EQM Midtream Partners LP has completed its acquisition of a 60 percent interest in Eureka Midstream Holdings LLC and a 100 percent interest in Hornet Midstream Holdings LLC. The deal’s total consideration of $1.03 billion comprised of approximately $860 million in cash and $170 million of assumed pro-rata debt.
Concurrently, the unit of Equitrans Midstream Corp. closed the private placement of $1.2 billion of newly issued Series A Convertible Preferred Units. A portion of the proceeds from the private placement was allocated to the acquisition’s cash purchase price, with the remaining to be used for general purposes.
“These value-enhancing assets will diversify our producer customer mix and increase exposure to wet Marcellus acreage; expand our supply hub and create additional commercial opportunities; reduce unit operating costs through increased scale; and accelerate opportunities for our water services business,” EQM COO Diana M. Charletta said, in a statement.
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.