Rice Team Encourages EQT Shareholders to Vote for Substantial ChangeSource: Business Wire
Rice Team Has a Proven Plan to Deliver Improved Efficiencies and Performance
Several Major Shareholders and ISS Fully Support All of the Rice Team Nominees and Plan
Vote the WHITE Universal Proxy Card Today in Advance of EQT’s
The text of the letter follows:
Dear Fellow EQT Shareholder:
The Rice Team (
But, in the twenty months since EQT closed on its acquisition of Rice Energy, EQT stock has lost more than half its value. EQT’s Board of Directors and management team have been unable to integrate Rice Energy’s technology, well designs, land acquisition strategies and operational coordination into EQT’s antiquated operating style.
The Rice Team is seeking to fundamentally transform EQT to deliver significant shareholder value
Last year, we were asked by several of EQT’s largest shareholders to help turn EQT around and address EQT’s performance. Given our track record of operating many of EQT’s assets at
With natural gas prices depressed and the outlook for future price increases uncertain, it is more important than ever that EQT operate efficiently, with large-scale development projects, tight operational coordination and optimized well designs.
We believe our plan can turn EQT into a technology-enabled, sustainable and low-cost energy producer capable of peer-leading well costs and long-term success even in an uncertain commodity market.
At Rice Energy, our modern approach to the energy business led to significant operational, cultural and stock price outperformance compared to our peers, including EQT itself. Now, with your support, we are convinced we can lead EQT to similar results.
The Rice Team has the right, proven plan
Our detailed plan is available here. We believe our plan will drive down EQT’s costs and increase the productivity of its wells to match our prior performance at Rice Energy and meet and exceed the performance of EQT’s industry peers. Financially, we believe our plan will generate
As a top-ten shareholder of EQT, we are highly incentivized to deliver strong results that will create shareholder value. As data-driven operators, we understand the importance of transparency and accountability, and we are committed to continuing our track record in these areas. And personally, I can think of no better value opportunity for shareholders than executing our proven plan.
But we cannot implement this plan without the support of our fellow shareholders. We are therefore asking you to vote on the Rice Team’s WHITEuniversal proxy card to elect all seven of the Rice Team’s nominees. These nominees are a diverse group of experienced professionals that are committed to our plan and to overseeing EQT for the benefit of all shareholders.
Our plan has the support of several leading EQT investors and ISS, the most influential independent proxy vote advisor.
Our nominees and plan have received public support so far from the three largest actively managed EQT shareholders:
T. Rowe Pricehas owned EQT stock for more than ten years and is EQT’s largest shareholder today. In a press release issued by T. Rowe Priceon July 1, 2019, David Wallack, portfolio manager of the T. Rowe Price Mid-Cap Value Fund,stated, “We have long been admirers of the founders and leaders of Rice Energy. They bring a data-driven, thoughtful, nimble, and innovative approach to the E&P industry that we believe will produce substantial benefits if they are applied across the EQT platform."*
T. Rowe has indicated it will vote for all seven of the Rice Team’s nominees.
D.E. Shaw Grouphas been a significant shareholder of EQT for three years, has owned the stock for most of the last twenty years and is currently the fourth-largest shareholder of EQT. In a press release issued on January 11, 2019, D.E. Shawstated, “We support the Rice Team because they are seasoned operators with a proven track record of delivering peer-leading results on the exact assets that EQT owns today.”*
Kensico Capital Managementis the sixth-largest shareholder of EQT. In a press release issued on June 27, 2019, Kensico Capitalstated, “We strongly believe the incumbent management team’s plan is inadequate compared to what could be achieved by the Rice team. This vote is a rare opportunity to set EQT on a new path with proven operators who have had a stellar track record of success….”*
Together with the Rice Team, these three shareholders own more than 20% of EQT’s stock.
Joining these large investors in their support for the Rice Team nominees and plan is leading proxy vote advisory firm Institutional Shareholder Services (“ISS”). After meeting with both EQT and the Rice Team, ISS issued a 49-page analysis which concluded by recommending that EQT shareholders vote for the Rice Team’s nominees and plan, noting that “substantial change at the board level is required” and the Rice Team’s “detailed plan provides a compelling blueprint for effecting a turnaround.”*
Last Friday, after ISS and Kensico announced their opinions publicly – and investors became more confident that the Rice Team plan had a better chance of being implemented at EQT – EQT’s stock rallied up 10%.
Please join us, EQT’s largest shareholders and ISS in voting for the Rice Team’s nominees and plan.
Please review our proxy materials and plan, which are available at www.EQTPathForward.com and vote for change at EQT by supporting our nominees (
We are also supporting five of the Company’s nominees (Dr.
If this combined group of nominees are elected, we believe EQT’s new Board of Directors will be the strongest in the industry.
If you have any questions about how to execute your vote intentions, please contact our proxy solicitor,
*Permission to use quotations neither sought nor obtained.
VOTE FOR ALL SEVEN OF THE RICE TEAM’S NOMINEES
AND THE FIVE EQT NOMINEES SUPPORTED BY THE RICE TEAM.
The Rice Team encourages shareholders to review its proxy materials, shareholder letters and its analysis of EQT, all of which are available at www.EQTPathForward.com. For questions about how to vote your shares, please contact our proxy solicitor,
Source: Rice Team
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