logo
  Join        Login             Stock Quote

EQT Corp. (EQT) To Sell Gas Utility For $720M Cash

 December 20, 2012 09:31 AM
 


(By Balaseshan) EQT Corp. (NYSE: EQT), an integrated energy company, said it has agreed to sell its natural gas distribution business, Equitable Gas Co. LLC, to Peoples Natural Gas.

As part of the transaction, EQT will receive cash proceeds of $720 million, subject to certain purchase price adjustments, and select midstream assets and commercial arrangements, which are expected to generate at least $40 million in EBITDA per year.

Concurrent with this announcement, EQT will also lower its annual dividend, effective January 2013. The new dividend rate of $0.12 per share reflects the blend of EQT's two remaining core businesses – a dividend-supporting midstream business, and a capital-intensive, rapidly growing production business.

[Related -The Best Yielding Stock Holdings Of George Soros's Quantum Fund]

As part of the transaction, EQT will receive about 200 miles of regulated transmission pipelines, as well as four storage pools that have a total of 15.1 Bcf working gas capacity.

These assets are strategically located across multiple counties in Pennsylvania and connect to EQT's existing transmission assets, which will increase the company's transportation and storage capabilities.

Peoples Gas has also agreed to enter long-term contracts for gas transmission, supply, and storage services with EQT. These agreements will secure supply of local, Marcellus gas of about 35 Bcf per year to Peoples.

Equitable Gas provides natural gas distribution services to approximately 275,000 customers in Pennsylvania, West Virginia, and Kentucky; and owns approximately 4,000 miles of pipeline.

[Related -EQT Corp. (EQT) Upgraded To 'Buy' By Deutsche Bank]

EQT expects to receive the required approvals by the end of 2013. This transaction will not impact EQT's previously announced 2013 capital program.

EQT closed Wednesday's regular session down 2.11% at $57.01. The stock has been trading between $43.69 and $62.74 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageMBIA Inc. (MBI) : BTI's $12 a Tough Task

MBIA Inc. (NYSE:MBI) is doing well on a day stocks are struggling The guarantee insurance company is the read on...

article imageUrban Outfitters, Inc. (URBN) Q2 Earnings Preview: A Snug Fit

Urban Outfitters, Inc. (NASDAQ:URBN) will hold a webcast to discuss its second quarter of fiscal-year 2015 read on...

article imageEstee Lauder Companies Inc. (EL) Q4 Earnings Preview: Options Player Betting On EL’s EPS Looking Pretty

Estee Lauder Companies Inc. (NYSE:EL) will release fiscal 2014 fourth quarter and full year financial read on...

article imageHerbalife Ltd. (HLF): 3 Reasons To Pay Attention to Recent Insider Buying

Well, well, well… it looks as if boardroom buyers viewed the recent selloff as an opportunity to buy. read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.