PITTSBURGH, March 26, 2020 /PRNewswire/ -- EQT Corporation
(NYSE: EQT) today announced that its Board of Directors has elected
to suspend the quarterly cash dividend on its common stock,
effective immediately, accelerating cash flow to be utilized for
EQT's debt reduction strategy. EQT expects this action will result
in approximately $30 million per year
in retained cash savings, which EQT intends to use to pay down
additional near-term debt maturities.
President and CEO Toby Rice
stated: "The decision to suspend EQT's dividend is another action
to display our commitment to our debt reduction strategy, which
also includes utilizing substantial near-term free cash flow and
asset monetization proceeds to reduce debt. As we enhance our
balance sheet and leverage metrics over-time, we will re-visit our
shareholder return and dividend policy. These actions will better
position EQT's financial framework."
About EQT Corporation:
EQT Corporation is a natural
gas production company with emphasis in the Appalachian Basin and
operations throughout Pennsylvania, West
Virginia and Ohio. With 130
years of experience and a long-standing history of good corporate
citizenship, EQT is the largest producer of natural gas in
the United States. As a leader in
the use of advanced horizontal drilling technology, EQT is
committed to minimizing the impact of drilling-related activities
and reducing its overall environmental footprint. Through safe and
responsible operations, EQT is helping to meet our nation's demand
for clean-burning energy, while continuing to provide a rewarding
workplace and support for activities that enrich the communities
where its employees live and work. Visit EQT Corporation at
https://www.EQT.com; and to learn more about EQT's sustainability
efforts, please visit https://csr.eqt.com.
EQT Management speaks to investors from time to time and the
analyst presentation for these discussions, which is updated
periodically, is available via the Company's investor relationship
website at https://ir.eqt.com.
Cautionary Statements
This news release contains
certain forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended, and Section
27A of the Securities Act of 1933, as amended. Statements that do
not relate strictly to historical or current facts are
forward-looking. Without limiting the generality of the foregoing,
forward-looking statements contained in this news release
specifically include the expectations of plans, strategies,
objectives and growth and anticipated financial and operational
performance of EQT and its subsidiaries (collectively, the
Company), including guidance regarding the Company's ability to
reduce its debt and the timing of achieving any such reductions;
the amount and timing of any repurchases of the Company's
outstanding debt securities; projected dividend amounts and rates;
projected cash flows, including projected cost savings from
suspending the Company's quarterly cash dividend; liquidity and
financing requirements, including funding sources and availability;
and the Company's leverage levels and financial profile. The
forward-looking statements included in this new release involve
risks and uncertainties that could cause actual results to differ
materially from projected results. Accordingly, investors should
not place undue reliance on forward-looking statements as a
prediction of actual results. The Company has based these
forward-looking statements on current expectations and assumptions
about future events, taking into account all information currently
available to the Company. While the Company considers these
expectations and assumptions to be reasonable, they are inherently
subject to significant business, economic, competitive, regulatory
and other risks and uncertainties, many of which are difficult to
predict and beyond the Company's control and which include, but are
not limited to, volatility of commodity prices; the costs and
results of drilling and operations; access to and cost of capital;
uncertainties about estimates of reserves, identification of
drilling locations and the ability to add proved reserves in the
future; the assumptions underlying production forecasts; the
quality of technical data; the Company's ability to appropriately
allocate capital and resources among its strategic opportunities;
inherent hazards and risks normally incidental to drilling for,
producing, transporting and storing natural gas, natural gas
liquids and oil; cyber security risks; availability and cost of
drilling rigs, completion services, equipment, supplies, personnel,
oilfield services and water required to execute the Company's
exploration and development plans; the ability to obtain
environmental and other permits and the timing thereof; government
regulation or action; environmental and weather risks, including
the possible impacts of climate change; and disruptions to the
Company's business due to acquisitions and other significant
transaction. These and other risks and uncertainties are described
under Item 1A, "Risk Factors," of the Company's Form 10-K for the
year ended December 31, 2019 as filed with the SEC, as updated
by any subsequent Form 10-Qs, and in the other documents the
Company files from time to time with the SEC.
Any forward-looking statement speaks only as of the date on
which such statement is made, and the Company does not intend to
correct or update any forward-looking statement, whether as a
result of new information, future events or otherwise, except as
required by law.
Analyst inquiries please contact:
Andrew Breese - Director, Investor Relations
ABreese@eqt.com
412.395.2555
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SOURCE EQT Corporation