EQM Midstream Partners Completes Strategic Acquisition of Eureka Midstream and Hornet Midstream

Equitrans Midstream Corporation (NYSE: ETRN) and EQM Midstream Partners,
LP (NYSE: EQM) today announced that EQM has completed the acquisition of
a 60% interest in Eureka Midstream Holdings, LLC (Eureka Midstream) and
a 100% interest in Hornet Midstream Holdings, LLC (Hornet Midstream) for
total consideration of $1,030 million, comprised of approximately $860
million in cash and approximately $170 million of assumed pro-rata debt.
Concurrently, EQM closed the private placement of $1.2 billion of newly
issued Series A Perpetual Convertible Preferred Units (Convertible
Preferred Units). A portion of the net proceeds from the private
placement was allocated to the cash purchase price of the acquisition,
with the remaining net proceeds to be used for general purposes.

“We are pleased to have completed this important acquisition and our
team is excited to begin integrating the Eureka and Hornet systems and
leveraging our existing assets and core operating capabilities,” said
Diana M. Charletta, chief operating officer of EQM. “We are relentless
in our pursuit of becoming the low-cost provider and partner of choice
across all aspects of our business. These value-enhancing assets will
diversify our producer customer mix and increase exposure to wet
Marcellus acreage; expand our supply hub and create additional
commercial opportunities; reduce unit operating costs through increased
scale; and accelerate opportunities for our water services business."

Asset Overview

Eureka Midstream is a 190-mile gathering header pipeline system in Ohio
and West Virginia that services both dry Utica and wet Marcellus
production. Hornet Midstream is a 15-mile, high-pressure gathering
system in West Virginia that connects to the Eureka system.

Advisors

Citi and Guggenheim Securities, LLC acted as financial advisors and
Latham & Watkins acted as legal advisor to ETRN and EQM. Citi and
Guggenheim Securities, LLC also acted as joint placement agents for the
Convertible Preferred Units issuance.

About Equitrans Midstream Corporation

Equitrans Midstream Corporation (ETRN) has a premier asset footprint in
the Appalachian Basin and is one of the largest natural gas gatherers in
the United States. With a rich 135-year history in the energy industry,
ETRN was launched as a standalone company in 2018 and, through its
subsidiaries, has an operational focus on gas gathering systems,
transmission and storage systems, and water services assets that support
natural gas producers across the Basin. ETRN is helping to meet
America’s growing need for clean-burning energy, while also providing a
rewarding workplace and enriching the communities where its employees
live and work. ETRN owns the non-economic general partner interest and a
majority ownership of the limited partner interest in EQM.

For more information on Equitrans Midstream Corporation, visit www.equitransmidstream.com

About EQM Midstream Partners

EQM Midstream Partners, LP (EQM) is a growth-oriented limited
partnership formed to own, operate, acquire, and develop midstream
assets in the Appalachian Basin. As one of the largest gatherers of
natural gas in the United States, EQM provides midstream services to
producers, utilities, and other customers 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 also owns and/or operates
approximately 2,405 miles of high- and low-pressure gathering lines.

For more information on EQM Midstream Partners, LP, visit www.eqm-midstreampartners.com

Cautionary Statements

The Convertible Preferred Units sold in the private placement have not
been registered under the Securities Act of 1933, as amended (Securities
Act), or applicable state securities laws, and accordingly may not be
offered or sold in the United States except pursuant to an effective
registration statement or an applicable exemption from the registration
requirements of the Securities Act and such applicable state securities
laws. EQM has agreed to file a registration statement with the
Securities and Exchange Commission (SEC) for the resale of the
Convertible Preferred Units and the common units representing limited
partner interests in EQM issuable upon conversion of the Convertible
Preferred Units.

This news release does not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there be any
sale of these securities in any state or jurisdiction in which the
offer, solicitation or sale of these securities would be unlawful prior
to registration or qualification under the securities laws of any such
state or jurisdiction.

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.
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 Equitrans Midstream
Corporation (ETRN) and its subsidiaries, including EQM Midstream
Partners, LP (EQM), including guidance regarding EQM’s gathering and
water services revenue and volume growth; EQM’s ability to provide
produced water handling services and realize expansion and optimization
and integration opportunities and related capital avoidance; EQM’s
ability to effectively integrate the acquired assets and operations and
achieve anticipated synergies and accretion associated with such
acquisition, including through increased scale; and EQM’s ability to
access new customers for its water services business as a result of the
acquisition. These forward-looking 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. ETRN and EQM have based these forward-looking statements on
current expectations and assumptions about future events. While ETRN and
EQM consider 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 are beyond ETRN’s and/or EQM’s control. The
risks and uncertainties that may affect the operations, performance, and
results of ETRN’s and EQM’s business and forward-looking statements
include, but are not limited to, those set forth under Item 1A, “Risk
Factors” of ETRN’s Form 10-K for the year-ended December 31, 2018 as
filed with the SEC, and Item 1A, “Risk Factors” of EQM’s Form 10-K for
the year-ended December 31, 2018 as filed with the SEC, in each case as
may be updated by any subsequent Form 10-Qs. Any forward-looking
statement speaks only as of the date on which such statement is made,
and neither ETRN nor EQM intends to correct or update any
forward-looking statement, whether as a result of new information,
future events or otherwise.

Source: Equitrans Midstream Corporation

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