EQT Corp. (EQT) Update - Nov 26

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PITTSBURGH, Nov. 25, 2024 /PRNewswire/ -- EQT Corporation (NYSE: EQT)
announced today that it has entered into a definitive agreement with funds
managed by Blackstone Credit & Insurance ("BXCI"), to form a new midstream
joint venture (the "JV") consisting of EQT's ownership interest in high
quality contracted infrastructure assets: (i) Mountain Valley Pipeline, LLC –
Series A, (ii) FERC regulated transmission and storage assets, and (iii) the
Hammerhead Pipeline.^(1)

EQT Logo (June 2020) (PRNewsfoto/EQT Corporation)

Under the terms of the agreement BXCI will provide EQT $3.5 billion of cash
consideration in exchange for a non-controlling common equity interest in the
JV. The investment implies a total JV valuation of approximately $8.8 billion,
or 12x EBITDA.^(2) The JV provides EQT with a large-scale equity capital
solution at an accretive cost of capital. Additionally, EQT will retain the
rights to growth projects associated with the assets contributed to the JV,
including the planned Mountain Valley Pipeline ("MVP") expansion and the MVP
Southgate project.

EQT plans to use proceeds from this transaction to pay down its term loan and
revolving credit facility and redeem and tender for senior notes. Pro-forma
for this transaction, along with the recent announcement of the divesture of
its remaining non-operated assets in northeast Pennsylvania, EQT expects to
exit 2024 with approximately $9 billion of net debt.^(3)

EQT has posted a presentation to its investor relations website with more
details on the transaction.

EQT President and CEO Toby Z. Rice stated, "This transaction underscores the
ultra-high-quality nature of EQT's regulated midstream assets, which service
one of the strongest power demand growth regions in the United States
underpinned by long-term contracts with the region's leading utilities.
Importantly, through this joint venture EQT preserves the benefits of the
Equitrans acquisition by retaining the long-term value from synergy capture
and growth projects. We look forward to working with Blackstone to optimize
the value of these assets and together explore strategic opportunities across
its leading portfolio of energy, power and digital infrastructure in the years
ahead."

EQT Chief Financial Officer Jeremy Knop stated, "Blackstone is a leader in
providing capital solutions to large corporations and we are thrilled to
partner with them in this unique transaction, crafting a tailor-made equity
financing solution at a price significantly below EQT's equity cost of capital
while preserving key tax attributes. When we announced the Equitrans
acquisition earlier this year, we made an unwavering commitment to debt
reduction. We have now delivered on that promise, with announced divestitures
to date totaling $5.25 billion of projected cash proceeds, above the high-end
of our $3-$5 billion asset sale target, and several quarters ahead of
schedule."

Robert Horn, Global Head of Infrastructure & Asset-Based Credit at BXCI
stated, "EQT is one of the leading energy and infrastructure companies in
North America, and we are delighted to partner with them on this transaction
and future growth. The transaction highlights Blackstone's focus on providing
large scale and flexible high-grade capital solutions to the world's leading
corporations."

Rick Campbell, Managing Director at BXCI, added, "These critical midstream
assets benefit from strong tailwinds as demand for energy, particularly
natural gas, continues to grow. Blackstone's scale and expertise in this high
conviction sector allowed us to create what we believe is a compelling
opportunity for both EQT and our investors."

The transaction is subject to customary closing adjustments, required
regulatory approvals and clearances, and is expected to close in the fourth
quarter of 2024.

(1) The Hammerhead Pipeline is a 1.6 billion cubic feet per day gathering
header pipeline primarily designed to connect natural gas produced in
Pennsylvania and West Virginia to MVP, Texas Eastern Transmission and Eastern
Gas Transmission.
(2) JV valuation derived by dividing projected 2025-2029 average JV free
cash flow by target return. EBITDA multiple derived by dividing JV valuation
by projected 2025-2029 average JV EBITDA.
(3) A non-GAAP financial measure. See the Non-GAAP Disclosures section of
this news release for the definition of, and other important information
regarding, this non-GAAP financial measure.

Advisors
RBC Capital Markets, LLC acted as financial advisor to EQT. Kirkland & Ellis
LLP is serving as EQT's legal counsel on the transaction.

Citi acted as financial advisor to Blackstone. Milbank LLC is serving as
Blackstone's legal counsel on the transaction.

EQT Investor Contact
Cameron Horwitz
Managing Director, Investor Relations & Strategy
412.445.8454
Cameron.Horwitz@eqt.com

Blackstone Contact
Thomas Clements
Senior Vice President, Public Affairs
646.482.6088
Thomas.Clements@blackstone.com

About EQT Corporation
EQT Corporation is a premier, vertically integrated American natural gas
company with production and midstream operations focused in the Appalachian
Basin. We are dedicated to responsibly developing our world-class asset base
and being the operator of choice for our stakeholders. By leveraging a culture
that prioritizes operational efficiency, technology and sustainability, we
seek to continuously improve the way we produce environmentally responsible,
reliable and low-cost energy. We have a longstanding commitment to the safety
of our employees, contractors, and communities, and to the reduction of our
overall environmental footprint. Our values are evident in the way we operate
and in how we interact each day – trust, teamwork, heart, and evolution are at
the center of all we do. To learn more, visit eqt.com.

About Blackstone Credit & Insurance
Blackstone Credit & Insurance ("BXCI") is one of the world's leading credit
investors. Our investments span the credit markets, including private
investment grade, asset based lending, public investment grade and high yield,
sustainable resources, infrastructure debt, collateralized loan obligations,
direct lending and opportunistic credit. We seek to generate attractive
risk-adjusted returns for institutional and individual investors by offering
companies capital needed to strengthen and grow their businesses. BXCI is also
a leading provider of investment management services for insurers, helping
those companies better deliver for policyholders through our world-class
capabilities in investment grade private credit.