Rice team says EQT presentation 'does not address the fundamental concerns'
Toby Z. Rice and Derek A. Rice, shareholders of EQT Corporation, 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."