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EQT’s $167.5M Settlement: What It Means for Investors—and What It Doesn’t

Technology
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  • After nearly six years of legal wrangling, EQT Corporation has agreed to pay $167.5 million to settle a class-action lawsuit tied to its 2017 merger with Rice Energy. While headlines focus on the payout, savvy investors are asking a different question: What does this mean for EQT’s future—and could a stock split be next?

    #The Merger That Sparked a Legal Firestorm

    A $6.7 Billion Deal with Big Promises

    Back in 2017, EQT announced its acquisition of Rice Energy, a $6.7 billion deal that was supposed to create the largest natural gas producer in the U.S. But investors later alleged that EQT overstated the benefits of the merger, leading to inflated stock prices and, eventually, a courtroom showdown.

    Plaintiffs included major pension funds like the Government of Guam Retirement Fund and Cambridge Retirement System

    The case was filed in the U.S. District Court for the Western District of Pennsylvania

    The $167.5M settlement is reportedly the largest securities class action recovery in the district’s history

    #EQT Stock Split: A Look at the Numbers

    Past Splits and Future Possibilities

    EQT has a long history of stock splits—eight in total since 1979. The most recent was in November 2018, a 1.837-for-1 split following the spin-off of Equitrans Midstream.

    So, could another EQT stock split be on the horizon? Not likely in the immediate term. The current share price hovers around $59, and splits typically occur when prices climb into triple digits. But if EQT’s legal baggage is now behind it and natural gas demand continues to rise, a future split isn’t off the table.

    #What This Means for Shareholders

    A Clean Slate—or Just a New Chapter?

    The settlement removes a major overhang from EQT’s balance sheet and public image. While $167.5 million is no small sum, it’s a manageable hit for a company with a market cap north of $20 billion. More importantly, it clears the runway for EQT to focus on its core business: natural gas production and infrastructure.

    Investors should watch for:

    Post-settlement investor sentiment

    Q3 earnings guidance

    Any signs of capital restructuring or dividend adjustments

    #Final Thoughts: Not a Split, But a Reset

    This isn’t a stock split story—it’s a reputation reset. EQT’s legal saga may be ending, but its next chapter is just beginning. Whether that includes a future EQT stock split or not, one thing’s clear: the company is back in the spotlight, and this time, it’s not for courtroom drama.-