Board to Establish Committee Immediately Upon Close of the Rice Transaction
PITTSBURGH–(BUSINESS WIRE)–EQT Corporation (NYSE: EQT) today announced that, immediately upon the closing of the Rice transaction, it will establish a Committee of the Board of Directors to evaluate options for addressing EQT’s sum-of-the-parts discount. The Committee will be led by Stephen A. Thorington and include select EQT independent directors. Based on the Committee’s recommendation, EQT’s Board will announce a decision by the end of the first quarter 2018.
“While we are excited about the value creation opportunities presented by the Rice transaction, addressing the sum-of-the-parts discount is a priority for the Board,” said Mr. Thorington. “The Committee will work to identify the optimum path to maximizing shareholder value.”
“After meeting and speaking with many EQT shareholders, sell-side analysts, and other industry participants during the past few months, we are pleased with the positive feedback regarding our decision to acquire Rice Energy,” said Steve Schlotterbeck, president and chief executive officer of EQT. “Rice is an outstanding strategic and operational fit for EQT and this transaction will enhance our ability to further unlock the embedded midstream value and address the sum-of-the-parts discount, which will now be done on an accelerated timetable.”
Separately, the Company also announced that the Compensation Committee of the Board has confirmed its previous intent to exclude acquired production volume from long-term compensation calculations as related to producing Rice wells as of the transaction closing date.
“Our objective with executive compensation has always been to align interests of management with those of shareholders,” said Lee T. Todd, Ph.D., Chair of the Management Development and Compensation Committee. “In that regard, the current plan had always provided for flexibility to adjust compensation calculations with downward discretion only. The Committee did not intend to include volume from material acquisitions, such as that of the Rice transaction.”
Furthermore, production volume will no longer be a performance metric for EQT’s long-term compensation programs and will be replaced by efficiency metrics. The performance goals for the 2018 compensation program will be based on operating and development cost improvement, relative total shareholder return, and return on capital employed.
About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, and transmission. With more than 125 years of experience, EQT continues to be a leader in the use of advanced horizontal drilling technology – designed to minimize the potential impact of drilling-related activities and reduce the overall environmental footprint. Through safe and responsible operations, the Company is committed to meeting the country’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 also owns a 90% 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 interests in EQT Midstream Partners, LP.