EQT - Equitrans Midstream: Long Suffering Is About To End Thanks To EQT

2024-03-11 21:44:19 ET

Summary

• Equitrans Midstream shareholders have faced challenges due to the Mountain Valley Pipeline cost overruns.
• The delays and court cases have significantly increased the cost of the pipeline project, estimated to be more than $7 billion.
• The completion of the pipeline could potentially make it a valuable business in the future with little or no competition.
• The combined company could benefit the shareholders of Equitrans both more and sooner.
• EQT pays market value for the business.  EQT does not pay the costs of constructing the pipelines used by the business.

Equitrans Midstream ( ETRN ) shareholders can now see why EQT ( EQT ) spun off the midstream company and then later sold the remaining shares. The Mountain Valley Pipeline proved to be a huge anchor to company improvements. Now, after everything this company has been through, EQT proposes to acquire Equitrans Midstream. The .3504 shares of EQT offered were at a slight premium to the price of Equitrans Midstream before the announcement. But the market quickly dropped the price of EQT to largely eliminate that premium. Still, this may be the best way for Equitrans shareholders to go....

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