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EQT Midstream to buy Sunrise Pipeline in USD540m deal.

M2 EQUITYBITES-July 16, 2013-EQT Midstream to buy Sunrise Pipeline in USD540m deal(C)2013 M2 COMMUNICATIONS http://www.m2.com

16 July 2013 - US transportation and storage services provider EQT Midstream Partners LP (NYSE:EQM), controlled by energy group EQT Corp (NYSE:EQT), will acquire its parent's 100% interest in Sunrise Pipeline LLC in a USD540m (EUR413m) deal, the pair said in a joint statement.

The payable consideration includes USD507.5m in cash plus USD32.5m in common and general partners units. The partnership will also pay some USD110m to the vendor once a new transportation contract with a third-party takes effect post-closing.

EQT Midstream's management estimates that the purchase will be immediately accretive to the partnership's distributable cash flow per unit. The target has been valued based on the current value of anticipated future cash flows, which EQT expects to improve significantly in 2014 and 2015.

Evercore Partners Inc (NYSE:EVR) and Richards, Layton & Finger PA consulted the buyer's conflicts committee of independent directors, while Baker Botts LLP advised the vendor.

Sunrise is the owner of a 41.5-mile (66.79-km) pipeline from West Virginia to Pennsylvania, the Jefferson compressor station and an interconnect with the Texas Eastern pipeline in Greene County, Ohio.

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Publication:M2 EquityBites (EQB)
Date:Jul 16, 2013
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