EQT Sells Stake in Midstream Assets to Blackstone for $3.5B

Core Insights - EQT shares increased following the announcement that Blackstone's credit and insurance business is acquiring a $3.5 billion stake in EQT's midstream assets through a joint venture [1] - The funds raised will be utilized to pay down EQT's debt [2] - The joint venture is valued at approximately $8.8 billion [1] Group 1: Investment Details - Blackstone will obtain a non-controlling common equity stake in a joint venture that includes three midstream infrastructure assets: Mountain Valley Pipeline, LLC – Series A, FERC regulated transmission and storage assets, and the Hammerhead Pipeline [1] - The transaction is anticipated to close in the current quarter [2] Group 2: Financial Strategy - EQT plans to use the proceeds from the investment to pay down its term loan and revolving credit facility, as well as to redeem and tender for senior notes [2] - EQT expects to end 2024 with approximately $9 billion of net debt [2] - The buyback of outstanding senior notes due in 2028, 2029, 2030, and 2048 is contingent on the completion of the Blackstone agreement [2] Group 3: Market Reaction - EQT shares rose by 2% in intraday trading, reaching a two-year high [2] - In contrast, Blackstone shares fell by more than 1.5% but have increased nearly 50% this year [2]