ENPNewswire-June 12, 2019--EQT Corrects the Toby Rice Group's False and Misleading Statements
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Release date- 11062019 - EQT Corporation (NYSE:EQT) today issued the following statement correcting some of the false and misleading information published yesterday by the Toby Rice Group in a letter to EQT shareholders.
The letter issued by the Toby Rice Group yesterday contains a number of highly misleading or false statements about EQT's financial and operational performance. Based on these continued misleading and reckless statements, we urge EQT shareholders to carefully review any materials they receive from the Toby Rice Group and conduct their own research to verify the accuracy of statements.
To highlight just a few examples, the Toby Rice Group: Falsely tried to undermine EQT's leading free cash flow generation by stating that $120 million or 40% of the $305 million of adjusted free cash flow1 generated by EQT in the last two quarters was from temporary midstream distributions. EQT's earnings press releases and other filings clearly show that only $21 million, or less than 7%, of EQT's adjusted free cash flow over the prior two quarters is from midstream distributions. In making this false claim, the Toby Rice Group either is trying to mislead investors or made an error in calculating EQT's free cash flow, which demonstrates that the Toby Rice Group has no understanding of the significant level of free cash flow that EQT is actually generating. If the latter, this error calls into question the substance of the Toby Rice Group's vague claims that it can deliver more free cash flow.
Furthermore, the Toby Rice Group's letter cites seasonal cash flow details provided by EQT but conveniently omits the Company's expectations for the fourth quarter of 2019 (typically a seasonally strong quarter in the industry), when the Company anticipates significant positive free cash flow.
Cherry-picked and misrepresented research information by referencing an out-of-context chart from a research report issued by an independent sell side analyst at Goldman Sachs dated May 17, 2019. The Toby Rice Group used the chart, which was based on 2018 data - to claim that EQT is the highest cost operator in the Appalachian Basin.
The reality is that this independent sell side analyst actually has a BUY rating on EQT and reiterated this rating in a more recent research report dated May 30, 2019. The more recent...