The Board of Directors of Equitable Resources, Inc. (NYSE: EQT)
yesterday approved the company's capital budget for 2009. The company
forecasts capital expenditures for 2009 of approximately $1.0 billion.
The forecast includes $600 million for well development, $360 million
for midstream projects and $40 million for distribution infrastructure
projects and other corporate items. Capital expenditures are expected to
be funded from cash generated by operations and from the existing credit
facility.
Well development capital will be concentrated on drilling in areas that
already benefit from the company's substantial Appalachian midstream
infrastructure, and will involve approximately 675 new wells, including
375 horizontals. Midstream capital includes $65 million to support
Marcellus development.
This investment is expected to result in 2009 natural gas sales of
between 96 and 97 Bcfe, approximately 15% higher than the 2008 estimate
of 84 Bcfe. The company is currently selling 255 MMcfe per day and is
forecasting a year-end gas sales rate near the high end of the previous
estimate: 255 - 260 MMcfe per day.
Murry Gerber, chairman and chief executive officer of Equitable
Resources commented, "Our board approved a capital plan which provides
for expansion of our successful growth platform, while maintaining
financial flexibility in an uncertain market place."
Equitable Resources is an integrated energy company with emphasis on
Appalachian area natural gas production, gathering, processing,
transmission and distribution. Additional information about the company
can be obtained through the company's web site, http://www.eqt.com;
Investor information is available on that site at http://ir.eqt.com.
Equitable Resources uses its web site as a channel of distribution of
important information about the company, and routinely posts financial
and other important information regarding the company and its financial
condition and operations on the Investors web pages.
Cautionary Statements
Disclosures in this press release contain 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 press release specifically
include the expectations of plans, growth and anticipated financial and
operational performance of the company and its subsidiaries, including
guidance regarding the company's drilling and infrastructure programs
and initiatives, sales volumes, capital expenditures and capital budget.
These 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 most recently filed Form 10-K.
Daily gas sales volumes is an operational estimate of the daily gas
sales volume on a typical day (excluding curtailments).
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.
