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EQT Corp Prices Midstream Partnership Initial Public Offering - Analyst Blog

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EQT CorporationEQT announced that its subsidiary EQT GP Holdings, LP, has priced its initial public offering of 23,000,000 common units, representing limited partner interests at $27.00 per common unit. The underwriters have been granted a 30-day option to purchase up to an additional 3,450,000 common units at the initial public offering price, less underwriting discounts and commissions.

The common units of EQT GP Holdings are expected to begin trading on the New York Stock Exchange under the symbol "EQGP" on May 12. The offering is expected to close on May 15.

EQT GP Holdings is a limited partnership formed to own partnership interests in EQT Midstream Partners, LP EQM to own, operate, acquire, and develop midstream assets in the Appalachian Basin. EQT Midstream Partners provides midstream services to EQT Corporation and third-party companies through its transmission, storage, and gathering systems that service the Marcellus and Utica regions.

Upon conclusion of the offering, the public ownership will represent an 8.6% limited partner interest in EQT GP Holdings, or 9.9% limited partner interest if the underwriters exercise their overallotment option in full. EQT Corp. will hold a 91.4% limited partner interest and a non-economic general partner interest in EQT GP Holdings, or 90.1% if the underwriters exercise their overallotment option in full.

Based in Pittsburgh, PA, EQT Corp is an integrated energy company with an emphasis on natural gas supply activities in the Appalachian area, including production and gathering, natural gas distribution and transmission and, energy efficiency solutions, primarily in the eastern and western coastal regions of the United States.

EQT is a low-cost producer with a strategic midstream presence. The company's superior cost structure and above-average growth may alleviate concerns related to struggling natural gas prices .

EQT recently increased its 2015 production sales volume guidance to a range of 585 billion cubic feet equivalent (Bcfe) to 600 Bcfe. We believe EQT will move toward growth aided by the low-risk and high-growth drilling locations in the Marcellus Shale.

EQT holds a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Energy Transfer Equity, L.P. ETE and Sprague Resources LP SRLP . Both these stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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