EQT Corporation Announces Completion of Joint Venture Transaction

On December 27, 2024, EQT Corporation (NYSE:EQT) finalized a significant transaction with EQM Midstream Partners, LP and Blackstone Credit & Insurance, forming a new midstream joint venture. The completion of this Joint Venture on December 30, 2024, involved EQM and certain subsidiaries contributing midstream assets in exchange for Class A Units in the Joint Venture. Additionally, JV Investor contributed $3.5 billion in cash for Class B Units, a portion of which went towards repayments under the Bridge Facility to finance a Redemption and a portion of the Tender Offer.

The completion of the Joint Venture entailed various financial moves, including the repayment of senior notes by EQM and the Tender Offer that saw repurchases of multiple Senior Notes. To fund these transactions, EQM secured term loans under a Bridge Facility Credit Agreement with Royal Bank of Canada. EQT provided a Guaranty to secure the payments under this agreement, ensuring the obligations were met.

As part of the Joint Venture closing, a subsidiary of the Joint Venture, Successor Borrower, acceded EQM under the Bridge Facility, thus releasing EQM from its obligations. The borrowings under this facility were tailored to bear interest rates based on Term SOFR Rate plus additional credit spread adjustments. Subsequently, Successor Borrower fully repaid the Bridge Facility borrowings, leading to the termination of the facility on the same day.

The comprehensive agreements and arrangements such as the JV Agreement, Sixth Supplemental Indenture, Bridge Facility Credit Agreement, and Guaranty have been key components in this strategic financial maneuver. The transactions were in line with EQT’s ongoing financial strategy and commitment to optimizing its capital structure for future growth and stability.

This update underscores EQT’s efforts to enhance its operational efficiency and financial flexibility through strategic initiatives, positioning the company for sustained growth and value creation in the evolving energy landscape.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read EQT’s 8K filing here.

EQT Company Profile

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services.