Michael Fitzsimmons
Oil & gas, dividend investing, research analyst

EQT GP Holdings: A Marcellus Midstream MLP With No IDRs And Excellent Distribution Growth Prospects

EQT GP Holdings, LP (NYSE:EQGP) is an MLP formed in 2015 to own partnership interests in EQT Midstream Partners, LP (NYSE:EQM), a growth-oriented limited partnership formed by EQT Corporation (NYSE:EQT) to own, operate, acquire and develop midstream assets in the Marcellus and Utica shale plays of the Appalachian Basin. EQGP's only cash-generating assets are its partnership interests in EQM: a 30.2% interest in LP units, a 2.0% GP interest, and owner of all the incentive distribution rights ("IDRs") in EQM. The structure of the partnership is shown below as of year-end 2015:

(click to enlarge)

Source: February presentation

As can be seen from the graphic, EQT holds a 90% interest in EQGP and

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