Blackstone is reportedly in advanced discussions to purchase minority stakes in EQT Corp’s interstate natural gas pipelines for approximately $3.5 billion. Key details include:
Purpose of the Acquisition: This deal would enable EQT to reduce its substantial debt, which has accumulated following its acquisition of Equitrans Midstream earlier this year.
Investment Structure: Blackstone plans to make the investment through its credit and insurance arm, aiming to secure steady income from energy infrastructure assets, including the Mountain Valley Pipeline.
Operational Control: EQT will maintain operational control of the pipelines post-transaction, which includes a portfolio encompassing 940 miles of interstate pipelines with a capacity of 4.4 billion cubic feet per day.
Financial Context: The pipeline portfolio generated nearly $700 million in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) in July. The acquisition aligns with EQT’s strategy to transition into a fully integrated natural gas provider while addressing its nearly $14 billion debt.
Market Position: Blackstone has a history of investments in energy infrastructure and currently holds interests in various pipeline operations, enhancing its portfolio in the sector.
Potential Timeline: A formal agreement could be reached in the coming weeks if negotiations proceed without issues, although both companies have declined to comment on the ongoing discussions.