EQT considering split of company in 2018
Monday, August 21, 2017
EQT Corp’s board of directors will prepare a plan in 2018 that could include splitting or selling part of the Pittsburgh-based company, which is expected to become the country’s biggest independently owned natural gas company with the highly anticipated acquisition of Rice Energy later this year, according to the Pittsburgh Business Times.
The decision comes in the wake of concerns last month by a hedge fund against EQT’s acquisition of Rice Energy and its impact on the company’s valuation.
The company’s new strategy could include splitting EQT, divesting a portion or collapsing EQT Midstream Partners and EQT General Partners, two master limited partnerships EQT started that are publicly traded.
Learn more: Pittsburgh Business Times > EQT reviewing split, sale of assets to address valuation
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.