EQT acquisition field by management bonuses?
Friday, August 25, 2017
Jana, the activist hedge fund trying to stop EQT Corp.’s acquisition of Rice Energy, claims EQT is motivated to complete the deal because in doing so it would enrich improve bonuses for its senior management at the expense of its stockholders, according to The State Journal.
Shortly after it was announced in July, Jana opposed the acquisition. It owns just under six percent of EQT stock. It believes a better strategy for EQT to maximize shareholder value would be to concentrate on drilling wells and to divest itself of its pipeline assets by spinning off its EQT Midstream business.
The $6.7 billion acquisition of Rice Energy comes with 187,000 acres of Marcellus Shale acreage in Pennsylvania, 64,000 acres of Upper Devonian Shale in Pennsylvania, 105,000 acres of Utica Shale in Pennsylvania and 65,000 Utica Shale acres in Ohio.
Learn more: The State Journal > Group says EQT acquisition fueled by executive bonus program
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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.