2011-05-31-2011-05-11-2011-07-01

Bought Big Sandy Pipeline LLC, which owns the 70-mile Big Sandy Pipeline system in eastern KY with 171 MMcf/d of capacity.

Spectra Energy Partners LP, Houston, (NYSE: SEP) has completed the purchase of ownership interests of Big Sandy Pipeline LLC from EQT Corp., Pittsburgh, (NYSE: EQT) for approximately $390 million in cash.

The primary asset is the Big Sandy Pipeline, a Federal Energy Regulatory Commission-regulated gas pipeline system in eastern Kentucky. Big Sandy Pipeline has 171 million cubic feet per day of capacity and is approximately 70 miles in length. EQT will be the main shipper on the pipeline, with over 80% of pipeline capacity under firm, 16-year transportation agreements.

Big Sandy Pipeline's interconnect with the Tennessee Gas Pipeline system links the Huron shale and Appalachian Basin natural gas supplies to the Mid-Atlantic and Northeast markets.

"Big Sandy Pipeline strengthens our portfolio of fee-based natural gas assets and is consistent with our strategy of growth through third-party acquisitions," says Spectra Energypresident and chief executive Gregory J. Rizzo. "This acquisition is accretive to distributable cash and provides a further platform for potential growth."

Big Sandy Pipeline's projected 2012 earnings before interest, taxes, depreciation and amortization (EBITDA) is estimated in the range of approximately $35 million. The company expects long-term financing for the transaction to be a combination of debt and equity.

Simmons & Co. International provided a fairness opinion to the board of directors of Spectra Energy Partners' general partner.