debt, aiming to end 2024 with about $9 billion in net debt. The partnership also secures EQT's long-term growth in projects like the MVP expansion and MVP Southgate.
"This transaction underscores the ultra-high-quality nature of EQT’s regulated midstream assets," said EQT CEO Toby Z. Rice. "We look forward to working with Blackstone to optimize the value of these assets."
BXCI leaders emphasized the sector's potential. Robert Horn, Global Head of Infrastructure at BXCI, stated, "This highlights Blackstone’s focus on providing large-scale and flexible high-grade capital solutions." Rick Campbell, Managing Director at BXCI, added, "These critical assets benefit from strong tailwinds as natural gas demand grows."
The Hammerhead Pipeline plays a pivotal role in this venture. The pipeline is a 1.6 billion cubic feet per day gathering header pipeline primarily designed to connect natural gas produced in Pennsylvania and West Virginia to MVP, Texas Eastern Transmission and Eastern Gas Transmission.
The deal is set to close by Q4 2024, pending regulatory approvals.
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