EQT Corp

Yesterday saw the latest round of shareholder letters from both sides in the proxy war to control the board of EQT Corporation–the largest natural gas producing company in the United States (not to mention they are focused 100% on the Marcellus/Utica). The Rice brothers, Toby and Derek, crowed about the fact the country’s most prominent shareholder advisory service, ISS, has sided with them, along with three of the top 10 EQT shareholders. EQT made the case that current management and the coming “refreshed” board mean that EQT is essentially a new company, and now is not the time to screw it up (our words, their sentiment).
Read More “EQT & Rice Trade Barbs Again, EQT Releases Refreshed Slide Deck”

Another day, another round of press releases from both EQT and the Rice brothers over the future of the company. The two sides are locked in a proxy battle to nominate a majority of board members, who in turn will appoint (or keep) top management for the company. Yesterday’s round of letters was, in essence, a recap of news that broke late last week: One major shareholder advisory firm, Institutional Shareholder Services (ISS), supports the Rice brothers’ attempt to take over the company, while a second major advisory firm, Glass Lewis & Co., believes existing management is the right answer for EQT’s future.
Read More “Latest Round of Proxy Announcements from Rice Bros., EQT”

Early on Friday, Institutional Shareholder Services (ISS), which makes recommendations to shareholders on how to vote in proxy fights, gave their stamp of approval to Toby and Derek Rice’s “activist” board takeover picks. ISS is heavily influential with institutional investors–organizations like hedge funds, mutual funds, and pension funds. We thought, “Oh oh, it’s all over now. The Rice boys have won.” But not so fast. Late Friday a second highly influential service that institutional investors look to for guidance, Glass Lewis & Co., threw their support behind the EQT slate of board candidates. The two most influential guidance services have split their support. What will shareholders do?
Read More “Proxy War: ISS Supports Rice Brothers, Glass Lewis Supports EQT”

EQT has just published a new 6-minute video touting their technological prowess in shale drilling. The video is an attempt to respond to charges coming from Toby and Derek Rice, who want to take over management of the company, that EQT is stuck in the past. We have a link to the video, along with our thoughts.
Read More “EQT Video Aims to Prove Current Mgmt Not Stuck in Yesteryear”

Both the Rice brothers and EQT are issuing press releases just about every day now in their battle to wrest (or keep) control of EQT. Yesterday the latest round of letters to shareholders, circulated via press release for the world to see, were issued. First up was a letter early yesterday from John F. McCartney, a Rice Team board nominee, praising Toby Rice (potential new EQT CEO). Later in the day EQT issued a letter chronicling what we would call an EQT listening tour. Although both letters tell shareholders to not vote for the other side’s board picks, noticeably absent from this latest round was the acrimony and personal attacks that have been present in recent letters.
Read More “Another Round of Dueling Letters to Shareholders from Rice, EQT”

The nasty proxy war between EQT CEO Rob McNally and Toby Rice over who will control the company following a July 10 annual meeting just got a whole lot nastier. Last Friday, McNally revealed that a review of internal documents they received as part of their purchase of Rice Energy in 2017 show that in the span of two weeks in 2015 some 25 complaints by Rice employees were made against Toby with the Rice HR department, although the nature of the charges are not detailed, leaving it open to shareholders to speculate.
Read More “EQT Claims Toby Rice Mismanaged Rice Energy, Not Fit to be CEO”

On Tuesday Toby and Derek Rice published a presentation to EQT investors in connection with EQT’s upcoming annual meeting of shareholders on July 10 that “takes no prisoners” (our words), condemning EQT’s current management and most of its board members (see Rice Brothers Publish Scalding EQT Investor Presentation). We said in our post that if the allegations (or spin, or whatever word you want to use) are true, EQT would need to respond, strongly, to refute it. Yesterday EQT issued its response by publishing a newly updated investor presentation. Read More “EQT Fires Back at Rice Bros. with New Investor Presentation”

Yesterday Toby and Derek Rice delivered a presentation to EQT investors in connection with EQT’s upcoming annual meeting of shareholders on July 10 (full copy below). The presentation and the accompanying press release take direct aim at EQT’s second quarter preliminary results and postulates that instead of a “free cash flow generating machine,” the final numbers for 2Q19 will show EQT actually lost money during the quarter.
Read More “Rice Brothers Publish Scalding EQT Investor Presentation”

Although the second quarter isn’t over yet, EQT has just released “preliminary” 2Q19 financial and operational results in a bid to fend off a takeover attempt. EQT’s current management and board of directors is in a tough fight to retain control of the company. Toby and Derek Rice, formerly of Rice Energy (which was sold to EQT in 2017) are making a play to replace the board of directors and all of EQT’s top management.
Read More “EQT Releases Positive 2Q19 Results in Attempt to Block Rice Bid”

On Monday, Toby and Derek Rice (the Rice brothers) sent an open letter to EQT shareholders to “set the record straight on EQT’s misleading comments” about the Rice boys and their plan to take over EQT. In fact, the Rices’ say EQT has made “a number of false claims” and engaged in “personal attacks.” On Tuesday, EQT issued a response to “correct the Toby Rice Group’s false and misleading statements” about what EQT said, and to “highlight significant omissions and errors” in the Rice analysis of EQT’s recent performance (see Rice Brothers, EQT Accuse Each Other of “Misleading” Statements). Yesterday, EQT issued yet another letter to shareholders to talk up their own board nominees, and to bash the nominees put forward by the Rice brothers.
Read More “EQT Issues Another Letter Bashing Rice Board Nominees”

The war to control EQT continues. On Monday, Toby and Derek Rice (the Rice brothers) sent an open letter to EQT shareholders to “set the record straight on EQT’s misleading comments” about the Rice boys and their plan to take over EQT. In fact, the Rices’ say EQT has made “a number of false claims” and engaged in “personal attacks.” Yesterday, EQT issued a response to “correct the Toby Rice Group’s false and misleading statements” about what EQT said, and to “highlight significant omissions and errors” in the Rice analysis of EQT’s recent performance.
Read More “Rice Brothers, EQT Accuse Each Other of “Misleading” Statements”

Yesterday Toby and Derek Rice issued another (new) letter to EQT shareholders in the quest to make a case that the existing EQT board and management must be thrown out. A few hours later EQT responded with its own letter to shareholders. Here’s the latest in the proxy war to control EQT.
Read More “Rice Boys, EQT Send Dueling Letters to Shareholders re Board Vote”