EQT Announces $3.5 Billion Joint Venture with Blackstone Credit & Insurance

Deal News | Nov 25, 2024 | Blackstone

EQT Announces $3.5 Billion Joint Venture with Blackstone Credit & Insurance

EQT Corporation announced a definitive agreement with Blackstone Credit & Insurance for a new midstream joint venture valued at $8.8 billion. Blackstone will provide $3.5 billion for a non-controlling equity interest in the venture, encompassing EQT's ownership in key infrastructure assets such as Mountain Valley Pipeline. This move aligns with EQT's debt reduction strategy following its recent asset divestitures. The agreement is anticipated to close by the end of 2024, subject to regulatory approvals. The transaction showcases EQT's focus on retaining growth opportunities and leveraging its synergies from the Equitrans acquisition while partnering with Blackstone to explore further strategic ventures in the sector.

Sectors

  • Energy
  • Finance
  • Infrastructure

Geography

  • United States – The primary focus of EQT's infrastructure assets and the planned expansion projects are located in the Appalachian Basin, USA.

Industry

  • Energy – The joint venture focuses on midstream infrastructure in the energy sector.
  • Finance – The transaction involves significant financial structuring and capital solutions through private equity.
  • Infrastructure – The joint venture encompasses critical pipeline projects and storage assets.

Financials

  • $3.5 billion – Cash consideration provided by Blackstone for a non-controlling equity interest in the joint venture.
  • $8.8 billion – Total implied valuation of the joint venture.
  • 12x EBITDA – Valuation multiple of the joint venture.
  • $9 billion – Projected net debt for EQT by the end of 2024 after the transaction.

Participants

NameRoleTypeDescription
EQT CorporationTarget CompanyCompanyEQT Corporation is a premier natural gas company with operations focused in the Appalachian Basin.
Blackstone Credit & InsuranceBidding CompanyCompanyBlackstone Credit & Insurance specializes in a diverse range of credit investments and is a key capital provider.
RBC Capital Markets, LLCFinancial AdvisorCompanyAdvisor to EQT on the transaction.
Kirkland & Ellis LLPLegal AdvisorCompanyLegal counsel to EQT for the transaction.
CitiFinancial AdvisorCompanyAdvisor to Blackstone on the transaction.
Milbank LLPLegal AdvisorCompanyLegal counsel to Blackstone.