EQT Corporation (NYSE: EQT) today announced first quarter 2014
net income attributable to EQT of $192.2 million, or $1.26 per
diluted share, compared to first quarter 2013 earnings of $100.3
million, or $0.66 per diluted share. Adjusted earnings, excluding
$22.3 million of hedging ineffectiveness, were $206.6 million, or
$1.35 per diluted share – which was 214% higher than first quarter
2013 adjusted earnings of $65.5 million, or $0.43 per diluted
share, excluding $35.0 million from discontinued operations.
Operating cash flow in the quarter was $481.9 million, compared to
$306.2 million; and adjusted cash flow per share was $3.16,
compared to $2.03. The Non-GAAP financial measures are reconciled
in the Non-GAAP Disclosures section of this news release.
First Quarter Highlights 2014 vs. 2013:
- Production sales volume was 30%
higher
- Production operating expenses per Mcfe
were 17% lower
- Midstream transmission revenues were
40% higher
- Midstream gathered volume was 25%
higher
EQT’s first quarter 2014 operating income was $356.8 million, a
147% increase from the same quarter 2013. Earnings per share and
adjusted cash flow per share were higher due to increases in
production sales volume, realized price, contracted transmission
capacity, and gathered volume. Net operating revenues increased 63%
to $616.5 million in the quarter, while net operating expenses
increased only 11% to $259.7 million.
RESULTS BY BUSINESSEQT
PRODUCTIONWith its continued focus on the Marcellus Shale, EQT
Production achieved sales volume of 106.1 Bcfe in the first quarter
2014, representing a 30% increase compared to the first quarter
2013. Sales volume from the Marcellus/Upper Devonian averaged
923.6 MMcfe per day, 50% higher. Natural gas liquids (NGL) volume
totaled 1,295 Mbbls, 16% higher.
Production operating income for the first quarter totaled $277.2
million, an increase of 274% from last year. As a result of
increases in sales volume and average realized price, net operating
revenue for the quarter was $467.7 million, 87% higher.
Consistent with the significant growth in sales volume, EQT
Production’s operating expenses for the quarter were $190.5
million, $14.1 million higher than the same period last
year. Depreciation, depletion and amortization expense
(DD&A) was $6.3 million higher; production taxes were $5.2
million higher; selling, general and administrative expense
(SG&A) was $3.1 million higher; lease operating expense (LOE),
less production taxes, was $1.8 million higher; and exploration
expense was $2.3 million lower. Per unit SG&A decreased
14% to $0.24 per Mcfe; and per unit LOE decreased 13% to $0.14 per
Mcfe, as volume growth dramatically outpaced higher costs.
The Company drilled (spud) 64 gross wells during the quarter --
46 wells targeted the Marcellus with an average length-of-pay of
5,870 feet; 14 wells targeted the Huron with an average
length-of-pay of 6,395 feet; and 4 wells targeted the Upper
Devonian with an average length-of-pay of 5,460 feet. In 2014, the
Company will complete and evaluate 5 Utica wells drilled in 2013
but has decided to delay further drilling on its Ohio Utica acreage
until after this year. Alternatively, the Company now expects to
drill 8 additional Marcellus wells and 13 additional Upper Devonian
wells for a total of 194 Marcellus wells and 43 Upper Devonian
wells in 2014. This change will have no net impact to the Company’s
2014 CAPEX budget.
Production sales volume for 2014 is projected to be 465 – 480
Bcfe; and liquids volume is expected to be 6,800 – 6,900 MBBls.
Production sales volume for the second quarter 2014 is projected to
be 113 - 115 Bcfe; and liquids volume is expected to be 1,600–
1,650 MBBls.
Realized PriceThe NYMEX price of natural gas averaged $4.94 per
MMBtu in the first quarter 2014, which was 48% higher than the
average of $3.34 for the same period last year. EQT’s realized
price varies from NYMEX due to revenue deductions for the net cost
of gathering, transporting and processing, regional basis, and
hedging. In the first quarter, the Company’s average realized
price was $5.34 per Mcfe, 28% higher than the $4.16 per Mcfe
realized last year – with $4.40 per Mcfe allocated to EQT
Production and $0.94 per Mcfe allocated to EQT Midstream. This
increase in the realized price includes negative $0.21 per Mcfe
related to hedge ineffectiveness. During the first quarter 2014,
which was unusually cold, EQT utilized its firm capacity to move
gas to higher priced markets. The sale of gas in these markets
resulted in gains that more than offset the cost of third-party
gathering and transmission, and resulted in positive net revenue of
$0.64 per Mcfe. This is a significant improvement over last
year when EQT realized a net cost of $0.26 per Mcfe in the first
quarter 2013 for third-party gathering and transmission. Basis
averaged a negative $0.22 per Mcfe in the first quarter compared to
zero in 2013.
Based on current market conditions, EQT is forecasting
third-party gathering and transmission to average $0.00 to negative
$0.05 per Mcfe; and basis to average negative $0.40 to negative
$0.60 per Mcfe for the full-year 2014.
EQT MIDSTREAMEQT Midstream’s first quarter 2014 operating
income was $83.1 million, or $8.9 million higher than the first
quarter of 2013. Net operating revenue was $148.7 million, 15%
higher. Net gathering revenue was $89.4 million, an increase of 9%,
which was primarily due to a 25% increase in gathered volume,
partly offset by lower gathering rates. Net transmission revenue
totaled $52.1 million, a 40% increase over last year as a
result of higher contracted capacity. Net storage, marketing and
other revenues totaled $7.2 million, $2.5 million lower; and
operating expenses for the quarter were $65.6 million,
$11.0 million higher, consistent with the volume growth. Per
unit gathering and compression expense decreased by 16% as volumes
grew faster than expenses.
OTHER BUSINESSEQT
Midstream Partners, LPEQT has a 42.6% limited partner interest
and a 2% general partner interest in EQT Midstream Partners, LP,
whose results are consolidated in EQT’s results. For the quarter,
EQT Corporation recorded $18.7 million, or $0.12 of earnings per
diluted share, attributable to non-controlling interests. EQT
Midstream Partners’ results were released today and are available
at www.eqtmidstreampartners.com.
On April 22, 2014, EQT Midstream Partners announced a cash
distribution to its unitholders of $0.49 per unit for the
first quarter, from which EQT will receive $10.2 million on its
limited partner units. In addition, EQT will receive $0.5 million
related to its 2% general partner interest, and $1.0 million for
its incentive distribution rights as EQT receives 25% of the amount
in excess of $0.4375 per unit.
HedgingThe Company’s total natural gas hedge positions
through December 2016 production are
2014**
2015
2016*** Fixed Price Total Volume (Bcf) 171
132
60 Average Price per Mcf (NYMEX)* $ 4.36 $ 4.37 $ 4.45
Collars Total Volume (Bcf) 18 23 – Average Floor Price per Mcf
(NYMEX)* $ 5.05 $ 5.03 $ – Average Cap Price per Mcf (NYMEX)* $
8.85 $ 8.97 $ –
*The average price is based on a conversion rate of 1.05
MMBtu/Mcf**April through December***The Company also executed a
natural gas sales agreement for approximately 35 Bcf that includes
a NYMEX ceiling price of $4.88 per Mcf
Operating IncomeThe Company reports operating income by
segment in this news release. Interest, income taxes and
unallocated expense are controlled on a consolidated,
corporate-wide basis and are not allocated to the segments. The
Company’s management reviews and reports segment results for
operating revenues and purchased gas costs, net of third-party
transportation costs.
The following table reconciles operating income by segment, as
reported in this news release, to the consolidated operating income
reported in the Company’s financial statements:
Three Months Ended
March 31, 2014 2013 Operating
income (thousands): EQT Production $ 277,205 $ 74,097 EQT Midstream
83,069 74,214 Unallocated expense (3,483 ) (3,832 )
Operating income $ 356,791 $ 144,479
Unallocated expense is primarily due to certain incentive
compensation and administrative costs in excess of budget that are
not allocated to the operating segments.
Marcellus Horizontal Well Status
(cumulative since inception)
As of As of As of As of
As of 3/31/14 12/31/13 9/30/13 6/30/13 3/31/13 Wells spud
573 527 486 444 404 Wells online 390 373 338 322 279 Wells
complete, not online 42 32 20 11 30 Frac stages (spud wells)*
13,512 11,991 10,613 9,754 8,327 Frac stages online 8,012 7,567
6,596 6,297 4,788 Frac stages complete, not online 959 708 553 224
925
*Includes planned stages for spud wells
that have not yet been hydraulically fractured.
NON-GAAP
DISCLOSURESAdjusted Operating Income, Adjusted Net
Income and Adjusted Earnings Per Diluted ShareAdjusted
operating income, adjusted net income and adjusted earnings per
diluted share are non-GAAP supplemental financial measures that are
presented because they are important measures used by management to
evaluate period-to-period comparisons of earnings trends. Adjusted
operating income, adjusted net income and adjusted earnings per
diluted share should not be considered as alternatives to operating
income, net income or earnings per diluted share presented in
accordance with GAAP.
The table below reconciles adjusted operating income with
operating income, as derived from the statements of consolidated
income to be included in EQT’s quarterly report on Form 10-Q for
the quarter ended March 31, 2014.
Reconciliation of Adjusted Operating
Income:
Three Months Ended March 31,
(thousands)
2014
2013 Operating income as reported $ 356,791 $
144,479 (Deduct) / add back:
Loss recognized in operating revenues for
hedging ineffectiveness
22,260 481 Adjusted operating income $ 379,051 $
144,960
The table below reconciles adjusted net income and adjusted
earnings per diluted share with net income and earnings per diluted
share, as derived from the statements of consolidated income to be
included in EQT’s quarterly report on Form 10-Q for the quarter
ended March 31, 2014.
Reconciliation of Adjusted Net Income
and Adjusted Earnings Per Diluted Share:
Three Months Ended March 31,
(thousands)
2014 2013 Net income
attributable to EQT, as reported $ 192,193 $ 100,255 (Deduct) / add
back: Loss recognized in operating revenues for hedging
ineffectiveness 22,260 481 Tax impact (7,910 ) (153 )
Subtotal $ 206,543 $ 100,583 Loss/(income) from discontinued
operations, net of tax 104 (35,041 ) Adjusted
net income attributable to EQT, as reported $ 206,647 $
65,542 Diluted weighted average common shares outstanding
152,759 150,949 Diluted EPS, as adjusted $ 1.35 $ 0.43
Operating Cash FlowOperating cash flow is a non-GAAP
supplemental financial measure that is presented as an indicator of
an oil and gas exploration and production company’s ability to
internally fund exploration and development activities and to
service or incur additional debt. EQT includes this information
because management believes that changes in operating assets and
liabilities relate to the timing of cash receipts and
disbursements, and therefore, may not relate to the period in which
the operating activities occurred. Operating cash flow should not
be considered as an alternative to net cash provided by operating
activities presented in accordance with GAAP. The table below
reconciles operating cash flow with net cash provided by operating
activities, as derived from the statements of consolidated cash
flows to be included in the EQT’s quarterly report on Form 10-Q for
the quarter ended March 31, 2014.
Three Months Ended March 31,
(thousands)
2014
2013(a)
Net income $ 210,935 $ 109,281 Add back (deduct): Depreciation,
depletion, and amortization 152,111 149,116 Deferred income taxes
85,878 34,347 Loss recognized in operating revenues for hedging
ineffectiveness 22,260 481 Non-cash incentive compensation 11,317
10,334 Other items, net (590 ) 2,612 Operating
cash flow $ 481,911 $ 306,171 Add back (deduct):
Changes in other assets and liabilities $ (20,350 ) $ (6,916 ) Net
cash provided by operating activities $ 461,561 $ 299,255
(a) Includes results of discontinued
operations
Adjusted Cash Flow Per ShareAdjusted cash flow per share
is a non-GAAP supplemental financial measure that is presented
because it is a capital efficiency metric used by investors and
analysts to evaluate oil and gas companies. Adjusted cash flow per
share should not be considered as an alternative to net cash
provided by operating activities or net income per share presented
in accordance with GAAP, or as a measure of liquidity.
The table below provides the calculation for adjusted cash flow
per share, as derived from the financial statements to be included
in EQT’s quarterly report on Form 10-Q for the quarter ended March
31, 2014.
Three Months Ended
March 31,
(thousands)
2014 2013 Operating cash
flow (a non-GAAP measure reconciled above) $ 481,911 $ 306,171 Add
back: Exploration expense (cash) 1,144 750
Adjusted operating cash flow
$ 483,055 $ 306,921 Diluted weighted average common shares
outstanding 152,759 150,949 Adjusted cash flow per
share $ 3.16 $ 2.03
Net Operating Revenues and Net Operating ExpensesNet
operating revenues and net operating expenses are non-GAAP
supplemental financial measures that exclude purchased gas costs,
but are presented because they are important analytical measures
used by management to evaluate period-to-period comparisons of
revenue and operating expenses. Purchased gas costs are typically
excluded by management in such analysis because more emphasis is
placed on the net price impact to revenues and expenses. Net
operating revenues and net operating expenses should not be
considered as alternatives to operating revenues or total operating
expenses presented in accordance with GAAP. The table below
reconciles net operating revenues to operating revenues and net
operating expenses to total operating expenses as derived from the
statements of consolidated income to be included in EQT’s quarterly
report on Form 10-Q for the quarter ended March 31, 2014.
Three Months Ended March 31,
(thousands)
2014 2013 Net operating
revenues $ 616,450 $ 379,152 Plus: purchased gas cost 45,175
36,731 Operating revenues $ 661,625 $ 415,883 Net
operating expenses $ 259,659 $ 234,673 Plus: purchased gas cost
45,175 36,731 Total operating expenses $ 304,834 $
271,404
Q1 2014 Webcast
InformationThe Company's conference call with securities
analysts, which begins at 10:30 a.m. ET today, will be broadcast
live via the Company's web site at http://www.eqt.com, and on the
investor information page of the Company’s web site at
http://ir.eqt.com, with a replay available for seven days following
the call.
EQT Midstream Partners, LP (Partnership), for which EQT
Corporation is the general partner and a significant equity owner,
will host a conference call with security analysts today, beginning
at 11:30 a.m. ET. The call will be broadcast live via
http://www.eqtmidstreampartners.com, with a replay available for
seven days following the call.
About EQT Corporation:EQT
Corporation is an integrated energy company with emphasis on
Appalachian area natural gas production, gathering, and
transmission. EQT is the general partner and significant equity
owner of EQT Midstream Partners, LP. With more than 125 years of
experience, EQT continues to be a leader in the use of advanced
horizontal drilling technology – designed to minimize the potential
impact of drilling-related activities and reduce the overall
environmental footprint. Through safe and responsible operations,
the Company is committed to meeting the country’s growing demand
for clean-burning energy, while continuing to provide a rewarding
workplace and enrich the communities where its employees live and
work. Company shares are traded on the New York Stock Exchange as
EQT.
Visit EQT Corporation at www.EQT.com.
EQT Management speaks to investors from time to time. Slides for
these discussions will be available online via the Company’s
investor relations website at http://ir.eqt.com. The slides were
updated today and may be updated periodically.
Cautionary StatementsThe United States Securities and
Exchange Commission (SEC) permits oil and gas companies, in their
filings with the SEC, to disclose only proved, probable and
possible reserves that a company anticipates as of a given date to
be economically and legally producible and deliverable by
application of development projects to known accumulations. We use
certain terms, such as “EUR” (estimated ultimate recovery) and “3P”
(proved, probable and possible) that the SEC’s guidelines prohibit
us from including in filings with the SEC. These measures are by
their nature more speculative than estimates of reserves prepared
in accordance with SEC definitions and guidelines and accordingly
are less certain.
Total sales volume per day (or daily production) is an
operational estimate of the daily production or sales volume on a
typical day (excluding curtailments).
EBITDA is defined as earnings before interest, taxes,
depreciation, and amortization and is not a financial measure
calculated in accordance with GAAP. EBITDA is a non-GAAP
supplemental financial measure that the Company’s management and
external users of the Company’s financial statements, such as
industry analysts, investors, lenders and rating agencies, may use
to assess: (i) the Company’s performance versus prior periods; (ii)
the Company’s operating performance as compared to other companies
in its industry; (iii) the ability of the Company’s assets to
generate sufficient cash flow to make distributions to its
investors; (iv) the Company’s ability to incur and service debt and
fund capital expenditures; and (v) the viability of acquisitions
and other capital expenditure projects and the returns on
investment of various investment opportunities.
The Company is unable to provide a reconciliation of projected
EBITDA to projected operating income, the most comparable financial
measure calculated in accordance with GAAP, due to the unknown
effect, timing and potential significance of certain income
statement items.
Similarly, the Company is unable to provide a reconciliation of
its projected operating cash flow to projected net cash provided by
operating activities, the most comparable financial measure
calculated in accordance with GAAP, because of uncertainties
associated with projecting future net income and changes in assets
and liabilities.
Disclosures in this news release contain certain forward-looking
statements. Statements that do not relate strictly to historical or
current facts are forward-looking. Without limiting the generality
of the foregoing, forward-looking statements contained in this news
release specifically include the expectations of plans, strategies,
objectives and growth and anticipated financial and operational
performance of the Company and its subsidiaries, including guidance
regarding the Company’s strategy to develop its Marcellus and other
reserves; drilling plans and programs (including the number, type,
feet of pay and location of wells to be drilled); projected natural
gas prices and changes in basis; total resource potential,
reserves, EUR, expected decline curve and reserve replacement
ratio; projected production sales volume and growth rates
(including liquids sales volume and growth rates); projected
finding and development costs, operating costs, unit costs, well
costs and gathering and transmission revenue deductions; projected
gathering and transmission volume and growth rates; projected firm
pipeline capacity and sales; infrastructure programs (including the
timing, cost and capacity of the transmission and gathering
expansion projects); the EQT subsidiary to own and construct the
Ohio Valley Connector and/or Ohio Valley Express projects;
technology (including drilling and completion techniques);
projected EQT Midstream and Partnership EBITDA; monetization
transactions, including asset sales (dropdowns) to the Partnership
and other asset sales, joint ventures or other transactions
involving the Company’s assets; uses of capital provided by the
Equitable Gas transaction; the cash flows resulting from, and the
value of, the Company’s general partner and limited partner
interests and incentive distribution rights in the Partnership;
internal rate of return (IRR); projected capital expenditures;
liquidity and financing requirements, including funding sources and
availability; projected operating revenues, cash flows and
cash-on-hand; hedging strategy; the effects of government
regulation and litigation; the Company dividend and Partnership
distribution amount and rates; and tax position. These
forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from projected
results. Accordingly, investors should not place undue reliance on
forward-looking statements as a prediction of actual results. The
Company has based these forward-looking statements on current
expectations and assumptions about future events. While the Company
considers these expectations and assumptions to be reasonable, they
are inherently subject to significant business, economic,
competitive, regulatory and other risks and uncertainties, most of
which are difficult to predict and many of which are beyond the
Company’s control. The risks and uncertainties that may affect the
operations, performance and results of the Company’s business and
forward-looking statements include, but are not limited to, those
set forth under Item 1A, “Risk Factors,” of the Company’s Form 10-K
for the year ended December 31, 2013, as updated by any subsequent
Form 10-Qs.
Any forward-looking statement speaks only as of the date on
which such statement is made and the Company does not intend to
correct or update any forward-looking statement, whether as a
result of new information, future events or otherwise.
Information in this news release regarding the Partnership and
its subsidiaries is derived from publicly available information
published by the Partnership.
EQT CORPORATION AND SUBSIDIARIES STATEMENTS OF
CONSOLIDATED INCOME (UNAUDITED) (Thousands, except per share
amounts) Three Months Ended
March 31,
2014
2013 Operating revenues $ 661,625 $ 415,883
Operating expenses: Purchased gas costs 45,175 36,731 Operation and
maintenance 25,221 23,233 Production 31,940 24,889 Exploration
1,419 3,730 Selling, general and administrative 48,968 39,785
Depreciation, depletion and amortization 152,111
143,036 Total operating expenses 304,834
271,404 Operating income 356,791 144,479 Other income 2,551
2,281 Interest expense 31,968 37,752
Income before income taxes 327,374 109,008 Income taxes
116,335 34,768 Income from continuing operations
211,039 74,240 (Loss) income from discontinued operations, net of
tax (104 ) 35,041 Net income $ 210,935 $ 109,281
Less: Net income attributable to noncontrolling interests
18,742 9,026 Net Income attributable to EQT
Corporation $ 192,193 $ 100,255 Amounts attributable
to EQT Corporation Income from continuing operations 192,297 $
65,214 (Loss) income from discontinued operations (104 )
35,041 Net Income $ 192,193 $ 100,255
Earnings per share of common stock
attributable to EQT Corporation
Basic: Weighted average common shares outstanding 151,371 150,327
Income from continuing operations $ 1.27 $ 0.44 (Loss) income from
discontinued operations - 0.23 Net income $
1.27 $ 0.67 Diluted: Weighted average common shares
outstanding 152,759 150,949 Income from continuing operations $
1.26 $ 0.43 (Loss) income from discontinued operations -
0.23 Net income $ 1.26 $ 0.66
EQT Corporation
Price Reconciliation Three Months
Ended March 31, in thousands (unless noted)
2014
2013
LIQUIDS
NGLs: Sales Volume (MMcfe) (a) 7,767 6,692 Sales Volume
(Mbbls) 1,295 1,115 Gross Price ($/Bbl) $ 55.71 $ 46.11
Gross NGL Revenue 72,114 $ 51,423
Oil: Sales Volume
(MMcfe) (a) 304 368 Sales Volume (Mbbls) 51 61 Net Price ($/Bbl) $
83.11 $ 81.74 Net Oil Revenue $ 4,214 $ 4,986
Total Liquids Revenue $ 76,328 $ 56,409
GAS
Sales Volume – Natural Gas (MMBtu) 98,052 74,654
Sales Volume – Ethane sold as natural gas
(MMBtu)
6,931 6,417 Sales Volume (MMBtu)
104,983 81,071 NYMEX Price ($/MMBtu) (b) $ 4.92 $ 3.34
Gas Revenue $ 516,636 $ 270,427 Basis (23,669 )
(193 ) Gross Gas Revenue (unhedged) $ 492,967 $ 270,234
Sales Volume (MMcf) 98,052 74,654 Gas
Price ($/Mcf) (unhedged) $ 5.03 $ 3.62 Total Gross Gas &
Liquids Revenue (unhedged) $ 569,295 $ 326,643 Hedge impact (c)
(59,220 ) 43,498 Total Gross Gas & Liquid
Revenue $ 510,075 $ 370,141 Total Sales Volume (MMcfe)
106,123 81,714 Average hedge adjusted price
($/Mcfe) $ 4.81 $ 4.53
Midstream Revenue Deductions ($ /
Mcfe) Gathering to EQT Midstream $ (0.73 ) $ (0.88 )
Transmission to EQT Midstream (0.21 ) (0.23 ) Net third-party
gathering and transmission 0.64 (0.26 ) Third-party processing
(0.11 ) (0.11 ) Total midstream revenue deductions $
(0.41 ) $ (1.48 ) Average effective sales price to EQT Production $
4.40 $ 3.05
EQT Revenue ($/ Mcfe)
Revenues to EQT Midstream $ 0.94 $ 1.11 Revenues to EQT Production
4.40 3.05 Average effective sales price
to EQT Corporation $ 5.34 $ 4.16
(a) NGLs and crude oil were converted to Mcfe at the rate of six
Mcfe per barrel for all periods. Information for the three months
ended March 31, 2013 has been recast to reflect this conversion
rate.(b) The Company’s volume weighted NYMEX natural gas price
(actual average NYMEX natural gas price ($/MMBtu) was $4.94 and
$3.34 for the three months ended March 31, 2014 and 2013,
respectively).(c) Includes gains or losses related to the sale of
fixed price natural gas. The hedge impact also included a loss for
hedging ineffectiveness of $22.4 million, $0.21 per Mcfe, and $0.5
million, $0.01 per Mcfe, for the three months ended March 31, 2014
and 2013, respectively.
Three Months Ended
UNIT COSTS
March 31, 2014
2013 (a)
Production segment costs: ($ / Mcfe) LOE $ 0.14 $ 0.16 Production
taxes 0.16 0.15 SG&A 0.24 0.28 $ 0.54 $
0.59 Midstream segment costs: ($ / Mcfe) Gathering and transmission
$ 0.20 $ 0.24 SG&A 0.14 0.15 $ 0.34 $ 0.39
Total ($ / Mcfe) $ 0.88 $ 0.98
(a) NGLs and crude oil were converted to Mcfe at the rate of six
Mcfe per barrel for all periods. Information for the three months
ended March 31, 2013, has been recast to reflect this conversion
rate.
EQT PRODUCTION RESULTS OF OPERATIONS
Three Months Ended March 31,
2014 2013
OPERATIONAL DATA
Sales volume detail (MMcfe): Horizontal Marcellus Play (a) 83,126
55,452 Horizontal Huron Play 7,119 9,413 CBM Play 2,914 3,116 Other
12,964 13,733 Total production sales volume (b)
106,123 81,714 Average daily sales volume (MMcfe/d) 1,179
908 Average effective sales price to EQT Production ($/Mcfe)
$ 4.40 $ 3.05 Lease operating expenses (LOE), excluding
production taxes ($/Mcfe) $ 0.14 $ 0.16 Production taxes ($/Mcfe) $
0.16 $ 0.15 Production depletion ($/Mcfe) $ 1.21 $ 1.50
DD&A (thousands): Production depletion $ 128,557 $ 122,491
Other DD&A 2,682 2,418 Total DD&A (thousands)
$ 131,239 $ 124,909 Capital expenditures (thousands) $
408,331 $ 243,175
FINANCIAL DATA (Thousands)
Total net operating revenues $ 467,745 $ 250,511
Operating expenses: LOE, excluding production taxes 14,847 13,039
Production taxes 17,093 11,851 Exploration expense 1,412 3,730
SG&A 25,949 22,885 DD&A 131,239 124,909 Total
operating expenses $ 190,540 $ 176,414 Operating income $ 277,205 $
74,097
(a) Includes Upper Devonian wells.(b) NGLs and crude oil were
converted to Mcfe at the rate of six Mcfe per barrel for all
periods. Information for the three months ended March 31, 2013 has
been recast to reflect this conversion rate.
EQT MIDSTREAM RESULTS OF OPERATIONS
Three Months Ended March 31,
2014
2013 OPERATIONAL DATA Gathered volume
(BBtu) 126,164 101,231 Average gathering fee ($/MMBtu) $ 0.71 $
0.81 Gathering and compression expense ($/MMBtu) $ 0.16 $ 0.19
Transmission pipeline throughput (BBtu) 144,362 80,971 Net
operating revenues (thousands): Gathering $ 89,376 $ 81,814
Transmission 52,109 37,307 Storage, marketing and other
7,220 9,759 Total net operating revenues $ 148,705 $ 128,880
Capital expenditures (thousands) $ 83,213 $ 49,144
FINANCIAL DATA (Thousands) Total operating revenues $
166,226 $ 146,688 Purchased gas costs 17,521 17,808
Total net operating revenues 148,705 128,880 Operating
expenses: Operating and maintenance 25,154 22,673 SG&A 19,473
13,774 DD&A 21,009 18,219 Total operating
expenses 65,636 54,666 Operating income $ 83,069 $
74,214
EQT CorporationAnalyst inquiries please
contact:Patrick Kane, Chief Investor Relations Officer,
412-553-7833pkane@eqt.comorNate Tetlow, Manager, Investor
Relations, 412-553-5834ntetlow@eqt.comorMedia inquiries please
contact:Natalie Cox, Corporate Director, Communications,
412-395-3941ncox@eqt.com
EQT (NYSE:EQT)
Historical Stock Chart
From Feb 2024 to Mar 2024
EQT (NYSE:EQT)
Historical Stock Chart
From Mar 2023 to Mar 2024