•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    EQT to sell Jupiter gathering system for $1.18 billion

    EQT Corp.

    EQT Corp. (NYSE: EQT) reports that EQT Midstream Partners LP (NYSE: EQM) (Partnership) has agreed to acquire EQT’s Jupiter natural gas gathering system for $1.18 billion. EQT will receive $1.12 billion of cash and $59 million of common and general partner units. In addition, the Partnership will fund $182 million of expansion projects related to Jupiter.

    The Jupiter system gathers EQT’s Marcellus production in portions of Greene and Washington counties, Pennsylvania, and consists of 35 miles of natural gas gathering pipeline and 21,300 horsepower of compression. Jupiter has a total of 970 MMcf per day of pipeline capacity and six interconnects with the Partnership’s transmission and storage systems.

    The Partnership has agreed to complete several expansion projects related to Jupiter during 2014 and 2015. The 2014 expansions will add 350 MMcf per day of compression capacity, with an in-service date anticipated for the fourth quarter of 2014. The 2015 expansion will add 200 MMcf per day of compression capacity, with an in-service date anticipated for the fourth quarter of 2015. In addition, the Partnership plans to install 20 miles of pipeline during this time. In total, the compression and gathering expansion projects have an estimated cost of $182 million.

    The Jupiter assets are supported by a gathering agreement with EQT that includes 10-year firm capacity reservation commitments. The contracted capacity is initially 225 MMcf per day and will grow to 775 MMcf per day by the end of 2015. EQT will also pay a per-unit fee for volume above the contracted capacity; and expects full-year 2014 firm reservation charges and usage fees to be approximately $130 million. Operating expenses, excluding depreciation and amortization, are forecast to be $20 million in 2014.

    EQT currently holds 48,000 net acres surrounding Jupiter, including 31,000 undeveloped net acres. As of March 31, 2014, a total of 206 Marcellus and nine Upper Devonian wells were drilled in the Jupiter service area. Jupiter’s average daily gathered volume for the first quarter 2014 was 595 MMcf per day.

     

    Related Articles

    Intervale Capital acquires Recapture Solutions

    08/19/2014

    Intervale Capital has acquired Recapture Solutions LLC from Triten Corp. 

    ClearSign to demonstrate next-gen emissions control technology

    08/19/2014 ClearSign Combustion Corp. has entered into a field test agreement with Aera Energy LLC to demonstrate and test its proprietary Duplex tile combustion technology in oil fields located in ...

    LINN Energy to sell assets in Texas Panhandle and western Oklahoma

    08/18/2014 LINN Energy LLC has hired banks to sell its oil production assets in the Texas Panhandle and western Oklahoma in an auction that could raise as much as $2 billion, according to a Reuters report.

    Eland acquires 40% interest in Ubima Field

    08/18/2014 Eland Oil & Gas Plc reports that Wester Ord Oil & Gas Ltd., a wholly owned subsidiary of Eland, has agreed to acquire a 40% participating interest in the Ubima Field, onshore Niger Delta, f...

    Carnarvon to acquire Permit VIC/L31 in Gippsland Basin

    08/18/2014 3D Oil Ltd. reports that, pursuant to the VIC/L31 option deed dated July 4, Carnarvon Hibiscus Pty Ltd., a subsidiary of Hibiscus Petroleum Bhd, has exercised the VIC/L31 option to acquire the VIC/...

    More Oil & Gas Financial Articles

    Intervale Capital acquires Recapture Solutions

    Tue, Aug 19, 2014

    Intervale Capital has acquired Recapture Solutions LLC from Triten Corp. 

    ClearSign to demonstrate next-gen emissions control technology

    Tue, Aug 19, 2014

    ClearSign Combustion Corp. has entered into a field test agreement with Aera Energy LLC to demonstrate and test its proprietary Duplex tile combustion technology in oil fields located in Kern County, California.

     

    LINN Energy to sell assets in Texas Panhandle and western Oklahoma

    Mon, Aug 18, 2014

    LINN Energy LLC has hired banks to sell its oil production assets in the Texas Panhandle and western Oklahoma in an auction that could raise as much as $2 billion, according to a Reuters report.

    Eland acquires 40% interest in Ubima Field

    Mon, Aug 18, 2014

    Eland Oil & Gas Plc reports that Wester Ord Oil & Gas Ltd., a wholly owned subsidiary of Eland, has agreed to acquire a 40% participating interest in the Ubima Field, onshore Niger Delta, from Allgrace Energy Ltd.

    Carnarvon to acquire Permit VIC/L31 in Gippsland Basin

    Mon, Aug 18, 2014

    3D Oil Ltd. reports that, pursuant to the VIC/L31 option deed dated July 4, Carnarvon Hibiscus Pty Ltd., a subsidiary of Hibiscus Petroleum Bhd, has exercised the VIC/L31 option to acquire the VIC/P31 Remaining Interest, with the permit located in the Gippsland Basin, offshore Victoria, Australia, from 3D Oil Ltd. for a consideration of $14.05 million.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ