EQT to Sell Gas Utility for $720M in Cash; Cutting Annual Dividend to $0.12/Share

EQT Corporation (NYSE: EQT) today announced that it has entered into adefinitive agreement for the transfer of its natural gas distributionbusiness, Equitable Gas Company, LLC, to Peoples Natural Gas. As part of thetransaction, EQT will receive cash proceeds of $720 million, subject tocertain purchase price adjustments, and select midstream assets and commercialarrangements, which are expected to generate at least $40 million in EBITDA(earnings before interest, taxes, depreciation, and amortization) per year.Concurrent with this announcement, EQT will also reduce its annual dividend,effective January 2013. The new dividend rate of $0.12 per share reflects theblend of EQT's two remaining core businesses – a dividend-supporting midstreambusiness, and a capital-intensive, rapidly growing production business.“Today's announcement allows us to focus on and reinvest in our rapidlygrowing natural gas production and midstream businesses. The proposedtransaction provides capital to accelerate the monetization of our reservesbeyond 2013 and also adds to our Marcellus midstream assets,” stated DavidPorges, Chief Executive Officer of EQT Corporation.As part of the transaction, EQT will receive approximately 200 miles ofregulated transmission pipelines, as well as four storage pools that have atotal of 15.1 Bcf working gas capacity. These assets are strategically locatedacross multiple counties in Pennsylvania and connect to EQT's existingtransmission assets, which will increase the Company's transportation andstorage capabilities.