Toby Z. Rice and Derek A. Rice, shareholders of EQT Corporation (NYSE:
EQT), today issued the following statement in response to EQT’s 2019
plan:
“EQT’s presentation today does not address the fundamental concerns
being raised across EQT’s shareholder base – that management lacks the
relevant operational experience, track record and vision to realize the
value of EQT’s underlying assets. Just over a year ago, EQT justified
the Rice Energy merger based on delivering $1.9 billion of well cost
synergies. This morning, EQT announced a plan that implies those
synergies cannot be realized by the existing EQT management team. The
Rice Team remains confident it can deliver those synergies, and our
expectations for free cash flow generation are unchanged. We stand ready
to deliver the free cash flow and cost performance shareholders rightly
expect given the tremendous potential of EQT’s high-quality acreage
position.
We remain willing to engage with EQT’s Board. Last week we presented to
the EQT Board at its request and had a lengthy discussion regarding our
plan to turn around EQT. We are disappointed that EQT did not get back
to us and has instead taken steps away from a resolution supported by
many shareholders. Today’s announcement makes it abundantly clear that
EQT plans to continue with the same team that has openly admitted, based
on their plan, that they cannot deliver on EQT’s 2017 merger promises.
In light of EQT’s unwillingness to acknowledge the fundamental change
needed to achieve acceptable results for the benefit of all
shareholders, we will be asking shareholders to reconstitute the Board
with new Board members who better understand EQT’s industry and business
and will support Toby Rice as CEO to lead the transformation. We, of
course, remain open to reaching a negotiated resolution with EQT’s
Board.”
IMPORTANT INFORMATION
Toby Z. Rice and Derek A. Rice, as well as certain of their affiliates,
may file a proxy statement with the U.S. Securities and Exchange
Commission (“SEC”) to solicit proxies from stockholders of EQT for use
at EQT’s 2019 annual meeting of stockholders. TOBY Z. RICE AND DEREK A.
RICE STRONGLY ADVISE ALL SECURITY HOLDERS OF EQT TO READ ANY SUCH PROXY
STATEMENT IF AND WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN
IMPORTANT INFORMATION. Any such proxy statement, if and when filed, and
any other relevant documents will be available at no charge on the SEC’s
website at http://www.sec.gov/.
PARTICIPANT INFORMATION
In accordance with Rule 14a-12(a)(1)(i) under the Securities Exchange
Act of 1934, as amended, the following persons are, or may be deemed to
be, participants in the potential proxy solicitation: Toby Z. Rice and
Derek A. Rice. Toby Z. Rice holds a total of 400,000 shares of common
stock, both directly and indirectly, in EQT, and Derek A. Rice holds a
total of 272,651 shares of common stock, both directly and indirectly,
in EQT. In addition, Toby Z. Rice and Derek A. Rice are potential
beneficiaries of the Rice Energy 2016 Irrevocable Trust, which holds a
total of 5,676,000 shares of EQT’s common stock.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190122005829/en/
Copyright Business Wire 2019
Source: Business Wire
(January 22, 2019 - 2:17 PM EST)
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