EQT Corporation and EQM Midstream Partners Announce Early Tender Results for Notes and Consent Solicitation

EQT Corporation and EQM Midstream Partners Early Tender Results

EQT Corporation (NYSE: EQT), along with its subsidiary EQM Midstream Partners, LP, recently announced the preliminary outcomes of its tender offers and consent solicitation. This strategic initiative aims to purchase outstanding senior notes to streamline financial operations and enhance liquidity.

On March 7, 2025, the company reported that it received substantial participation from note holders by the Early Tender Date. EQM Midstream offers to buy cash for all its outstanding 6.500% Senior Notes due 2027, and EQT seeks to acquire its own 3.900% Senior Notes also due in 2027. The total purchase price for these notes, excluding any accrued interest, is capped under their respective tender offers.

As of the Early Tender Date, holders of EQM notes tendered approximately $506,209,000 from the total outstanding amount of $900,000,000, resulting in a solid participation rate of 56.2%. On the other hand, EQT had an impressive 79.0% of its $1,169,503,000 of notes validly tendered, amounting to $924,429,000.

This high level of interest signals a strong commitment from investors who could benefit from EQT's early tender premium of $50 per $1,000 principal amount for notes that are successfully accepted. Post Early Tender Date, holders can still submit their notes until the Expiration Date on March 24, 2025, but they will not be entitled to the early premium.

In conjunction with these offers, EQM is soliciting consents from the holders to amend existing indentures to eliminate restrictive covenants, enhancing flexibility and operational efficiency. EQT plans to accept notes based on predetermined proration procedures, ensuring equitable satisfaction of all validly tendered submissions.

The announcement of these results demonstrates EQT's ongoing strategy to optimize its capital structure and reduce debt while simultaneously positioning EQM for future growth. By engaging in this financial maneuver, both companies aim to reinforce their strong standing in an increasingly competitive energy market.

Investors and note holders looking for further information are encouraged to consult the comprehensive Offer to Purchase and Consent Solicitation Statement released on February 24, 2025, and to engage with their financial advisors regarding participation in these tender offers.

EQT remains committed to meeting its obligations while focusing on efficiency and sustainability in energy production. This tender offer reflects the company's proactive approach to managing its financial health. Investors are reminded that all tendered notes may not be withdrawn after the Early Tender date, emphasizing the need for careful consideration before participating in these offers.

With executives from TD Securities and J.P. Morgan leading the solicitation efforts, EQT and EQM are poised to ensure a smooth transaction process for stakeholders, helping them navigate the complexities of these financial products.

In conclusion, the early results provided by EQT Corporation reflect a proactive financial strategy aiming to enhance liquidity and operational flexibility, illustrating the company's broader commitment to responsible stewardship in the energy sector.