•  
  •  
  •  
  •  
  •  
  • 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.

     

    Most Popular

    Related Articles

    ADNOC and OXY sign $500M technical agreement

    02/10/2015 Abu Dhabi National Oil Co. (ADNOC) has signed a technical agreement with Occidental Petroleum Corp. to develop the offshore al-Hail and Ghasha oil fields in the Persian Gulf, according to Reuters.

    Kinder Morgan to purchase Vopak US terminals and undeveloped site for $158M

    02/10/2015

    Kinder Morgan Inc. plans to purchase three terminals and one undeveloped site from Royal Vopak for $158 million.

    C&J Energy amends transaction with Nabors

    02/10/2015 C&J Energy Services Inc. will reduce by $250 million the cash portion of the consideration to be received by Nabors Industries Ltd. upon closing of the proposed combination of C&J with the ...

    Zenith Energy acquires Bantry Bay oil terminal

    02/09/2015 Zenith Energy, an international liquids and bulk terminaling company, has acquired the Bantry Bay oil terminal in West Cork, Ireland, from Phillips 66. Terms of the transaction were not disclo...

    MEO relinquishes Blackwood stake to Eni Australia

    02/09/2015

    MEO Australia Ltd. has elected to withdraw from the Blackwood gas discovery in the Timor Sea offshore Australia at no cost, transferring that area of NT/P68 to Eni Australia Ltd.

    Inpex to sell stake in Louisiana gas block

    02/09/2015 Inpex Corp., through its wholly owned subsidiary, Teikoku Oil (North America) Co. Ltd., has agreed to sell all its participating interest (25%) in Block SL20183 in Louisiana to Sibley Petroleum Inv...
    More Oil & Gas Financial Articles

    ADNOC and OXY sign $500M technical agreement

    Tue, Feb 10, 2015

    Abu Dhabi National Oil Co. (ADNOC) has signed a technical agreement with Occidental Petroleum Corp. to develop the offshore al-Hail and Ghasha oil fields in the Persian Gulf, according to Reuters.

    Kinder Morgan to purchase Vopak US terminals and undeveloped site for $158M

    Tue, Feb 10, 2015

    Kinder Morgan Inc. plans to purchase three terminals and one undeveloped site from Royal Vopak for $158 million.

    C&J Energy amends transaction with Nabors

    Tue, Feb 10, 2015

    C&J Energy Services Inc. will reduce by $250 million the cash portion of the consideration to be received by Nabors Industries Ltd. upon closing of the proposed combination of C&J with the completion and production services business of Nabors.

    Zenith Energy acquires Bantry Bay oil terminal

    Mon, Feb 9, 2015

    Zenith Energy, an international liquids and bulk terminaling company, has acquired the Bantry Bay oil terminal in West Cork, Ireland, from Phillips 66. Terms of the transaction were not disclosed.

    MEO relinquishes Blackwood stake to Eni Australia

    Mon, Feb 9, 2015

    MEO Australia Ltd. has elected to withdraw from the Blackwood gas discovery in the Timor Sea offshore Australia at no cost, transferring that area of NT/P68 to Eni Australia Ltd.

    OGFJ photo of the day


    Click to view slideshow

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ