•  
  •  
  •  
  •  
  •  
  • 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

    Williams rejects $48B buyout offer from Energy Transfer Equity

    06/22/2015 Williams Co. has rejected a $48 billion buyout offer from Energy Transfer Equity LP. Williams plans to explore strategic alternatives following receipt of Energy Transfer Equity’s unsolicited propo...

    Carlyle Group commits up to $500M to Magna Energy

    06/22/2015 The Carlyle Group is committing an equity line up to $500 million in Magna Energy Ltd., an upstream oil and gas company co-founded and led by two former Cairn Energy executives, Mike Watts and Jann...

    WPX Energy adds acreage in Gallup oil play

    06/22/2015

    WPX Energy has completed the purchase of another 14,300 net acres in the San Juan Basin’s Gallup oil window from an undisclosed seller for $26 million.

    Harvest secures funding, partnership for Venezuelan operations

    06/22/2015 Harvest Natural Resources Inc. says that CT Energy Holding SRL has agreed to purchase from Harvest senior secured notes, convertible notes, and warrants. Harvest will receive proceeds of $32.2 mill...

    Rosneft and BP sign production, exploration and refining agreements

    06/19/2015 On June 19, at the St. Petersburg International Economic Forum in Russia, Rosneft and BP signed several agreements strengthening the long-term strategic relationship between the two companies.

    Wood Group secures offshore contract from Saudi Aramco

    06/19/2015 Wood Group plc has been awarded an offshore maintain potential program contract by Saudi Aramco for greenfield and brownfield engineering services, procurement, and construction management support ...

    More Oil & Gas Financial Articles

    Williams rejects $48B buyout offer from Energy Transfer Equity

    Mon, Jun 22, 2015

    Williams Co. has rejected a $48 billion buyout offer from Energy Transfer Equity LP. Williams plans to explore strategic alternatives following receipt of Energy Transfer Equity’s unsolicited proposal to acquire Williams in an all-equity transaction at a stated per share price of $64.00. The proposal was also contingent on the termination of Williams’ pending acquisition of Williams Partners LP.

    Carlyle Group commits up to $500M to Magna Energy

    Mon, Jun 22, 2015

    The Carlyle Group is committing an equity line up to $500 million in Magna Energy Ltd., an upstream oil and gas company co-founded and led by two former Cairn Energy executives, Mike Watts and Jann Brown.

    WPX Energy adds acreage in Gallup oil play

    Mon, Jun 22, 2015

    WPX Energy has completed the purchase of another 14,300 net acres in the San Juan Basin’s Gallup oil window from an undisclosed seller for $26 million.

    Harvest secures funding, partnership for Venezuelan operations

    Mon, Jun 22, 2015

    Harvest Natural Resources Inc. says that CT Energy Holding SRL has agreed to purchase from Harvest senior secured notes, convertible notes, and warrants. Harvest will receive proceeds of $32.2 million from the sale of the senior secured notes and convertible notes, and could realize up to $42.5 million in additional proceeds from the full exercise of the warrants, which is subject to stockholder approval. 

    Rosneft and BP sign production, exploration and refining agreements

    Fri, Jun 19, 2015

    On June 19, at the St. Petersburg International Economic Forum in Russia, Rosneft and BP signed several agreements strengthening the long-term strategic relationship between the two companies.

    OGFJ photo of the day


    Click to view slideshow

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ