Focusing on Core Marcellus Acreage
EQT Corporation (ticker: EQT) will be presenting at EnerCom’s The Oil and Gas Conference® 21 in Denver on Monday, August 15, 2016.
EQT Corporation is major upstream and midstream oil and gas company that has operated in the Appalachian Basin for over 125 years. EQT uses advanced horizontal drilling technology to minimize the potential impact of drilling-related activities and reduce its environmental footprint.
The company owns approximately 3.4 million gross acres, which include 630,000 gross acres in the Marcellus play, more than 13,000 gross productive wells, and 10.0 trillion cubic feet of proved natural gas, NGL, and crude oil reserves. The company holds acreage in Kentucky, Ohio, Texas, West Virginia, Virginia, and Pennsylvania.
Highlights of the company’s 2Q 2016 activities include a 26% increase in production sales volume, an 11% increase in midstream gathering sales, and a 14% increase in transmission revenue. These results coincided with a 23% decrease in realized prices. In the second quarter, the company drilled 27 gross wells in the Marcellus with an average length of pay of 6,400 feet.
The company plans to spud 63 additional wells in the second half of 2016 and end the year with 135 total Marcellus and Upper Devonian wells drilled. Due to lower well costs offsetting the costs of increased activity, forecasted 2016 capital expenditure remains unchanged at $1.0 billion.
On July 8th, the company closed a transaction with Statoil to acquire 62,500 Marcellus acres in its core development area of West Virginia that are continuous with current acreage and yield stacked pay. The company also acquired drilling rights to 53,000 net acres in the deep Utica.
This acquisition will allow average lateral lengths for 106 wells to be extended from 3,000 feet to 6,500 feet, lowering overall costs and improving well economics. A portion of the acquisition was funded by a $796 million common stock offering.
EQT Midstream Partners provides midstream services to the company and third party companies through strategically located transmission, storage, and gathering systems in the Marcellus and Utica regions. The company owns 700 miles, operates an additional 200 miles of FERC-regulated interstate pipelines, and owns 1,600 miles of high and low pressure gathering lines with multiple delivery interconnects with the transmission and storage system.
