EQT

EQT Corp

Energy, Event Driven/Special Sit


Presented:06/22/2017
Price:$52.03
Cap:$9.03B
Current Price:$36.28
Cap:$16.02B

Presented

Date06/22/2017
Price$52.03
Market Cap$9.03B
Ent Value$16.22B
P/E RatioN/A
Book Value$34.73
Div Yield0.21%
Shares O/S173.51M
Ave Daily Vol2,920,391
Short Int4.56%

Current

Price$36.28
Market Cap$16.02B
EQT Corp. focuses on natural gas production, gathering and transmission in the Appalachian area. The company operates its business through the following segments: EQT Production and EQT Midstream. The EQT Production segment engages in the exploration, development and production of natural gas, natural gas liquids and crude oil. The EQT Midstream segment provides gathering, transmission and storage services for produced gas and to independent third parties. The company was founded in 1888 and is headquartered in Pittsburgh, PA.,000J8F-E

Publicly traded companies mentioned herein: EQT Corp (EQT), Rice Energy Inc (RICE)

Highlights

The presenter had been long shares of Rice Energy, and now sees an opportunity in EQT with the stock trading in the low-$50s ($52). EQT declined from $57 to $50 on news of the $6.7 billion deal to acquire Rice (representing a ~$1.7 billion premium based on where RICE was trading on June 16, 2017). For each Rice share investors will receive 0.37 shares of EQT and $5.30 in cash. Combining Rice with its existing operations creates the largest natural gas producer in the US, and the presenter thinks the expected synergies ($2.5 billion) are achievable. Thus, the selloff that erased the value of the premium paid would appear to be unwarranted and should be viewed as buying opportunity.

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Idea Discussion

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