Director nomination window to close following the sum-of-the-parts decision
PITTSBURGH–(BUSINESS WIRE)–EQT Corporation (Company or EQT) (NYSE:EQT) today announced that it has commenced a search for two additional, independent board members with extensive midstream experience. The new board members will join the EQT Board immediately following the successful closing of the Rice Energy Inc. (Rice Energy or Rice) transaction and will serve on the Committee being formed to evaluate options for addressing the Company’s sum-of-the-parts discount.
“In discussing the merits of our value-accretive acquisition of Rice Energy with our shareholders, there has been broad support for the transaction. While we are confident most investors have embraced our commitment to address the sum-of-the-parts discount, many have also indicated that they believe separating the midstream and upstream businesses is the best way to accomplish this objective,” said Steve Schlotterbeck, EQT’s president and chief executive officer. “While separation is one path to realizing the sum-of-the-parts value, the Board has committed to evaluate all options for the Company and cannot presume an outcome of that analysis.”
EQT has previously acknowledged that at some point it would be beneficial for the production and midstream businesses to be independent, due to the belief that, over time, the benefits of integration diminish relative to the valuation discount as the Company matures. The proposed acquisition of Rice accelerates the Company’s ability to reach a more moderate growth pace and is the basis for the Company’s decision to commit to determining a value-maximizing path forward. EQT’s Board remains fully committed to determining an optimum path for shareholders by the end of the first quarter 2018.
To provide full transparency and accountability, the EQT Board will move the date of its 2018 annual shareholder meeting – extending the director nomination window to allow time for the Company to announce its sum-of-the-parts decision. This schedule change provides shareholders the option to nominate new board members after evaluating the Board’s decision regarding the sum-of-the-parts evaluation.
EQT has retained Russell Reynolds Associates, a leading global search and leadership advisory firm, to conduct the director search. EQT will consult with large shareholders throughout the process.
The EQT Board unanimously approved the Rice transaction and recommends that shareholders follow instructions on the WHITE proxy card to vote “FOR” all agenda items, in advance of the special meeting on November 9, 2017. If shareholders have any questions about how to vote, or need additional assistance, please contact EQT’s proxy solicitor: Innisfree M&A Incorporated, toll-free at (877) 717-3930 (from the U.S. and Canada) or (412) 232-3651 (from other locations).
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.
Visit EQT Corporation at www.EQT.com.