EQT Plans to Sell Minority Stakes in Its Pipeline Assets for $3.5B

Transaction Details - EQT Corporation is in talks with Blackstone to sell minority stakes in its interstate natural gas pipelines, valued at approximately $3.5 billion [1] - The deal is expected to be finalized in the upcoming weeks if discussions proceed smoothly [1] - EQT will continue to operate the pipeline after the deal is finalized [2] Financial Impact - The transaction could ease EQT's debt burden, which increased by about$14 billion due to the acquisition of Equitrans Midstream [2][5] - Blackstone plans to fund the transaction through its credit and insurance wing [2] - The deal is expected to provide Blackstone with a steady stream of earnings from long-term contracts associated with pipelines and energy infrastructure assets [3] Pipeline Assets - EQT holds interests in 940 miles of interstate natural gas pipelines with a combined capacity of approximately 4.4 billion cubic feet per day (bcf/d) [5] - The deal includes EQT's stake in the Mountain Valley Pipeline, a 300-mile pipeline connecting West Virginia to Virginia [3][5] - The Mountain Valley Pipeline faced delays and legal battles but became operational in June this year [4] Industry Context - Archrock Inc, an energy infrastructure company, focuses on midstream natural gas compression and generates stable fee-based revenues [7] - The Williams Companies, Inc operates a pipeline system of more than 33,000 miles, making it one of the largest domestic transporters of natural gas by volume [8] - FuelCell Energy provides low-carbon energy solutions using flexible fuel sources like biogas, natural gas, and hydrogen, contributing to the energy transition [9]