Fri, Oct. 14, 10:08 AM
- EQT Midstream Partners (EQM +0.9%) agrees to acquire the Allegheny Valley Connector transmission and storage system and several Marcellus gathering systems from EQT Corp. (EQT -0.2%) for $275M.
- AVC includes 209 miles of transmission pipeline and 11B cf of working gas storage capacity, and the AVC system has 450M cf/day of transmission capacity; it is fully contracted for the winter season by Pennsylvania's Peoples Natural Gas under firm reservation commitment which expires in 2034.
- Analysts at Stifel estimate the deal is $0.43/unit accretive to EQM unitholders, and raises its price target on the units to $82 from $78.
Jul. 15, 2013, 5:09 PM
EQT Midstream (EQM) is buying EQT Corp.'s (EQT) Sunrise pipeline (a 41.5-mile pipeline, along with a compressor station and a pipeline interconnect) for $507.5M in cash + $32.5M in equity. EQT Midstream will pay an additional $110M to EQT Corp. following the completion of a new 20-year transportation deal with a 3rd party. The purchase is expected to be immediately accretive to cash flow/partnership unit. Separately, EQT Midstream is announcing a $0.40/unit Q2 cash distribution; that's higher than Q1's $0.37/unit. Update: EQT Midstream follows up by announcing a 10M-share stock offering to help pay for the acquisition.| Jul. 15, 2013, 5:09 PM