EQT Corp. and Equitrans Midstream Corp. are officially trading as two separate companies, the former focused on oil and gas drilling and the latter on pipelines and compression.
In conjunction with the split, EQT’s former CFO Rob McNally has taken over as the company’s president and CEO.
Thomas Karam is president and CEO of the midstream company, whose symbol on the New York Stock Exchange is ETRN.
The separation was pushed by certain shareholders and sold as a way to boost the value of each business, reasoning that EQT and Equitrans would attract different types of investors and that their unique attributes were being diluted in the common pot.
EQT stockholders retain their shares in the exploration and production firm and get 0.8 shares of the new firm for each EQT share they own. That accounts for 80 percent of the midstream company’s stock. The remaining 19.9 percent is held by EQT.
The split, which has been in the works for more than a year, didn’t come cheap. It will total around $100 million in expenses by the end of this year, with Equitrans shelling out between $65 million and $75 million of that sum. Part of the money will go toward setting up the company’s IT infrastructure, according to financial filings.
“For the foreseeable future” the midstream company will still rely on EQT for the majority of its revenue, it said in a public filing last month.
Anya Litvak: alitvak@post-gazette.com or 412-263-1455.
First Published: November 13, 2018, 4:21 p.m.
