8-KMaterial Agreements

EQT Corp 8-K Report, Agreement Terminated (Mar 31, 2015)

Filed March 31, 2015For Securities:EQT

Summary

EQT Corporation (EQT) filed an 8-K on March 31, 2015, reporting the termination of a material definitive agreement related to its subsidiary MVP Holdco, LLC. On March 30, 2015, EQT assigned its 100% membership interest in MVP Holdco to its affiliated entity, EQT Midstream Partners, LP (EQT Midstream). MVP Holdco holds a significant interest in the Mountain Valley Pipeline joint venture, which is being developed to construct and operate a major natural gas pipeline. This transaction effectively transfers the ownership and development of EQT's stake in the Mountain Valley Pipeline project to EQT Midstream.

Key Highlights

  • 1EQT Corporation assigned 100% of its indirect subsidiary, MVP Holdco, LLC, to EQT Midstream Partners, LP.
  • 2MVP Holdco, LLC holds a significant interest (approximately 55%) in the Mountain Valley Pipeline, LLC joint venture.
  • 3The Mountain Valley Pipeline joint venture is focused on the construction, ownership, and operation of a natural gas pipeline.
  • 4As consideration, EQT Midstream Partners, LP will reimburse EQT Corporation for all capital contributions made to MVP Holdco.
  • 5This transaction effectively moves the Mountain Valley Pipeline project stake from EQT Corporation to its controlled midstream affiliate, EQT Midstream Partners, LP.
  • 6EQT Corporation retains control over EQT Midstream Partners, LP, owning its general partner, general partner interest, and incentive distribution rights, along with a ~30.2% limited partner interest.

Frequently Asked Questions

The main event is EQT Corporation's assignment of its indirect subsidiary, MVP Holdco, LLC, to its affiliated EQT Midstream Partners, LP. This effectively transfers EQT's interest in the Mountain Valley Pipeline project to the midstream partnership.

MVP Holdco, LLC is important because it holds a substantial interest (approximately 55%) in the Mountain Valley Pipeline, LLC joint venture, which is developing a significant natural gas pipeline.

EQT Corporation will be reimbursed by EQT Midstream Partners, LP for all capital contributions it previously made to MVP Holdco, LLC as consideration for the assignment.

Yes, EQT Corporation maintains control over EQT Midstream Partners, LP, which now owns MVP Holdco. EQT Corporation owns the general partner of EQT Midstream Partners, LP, all of its general partner interest and incentive distribution rights, and a ~30.2% limited partner interest in the partnership.