EQM Midstream Partners’s $1.03 Billion Strategic Acquisition of Eureka Midstream and Hornet Midstream

Citi and Guggenheim Securities, LLC acted as financial advisors and Latham & Watkins acted as legal advisor to ETRN and EQM. Citi and Guggenheim Securities, LLC also acted as joint placement agents for the Convertible Preferred Units issuance. Vinson & Elkins advised Morgan Stanley Infrastructure Partners on the deal

Equitrans Midstream Corporation (NYSE: ETRN) and EQM Midstream Partners, LP (NYSE: EQM) today announced that EQM has completed the acquisition of a 60% interest in Eureka Midstream Holdings, LLC (Eureka Midstream) and a 100% interest in Hornet Midstream Holdings, LLC (Hornet Midstream) for total consideration of $1,030 million, comprised of approximately $860 million in cash and approximately $170 million of assumed pro-rata debt. Concurrently, EQM closed the private placement of $1.2 billion of newly issued Series A Perpetual Convertible Preferred Units (Convertible Preferred Units). A portion of the net proceeds from the private placement was allocated to the cash purchase price of the acquisition, with the remaining net proceeds to be used for general purposes.

Eureka Midstream is a 190-mile gathering header pipeline system in Ohio and West Virginia that services both dry Utica and wet Marcellus production. Hornet Midstream is a 15-mile, high-pressure gathering system in West Virginia that connects to the Eureka system.

The V&E corporate team was led by partner Peter Marshall (Picture) with senior associates Matt Falcone and Jeannie Poland and associates H.T. Flanagan and Daryne Foote. Also advising were partners John Lynch, Stephen Jacobson, Sean Becker, John Decker and Hill Wellford.

Involved fees earner: Sean Becker – Vinson & Elkins LLP; John Decker – Vinson & Elkins LLP; Matthew Falcone – Vinson & Elkins LLP; Daryne Foote – Vinson & Elkins LLP; Stephen Jacobson – Vinson & Elkins LLP; John Lynch – Vinson & Elkins LLP; Peter Marshall – Vinson & Elkins LLP; Jeannie Poland – Vinson & Elkins LLP; Hill Wellford – Vinson & Elkins LLP;

Law Firms: Vinson & Elkins LLP;

Clients: Morgan Stanley Infrastructure Partners;