Blackstone invests billions in EQT's midstream business

EQT shares rose significantly after the natural gas producer announced that Blackstone's credit and insurance division would acquire a $3.5 billion stake in its midstream assets through a joint venture. As part of the deal, Blackstone will receive a minority stake in a joint venture that houses three midstream infrastructure projects of the U.S. energy group: the Mountain Valley Pipeline, LLC - Series A, transmission and storage facilities regulated by the Federal Energy Regulatory Commission (FERC), and the Hammerhead Pipeline. The joint venture is valued at approximately $8.8 billion. EQT has announced that it will use the funds generated from the investment to reduce its term loans and revolving credit facility, as well as to repurchase senior notes. Earlier this year, EQT acquired the midstream infrastructure provider Equitrans Midstream Corp. and plans to end 2024 with roughly $9 billion in net debt. The transaction is expected to be completed within the current quarter. Additionally, EQT announced that it will make an offer to repurchase its outstanding senior notes that are due in 2028, 2029, 2030, and 2048. This repurchase is conditional on the completion of the agreement with Blackstone. Following this announcement, EQT shares rose 2% in intraday trading to a two-year high. Blackstone shares fell by more than 1.5%, but they are generally on an upward trend this year with an increase of nearly 50%.