EQT Corporation Initiates Multiple Tender and Exchange Offers; Releases Pro Forma Financial Data

On February 24, 2025, EQT Corporation announced that it has commenced several new transactions designed to address its outstanding debt, as disclosed in its recent Form 8-K filing with the SEC.

The company’s announcement detailed that its indirect wholly owned subsidiary, EQM Midstream Partners, has launched a tender offer to purchase for cash its outstanding 6.500% Senior Notes due 2027. In tandem, EQT has initiated its own tender offer for cash acquisition of a portion of its outstanding 3.900% Senior Notes due 2027. The tender offers are further supported by a consent solicitation related to proposed amendments to the indenture governing the EQM 6.500% 2027 Notes. If approved, these amendments would eliminate substantially all restrictive covenants, certain events of default, and related provisions currently applicable under the indenture.

In addition to these offers, EQT announced private Exchange Offers aimed at eligible holders. Under these Exchange Offers, holders of existing notes issued by EQM are invited to exchange their holdings for a combination of new EQT notes and cash, with an aggregate principal amount of up to approximately $4.54 billion. Concurrent consent solicitations accompany the Exchange Offers to amend the relevant indentures in a manner similar to that proposed for the tender offers.

EQT stated that both sets of offers are being made solely pursuant to the terms set forth in the respective Offer to Purchase and Consent Solicitation Statement and the Offering Memorandum and Consent Solicitation Statement, all dated February 24, 2025. The Exchange Offers are structured as a private offering and are exempt from registration under the Securities Act of 1933.

The filing also reiterates the previously disclosed completion of the Equitrans Midstream Merger on June 22, 2024, which saw EQT acquire Equitrans Midstream Corporation. As part of this corporate combination, unaudited pro forma consolidated financial information for the year ended December 31, 2024 was provided. The pro forma financial disclosures, which reflect adjustments as if the merger had occurred on January 1, 2024, offer insight into the combined statement of operations of EQT and its new subsidiary. The pro forma results are derived, in part, from historical audited financial statements of EQT and unaudited financial data for Equitrans Midstream, and include detailed explanations of various reclassifications and adjustments made to align the financial reporting.

With these transactions, EQT appears to be advancing its strategy to manage its debt profile while leveraging the benefits realized from the Equitrans Midstream Merger. Investors and stakeholders will be watching upcoming developments closely as the company implements the terms of its tender and exchange offers.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read EQT’s 8K filing here.

EQT Company Profile

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services.