EQM Midstream Partners LP, a unit of Equitrans Midstream Corporation, is set to acquire a 60 percent interest in Eureka Midstream Holdings LLC and 100 percent interest in Hornet Midstream Holdings LLC for total consideration of $1.03 billion.
- 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.
- Combined, the gathering system assets and complementary water services opportunities are expected to generate approximately $100 million of EQM EBITDA during the first 12 months.
- EQM will fund the acquisition with cash proceeds from the issuance of $1.1 billion of newly issued Series A Convertible Preferred Units.
EQM CEO Thomas F. Karam said in a statement, “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. 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."