EQT Midstream Partners, a midstream vehicle formed by EQT Corp, filed with US regulators to raise up to $250 million in an initial public offering of common units. The midstream company will own, operate, acquire and develop midstream assets in the Appalachian Basin in eastern United States.
In December, natural gas producer EQT Corp revealed its plans to sell a limited partner interest in its master limited partnership (MLP) through an IPO to fund development of its Marcellus shale assets.
In a filing with the US Securities and Exchange Commission, Pittsburgh, Pennsylvania-based EQT Midstream Partners said Citigroup and Barclays Capital would underwrite the IPO. The filing comes close on the heels of Quicksilver Resources' plans to take its Barnett Shale MLP public in a $250 million offering. MLPs have become favoured by owners of cash-generating pipeline and other energy infrastructure assets in recent years because they pay virtually no corporate taxes, giving them a lower cost of capital. During the nine months ended September 30, about 65 percent of the MLP's natural gas transmission and gathering volumes were comprised of natural gas produced by EQT.
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