|
Explanation of Responses:
|
|
(1)
|
Pursuant to a simplification transaction effective as of February 22, 2019 (the Simplification Transaction), (i) Equitrans Merger Sub, LP, a Delaware limited partnership and wholly owned subsidiary of EQM Midstream Partners, LP, a Delaware limited partnership (the Issuer), merged with and into EQGP Holdings, LP, a Delaware limited partnership (EQGP), a wholly owned indirect subsidiary of Equitrans Midstream Corporation, a Pennsylvania corporation (ETRN), and the record and beneficial owner of 21,811,643 common units representing limited partner interests (Common Units) in the Issuer, (ii) the 21,811,643 Common Units held by EQGP were cancelled and 21,811,643 Common Units were issued pro rata to Equitrans Gathering Holdings, LLC, a Delaware limited liability company (EGH), Equitrans Midstream Holdings, LLC, a Delaware limited liability company (EMH), and EQM GP Corporation, a Delaware corporation (GP Corporation), (sentence continues in next footnote)
|
|
(2)
|
(continued from footnote 1) and (iii) each of (a) the incentive distribution rights in the Issuer (the IDRs), (b) the economic portion of the general partner interest in the Issuer and (c) the issued and outstanding common units representing limited partner interests in EQGP were cancelled, and, as consideration for such cancellation, EGH, EMH and GP Corporation received in the aggregate 80,000,000 newly-issued Common Units and 7,000,000 newly-issued Class B Units, both representing limited partner interests in the Issuer. The Class B Units are a separate class from the Common Units.
|
|
(3)
|
This Form 4 with respect to ownership of Common Units is jointly filed by (i) ETRN, (ii) EMH, (iii) EGH, (iv) EQGP and (v) EQGP Services, LLC, a Delaware limited liability company (EQGP Services, and collectively, the Reporting Persons).
|
|
(4)
|
ETRN is the sole member of EMH and EGH. EGH is the sole stockholder of GP Corporation. Following the closing of the Simplification Transaction, EGH is the record owner of 89,505,616 Common Units and 6,153,907 Class B Units, and, as the sole stockholder of GP Corporation, EGH may be deemed to beneficially own an additional 89,536 Common Units and 6,155 Class B Units. Prior to the closing of the Simplification Transaction, EMH was the record and beneficial owner of 15,433,812 Common Units and, following the closing of the Simplification Transaction, EMH is the record and beneficial owner of 27,650,303 Common Units and 839,938 Class B Units.
|
|
(5)
|
As the sole member of EMH and EGH, ETRN may be deemed to beneficially own the 89,595,152 Common Units beneficially owned by EGH and the 27,650,303 Common Units beneficially owned by EMH, as well as the 6,160,062 Class B Units beneficially owned by EGH and the 839,938 Class B Units beneficially owned by EMH.
|
|
(6)
|
Prior to the Simplification Transaction, EQGP owned 21,811,643 Common Units. EQGP Services was the general partner of EQGP and may have been deemed to beneficially own the 21,811,643 Common Units held by EQGP. Following the Simplification Transaction, EQGP Services became the general partner of the Issuer and EQGP became a wholly-owned subsidiary of the Issuer and neither EQGP Services nor EQGP beneficially own any Common Units.
|
|
(7)
|
Of the 7,000,000 outstanding Class B Units, 2,500,000 become convertible into Common Units on a one-to-one basis at the option of the holder on April 1, 2021, 2,500,000 become convertible into Common Units on a one-to-one basis at the option of the holder on April 1, 2022 and 2,000,000 become convertible into Common Units on a one-to-one basis at the option of the holder on April 1, 2023. Class B Units do not have an expiration date.
|