eqt offering 26 m shares insiders

[Fraser921]

Down 6 % after hours..this is like MGY last week..

EQT Corporation (NYSE: EQT) (the Company or EQT) today announced the commencement of an underwritten public offering of 25,930,000 shares of its common stock by certain shareholders who received the shares as a part of the Company's acquisition of Alta Resources Development, LLC's upstream and midstream subsidiaries (the Offering). Such selling shareholders intend to grant the underwriters a 30-day option to purchase up to an additional 3,889,500 shares of the Company's common stock. EQT will not sell any shares of its common stock in the Offering and will not receive any proceeds from the sale of the shares being offered by the selling shareholders. The Offering is subject to market and other conditions, and there can be no assurance as to whether or when the Offering may be completed.

[Fraser921]

During the third quarter of 2021, we amended our agreements with six of our largest OTC hedge counterpartiesto permanently or temporarily reduce or eliminate our margin posting obligations associated with our OTCderivative contracts with these hedge counterparties, which serve to mitigate the amount of cash collateral that wewould otherwise have been required to post based on current NYMEX strip pricing. Additionally, during the thirdquarter of 2021, we entered into certain swaps, swaptions and calls to reposition our 2021 and 2022 hedge portfolio,opening up incremental upside participation in the benefits of rising natural gas prices and further mitigatingpotential incremental margin posting requirements. As of September 24, 2021, our margin balance on our existinghedge portfolio was approximately $0.6 billion, as compared to approximately $0.5 billion as of June 30, 2021,despite a significant increase in natural gas prices between June 30, 2021 and September 24, 2021. >>>thats good news

[SergioSays]

that hedge repositioning sounds like VERY good news

[dan_s]

Buy dips caused by stock sales that are not shares being sold by the company. EQT is a heck of a BUY because it still trades at less than book value, which is insane for a "gasser" when ngas prices have doubled in six months.

[Fraser921]

PITTSBURGH, Sept. 28, 2021 /PRNewswire/ -- EQT Corporation (NYSE: EQT) (the Company or EQT) today announced the pricing of an underwritten public offering of 25,930,000 shares of its common stock by certain shareholders at a price to the public of $20.00 per share (the Offering). Such selling shareholders, who had received the shares as a part of the Company's acquisition of Alta Resources Development, LLC's upstream and midstream subsidiaries, have granted the underwriters a 30-day option to purchase up to an additional 3,889,500 shares of

Look for it to trade to 20.50 then bounce back to 22.00

I took another look at the hedge comment. That referred to margin that had to be posted not what they expect to lose in the qtr. Could be another 2 billion hit. Interesting that the sellers didn’t want to hang around for the q 3 earnings report. They said get me out of here!

[Fraser921]

It hit 20.50 in pre market trading, currently 20.60 x 20.63. Offering price is 20.00
The book runner will defend/support that price.

[SergioSays]

I'm tempted to sell an option straddle or strangle around some of these names going into the qtrly earnings. Seems like, just as they did on Q2, the hedge MTM's will limit the upside and maybe generate a short term dip in price. I'm guessing the implied vol on these names has gone way up now that the media is onto the crisis.



I took another look at the hedge comment. That referred to margin that had to be posted not what they expect to lose in the qtr. Could be another 2 billion hit. Interesting that the sellers didn’t want to hang around for the q 3 earnings report. They said get me out of here![/quote]

[Fraser921]

Im extremely bullish on the low hedgers. CLR, MGY, MRO, EOG

I'm going to "hedge" my long position by shorting the heavy hedgers going into earnings.

I will cover after the dip. I need to do more work on who gave away what

[CreativeEquity]

Who are the ones with the large hedge book Fraser ?

[dan_s]

Hedges for each company are shown at the bottom of each forecast model house on the EPG website.

Just remember that ALL COMPANIES will benefit from higher commodity prices, ESPECIALLY THE GASSERS because they can move gas to take advantage of spot market cash prices. All production is sold into the physical market and hedges are settled against index prices.

[SergioSays]

Hedges for each company are shown at the bottom of each forecast model house on the EPG website.

Just remember that ALL COMPANIES will benefit from higher commodity prices, ESPECIALLY THE GASSERS because they can move gas to take advantage of spot market cash prices. All production is sold into the physical market and hedges are settled against index prices.

Dan--good point that you continue to hammer home, and I completely agree--a properly managed hedge book is a necessary and good thing for these co's. I'm just talking about making a (speculative) trading play around my existing longs to take advantage of what I believe will be another MARKET FREAK OUT over their reported hedge losses in Q3.

[dan_s]

I am terrible at timing the market. I agree that "Reported Net Income", which includes the mark-to-market adjustments on hedges will be much different than "Adjusted Net Income".

The Wall Street Gang seems to be focused on "Free Cash Flow" these days and the Sweet 16 are all generating a lot of FCF.

AR, EQT, CRK and RRC all have a lot of ngas hedged through year-end. COG has very little gas hedged, so XEC is a good bet. I expect the merger to close within a few days.

[Fraser921]

I agree with your comments.

My wish list regarding hedges are,

1. I wish these guys would leave some upside for us
2. Buy puts and pay cash, that's your insurance. All the upside would be ours.
3. Use collars instead of swap
4. Leave 50 % unhedged

when NG was 2.50, whats the most it could go down too 1.50, upside unlimited so why trade 100% of upside for 1.00 dollar of downside?

Buying puts and paying for them would show true cost of that insurance.

I'm old fashioned, I look at gaap financial statements. I don't like how they delete/adjust negative factors. That's like me taking home my report card and telling parents I got an A if you exclude my midterm exam which I flunked