EQT Midstream Partners To Buy Jupiter Gathering System From EQT For $1.18 Bln

(RTTNews) - EQT Midstream Partners, LP (EQM) said Wednesday that it has entered into an agreement to buy the Jupiter natural gas gathering system from EQT Corp. (EQT) for $1.18 billion, of which $1.121 billion will be paid in cash and $59 million will be paid in common and general partner units.

The Jupiter system was designed and constructed to gather EQT's Marcellus production in portions of Greene and Washington counties, Pennsylvania. The Jupiter assets consist of about 35-miles of natural gas gathering pipeline and two compressor stations with about 21,300 horsepower of compression.

The Partnership will complete several expansion projects related to Jupiter during 2014 and 2015.

The Jupiter acquisition is expected to be immediately accretive to the Partnership's distributable cash flow per unit.

EQT Midstream Partners forecasts revenues associated with Jupiter to be approximately $130 million for the full-year 2014 and $160 million in 2015.

Separately, EQT Midstream Partners said it has commenced an underwritten public offering of 8.75 million common units representing limited partner interests. The Partnership also plans to grant the underwriters a 30-day option to purchase up to an additional 1,312,500 common units.

The Partnership plans to use the net proceeds from the offering to fund a portion of the purchase price of the acquisition of the Jupiter natural gas gathering system from EQT.

The Partnership plans to use the net proceeds from the underwriters' exercise of their option to purchase additional common units, if any, including any proportionate capital contribution from the Partnership's general partner to maintain its 2% general partner interest in the Partnership, for general partnership purposes.