EQT Midstream will pay a $997.5m in cash and $52.5m in common and general partner units.
In addition to the gathering system, Midstream will obtain a preferred interest in an EQT subsidiary, under the deal.
The gathering system collects natural gas production in the wet gas and dry gas regions of the Marcellus, specifically in the Saturn, Mercury, Pandora and Pluto development areas, in West Virginia.
The acquired assets include approximately 70 miles of natural gas gathering pipeline and nine compressor units with 25,000hp of compression, and a 30-mile, high-pressure wet gas header pipeline that connects development areas to the MarkWest Mobley processing facility.
Over the next several years, Midstream plans to invest around $370m in system expansion projects, including installation of 100 miles of gathering pipeline and five compressor units with 23,700hp of compression.
The system’s ongoing maintenance capital expenditures are estimated to be less than $5m annually.
EQT Midstream Partners owns, operates, acquires, and develops midstream assets in the Appalachian Basin.
The company owns 700 miles and operates an additional 200 miles of FERC-regulated interstate pipelines. It also owns more than 1,500 miles of high- and low-pressure gathering lines.
Image: EQT Midstream Partners owns high- and low-pressure gas gathering lines. Photo: courtesy of supakitmod / Freedigitalphotos.net.
