EQM Midstream Announces “Bolt-On” Acquisition
By CT2 Staff15 March 2019
Equitrans Midstream Corp. and EQM Midstream Partners, LP announced that EQM has entered into a definitive agreement with a fund managed by Morgan Stanley Infrastructure Partners to acquire a 60% interest in Eureka Midstream Holdings, LLC and a 100% interest in Hornet Midstream Holdings, LLC for total consideration of $1.03 billion. The proposed acquisition is expected to close on or about April 15, subject to customary regulatory and other closing conditions.
“This bolt-on acquisition, within our footprint, leverages our existing assets and core operating competencies and is the first step in executing our strategy to grow into a top-tier midstream company,” said Thomas F. Karam, chief executive officer of EQM. “These assets will complement EQM’s basin-leading gathering and transmission system, allowing us to continue being the low-cost provider for gas transportation and, increasingly, for water handling as well. As we continue to implement our plan, we are committed to maintaining our strong balance sheet and to delivering shareholder value.”
Eureka Midstream is a 190-mile gathering header pipeline system in Ohio and West Virginia that services both dry Utica and wet Marcellus production. Hornet Midstream is a 15-mile, high-pressure gathering system in West Virginia that connects to the Eureka system.
Eureka and Hornet averaged approximately 1.6 Bcf/d gathered volume during the last quarter of 2018, composed of 67% dry gas and 33% wet gas. They have several interstate pipeline interconnects and access to four major processing plants, as well as access to EQM system and downstream pipelines at Clarington, OH., and Mobley, W.Va.