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EQT completes midstream business spinoff into new company

The top U.S. natural gas producer EQT Corp. completed the separation of its natural gas upstream and midstream businesses, forming Equitrans Midstream Corp. to control EQT's natural gas gathering and transmission pipelines in the Marcellus and Utica shale region.

Equitrans Midstream's growth projects in the Appalachian Basin include gas gathering and transportation to local, regional and national markets, as well as water and other midstream services to Appalachian producers. Among these projects is the planned Mountain Valley natural gas pipeline, which is expected to contribute EBITDA growth of over 50% over the next three years, according to Equitrans Midstream COO Diana Charletta.

Robert McNally became president and CEO of EQT after the closing of the separation. With the separation, EQT plans to renew its focus on its upstream business, whose Appalachian asset base is located in Pennsylvania, West Virginia and Ohio.

The spinoff became effective Nov. 12 upon the distribution of 80.1% of Equitrans Midstream common shares, with EQT shareholders receiving 0.80 Equitrans Midstream share for each EQT share held. EQT holds the remaining 19.9% of Equitrans Midstream's outstanding shares. Equitrans Midstream will begin trading Nov. 13 on the NYSE under the symbol ETRN.

Equitrans Midstream also owns the general partner interest and a 91.3% limited partner interest in EQGP Holdings LP, which owns the general partner interest, all the incentive distribution rights and a roughly 17.9% stake in EQM Midstream Partners LP. Equitrans Midstream owns a 12.7% stake in EQM Midstream.

EQM Midstream in July completed its unit-for-unit merger with Rice Midstream Partners LP, which, along with the separation, is also part of EQT's strategy to streamline its midstream business.