ETRN Closes EQM Incentive Distribution Rights Transaction
February 22 2019 - 4:05PM
Business Wire
Equitrans Midstream Corporation (NYSE: ETRN), EQM Midstream
Partners, LP (NYSE: EQM), and certain of their affiliates have
closed the previously announced transaction to exchange and
eliminate the EQM Incentive Distribution Rights (IDRs) and
restructure the economic general partner interest in EQM. As part
of the transaction, the IDRs and economic general partner interest
in EQM were canceled in exchange for 80 million newly issued EQM
common units and 7 million newly issued EQM Class B units, both of
which represent limited partner interests in EQM, and ETRN retained
a non-economic general partner interest in EQM.
ETRN now owns approximately 60% of the limited partner interest
in EQM, which includes 117.2 million EQM common units and 7 million
EQM Class B units.
The EQM Class B units are not entitled to receive cash
distributions from EQM until they become convertible into EQM
common units. At the holder’s option, the Class B units will be
convertible into EQM common units in three tranches: 2.5 million
units convertible on April 1, 2021; 2.5 million units convertible
on April 1, 2022; and 2 million units convertible on April 1,
2023.
About Equitrans Midstream Corporation
Equitrans Midstream Corporation (ETRN) has a premier asset
footprint in the Appalachian Basin and is one of the largest
natural gas gatherers in the United States. With a rich 135-year
history in the energy industry, ETRN was launched as a standalone
company in 2018 and, through its subsidiaries, has an operational
focus on gas gathering systems, transmission and storage systems,
and water services assets that support natural gas producers across
the Basin. ETRN is helping to meet America’s growing need for
clean-burning energy, while also providing a rewarding workplace
and enriching the communities where its employees live and work.
ETRN owns the non-economic general partner interest and an
approximate 60% limited partner interest in EQM.
For more information on Equitrans Midstream Corporation, visit
www.equitransmidstream.com
About EQM Midstream Partners
EQM Midstream Partners, LP (EQM) is a growth-oriented limited
partnership formed to own, operate, acquire, and develop midstream
assets in the Appalachian Basin. As one of the largest gatherers of
natural gas in the United States, EQM provides midstream services
to producers, utilities, and other customers through its
strategically located natural gas transmission, storage, and
gathering systems, and water services to support energy development
and production in the Marcellus and Utica regions. EQM owns
approximately 950 miles of FERC-regulated interstate pipelines and
approximately 2,200 miles of high- and low-pressure gathering
lines.
For more information on EQM Midstream Partners, LP, visit
www.eqm-midstreampartners.com
Source: Equitrans Midstream Corporation
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version on businesswire.com: https://www.businesswire.com/news/home/20190222005259/en/
Analyst/Investor inquiries:Nate Tetlow -- Vice President,
Corporate Development and Investor
Relations412-553-5834ntetlow@equitransmidstream.com
Media inquiries:Natalie A. Cox -- Director, Corporate
Communications412-395-3941ncox@equitransmidstream.com
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