The Financial Implications of the EQT-RICE Deal


Jun. 21 2017, Updated 9:38 a.m. ET

Financial implications on EQT

To finance its Rice Energy (RICE) acquisition, EQT (EQT) plans to issue $5.4 billion in equity and pay $1.3 billion in cash. Plus, as we’ve already noted in this series, the company will assume or refinance $1.5 billion of net debt and preferred equity.

Per EQT, the company will save $600 million in general and administrative expense after the acquisition. Along with its “capital efficiencies” of $1.9 billion, its total synergies following the transaction are expected to be $2.5 billion. The company noted in a press release that the transaction would “provide substantial synergies and make this transaction significantly accretive in the first year.”

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