| 2016-10-13 16:19:45|
EQT, EQM 16:19 10/13 10/13/16
EQT sells Allegheny Valley, Marcellus assets to EQT Midstream Partners for $275M
EQT (EQT) announced it has sold the Allegheny Valley Connector transmission and storage system, along with several Marcellus gathering systems, to EQT Midstream Partners (EQM) for $275M in cash. The acquisition was effective October 1. "The sale did not include a small gathering system that is currently being evaluated for potential sale to a third-party," the company noted. EQM expects to invest approximately $50M in AVC related growth projects during the remainder of 2016 and into 2017. EQM expects the AVC to generate EBITDA of $31M in 2017, increasing to $35M in 2018. The gathering assets consist primarily of the Applegate, McIntosh, and Terra systems in Pennsylvania; and the Taurus system in West Virginia. EQT has committed to a total of 235 MMCF per day of firm capacity under a 10-year contract on the systems. EQM expects to invest approximately $105M over the next several years to complete planned expansion projects, including the installation of approximately 20 miles of gathering pipeline and four compressor units with 20,000 hp of compression. Upon completion of the expansion projects, EQT's total firm capacity will increase to 365 MMCF per day. EQM expects the gathering systems to generate EBITDA of $16M in 2017, increasing to $30M in 2018.