Yesterday EQT Corporation announced approval from the Federal Energy Regulation Commission (FERC) to transfer Equitable Gas Company, LLC to Peoples Natural Gas. Equitable Gas Company, LLC is the natural gas distribution of business. The transaction includes $720 in cash subject to price adjustments, assets and commercial arrangements. The distribution operating segment is expected to be discontinued when the deal closes at the end of the month. EQT operations will have two operating business segments: production and midstream.
"We are pleased with the regulatory review process and thank each of the state and federal regulators for their comprehensive evaluations and ultimate approvals. EQT is now poised to focus on its two core business operations – continuing to grow and invest in our upstream natural gas development program and in our midstream assets and services," stated David Porges, Chief Executive Officer of EQT Corporation.
The Pittsburgh Company proposed the sale on December 19, 2012 with expectations for the deal to close at the end of this year. In 2011, EQT Energy, a division of the EQT Midstream business segment, opened a compressed natural gas (CNG) fueling station to the public on Smallman Street in the historic Strip District of Pittsburgh. As EQT began the conversion to natural gas in their EQT and Equitable Gas fleets, they have provided assistance to other fleet owners near the CNG station using some vehicles in their fleets for a demonstration project on the conversion.
EQT Corporation (NYSE:EQT) is averaging higher closing prices in 2013 when compared to 2012. In 2012, the average closing prices for first through fourth quarter were 50.97, 47.99, 55.66 and 59.70. In 2013, the average closing prices for first through third quarter were 62.02, 75.54 and 85.20. The average closing price at this point in the fourth quarter is 86.37.
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