EQT Closes Gas Utility Sale
PITTSBURGH -- December 17, 2013
EQT Corporation (NYSE: EQT) today announced that it completed the transfer of
its natural gas distribution business, Equitable Gas Company, LLC, to Peoples
Natural Gas.The transaction included a cash payment of approximately $740
million to EQT, which includes a $720 million base price and $20 million of
initial purchase price adjustments; as well as select midstream assets and
"During the last five years, our business strategy has focused on Marcellus
Shale development as we intensified efforts to grow our natural gas
exploration and production program, and expand our midstream operations. This
transaction provides capital to continue investing in EQT's core businesses –
delivering shareholder value and providing sustained economic growth in our
operating regions," said David Porges, Chief Executive Officer of EQT
Corporation. "With a modest amount of capital, the acquired midstream assets
will become a valuable addition to our strategically located pipeline network
– serving EQT Production and other Marcellus natural gas producers," continued
The newly acquired Marcellus midstream assets include approximately 200 miles
of transmission pipelines and four storage pools. The long-term commercial
contracts for EQT to provide gas transmission and storage to Peoples will
facilitate the local use of the region's low-cost Marcellus gas and reduce the
region's reliance on gas from the U.S. Gulf Coast.
About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on Appalachian
area natural gas production, gathering, and transmission. EQT is the general
partner and significant equity owner of EQT Midstream Partners, LP. With more
than 120 years of experience, EQT continues to be a leader in the use of
advanced horizontal drilling technology – designed to minimize the potential
impact of drilling-related activities and reduce the overall environmental
footprint. Through safe and responsible operations, the Company is committed
to meeting the country’s growing demand for clean-burning energy, while
continuing to provide a rewarding workplace and enrich the communities where
its employees live and work. Company shares are traded on the New York Stock
Exchange as EQT.
Visit EQT Corporation at www.EQT.com.
About Peoples Natural Gas:
Peoples Natural Gas and its sister company Peoples TWP, both subsidiaries of
SteelRiver Infrastructure Partners, provide safe and reliable natural gas
distribution services to approximately 420,000 homes and businesses in 18
western Pennsylvania counties. SteelRiver Infrastructure Partners is an
independent investment management firm with over $4 billion of AuM that
invests in core infrastructure in North America for the long term, seeking out
assets and businesses that provide essential services with stable cash flows
and often operating within a regulated framework.
The purchase price is subject to additional post-closing adjustments.
Disclosures in this press release contain certain forward looking statements.
Words such as "will," "anticipate," "estimate," "expect," "project," "intend,"
"plan," "believe," "target," "forecast," and words and terms of similar
substance used in connection with any discussion of future plans, actions, or
events identify forward-looking statements. Without limiting the generality of
the foregoing, forward-looking statements contained in this press release
specifically include statements regarding the amount of capital required for
the acquired midstream assets and the effects of the commercial contracts on
the local use of the region’s Marcellus gas and the region’s reliance on gas
from the U.S. Gulf Coast. EQT has based these forward-looking statements on
current expectations and assumptions about future events. These statements are
not guaranties of future performance or events and are subject to significant
business, economic, competitive, regulatory and other risks and uncertainties,
most of which are difficult to predict and many of which are beyond EQT’s
control that could cause actual results to differ materially from projected
results. Additional risks and uncertainties include, but are not limited to,
those set forth under Item 1A, “Risk Factors” of EQT’s Form 10-K filed for the
year ended December 31, 2012, as updated by any subsequent Form 10-Qs.
Any forward-looking statement speaks only as of the date on which such
statement is made and EQT undertakes no obligation to correct or update any
forward-looking statement, whether as a result of new information, future
events or otherwise.
Analyst inquiries please contact:
Patrick Kane, 412-553-7833
Chief Investor Relations Officer
Nate Tetlow, 412-553-5834
Manager, Investor Relations
Media inquiries please contact:
Natalie Cox, 412-395-3941
Corporate Director, Communications
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