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Fly News Breaks for June 20, 2017
EQM, EQT, RICE, EQGP
Jun 20, 2017 | 07:21 EDT
RBC Capital analyst TJ Schultz says that EQT (EQGP) is the "clear winner" of EQT Corporation's (EQT) acquisition of Rice Energy (RICE). The analyst says that EQT GP should benefit from higher IDR cash flow due to an increase of EQT's equity units which it will use to fund the deal. Additionally, he notes that EQT intends to sell retained midstream assets to EQT Midstream (EQM), and he says that, as a result, EQT GP will benefit from higher distribution growth at EQT Midstream in the medium term. The analyst raised his price target on EQT GP to $40 from $36 and keeps an Outperform rating on the stock.
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