EQT Board of Directors approves spin-off of Equitrans Midstream Corporation

• Record date is set for 1 November 2018.
• Distribution date is set for 12 November 2018.
• Regular-way trading for ETRN on the NYSE to begin 13 November 2018.

Separation and distribution

he spin-off will be effected through a pro rata distribution of 80.1% of the outstanding common stock of ETRN. EQT will retain 19.9% of the outstanding common stock of ETRN. EQT’s board of directors has declared a dividend distribution of 0.80 shares of ETRN common stock for every one share of EQT common stock outstanding as of the close of business on 1 November 2018, the record date for the distribution, subject to certain conditions as described in the Registration Statement on Form 10, as amended, filed by ETRN. The distribution is expected to occur at 11:59 pm (ET) on 12 November 2018.

The distribution of ETRN shares will be made in book-entry form and no action or payment by EQT shareholders is required to receive ETRN shares. No physical share certificates of ETRN will be issued. An information statement containing details of the separation and important information about ETRN will be available to EQT shareholders prior to the Distribution date.

There is currently no market for ETRN common stock. The New York Stock Exchange has authorised the listing of ETRN common stock under the symbol ‘ETRN’, subject to official notice of distribution. Trading in ETRN common stock is expected to begin on a ‘when-issued’ basis on 31 October 2018, under the symbol ‘ETRN WI’ and will continue until the distribution occurs. ETRN ‘when-issued’ trades will settle after the completion of the distribution.

Beginning on 31 October 2018, and continuing until the occurrence of the distribution, EQT expects that EQT common stock will trade in two markets on the NYSE: 1) ‘regular-way’ market under the symbol ‘EQT’; and 2) ‘ex-distribution’ market under the symbol ‘EQT WI’. Shares of EQT common stock trading in the ‘regular-way’ market will carry the right to receive shares of ETRN common stock in the distribution. Shares of EQT common stock trading in the ‘ex-distribution’ market will not carry the right to receive ETRN common stock.

EQT shareholders who sell their shares in the ‘regular-way’ market on or before 12 November 2018 will also be selling their entitlement to receive ETRN common stock in the distribution. EQT shareholders are encouraged to consult with their financial advisors regarding the specific consequences of selling shares of EQT common stock on or before 12 November 2018.

The separation of EQT’s upstream and midstream businesses will be complete on the Distribution Date. On 13 November 2018, ‘regular-way’ trading will commence on the NYSE for ETRN’s common stock under the symbol ‘ETRN’.

Following the separation, ETRN will own the general partner interest and a 91.3% limited partner interest in EQGP Holdings, LP, which owns the general partner interest, all of the incentive distribution rights, and an approximate 17.9% limited partner interest in EQM Midstream Partners, LP. EQM owns, operates, acquires and develops natural gas gathering, transmission and storage, and water services assets in the Appalachian Basin. Additionally, ETRN will hold an approximate 12.7% limited partner interest in EQM. Following the separation, EQT will continue to hold its upstream business, which is the largest producer of natural gas in the US based on average daily sales volume.

Investor presentation

In connection with the separation, ETRN will hold an investor presentation on Monday 29 October 2018. The presentation will be webcast live beginning at approximately 10:00 am (ET) via EQT’s website.

About EQT Corporation

EQT Corporation is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, and transmission. With more than 130 years of experience and a long-standing history of good corporate citizenship, EQT is the largest producer of natural gas in the US. As a leader in the use of advanced horizontal drilling technology, EQT is committed to minimising the impact of drilling-related activities and reducing its overall environmental footprint. Through safe and responsible operations, EQT is helping to meet America’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 owns the general partner interest and a 91% limited partner interest in EQGP Holdings, LP. EQGP Holdings, LP owns the general partner interest, all of the incentive distribution rights, and a portion of the limited partner interest in EQM Midstream Partners, LP.

About EQM Midstream Partners

EQM Midstream Partners, LP is a growth-oriented limited partnership formed by EQT Corporation to own, operate, acquire, and develop midstream assets in the Appalachian Basin. As the third largest gatherer of natural gas in the US, EQM provides midstream services to EQT Corporation and other producers through its strategically located natural gas transmission, storage, and gathering systems, and water services to support energy development and production in the Marcellus and Utica regions. EQM owns approximately 950 miles of FERC-regulated interstate pipelines and approximately 2130 miles of high and low-pressure gathering lines.

About EQGP Holdings

EQGP Holdings, LP is a limited partnership that owns the general partner interest, all of the incentive distribution rights, and a portion of the limited partner interests in EQM Midstream Partners, LP. EQT Corporation owns the general partner interest and a 91.3% limited partner interest in EQGP Holdings, LP.

Read the article online at: https://www.worldpipelines.com/business-news/25102018/eqt-board-of-directors-approves-spin-off-of-equitrans-midstream-corporation/