The Board of Directors of EQT Corporation (NYSE: EQT) today approved the
company's capital budget for 2010. The company forecasts capital
expenditures (CAPEX) for 2010 of $850 million.
The CAPEX forecast includes $565 million for well development, $245
million for midstream projects, including the first phase of the
Equitrans expansion project, and $40 million for distribution
infrastructure projects and other corporate items. Funding will be
provided by cash generated from operations ($550-$600 million); a cash
tax refund (~$100 million); and from the company's $1.4 billion
revolving credit facility, currently undrawn.
Development capital will be concentrated on drilling in areas that
already benefit from the company's substantial Appalachian midstream
infrastructure in the Huron/Berea play. The company will also drill 40
horizontal Marcellus wells. Sales of produced natural gas are projected
to be 120 Bcfe, 20% higher than the 2009 estimate of 100 Bcfe.
"The company's 2010 CAPEX plan is designed to achieve an industry
leading growth rate, without requiring access to the capital markets,"
Murry Gerber, chairman and chief executive officer of EQT Corporation
commented. "Our higher natural gas sales growth rate for 2010 will be
achieved with 15% less capital than in 2009, resulting from dramatic
productivity improvements realized in both the Huron shale and the
Marcellus shale horizontal drilling programs. EQT offers investors
superb organic growth and an industry leading cost structure."
Cautionary Statements
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 generally accepted accounting principles, because of
uncertainties associated with projecting future net income and changes
in assets and liabilities.
Disclosures in this press 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 press
release specifically include the expectations of plans, strategies,
objectives, growth and anticipated financial and operational performance
of the company and its subsidiaries, including guidance regarding the
company's drilling and infrastructure programs (including the Equitrans
expansion project), sales volumes, capital expenditures, financing
requirements, projected operating cash flow, capital budget and tax
position (including expected tax refunds). 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 Form 10-K for the year ended
December 31, 2008, 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.
EQT 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 EQT's web site at http://ir.eqt.com.
EQT 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.
http://www.eqt.com
