Equitrans Midstream (ETRN) in Legacy Ridge 2024 Q2

Strategic Acquisition by EQT Corp Enhances Portfolio Position

Apr 15, 2025

Summary

Acquisition by EQT Corp positions ETRN within a leading natural gas producer.
Transaction involves exchanging ETRN shares for EQT shares.
Risks include integration challenges and commodity price volatility.
Potential for value creation through disciplined management and FCF generation.
Future opportunities to exploit natural gas price volatility.

In the Legacy Ridge 2024 Q2 fund letter, Equitrans Midstream (ETRN, Financial) was noted for its strategic acquisition by EQT Corp. This transaction positions ETRN within a leading natural gas producer, offering potential for value creation through disciplined management and significant free cash flow generation. The fund plans to exchange ETRN shares for EQT shares, starting with a small position but with opportunities to exploit natural gas price volatility.

"EQT is the top natural gas producer in the United States with a dominant position in the Appalachian Basin and will become one of the lowest cost gas producers in the US, if not the lowest, after consummating this merger." — Legacy Ridge Capital Management, 2024 Mid-Year Letter

Read full letter at gurufocus Legacy Ridge 2024 Q2 page.

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