EQT’s stock performance
After EQT Corporation’s (EQT) announcement on February 21, 2018, that it plans to spin off its midstream business, its stock fell ~3% but rose 2% next day.
On Thursday, March 15, news came in that EQT chief executive officer Steven Schlotterbeck had resigned, effectively immediately, citing personal reasons. In the interim period, EQT will appoint former chairman and CEO David Porges.
After this news, EQT stock dropped 5.2% on Thursday, March 15. On a YoY (year-over-year) basis, EQT stock has declined ~8%. Compared with the energy sector, EQT has underperformed, as you can see in the graph above. The Energy Select Sector SPDR (XLE) has fallen ~2% YoY.
Notably, both XLE stock and EQT stock have underperformed the SPDR S&P 500 ETF (SPY), which has risen ~17% YoY.
Speaking about the company’s decision to separate its midstream business, EQT’s management stated the following: “The decision to build our midstream business in parallel with upstream growth has created one of the strongest midstream companies in the Appalachian Basin,” it further commented, “This transaction represents a new chapter for our business as we unlock the value created during the past 10 years.”