EQT and Blackstone Credit Forge Strategic Midstream JV

EQT Completes Joint Venture with Blackstone Credit

EQT Corporation (NYSE: EQT), a leader in America's natural gas sector, has reached a significant milestone by finalizing its midstream joint venture with Blackstone Credit. This strategic partnership is expected to greatly enhance EQT's growth and financial stability. The collaboration will allow both companies to leverage their unique strengths while unlocking potential for future expansion.

Financial Structure of the Joint Venture

As part of this joint venture, EQT has secured an impressive $3.5 billion cash consideration from Blackstone Credit in exchange for a non-controlling common equity interest in the JV. The funds will primarily be used to reduce EQT's existing debt obligations, including its term loan and revolving credit facility. This significant cash injection is a vital step toward optimizing EQT's financial health, enabling further investment in its core operations.

Debt Reduction Strategy

Following the successful closure of this agreement, EQT will focus on paying down its bridge term loan facility, which had funded the redemption and repurchase of specific senior notes linked to EQM Midstream Partners, LP. This strategic move will streamline EQT's capital structure, thereby positioning the company for sustainable growth in a competitive market.

Advisory Teams Supporting the Transaction

The transaction witnessed the support of key advisors from both companies. RBC Capital Markets, LLC served as the financial advisor for EQT, while Kirkland & Ellis LLP acted as the legal counsel throughout the process. On the other side, Blackstone was guided by Citi as its financial advisor, alongside legal expertise from Milbank LLP. This strong team of advisors was instrumental in ensuring a smooth transaction.

About EQT Corporation

EQT Corporation stands tall as a premier American natural gas company. Its operations are primarily focused in the Appalachian Basin, which is renowned for its rich natural resources. EQT is committed to developing its asset base sustainably, aiming to be the operator of choice among stakeholders. By emphasizing operational efficiency and innovative technology, the company strives to produce low-cost and eco-friendly energy solutions. Safety remains a paramount concern, with EQT promising to prioritize the welfare of its employees, contractors, and the surrounding communities.

About Blackstone Credit & Insurance

Blackstone Credit & Insurance (BXCI) is recognized as a top-tier credit investor globally. The firm engages across various credit markets, covering private investment grade, high yield, and infrastructure debt among others. BXCI's investment strategy aims to yield attractive risk-adjusted returns, making it a trusted partner for institutional and individual investors looking to enhance their capital base. Furthermore, BXCI excels in providing investment management services tailored for insurers, ensuring better performance for policyholders.

Frequently Asked Questions

What is the main focus of the joint venture between EQT and Blackstone?

The JV aims to enhance operational capabilities and financial stability, benefiting both EQT and Blackstone Credit.

How much cash consideration did EQT receive from Blackstone Credit?

EQT received $3.5 billion in cash consideration from Blackstone Credit as part of the joint venture agreement.

What will EQT do with the cash proceeds from the joint venture?

The funds will be used to pay down existing debt, including term loans and revolving credit facilities.

Who were the advisors involved in this transaction?

RBC Capital Markets acted as EQT's financial advisor, while Citi served the same role for Blackstone. Legal counsel was provided by Kirkland & Ellis for EQT and Milbank for Blackstone.

What is the mission statement of EQT Corporation?

EQT's mission is to responsibly develop its world-class asset base while prioritizing operational efficiency and sustainability.

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