Attention, those of you who own EQT Corporation (EQT): EQT has completed a spin-off of its midstream business sector into a new publicly traded company, Equitrans Midstream Corporation (ETRN). More information on this spin-off can be found here.
You will receive 80 shares of the new ETRN stock for every 100 shares of your EQT position. On Trade Day, please place a trade in your brokerage account to sell all the shares of ETRN that remain in your account after expiration. Afterwards, you will adjust your account as directed below:
Lattco PRO/AutoPilot Clients: Please sell your remaining shares of ETRN first thing Monday morning. Once the shares are sold please contact us, and we will adjust EQT for you.
Lattco Users:
1) Take the net amount of the sale of ETRN, and divide it by the total number of shares that you currently own in EQT; this will give you the cost basis adjustment that you will need for EQT. For example, if you receive $18,000 in net proceeds, and you own 1000 shares, you would take $18,000/1000 for a cost basis adjustment of $18.
2) Take the cost basis adjustment figure, and subtract it from the price paid for each of your outstanding bundles of shares on the position. For example, if you had a bundle of shares that was purchased for $70 and a cost basis adjustment of $18, you would subtract $18 from $70 to arrive at a new price paid of $52.
3) After you have completed adjusting each bundle of shares, you will update your band rule worksheets to reflect the adjusted prices.
4) Update your Allocated Cash based off the new adjusted Initial Purchase Price. Following this, you may resume regular trading of the position.
If you have any questions, please don’t hesitate to contact us at support@snideradvisors.com or 1-888-6-SNIDER. We’ll be happy to walk you through the process.
