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Rice Team Sends Letter to Fellow EQT Shareholders Setting the Record Straight on EQT’s Misleading Comments

EQT Shareholders Urged to Not Be Misled by Mistruths and
Let the Facts Speak for Themselves

CARNEGIE, Pa.–(BUSINESS WIRE)–The Rice Team (Toby Z. Rice, Derek A. Rice, J. Kyle Derham and William
E. Jordan), shareholders of EQT Corporation (NYSE: EQT), today sent a
letter to EQT shareholders seeking to correct a number of false claims
that EQT has made in its efforts to mislead shareholders. The letter
also addresses a number of personal attacks that EQT has made against
the Rice Team.


The letter states that: “As large shareholders, we want what is best for
EQT and for generating long term shareholder value. We firmly believe
EQT has terrific assets that are not being operated well and are
therefore not generating maximum returns for shareholders. Having
operated most of these assets ourselves, we know exactly how to deliver
full value for shareholders, and we believe our proposed slate of
directors would enable us to do just that. We believe the choice for
shareholders is clear.

Unfortunately for our fellow shareholders, it’s not just EQT’s share
price that has sunk to new lows: EQT’s CEO and directors have resorted
to making false, misleading and inaccurate claims about the health of
EQT’s business, among other things. We believe the use of these
deceptive, low-road tactics is another reason why current EQT leadership
cannot and should not be trusted.”

The Rice Team believes that EQT shareholders deserve to have the facts
and urges them to vote the WHITE universal proxy card for the
Rice Team’s slate of director nominees. Shareholders are encouraged to
review the letter and additional information at www.eqtpathforward.com.

In its FACT and FICTION letter, the Rice Team noted:

  • Contrary to EQT’s claim that it is among the lowest cost producers in
    the Appalachian Basin, EQT is actually the highest cost operator in
    the Basin, according to financial analysts and EQT’s own investment
  • EQT's claim that it has generated $300 million of free cash flow (FCF)
    over the last two quarters is disingenuous, because 40% of the FCF is
    from temporary midstream dividends from its stake in ETRN, which EQT
    has announced it will sell, and the rest is from EQT being forced to
    drastically reduce its growth capex
  • EQT’s assertion that Rice Energy never generated free cash flow
    ignores the fact that EQT’s own estimates at the time of the merger
    indicated that Rice Energy was on a path to generate approximately
    $2.3 billion more upstream free cash flow on a standalone basis than
    EQT through 2021 because of Rice’s operating efficiency
  • EQT’s claim of outperforming Appalachian peers since the new
    management team assumed control conveniently uses the spin-off date as
    its starting point, masking the greater than 30% decline in the stock
    price from the announcement of the new CEO through the completion of
    the spin-off
  • EQT’s personal attacks on the Rice Team are an attempt to distract
    shareholders, when in fact, as one of EQT’s largest shareholders, the
    Rice Team is singularly focused on generating value for all
    shareholders and only got involved because many of EQT’s largest
    shareholders asked us to
  • EQT’s claim that its Board and management team are “new” is undermined
    by the fact that EQT’s “new” executive team has an average tenure of
    approximately 9 years



Additional information regarding the proxy contest, as well as the Rice
team’s presentation outlining its plan for EQT and Board nominees can be
found at www.eqtpathforward.com.

For questions about how to vote your shares, please contact our proxy
solicitor, D.F. King & Co., Inc., at (800) 207-3159.


For Investor Inquiries:
Kyle Derham
[email protected]
King & Co., Inc.
Edward McCarthy / Geoffrey Weinberg
[email protected]
Media Inquiries:
Sard Verbinnen & Co
Jim Barron:
Kelly Kimberly: 832-680-5120
[email protected]