Blackstone Buys EQT’s Midstream assets for $3.5 billion

What you need to know

• EQT’s shares are up after it announced that Blackstone’s credit and insurer business will buy a $3.5billion stake in the midstream assets of its natural gas company through a joint-venture.
• EQT has said that it will use the funds raised to pay off its debt.
• Joint venture investment is valued at approximately $8.8 billion.

Shares of the natural gas company EQT (EQT), rose today after it announced that Blackstone’s credit and insurers business (BX), will buy a $3.5billion stake in midstream assets. This is being done through a jointly-owned joint venture.

Under the terms of the deal, Blackstone gets a non-controlling common equity stake in a joint venture housing three midstream infrastructure assets owned by the U.S. energy group: Mountain Valley Pipeline, LLC – Series A, Federal Energy Regulatory Commission (FERC) regulated transmission and storage assets, and the Hammerhead Pipeline.  

Joint venture investment is valued at approximately $8.8 billion.

EQT says it will pay off debt with proceeds

EQT announced that they would use all the money raised for a number of purposes. “pay down its term loan and revolving credit facility and redeem and tender for senior notes.”

EQT Corp. purchased midstream infrastructure company Equitrans Midstream Corp. earlier this year. EQT expects its net debt to be around $9 billion by the end of 2024.

It is anticipated that the transaction will close during this quarter.

In a different statement, EQT stated that it would purchase outstanding senior notes payable in 2028. 2029. 2030. and 2048. The Blackstone deal must be completed before the buyback can take place.

EQT shares rose 2% intraday Monday, reaching a new two-year record. Blackstone shares are down more than 1.5% this year, but up nearly 50%.

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