Oil and gas producer EQT Corp said on Wednesday it would spin off its midstream business to create a standalone publicly traded company, yielding to months of pressure from shareholders.
Hedge funds D.E. Shaw & Co and Jana Partners had pushed for a break-up of the company ever since it bought Rice Energy for $6.7 billion last year, saying a separation of its production and pipeline assets will get better returns for shareholders.
The separation will also narrow EQT’s focus on its exploration and production business, or the upstream assets, at a time when shale production is expected to top a record 11 million barrels per day in late 2018.
Under the deal, designed to be tax-free for its shareholders, EQT will drop its midstream assets into its master limited partnership EQT Midstream. Following this, EQT Midstream and Rice Midstream Partners, Rice’s master limited partnership, will merge to create a standalone midstream focused company.Read more by clicking here.
Connect with us on Facebook and Twitter!