ETRN - EQT: Buying A Simpler Task Than Before
2024-03-20 17:49:18 ET
Summary
- EQT has made an all-stock offer to acquire Equitrans Midstream.
- The acquisition will allow EQT to develop more options to move production to stronger pricing markets.
- EQT aims to replicate the Canadian model of doing business where midstream operations contribute to less earnings volatility.
- Vertical integration also allows the company to make more than one profit.
- EQT employees are familiar with at least some of the Equitrans Midstream assets because they previously ran those assets.
EQT ( EQT ) has made an offer for Equitrans Midstream ( ETRN ). It's an all-stock deal where EQT will issue .3504 shares of its common for each share of the midstream stock. As management shows in their acquisition presentation, EQT has been building a midstream network for some time. Only this time, the midstream operation is the sole reason for the acquisition. By waiting until the major Equitrans Midstream construction project (the Mountain Valley Pipeline) was done before buying Equitrans Midstream, management avoided major (and complicated) management headaches as well as cost overruns. This will save shareholders a lot of money while continuing the management midstream strategy....
EQT: Buying A Simpler Task Than Before