EQM

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pipeline

pipeline

Ari, et al
what's going on with EQM, I saw a report about a restructuring of EQT
the market must not like it???

Ari Charney

Ari Charney

Hi,

After facing pressure from activist investors, EQT is spinning off its pipeline business into a separately traded entity.

As part of that plan, it’s simplifying its other midstream entities through a series of transactions, including a merger between EQM and RMP. There may be further consolidations thereafter.

While analysts see this mostly as a positive for EQM, it does create near-term uncertainty until we know more details regarding the plan, such as what happens with EQM’s IDRs. The market hates uncertainty and also isn’t sure how to value the entities in light of this news, hence the decline.

Ari

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