NEW YORK--(BUSINESS WIRE)--The D. E. Shaw group, a significant shareholder of EQT Corporation (“EQT” or “the Company”), today issued the following statement regarding the Company’s upcoming Annual General Meeting:
The D. E. Shaw group reiterates its support for the Rice team and all seven of their nominees to EQT’s Board of Directors at the upcoming Annual General Meeting. We strongly believe the Rice team’s proven track record in creating shareholder value and detailed plan for right-sizing EQT’s cost structure is what is needed to drive success at the Company. Additionally, we believe it is vital that all seven of the Rice team’s directors be elected to the Company’s Board to ensure the right management team is installed with a clear mandate to undertake the changes necessary to extract full value from the Company’s assets.
As long-time investors in EQT, we believe the Company’s acreage position in Appalachia represents one of the deepest and lowest-cost natural gas inventories in the United States. EQT’s 2017 acquisition of Rice Energy greatly enhanced both the depth and potential of the Company’s assets. However, the past year has demonstrated that having great assets does not ensure investors will see great returns. Missteps in capital allocation and operational consistency have eroded intrinsic value and investor confidence.
We have been in close dialogue with current EQT leadership and the Rice team over the past eight months. After carefully evaluating the proposals and track records on both sides, we are fully convinced that the proven talent on the Rice team is the best and most reliable choice to successfully operate these assets going forward. We believe their plan is credible, reflects the current dynamics of operating in Appalachia, and would catapult EQT to be among the lowest-cost operators in the basin.
In contrast, the development plan proposed by EQT’s current management team shows that they lack the vision and expertise to realize the potential of these assets – even if they fully executed on the cost initiatives they have proposed, we believe EQT would squarely remain the highest-cost operator in the basin.
EQT shareholders now have a unique opportunity to decide the forward direction of the Company, and we believe the choice is clear. The Rice team and their director nominees represent a superior option that offers the lowest-risk path towards realizing the full potential of EQT’s assets.
About the D. E. Shaw Group
The D. E. Shaw group is a global investment and technology development firm with more than $50 billion in investment capital as of March 1, 2019, and offices in North America, Europe, and Asia. Since our founding in 1988, our firm has earned an international reputation for successful investing based on innovation, careful risk management, and the quality and depth of our staff. We have a significant presence in the world's capital markets, investing in a wide range of companies and financial instruments in both developed and developing economies.
This press release reflects the opinions of D. E. Shaw & Co., L.P. (“DESCO LP”) on behalf of certain investment funds managed or advised by it that currently beneficially own, or otherwise have an economic interest in, shares of EQT Corporation (the “Company”). This press release is for informational purposes only and does not constitute investment advice or convey an offer or solicitation of any type with respect to any securities or other financial products. The views expressed in this press release are expressed as of the date hereof and are based on publicly available information and DESCO LP’s analyses. This press release contains statements reflecting DESCO LP’s opinions and beliefs with respect to the Company and its business based on DESCO LP’s research, analysis, and experience; all such statements are based on DESCO LP’s opinion and belief, whether or not those statements are expressly so qualified. DESCO LP acknowledges that the Company may possess information that could lead the Company to disagree with DESCO LP’s views and/or analyses. Nothing contained in this press release may be relied upon as a guarantee, promise, assurance, or representation as to future events. The investment funds managed or advised by DESCO LP are in the business of trading (i.e., buying and selling) securities, and it is expected that they will from time to time engage in transactions that result in changes to their beneficial and/or economic interest in the Company. Please note that this press release has not been updated since its dateline for any information contained in it that may have changed, including any beliefs and/or opinions.
Please visit www.deshaw.com for current and additional information about the D. E. Shaw group.