Equitrans Midstream Corporation to launch post-separation
EQT Corporation (NYSE: EQT) today announced that Thomas F. Karam has
been appointed as Senior Vice President and President, Midstream, of
EQT, effectively immediately. Karam also assumed the roles of President
and Chief Executive Officer of the general partners of EQT Midstream
Partners, LP (NYSE: EQM) and EQT GP Holdings, LP (NYSE: EQGP) and joined
each of the companies’ respective Board of Directors.
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Thomas F. Karam (Photo: Business Wire)
Upon completion of the Company’s upstream and midstream business
separation, it is expected that Karam will become President and Chief
Executive Officer of Equitrans Midstream Corporation, the anticipated
new, publicly traded midstream company; and become a member of its Board
of Directors.
Also in conjunction with the separation, David L. Porges will step down
from the EQT Board of Directors and become Chairman of the Board for
Equitrans Midstream Corporation. Additionally, Karam is expected to
resign as a member of the EQT Board of Directors post-separation.
“Tom is a seasoned industry executive who has made valuable
contributions as a member of the EQT Board of Directors since his
appointment in November 2017 when we closed the acquisition of Rice
Energy. He is well-suited to guide the midstream business, and Equitrans
Midstream Corporation, to take advantage of the opportunities that will
be available to it as an independent, public company,” said Dave Porges,
EQT Chairman.
“It’s been a pleasure to serve on EQT’s Board of Directors and I want to
thank them for this tremendous opportunity,” said Karam. “As we work to
take our midstream company to the next level, we will begin with a few
key areas of focus. Our first order of business will be to keep our
Mountain Valley Pipeline project on-track to meet the Q1 2019 targeted
in-service date; and we will work quickly to simplify our midstream
structure by addressing the incentive distribution rights. Our investors
and customers will be well-served by the talented and strong team that
will lead Equitrans Midstream.”
Karam has been a senior executive and entrepreneur in the midstream
energy sector for more than 25 years. He served as a Founder and
Chairman of Karbon Partners, LLC, which invests in, owns, constructs,
and operates midstream energy assets from April 2017 to August 2018; and
was the founder, Chairman and Chief Executive Officer of PennTex from
2014 until its sale to Energy Transfer Partners in November 2016. Prior
to that, Karam was the founder, Chairman and Chief Executive Officer of
Laser Midstream Partners, LLC (Laser). Laser had several independent
natural gas gathering systems in the northeast Marcellus shale from 2010
until February 2012, when it was acquired by Williams Partners LP, a
publicly traded master limited partnership providing large-scale
infrastructure. Karam was also President, Chief Operating Officer and
Director of Southern Union Company (Southern Union), where he led its
successful transformation from a large, local distribution company to
one of the largest pipeline companies in the United States at the
time. Prior to Southern Union, Karam was President and Chief Executive
Officer of Pennsylvania Enterprises, Inc. and PG Energy, a natural gas
utility in central and northeastern Pennsylvania, until its acquisition
by Southern Union. Karam began his professional career in investment
banking where he spent a number of years with Legg Mason Inc. and
Thomson McKinnon.
Karam’s predecessor, Jeremiah J. Ashcroft III, was relieved of all
duties with EQT and its subsidiaries, effective August 8, 2018.
The proposed Separation remains subject to customary conditions,
including receipt of a private letter ruling from the Internal Revenue
Service with respect to the tax treatment of the transaction for U.S.
federal income tax purposes, the effectiveness of a Form 10 registration
statement to be filed with the Securities and Exchange Commission for
the shares of Equitrans Midstream Corporation, and final approval and
declaration of the spin-off dividend by the EQT Board of Directors.
About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on
Appalachian area natural gas production, gathering, and transmission.
With more than 130 years of experience and a long-standing history of
good corporate citizenship, EQT is the largest producer of natural gas
in the United States. As a leader in the use of advanced horizontal
drilling technology, EQT is committed to minimizing the impact of
drilling-related activities and reducing its overall environmental
footprint. Through safe and responsible operations, EQT is helping to
meet our nation’s growing demand for clean-burning energy, while
continuing to provide a rewarding workplace and enrich the communities
where its employees live and work. EQT owns the general partner interest
and a 91% limited partner interest in EQT GP Holdings, LP. EQT GP
Holdings, LP owns the general partner interest, all of the incentive
distribution rights, and a portion of the limited partner interest in
EQT Midstream Partners, LP.
Visit EQT Corporation at www.EQT.com;
and to learn more about EQT’s sustainability efforts, please visit https://csr.eqt.com.
About EQT Midstream Partners
EQT Midstream Partners, LP (EQM) is a growth-oriented limited
partnership formed by EQT Corporation to own, operate, acquire, and
develop midstream assets in the Appalachian Basin. As the third largest
gatherer of natural gas in the United States, EQM provides midstream
services to EQT Corporation and third-party companies 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 2,130 miles of
high-and low-pressure gathering lines.
For more information on EQM, visit our website at www.eqtmidstreampartners.com
About EQT GP Holdings:
EQT GP Holdings, LP is a limited partnership that owns the general
partner interest, all of the incentive distribution rights, and a
portion of the limited partner interests in EQT Midstream Partners, LP.
EQT Corporation owns the general partner interest and a 91% limited
partner interest in EQT GP Holdings, LP.
Visit EQT GP Holdings, LP at www.eqtmidstreampartners.com.
Cautionary Statements
Disclosures in this news release contain certain forward-looking
statements within the meaning of Section 21E of the Securities Exchange
Act of 1934, as amended, and Section 27A of the Securities Act of 1933,
as amended. Statements that do not relate strictly to historical or
current facts are forward-looking. Without limiting the generality of
the foregoing, forward- looking statements contained in this news
release specifically include the expectations of plans, strategies,
objectives and growth and anticipated financial and operational
performance of EQT and its subsidiaries, including the timing of any
separation involving the production and midstream businesses; whether
the conditions to the separation can be satisfied; and the expectations
of management and board of director transition plans of EQT and EQT’s
subsidiaries. These statements involve risks and uncertainties that
could cause actual results to differ materially from projected results.
Accordingly, investors should not place undue reliance on
forward-looking statements as a prediction of actual results. EQT has
based these forward-looking statements on current expectations and
assumptions about future events. While EQT considers these expectations
and assumptions to be reasonable, they are inherently subject to
significant business, economic, competitive, regulatory and other risks
and uncertainties, many of which are difficult to predict and beyond
EQT’s control. The risks and uncertainties that may affect the
operations, performance and results of EQT’s business and
forward-looking statements include, but are not limited to, those set
forth under Item 1A, "Risk Factors" of EQT’s Form 10-K for the year
ended December 31, 2017, as updated by any subsequent Form 10-Qs.
Any forward-looking statement speaks only as of the date on which such
statement is made and EQT does not intend to correct or update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
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