Cabot Oil & Gas Corp. has reached an agreement on Sept. 30 to sell its 20% ownership interest in Meade Pipeline Co. LLC to a subsidiary of NextEra Energy Partners LP for $256 million, or over 13 times expected 2019 EBITDAX (non-GAAP).

Meade owns approximately 39% of the Central Penn Line, the greenfield pipeline segment of the Atlantic Sunrise project. This transaction is expected to close during the fourth quarter of 2019, subject to customary closing conditions and adjustments.

Proceeds from this transaction, in addition to the company’s ongoing operating free cash flow, will allow Cabot to continue to enhance shareholder value by returning capital to shareholders through a combination of a growing dividend and an opportunistic share repurchase program.

BMO Capital Markets served as financial advisor to Cabot on this transaction.