EQT Sells AVC Pipeline System to Itself for $275M

EQT logoEQT, one of the largest Marcellus/Utica drillers, also owns a sizable pipeline subsidiary, EQT Midstream. EQT announced yesterday it is transferring ownership of its Allegheny Valley Connector pipeline system, which includes several Marcellus Shale gathering pipeline systems, from the Mothership to the child company. They will take $275 million out of one pocket and put it in a different pocket–on the same pair of pants. Such is how things are done in high finance. EQT picked up Allegheny Valley Connector in a $720 million deal with Peoples Natural Gas in 2013 (see Pittsburgh Driller & Gas Utility Co Want to Swap Assets). Allegheny Valley Connector is located in the Marcellus Shale region and its primary function is to store and transport natural gas to numerous Peoples’ interconnects, including use by Peoples and other gas suppliers to provide local distribution service to Peoples’ customers. Here’s the announcement that EQT is transferring ownership on paper…

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