$1.03 billion deal was signed on Thursday by EQM Midstream Partners LP to take control of two pipelines that connect the Marcellus and Utica shale basins, the nation’s biggest gas producing region.
The company will buy a 60 percent stake in Eureka Midstream Holdings LLC and whole of Hornet Midstream Holdings LLC, from a fund managed by Morgan Stanley. As part of the deal, EQM will pay $860 million in cash and assume $170 million of debt.
Eureka Midstream is a 190-mile gathering pipeline system in Ohio and West Virginia that services both Utica and Marcellus production, while Hornet Midstream is a 15-mile, high-pressure gathering system in West Virginia that connects to Eureka system.
“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” EQM Chief Executive Officer Thomas Karam said.