EQT Closes Midstream Joint Venture with Blackstone Credit & Insurance
EQT has successfully closed its previously announced midstream joint venture with Blackstone Credit & Insurance (BXCI). The transaction resulted in EQT receiving $3.5 billion in cash consideration, net of certain fees and expenses, in exchange for granting BXCI a non-controlling common equity interest in the JV. The proceeds were used to pay down EQT's term loan, revolving credit facility, and bridge term loan facility that funded the redemption and repurchase of certain EQM Midstream Partners, LP senior notes through a tender offer.
EQT ha chiuso con successo la sua joint venture nel settore midstream precedentemente annunciata con Blackstone Credit & Insurance (BXCI). La transazione ha comportato un incasso per EQT di 3,5 miliardi di dollari in considerazione monetaria, al netto di alcune spese e costi, in cambio della concessione a BXCI di un'interesse azionario comune non di controllo nella JV. I proventi sono stati utilizzati per rimborsare il prestito a termine, la linea di credito revolving e il prestito bridge che hanno finanziato il riscatto e il riacquisto di alcune note senior di EQM Midstream Partners, LP attraverso un'offerta pubblica di acquisto.
EQT ha cerrado con éxito su joint venture de midstream previamente anunciada con Blackstone Credit & Insurance (BXCI). La transacción resultó en que EQT recibiera 3.5 mil millones de dólares en concepto de efectivo, neto de ciertos honorarios y gastos, a cambio de otorgar a BXCI un interés en capital social común no controlador en la JV. Los fondos se utilizaron para pagar el préstamo a plazo de EQT, la línea de crédito revolvente y el préstamo puente que financiaron el canje y la recompra de ciertas notas senior de EQM Midstream Partners, LP a través de una oferta de adquisiciones.
EQT 는 Blackstone Credit & Insurance (BXCI)와의 중간 단계 조인트 벤처를 성공적으로 마무리했습니다. 이번 거래를 통해 EQT는 BXCI에게 JV에 대한 비지배 공통 주식 지분을 제공하는 대가로 35억 달러의 현금 대가를 받았습니다. 이 수익금은 EQT의 기간 대출, 회전 신용 시설 및 특정 EQM Midstream Partners, LP의 고급 채권의 환매를 위한 다리 대출 시설을 상환하는 데 사용되었습니다.
EQT a réussi à finaliser son partenariat en midstream précédemment annoncé avec Blackstone Credit & Insurance (BXCI). La transaction a permis à EQT de recevoir 3,5 milliards de dollars en liquidités, net de certains frais et dépenses, en échange de l'octroi à BXCI d'un intérêt en capitaux propres commun non contrôlant dans la JV. Les produits de la vente ont été utilisés pour rembourser le prêt à terme d'EQT, la ligne de crédit renouvelable et le prêt relais qui ont financé le rachat et la récupération de certaines obligations senior d'EQM Midstream Partners, LP par le biais d'une offre d'achat.
EQT hat erfolgreich seine zuvor angekündigte Midstream-Joint-Venture mit Blackstone Credit & Insurance (BXCI) abgeschlossen. Die Transaktion führte dazu, dass EQT 3,5 Milliarden Dollar in bar erhielt, netto bestimmter Gebühren und Ausgaben, im Austausch dafür, dass BXCI eine nicht beherrschende Eigenkapitalbeteiligung an der JV gewährt wurde. Die Erlöse wurden verwendet, um den Terminkredit, die revolvierende Kreditlinie und die Brückenfinanzierung zu tilgen, die die Rückzahlung und den Rückkauf bestimmter vorrangiger Anleihen von EQM Midstream Partners, LP durch ein Tender-Angebot finanzierten.
- Received $3.5 billion cash infusion from joint venture formation
- Reduced debt burden through repayment of multiple loan facilities
- Strategic partnership with major financial institution (Blackstone)
- Reduction in full ownership control of midstream assets
Insights
The $3.5 billion joint venture with Blackstone represents a strategic financial maneuver that significantly strengthens EQT's balance sheet. The immediate deployment of proceeds to pay down various debt facilities, including the term loan, revolving credit facility and bridge loan, demonstrates prudent capital management. This deleveraging effort will improve EQT's financial flexibility and reduce interest expenses in a high-rate environment.
The structure of the deal is particularly noteworthy - by selling a non-controlling stake, EQT maintains operational control while monetizing its midstream assets. This arrangement allows EQT to retain strategic decision-making power while securing substantial capital, effectively achieving the best of both worlds. The partnership with BXCI, a heavyweight in energy infrastructure investments, adds credibility and potentially opens doors for future capital deployment opportunities.
The formation of this midstream JV creates a powerful strategic alliance in the natural gas infrastructure space. The timing is particularly strategic given the increasing importance of natural gas infrastructure in the U.S. energy landscape. By partnering with Blackstone, EQT gains access to deep institutional expertise while maintaining operational control of critical midstream assets essential for its upstream operations.
The transaction effectively separates the capital-intensive midstream business from EQT's core upstream operations while maintaining operational synergies. This structure optimizes capital allocation and potentially reduces the cost of capital for future midstream expansions. The deal could serve as a blueprint for similar arrangements in the industry, particularly as companies seek to optimize their infrastructure holdings while maintaining operational control.
Advisors
RBC Capital Markets, LLC acted as financial advisor to EQT. Kirkland & Ellis LLP served as EQT's legal counsel on the transaction.
Citi acted as financial advisor to Blackstone. Milbank LLP served as Blackstone's legal counsel on the transaction.
Investor Contact
Cameron Horwitz
Managing Director, Investor Relations & Strategy
412.445.8454
Cameron.Horwitz@eqt.com
About EQT Corporation
EQT Corporation is a premier, vertically integrated American natural gas company with production and midstream operations focused in the Appalachian Basin. We are dedicated to responsibly developing our world-class asset base and being the operator of choice for our stakeholders. By leveraging a culture that prioritizes operational efficiency, technology and sustainability, we seek to continuously improve the way we produce environmentally responsible, reliable and low-cost energy. We have a longstanding commitment to the safety of our employees, contractors, and communities, and to the reduction of our overall environmental footprint. Our values are evident in the way we operate and in how we interact each day – trust, teamwork, heart, and evolution are at the center of all we do. To learn more, visit eqt.com.
About Blackstone Credit & Insurance
Blackstone Credit & Insurance ("BXCI") is one of the world's leading credit investors. Our investments span the credit markets, including private investment grade, asset based lending, public investment grade and high yield, sustainable resources, infrastructure debt, collateralized loan obligations, direct lending and opportunistic credit. We seek to generate attractive risk-adjusted returns for institutional and individual investors by offering companies capital needed to strengthen and grow their businesses. BXCI is also a leading provider of investment management services for insurers, helping those companies better deliver for policyholders through our world-class capabilities in investment grade private credit.
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SOURCE EQT Corporation (EQT-IR)
FAQ
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