EQM Midstream Partners LP is now a subsidiary of Equitrans Midstream Corp. after the two companies completed a merger on Wednesday that was set into motion two years ago.
EQM’s common units have stopped trading on the New York Stock Exchange. The two companies agreed to a share-for-unit exchange in February in which each EQM outstanding common unit would be exchanged for 2.44 shares of Equitrans.
Equitrans was created after EQT Corp. in 2018 completed a complex separation of its upstream and midstream assets, which did not give Equitrans complete ownership of EQM. EQT, which is now Equitrans’ largest producer customer, spun-off Equitrans following a buying spree in 2016 and 2017 that ballooned the assets and created the need to simplify its corporate structure.
Appalachian pure-play EQT recently sold half of its equity stake in Equitrans, which is now the nation’s third largest natural gas gatherer, with assets spread across the Marcellus and Utica shales in Ohio, Pennsylvania and West Virginia.
Equitrans is also the developer of the Mountain Valley Pipeline (MVP), one of Appalachia’s remaining greenfield infrastructure projects that has battled through years of legal and regulatory delays.
Equitrans said last week that MVP is 92% complete, but in-service is now expected early next year, slipping from the most recent target of late 2020.
The company also said total costs for the 303-mile pipeline, which would move gas from Appalachia to markets in the Mid-Atlantic and Southeast, could be about 5% above the current $5.4 billion estimate.
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