EQT Corp. (NYSE: EQT) plans to begin a registered public offering of 6,500,000 shares of common stock, subject to market conditions. The company also expects to grant the underwriter an option to purchase up to 975,000 additional shares of common stock.
EQT intends to use net proceeds from this offering for general corporate purposes, which may include, among other things, repayment of a portion of its outstanding indebtedness.
Goldman, Sachs & Co. is acting as sole book-running manager for the offering.
Given its estimated year-end 2016 net debt/EBITDA of <2x prior to the offering, noted Seaport Global Securities in a client note Friday, the analysts said they didn’t view it as a necessary move. However, they continued, “EQT is poised to outspend cash flow by ~$653MM on our estimates this year, the current macro gas environment could see storage capacity tested this fall, and EQT shares have massively outperformed YTD (+17%), thus we can’t blame management for ensuring its balance sheet remains strong.”