EQT Corporation (NYSE: EQT) today announced second quarter 2009 earnings
per diluted share (EPS) of $0.20 on net income of $26.6 million and
operating cash flow of $94.6 million. This compares with EPS of $0.44 on
net income of $55.4 million and operating cash flow of $161.9 million in
the second quarter 2008.
Second quarter 2009 highlights include:
-
Production sales of 24.4 Bcfe, 22% over the prior year and 6% higher
than the first quarter 2009; and
-
EQT increased its 2009 natural gas sales volume estimate from between
96 and 97 Bcfe to between 98 and 100 Bcfe, 16-19% growth over 2008.
Operating income was $67.5 million, 33% lower than the second quarter
2008. Lower commodity prices more than offset higher revenues from
increased production, transmission, gathering and processing volumes and
higher utility rates. The impact of lower commodity prices on net
operating revenue was $62.0 million. In total, net operating revenues
declined by $12.3 million from $215.7 million to $203.4 million.
Operating expenses, excluding purchased gas costs, increased by $21.4
million. The unit costs to produce, gather, process and transport EQT's
produced gas, excluding production taxes, were down 9.4% to $1.25 per
Mcfe.
Quarterly Results by Business
EQT Production
EQT Production's operating income for the quarter totaled $33.6 million,
$40.6 million lower than the $74.2 million earned in the same period
last year. Production operating revenues were $89.9 million, $35.0
million lower than the $124.9 million reported in 2008. Average daily
production sales volumes increased by 22%, driven by horizontal Huron
shale drilling. The revenue and operating income impacts of the increase
in volumes were more than offset by lower realized natural gas prices.
The average wellhead natural gas sales price was $3.59 per MMBtu, 42%
lower than in 2008.
Operating expenses for the quarter were $56.2 million compared to $50.8
million last year. Depreciation, depletion and amortization expense
(DD&A) was $8.8 million higher as a result of the company's drilling
program and higher produced volumes. Exploration expense was $4.4
million in the quarter. EQT Production is performing a seismic study of
80 square miles in northern West Virginia, targeting deep zones below
the company's current producing zones. Partially offsetting this
increase in expenses were a $5.8 million decrease in commodity-based
production taxes and a $1.3 million reduction in selling, general and
administrative expenses.
The company drilled a total of 167 gross wells in the second quarter
2009, including 70 horizontal Huron wells, 9 horizontal Berea wells and
7 horizontal Marcellus wells, and 4 fractured multilateral Huron wells.
Huron Play
The Huron development is the main driver of production sales growth in
the quarter. Since the fourth quarter 2006, EQT has completed 576
horizontal wells in the various Huron zones. By the end of 2009
approximately 33% of EQT's production sales will be from horizontal
Huron wells. The cost per well of a single-leg horizontal Huron well is
now approximately $1.0 million, 17% below the 2008 average cost of $1.2
million. In total, EQT has 2.2 million acres in the Huron play with an
average of more than two target zones per drill site. The company has
reported 1.5 Tcfe of proved, 2.5 Tcfe of probable, and 2.0 Tcfe of
possible reserves in the Huron play as of December 31, 2008.
Marcellus Play
In the second quarter, EQT drilled 7 Marcellus horizontal wells. To
date, EQT has drilled 21 horizontal wells, with 8 on-line for more than
30 days. Average 30-day initial production rates have been between 1.0
and 2.4 MMcfe per day. The most recent Marcellus horizontal wells cost
$3.3 million each, and the cost per well is expected to decrease to
around $3.0 million. Days-to-drill have been reduced from 35 days to 17
days and completion costs have been reduced from $3.2 million to $2.0
million. The projected average estimated ultimate recovery (EUR) from
the wells that have been on-line for more than 30-days is 3.2 Bcfe per
well. Based on test results of all wells drilled, EUR is expected to
average 3.5 Bcfe per well. The company expects to drill 41 horizontal
Marcellus wells in 2009.
EQT Midstream
EQT Midstream earned $32.8 million of operating income for the quarter,
compared to $23.6 million reported for the same period last year. Net
operating revenues for the quarter were $81.2 million, 34% higher than
last year's $60.6 million. Net gathering revenues increased by $7.5
million, or 22%, driven by an 18% increase in gathering volumes, and net
processing revenues increased by $1.0 million, or 11%, from higher
liquids volumes. Net transmission revenues increased by $7.1 million, or
66%, driven by revenues from the Big Sandy pipeline which was
turned-in-line in the second quarter 2008. Net storage, marketing and
other revenues increased by $5.1 million, or 68%, primarily from
reselling contracted Big Sandy pipeline capacity not currently being
used to transport EQT Production gas.
Operating expenses increased year-over-year to $48.4 million, up from
$36.9 million in the second quarter 2008. The increase was primarily
attributable to a $6.8 million increase in operating and maintenance
costs (O&M) and a $5.0 million increase in DD&A. The increases in O&M
and DD&A were primarily due to higher costs associated with the growth
in the EQT Midstream business, including increased electric costs,
property taxes, and labor to operate the expanded investment in
gathering, processing and transmission infrastructure.
Distribution
Distribution's operating income totaled $9.4 million for the quarter
compared to $2.0 million for the second quarter of 2008. Net operating
revenues were $32.4 million for the quarter compared to $30.1 million
for the second quarter of 2008. The $2.3 million increase in net
operating revenues was primarily a result of higher rates approved by
the Pennsylvania Public Utility Commission in February 2009.
Operating expenses totaled $23.0 million for the second quarter of 2009
compared to $28.1 million for the second quarter of 2008. The $5.1
million decrease in operating expenses was primarily the result of lower
bad debt and overhead expenses, partially offset by an increase in DD&A.
Other Business
Debt Issuance
During the quarter, the company completed a public offering of $700.0
million in aggregate principal amount of 10-year, 8.125% Senior Notes.
The proceeds from the offering were used to repay short-term borrowings
under the company's revolving credit facility and will fund part of the
company's 2009 capital program. At the end of the quarter, the company
had $335.3 million of cash and cash equivalents and no short-term
borrowings outstanding.
Hedging
EQT recognized a $41.8 million net gain from its production hedges in
the quarter. The company's production sales volumes are approximately
60% hedged for 2009. There were no changes to the company's production
hedge position in the quarter. The company's total hedge positions for
2009 through 2011 production are:
|
|
|
2009**
|
|
2010
|
|
2011
|
|
Swaps
|
|
|
|
|
|
|
|
Total Volume (Bcf)
|
|
19
|
|
23
|
|
19
|
|
Average Price per Mcf (NYMEX)*
|
|
$5.91
|
|
$5.12
|
|
$5.10
|
|
|
|
|
|
|
|
2009**
|
|
2010
|
|
2011
|
|
Puts
|
|
|
|
|
|
|
|
Total Volume (Bcf)
|
|
-
|
|
3
|
|
3
|
|
Average Floor Price per Mcf
|
|
|
|
|
|
|
|
(NYMEX)*
|
|
$-
|
|
$7.35
|
|
$7.35
|
|
|
|
|
|
|
|
2009**
|
|
2010
|
|
2011
|
|
Collars
|
|
|
|
|
|
|
|
Total Volume (Bcf)
|
|
11
|
|
17
|
|
14
|
|
Average Floor Price per Mcf
|
|
|
|
|
|
|
|
(NYMEX)*
|
|
$7.34
|
|
$7.28
|
|
$7.11
|
|
Average Cap Price per Mcf
|
|
|
|
|
|
|
|
(NYMEX)*
|
|
$13.68
|
|
$14.05
|
|
$14.12
|
* The above price is based on a conversion rate of 1.05 MMBtu/Mcf
**July through December
Operating Income
The company reports operating income by segment in this press release.
Both interest and income taxes are controlled on a consolidated,
corporate-wide basis, and are not allocated to the segments.
The following table reconciles operating income by segment as reported
in this press release to the consolidated operating income reported in
the company's financial statements:
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
(thousands):
|
|
|
|
|
|
|
|
|
|
EQT Production
|
|
$33,648
|
|
|
$74,177
|
|
$78,065
|
|
|
$134,509
|
|
|
EQT Midstream
|
|
32,802
|
|
|
23,628
|
|
81,782
|
|
|
84,482
|
|
|
Distribution
|
|
9,353
|
|
|
2,029
|
|
53,205
|
|
|
39,979
|
|
|
Unallocated expenses
|
|
(8,289
|
)
|
|
1,299
|
|
(9,402
|
)
|
|
(38,414
|
)
|
|
Operating income
|
|
$67,514
|
|
|
$101,133
|
|
$203,650
|
|
|
$220,556
|
|
Unallocated expenses are primarily due to incentive compensation and
administrative costs. For each period presented, the difference between
equity in earnings of nonconsolidated investments as reported on the
company's statements of consolidated income and on EQT Midstream's
operational and financial report is the earnings from the company's
ownership interest in Appalachian Natural Gas Trust.
Non-GAAP Disclosures
Operating cash flow is presented because of its acceptance 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. The company has also included this information
because changes in operating assets and liabilities relate to the timing
of cash receipts and disbursements which the company may not control and
may not relate to the period in which the operating activities occurred.
Net operating revenues and operating expenses, excluding purchased gas
cost are presented because they are important analytical measures used
by management to evaluate period-to-period comparisons of revenue and
cost trends. Purchased gas cost, which is subject to commodity price
volatility, is paid by the purchasers of the company's natural gas
products. Operating cash flow, net operating revenue and operating
expense, excluding purchased gas costs, should not be considered in
isolation or as a substitute for net cash provided by operating
activities, operating revenues or operating expenses prepared in
accordance with GAAP. The tables below reconcile these non-GAAP
disclosures to the most directly comparable GAAP numbers as derived from
the financial statements to be included in the company's Form 10-Q for
the three and six months ended June 30, 2009 and 2008.
|
|
|
|
|
|
|
|
|
|
|
Operating Cash Flow
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
(thousands)
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
Net Income:
|
|
$26,645
|
|
|
$55,391
|
|
|
$98,638
|
|
|
$125,911
|
|
|
Add back (deduct):
|
|
|
|
|
|
|
|
|
|
Deferred income taxes
|
|
26,461
|
|
|
76,708
|
|
|
82,878
|
|
|
125,215
|
|
|
Depreciation,
|
|
|
|
|
|
|
|
|
|
depletion, and
|
|
|
|
|
|
|
|
|
|
amortization
|
|
46,188
|
|
|
32,051
|
|
|
90,777
|
|
|
62,816
|
|
|
Other items, net
|
|
(4,657
|
)
|
|
(2,255
|
)
|
|
(5,356
|
)
|
|
(5,291
|
)
|
|
Operating cash flow:
|
|
$94,637
|
|
|
$161,895
|
|
|
$266,937
|
|
|
$308,651
|
|
|
Add back (deduct):
|
|
|
|
|
|
|
|
|
|
Changes in
|
|
|
|
|
|
|
|
|
|
margin deposits
|
|
$2,372
|
|
|
$(161,577
|
)
|
|
$1,119
|
|
|
$(233,693
|
)
|
|
Other changes in
|
|
|
|
|
|
|
|
|
|
operating assets
|
|
|
|
|
|
|
|
|
|
and liabilities
|
|
158,461
|
|
|
(17,607
|
)
|
|
200,060
|
|
|
13,786
|
|
|
Net cash provided by
|
|
|
|
|
|
|
|
|
|
operating activities
|
|
$255,470
|
|
|
$(17,289
|
)
|
|
$468,116
|
|
|
$88,744
|
|
|
|
|
|
|
|
|
Net Operating Revenues / Operating Expenses, Excluding Purchased Gas
Cost
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
(thousands)
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
Operating expenses
|
|
$170,526
|
|
|
$232,876
|
|
|
$503,793
|
|
|
$649,227
|
|
|
Less: Purchased gas cost
|
|
34,591
|
|
|
118,352
|
|
|
243,598
|
|
|
389,530
|
|
|
Operating expenses,
|
|
|
|
|
|
|
|
|
|
excluding purchased
|
|
|
|
|
|
|
|
|
|
gas cost
|
|
135,935
|
|
|
114,524
|
|
|
260,195
|
|
|
259,697
|
|
|
|
|
Operating revenues
|
|
238,040
|
|
|
334,009
|
|
|
707,443
|
|
|
869,783
|
|
|
Less: Purchased gas cost
|
|
34,591
|
|
|
118,352
|
|
|
243,598
|
|
|
389,530
|
|
|
Net operating revenues
|
|
$203,449
|
|
|
$215,657
|
|
|
$463,845
|
|
|
$480,253
|
|
Price Reconciliation
EQT Production's average wellhead sales price is calculated by
allocating some revenues to EQT Midstream for the gathering, processing
and transportation of the produced gas. EQT Production's average
wellhead sales price for the three and six months ended June 30, 2009
and 2008 were as follows:
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
Average NYMEX price ($/ MMBtu)
|
|
$3.50
|
|
|
$10.92
|
|
|
$4.19
|
|
|
$9.48
|
|
|
Average Btu premium
|
|
0.34
|
|
|
1.20
|
|
|
0.38
|
|
|
1.08
|
|
|
Average NYMEX price ($/ Mcfe)
|
|
3.84
|
|
|
12.12
|
|
|
4.57
|
|
|
10.56
|
|
|
Average basis
|
|
0.09
|
|
|
0.31
|
|
|
0.14
|
|
|
0.27
|
|
|
Hedge impact
|
|
1.71
|
|
|
(4.34
|
)
|
|
1.16
|
|
|
(3.38
|
)
|
|
Average hedge adjusted price
|
|
|
|
|
|
|
|
|
|
($/ Mcfe)
|
|
5.64
|
|
|
8.09
|
|
|
5.87
|
|
|
7.45
|
|
|
|
|
Revenues to EQT Midstream
|
|
|
|
|
|
|
|
|
|
($/ Mcfe)
|
|
(1.66
|
)
|
|
(1.46
|
)
|
|
(1.69
|
)
|
|
(1.37
|
)
|
|
Third party gathering,
|
|
|
|
|
|
|
|
|
|
processing and transportation
|
|
(0.39
|
)
|
|
(0.49
|
)
|
|
(0.31
|
)
|
|
(0.41
|
)
|
|
Total revenue deductions
|
|
(2.05
|
)
|
|
(1.95
|
)
|
|
(2.00
|
)
|
|
(1.78
|
)
|
|
Average wellhead sales price
|
|
|
|
|
|
|
|
|
|
to EQT Production
|
|
3.59
|
|
|
6.14
|
|
|
3.87
|
|
|
5.67
|
|
|
|
|
EQT Revenue ($/ Mcfe)
|
|
|
|
|
|
|
|
|
|
Revenues to EQT Midstream
|
|
1.66
|
|
|
1.46
|
|
|
1.69
|
|
|
1.37
|
|
|
Revenues to EQT Production
|
|
3.59
|
|
|
6.14
|
|
|
3.87
|
|
|
5.67
|
|
|
Average wellhead sales price
|
|
|
|
|
|
|
|
|
|
to EQT Corporation
|
|
$5.25
|
|
|
$7.60
|
|
|
$5.56
|
|
|
$7.04
|
|
Unit Costs
EQT's unit costs to produce, gather, process and transport EQT's
produced natural gas were:
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
Production segment costs:
|
|
|
|
|
|
|
|
|
|
($/ Mcfe)
|
|
|
|
|
|
|
|
|
|
LOE
|
|
$0.28
|
|
$0.33
|
|
$0.26
|
|
$0.31
|
|
Production taxes
|
|
0.29
|
|
0.61
|
|
0.32
|
|
0.55
|
|
SG&A
|
|
0.39
|
|
0.52
|
|
0.37
|
|
0.49
|
|
|
|
0.96
|
|
1.46
|
|
0.95
|
|
1.35
|
|
Midstream segment costs:
|
|
|
|
|
|
|
|
|
|
($/ Mcfe)
|
|
|
|
|
|
|
|
|
|
Gathering, processing and
|
|
|
|
|
|
|
|
|
|
transmission
|
|
0.45
|
|
0.38
|
|
0.43
|
|
0.35
|
|
SG&A
|
|
0.13
|
|
0.15
|
|
0.13
|
|
0.14
|
|
|
|
0.58
|
|
0.53
|
|
0.56
|
|
0.49
|
|
Total
|
|
$1.54
|
|
$1.99
|
|
$1.51
|
|
$1.84
|
EQT's conference call with securities analysts, which begins at 10:30
a.m. Eastern Time today, will be broadcast live via EQT's web site, http://www.eqt.com
and on the Investor information page from the company's web site which
is available at http://ir.eqt.com
and will be available for seven days.
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.
EQT management speaks to investors from time to time. Slides for these
discussions will be available online via EQT's web site. The slides may
be updated periodically.
Cautionary Statements
The Securities and Exchange Commission (SEC) permits oil and gas
companies, in their filings with the SEC, to disclose only proved
reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally producible
under existing economic and operating conditions. The company uses the
terms "probable", "possible", "potential" and other descriptions of
volumes of reserves that may be recoverable through additional drilling
or recovery techniques that the SEC's guidelines would prohibit us from
including in filings with the SEC. These estimates are by their nature
more speculative than estimates of proved reserves and, accordingly, are
subject to substantially greater risk of being actually realized.
Investors are urged to consider closely the disclosure in the company's
2008 Form 10-K, File No. 001-03551 available from the company at 625
Liberty Avenue, Suite 1700, Pittsburgh, PA 15222, Attention: Corporate
Secretary. You can also obtain the company's Form 10-K from the SEC by
calling 1-800-SEC-0330.
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, and growth and anticipated financial and operational
performance of the company and its subsidiaries, including guidance
regarding the company's drilling and infrastructure programs, production
and sales volumes, reserves, EUR, the expected decline curve, capital
expenditures, financing requirements, projected operating cash flows,
hedging strategy and tax position. 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 applies 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 CORPORATION AND SUBSIDIARIES
|
|
STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)
|
|
(Thousands except per share amounts)
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
Operating revenues
|
|
$238,040
|
|
$334,009
|
|
$707,443
|
|
$869,783
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Purchased gas costs
|
|
34,591
|
|
118,352
|
|
243,598
|
|
389,530
|
|
Operation and maintenance
|
|
34,892
|
|
28,612
|
|
66,482
|
|
54,204
|
|
Production
|
|
14,860
|
|
20,369
|
|
29,880
|
|
36,889
|
|
Exploration
|
|
4,414
|
|
838
|
|
7,725
|
|
1,393
|
|
Selling, general and
|
|
|
|
|
|
|
|
|
|
administrative
|
|
35,581
|
|
32,654
|
|
65,331
|
|
104,395
|
|
Depreciation, depletion
|
|
|
|
|
|
|
|
|
|
and amortization
|
|
46,188
|
|
32,051
|
|
90,777
|
|
62,816
|
|
Total operating
|
|
|
|
|
|
|
|
|
|
expenses
|
|
170,526
|
|
232,876
|
|
503,793
|
|
649,227
|
|
|
|
Operating income
|
|
67,514
|
|
101,133
|
|
203,650
|
|
220,556
|
|
|
|
Other income
|
|
698
|
|
1,574
|
|
1,288
|
|
5,098
|
|
Equity in earnings of
|
|
|
|
|
|
|
|
|
|
nonconsolidated
|
|
|
|
|
|
|
|
|
|
investments
|
|
1,610
|
|
1,697
|
|
2,732
|
|
2,991
|
|
Interest expense
|
|
26,460
|
|
14,327
|
|
45,703
|
|
27,980
|
|
Income before income taxes
|
|
43,362
|
|
90,077
|
|
161,967
|
|
200,665
|
|
Income taxes
|
|
16,717
|
|
34,686
|
|
63,329
|
|
74,754
|
|
Net income
|
|
$26,645
|
|
$55,391
|
|
$98,638
|
|
$125,911
|
|
Earnings per share of
|
|
|
|
|
|
|
|
|
|
common stock:
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
Weighted average common
|
|
|
|
|
|
|
|
|
|
shares outstanding
|
|
130,830
|
|
126,243
|
|
130,784
|
|
124,372
|
|
Net income
|
|
$0.20
|
|
$0.44
|
|
$0.75
|
|
$1.01
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
Weighted average common
|
|
|
|
|
|
|
|
|
|
shares outstanding
|
|
131,443
|
|
127,321
|
|
131,421
|
|
125,432
|
|
Net income
|
|
$0.20
|
|
$0.44
|
|
$0.75
|
|
$1.00
|
(A) Due to the seasonal nature of the Company's natural gas distribution
and storage businesses, and the volatility of commodity prices, the
interim statements for the three month periods are not indicative of
results for a full year.
|
|
|
EQT PRODUCTION
|
|
OPERATIONAL AND FINANCIAL REPORT
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
OPERATIONAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas and oil
|
|
|
|
|
|
|
|
|
|
production (MMcfe)
|
|
25,505
|
|
|
21,543
|
|
|
49,983
|
|
|
42,564
|
|
|
Company usage, line loss (MMcfe)
|
|
(1,139
|
)
|
|
(1,587
|
)
|
|
(2,641
|
)
|
|
(2,893
|
)
|
|
Total sales volumes (MMcfe)
|
|
24,366
|
|
|
19,956
|
|
|
47,342
|
|
|
39,671
|
|
|
|
|
Average (well-head) sales
|
|
|
|
|
|
|
|
|
|
price ($/Mcfe)
|
|
$3.59
|
|
|
$6.14
|
|
|
$3.87
|
|
|
$5.67
|
|
|
|
|
Lease operating expenses,
|
|
|
|
|
|
|
|
|
|
excluding production
|
|
|
|
|
|
|
|
|
|
taxes ($/Mcfe)
|
|
$0.28
|
|
|
$0.33
|
|
|
$0.26
|
|
|
$0.31
|
|
|
Production taxes ($/Mcfe)
|
|
$0.29
|
|
|
$0.61
|
|
|
$0.32
|
|
|
$0.55
|
|
|
Production depletion ($/Mcfe)
|
|
$1.03
|
|
|
$0.81
|
|
|
$1.03
|
|
|
$0.81
|
|
|
|
|
Production depletion
|
|
$26,226
|
|
|
$17,502
|
|
|
$51,431
|
|
|
$34,593
|
|
|
Other depreciation, depletion
|
|
|
|
|
|
|
|
|
|
and amortization
|
|
1,209
|
|
|
1,119
|
|
|
2,437
|
|
|
2,149
|
|
|
Total depreciation, depletion
|
|
|
|
|
|
|
|
|
|
and amortization
|
|
$27,435
|
|
|
$18,621
|
|
|
$53,868
|
|
|
$36,742
|
|
|
|
|
Capital expenditures
|
|
|
|
|
|
|
|
|
|
(thousands)
|
|
$164,880
|
|
|
$146,413
|
|
|
$302,316
|
|
|
$242,876
|
|
|
|
|
FINANCIAL DATA (Thousands)
|
|
|
|
Total operating revenues
|
|
$89,885
|
|
|
$124,949
|
|
|
$187,648
|
|
|
$230,026
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Lease operating expense
|
|
|
|
|
|
|
|
|
|
excluding production taxes
|
|
7,170
|
|
|
7,054
|
|
|
13,212
|
|
|
13,016
|
|
|
Production taxes
|
|
7,326
|
|
|
13,114
|
|
|
16,150
|
|
|
23,337
|
|
|
Exploration expense
|
|
4,414
|
|
|
838
|
|
|
7,725
|
|
|
1,393
|
|
|
Selling, general and
|
|
|
|
|
|
|
|
|
|
administrative
|
|
9,892
|
|
|
11,145
|
|
|
18,628
|
|
|
21,029
|
|
|
Depreciation, depletion and
|
|
|
|
|
|
|
|
|
|
amortization
|
|
27,435
|
|
|
18,621
|
|
|
53,868
|
|
|
36,742
|
|
|
Total operating expenses
|
|
56,237
|
|
|
50,772
|
|
|
109,583
|
|
|
95,517
|
|
|
|
|
Operating income
|
|
$33,648
|
|
|
$74,177
|
|
|
$78,065
|
|
|
$134,509
|
|
|
|
|
|
|
|
|
|
|
|
|
EQT MIDSTREAM
|
|
OPERATIONAL AND FINANCIAL REPORT
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
OPERATIONAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
Gathered volumes (BBtu)
|
|
39,590
|
|
33,444
|
|
78,069
|
|
67,281
|
|
Average gathering fee ($/MMBtu)
|
|
$1.04
|
|
$1.00
|
|
$1.04
|
|
$0.99
|
|
Gathering and compression
|
|
|
|
|
|
|
|
|
|
expense ($/MMBtu)
|
|
$0.42
|
|
$0.38
|
|
$0.41
|
|
$0.36
|
|
NGLs Sold (Mgal)
|
|
32,514
|
|
17,181
|
|
59,888
|
|
35,574
|
|
Average NGL sales price ($/gal)
|
|
$0.63
|
|
$1.57
|
|
$0.65
|
|
$1.47
|
|
Transmission pipeline
|
|
|
|
|
|
|
|
|
|
throughput (BBtu)
|
|
22,313
|
|
16,379
|
|
39,531
|
|
31,139
|
|
|
|
Net operating revenues (thousands):
|
|
|
|
|
|
|
|
|
|
Gathering
|
|
$40,775
|
|
$33,293
|
|
$79,454
|
|
$66,728
|
|
Processing
|
|
10,127
|
|
9,105
|
|
16,747
|
|
20,452
|
|
Transmission
|
|
17,735
|
|
10,665
|
|
37,545
|
|
21,955
|
|
Storage, marketing and other
|
|
12,574
|
|
7,503
|
|
40,021
|
|
44,884
|
|
Total net operating revenues
|
|
$81,211
|
|
$60,566
|
|
$173,767
|
|
$154,019
|
|
|
|
Capital expenditures (thousands)
|
|
$53,344
|
|
$152,099
|
|
$115,517
|
|
$247,664
|
|
|
|
FINANCIAL DATA (Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues
|
|
$119,500
|
|
$153,777
|
|
$242,874
|
|
$375,102
|
|
Purchased gas costs
|
|
38,289
|
|
93,211
|
|
69,107
|
|
221,083
|
|
Total net operating revenues
|
|
81,211
|
|
60,566
|
|
173,767
|
|
154,019
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Operating and maintenance
|
|
24,440
|
|
17,678
|
|
45,641
|
|
32,943
|
|
Selling, general and
|
|
|
|
|
|
|
|
|
|
administrative
|
|
11,182
|
|
11,417
|
|
21,319
|
|
21,533
|
|
Depreciation and amortization
|
|
12,787
|
|
7,843
|
|
25,025
|
|
15,061
|
|
Total operating expenses
|
|
48,409
|
|
36,938
|
|
91,985
|
|
69,537
|
|
|
|
Operating income
|
|
$32,802
|
|
$23,628
|
|
$81,782
|
|
$84,482
|
|
|
|
Other income
|
|
$355
|
|
$1,464
|
|
$905
|
|
$4,847
|
|
Equity in earnings of
|
|
|
|
|
|
|
|
|
|
nonconsolidated
|
|
|
|
|
|
|
|
|
|
investments
|
|
$1,595
|
|
$1,471
|
|
$2,662
|
|
$2,626
|
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTION
|
|
OPERATIONAL AND FINANCIAL REPORT
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
OPERATIONAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
Heating degree days (30 year
|
|
|
|
|
|
|
|
|
|
average: Qtr - 705;
|
|
|
|
|
|
|
|
|
|
YTD - 3,635
|
|
553
|
|
577
|
|
3,440
|
|
3,461
|
|
|
|
Residential sales and
|
|
|
|
|
|
|
|
|
|
transportation volume (MMcf)
|
|
2,672
|
|
2,647
|
|
14,633
|
|
14,710
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
volume (MMcf)
|
|
6,445
|
|
5,224
|
|
16,635
|
|
16,835
|
|
Total throughput (MMcf)
|
|
|
|
|
|
|
|
|
|
- Distribution
|
|
9,117
|
|
7,871
|
|
31,268
|
|
31,545
|
|
|
|
Net operating revenues (thousands):
|
|
|
|
|
|
|
|
|
|
Residential
|
|
$18,816
|
|
$18,338
|
|
$62,995
|
|
$59,626
|
|
Commercial & industrial
|
|
8,207
|
|
7,500
|
|
27,817
|
|
27,334
|
|
Off-system and energy services
|
|
5,330
|
|
4,304
|
|
11,933
|
|
9,248
|
|
Total net operating revenues
|
|
$32,353
|
|
$30,142
|
|
$102,745
|
|
$96,208
|
|
|
|
Capital expenditures (thousands)
|
|
$8,717
|
|
$12,378
|
|
$15,493
|
|
$19,983
|
|
|
|
FINANCIAL DATA (Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues
|
|
$78,094
|
|
$114,731
|
|
$371,266
|
|
$370,693
|
|
Purchased gas costs
|
|
45,741
|
|
84,589
|
|
268,521
|
|
274,485
|
|
Net operating revenues
|
|
32,353
|
|
30,142
|
|
102,745
|
|
96,208
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Operating and maintenance
|
|
10,651
|
|
11,202
|
|
20,430
|
|
21,318
|
|
Selling, general and
|
|
|
|
|
|
|
|
|
|
administrative
|
|
6,863
|
|
11,756
|
|
18,186
|
|
24,703
|
|
Depreciation and amortization
|
|
5,486
|
|
5,155
|
|
10,924
|
|
10,208
|
|
Total operating expenses
|
|
23,000
|
|
28,113
|
|
49,540
|
|
56,229
|
|
Operating income
|
|
$9,353
|
|
$2,029
|
|
$53,205
|
|
$39,979
|
http://www.eqt.com
