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EQT Corporation (EQT) Prices $1 Billion of Senior Notes

EQT Corporation EQT recently announced the pricing of an underwritten public offering of $1 billion in aggregate principal amount of senior notes.

The aggregate principal amount comprises $500 million in aggregate principal amount of senior notes that are due in 2025, carrying an interest rate of 5.678%. The remaining $500 million in aggregate principal amount of senior notes carry an interest rate of 5.700% and is expected mature in 2028. The offering will probably close on Oct 4, 2022.

EQT will likely utilize the offering’s net proceeds for financing the cash portion associated with acquiring all of the issued and outstanding membership interests of THQ Appalachia I Midco, LLC and THQ-XcL Holdings I Midco, LLC. Along with the net proceeds, EQT will also allocate cash on hand, borrowings under its revolving credit facility and/or borrowings under a new term loan facility for funding the cash portion.

Currently, EQT carries a Zacks Rank #2 (Buy). Other prospective players in the same space include Chesapeake Energy Corporation CHK, Enterprise Products Partners LP EPD and Exxon Mobil Corporation XOM. While Chesapeake Energy sports a Zacks Rank #1 (Strong Buy), Enterprise Products and ExxonMobil carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chesapeake Energy is a premium natural gas operator and is well-positioned to gain from the significant improvement in gas price in the past year. In the prolific gas-rich Marcellus shale play, CHK’s operation spreads across roughly 650,000 net acres, where an average of four to five rigs will be operating this year. Chesapeake Energy also has a strong presence in Haynesville and Eagle Ford shale play, making the production outlook bright. Being a leading upstream energy player, CHK has more than 15 years of inventory, signifying more than 2,200 gas locations.

Enterprise Products generates stable fee-based revenues from its extensive pipeline network across more than 50,000 miles, transporting natural gas, natural gas liquids (NGLs), crude oil petrochemicals and refined products.

The midstream infrastructure provider also has storage assets that can hold more than 260 million barrels of NGL, petrochemical, refined products and crude oil. These assets can also store 14 billion cubic feet of natural gas. Moreover, Enterprise Products has $5.5 billion of major capital projects under construction that are likely to provide incremental fee-based revenues.

The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. This is because ExxonMobil has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana.


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