News Releases

Baker Botts Represents EQT Corporation in the $275 Million Sale of Allegheny Valley Connector Transmission and Storage System and Marcellus Gathering Systems to EQT Midstream Partners, LP

Deal Description: On October 13, 2016, EQT Midstream Partners, LP (NYSE: EQM) announced that it has acquired the Allegheny Valley Connector transmission and storage system, along with several Marcellus gathering systems from EQT Corporation (NYSE: EQT) for $275 million in cash. EQM funded the acquisition with borrowings from its revolving credit facility. The acquisition was effective October 1, 2016 and is expected to be immediately accretive to EQM’s distributable cash flow per unit. 

The Allegheny Valley Connector (AVC) is regulated by the Federal Energy Regulatory Commission (FERC) and includes approximately 209 miles of transmission pipeline and 11 Bcf of working gas storage capacity. The AVC system has 450 MMcf per day of transmission capacity and is fully contracted for the winter season by Peoples Natural Gas, one of Pennsylvania’s largest natural gas distribution companies, through a firm reservation commitment that expires in 2034. EQM expects to invest approximately $50 million in AVC related growth projects during the remainder of 2016 and into 2017.

The newly acquired gathering assets, consisting primarily of the Applegate, McIntosh, and Terra systems in Pennsylvania; and the Taurus system in West Virginia, include 87 miles of gathering pipeline, an estimated 7,000 hp of compression, and provide 370 MMcf per day of gathering capacity. EQT has committed to a total of 235 MMcf per day of firm capacity under a 10-year contract on the systems. EQM expects to invest approximately $105 million over the next several years to complete planned expansion projects, including the installation of approximately 20 miles of gathering pipeline and four compressor units with 20,000 hp of compression. 

Baker Botts is representing EQT Corporation in the transaction. 

Baker Botts Lawyers/Offices Involved: Mike Bengtson (Partner, Austin), Mike Bresson (Partner, Houston), Robert Montgomery (Associate, Austin) and Rob Goodin (Associate, Austin) 

For more information, please see EQT’s news release by clicking here

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