EQT Corporation Enters Midstream Joint Venture and Initiates Tender Offer and Consent Solicitation

EQT Corporation, a Pennsylvania-based company, disclosed on November 25, 2024, that it had entered a definitive agreement to establish a midstream joint venture through certain subsidiaries, including EQM Midstream Partners, LP. This joint venture agreement was made with an affiliate of Blackstone Credit & Insurance. A news release was issued concerning this development, stating that additional information could be found on EQT’s investor relations website.

The company also announced the commencement of a tender offer by EQM to acquire for cash its outstanding Senior Notes due in 2028, 2048, 2029, and 2030, amounting to a total aggregate purchase price of up to $1.275 billion. Simultaneously, a consent solicitation was initiated by EQM with regard to proposed amendments concerning the reporting covenants contained in the indentures governing the 2028 and 2048 Notes.

Moreover, EQM intends to provide redemption notices to holders of its Senior Notes due in 2025 and 2026, informing them of the planned redemption of all outstanding aggregate principal amounts for each series on December 30, 2024, at prices specified in the respective indentures. As of November 25, 2024, the principal amount outstanding for the 2025 Notes was $400.0 million, and for the 2026 Notes, it was $500.0 million.

The information furnished above shall be considered as “furnished” and not “filed” for regulatory purposes. The Tender Offer and Consent Solicitation are detailed in the Offer to Purchase and Consent Solicitation Statement, which sets forth the terms and conditions. RBC Capital Markets, LLC is acting as the Sole Dealer Manager for the Tender Offer and the Sole Solicitation Agent for the Consent Solicitation.

EQT’s strategic endeavor aims to optimize its debt structure through the reduction of overall debt principal and expects that repurchased notes will be retired. The company plans to finance the tender offer and consent solicitation through borrowings under a new senior unsecured bridge term loan facility, with repayment expected upon completion of a joint venture transaction.

The EQT Corporation remains committed to its operational efficiency, sustainability efforts, and the safety of its employees and associates. Potential risks and uncertainties are outlined, emphasizing that forward-looking statements involve predictive elements and actual results could differ due to various factors. EQT intends to address these risks and adapt to evolving circumstances.

Investors are advised to refer to the Offer to Purchase and Consent Solicitation Statement for comprehensive details on the Tender Offer and the Consent Solicitation, emphasizing that this news release does not serve as an offer to buy or sell any securities. EQT’s ongoing efforts aim to bolster its operational efficiency grounded in trust, teamwork, sustainability, and evolution.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read EQT’s 8K filing here.

EQT Company Profile

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services.