EQT Corporation (NYSE: EQT) today announced first quarter 2010 earnings
of $88.1 million, or $0.65 per diluted share and operating cash flow of
$204.8 million. This compares to earnings of $72 million, or $0.55 per
diluted share and operating cash flow of $174.2 million in the first
quarter 2009. Earnings per share increased 18% over the first quarter
2009 (quarter-over-quarter).
EQT's first quarter 2010 operating income was $169.1 million,
representing a 24% increase over first quarter 2009. The company saw
higher net operating revenue of $322.7 million resulting from higher
sales volumes at EQT Production, higher gathered volumes and liquids
prices at EQT Midstream and higher rates at Distribution. Net operating
expenses were $29.3 million higher at $153.6 million, as depreciation,
depletion and amortization expense (DD&A), operating and maintenance
expense (O&M) and selling, general and administrative expense (SG&A)
were higher consistent with the company's growth. Unit costs were
generally flat or lower quarter-over-quarter.
Quarterly Results by Business
EQT Production
EQT Production achieved sales of produced natural gas of 30.0 Bcfe for
the first quarter 2010, representing a 31% increase
quarter-over-quarter. Average daily sales of produced natural gas were
11% higher than the fourth quarter 2009, driven by horizontal drilling
in the Marcellus and Huron/Berea plays. Over 40% of EQT's sales of
produced natural gas came from horizontal shale wells; up from 25%.
Quarter-over-quarter, sales of produced natural gas from the Huron/Berea
horizontal wells increased 60%, while sales of produced natural gas from
Marcellus wells increased over 1,000%.
In 2010, the total sales of produced natural gas are forecast to be 126
Bcfe. This guidance factors in expected curtailments during the summer
months that are likely to negatively impact sales volumes.
The company drilled 108 gross wells during the first quarter 2010. Of
these wells, 77 were horizontal wells, 56 targeting the Huron/Berea play
and 21 targeting the Marcellus play. The company also drilled 15
vertical wells in its coalbed methane play.
Production operating income for the quarter totaled $58.5 million, 32%
higher quarter-over-quarter. Operating revenue was $129.0 million; $31.2
million higher, as a result of increased sales of produced natural gas
and higher wellhead natural gas prices. The average realized wellhead
sales price was $4.23 per Mcfe, slightly higher than the $4.16 realized
a year ago.
Consistent with the company's growth, operating expenses rose $17.2
million to $70.5 million in the first quarter 2010. DD&A was $14.5
million higher; SG&A was $3.6 million higher; and lease operating
expense excluding production taxes (LOE), was $1.8 million higher
quarter-over-quarter.
Partially offsetting these increases were decreases in exploration
expense, which was $2.0 million lower and commodity-based production
taxes which were slightly lower. Including production taxes, per unit
LOE was $0.51.
Marcellus Play
EQT drilled 21 horizontal Marcellus wells in the first quarter and is on
track to drill 100 horizontal Marcellus wells in 2010. Results are in
line with the recently announced increase in estimated ultimate
recoveries (EURs) per well. An increase in the average number of
hydraulic frac stages (from eight to ten) and increased steel and
service costs led to an increase in the company's direct well cost
estimate to between $3.3 and $3.5 million. The increased frac stages are
part of an ongoing effort to improve future well economics.
EQT has now drilled 74 horizontal wells in the Marcellus play since
2008, of which 28 wells have been on-line for more than 30 days. The
company expects that Marcellus production will continue to grow faster
than its other plays and that sales of produced natural gas from the
Marcellus play will exceed 100 MMcfe per day by the end of 2010.
Huron/Berea Play
In the first quarter 2010, EQT drilled two extended lateral wells;
bringing the total to nine since 2009. The company still plans to drill
99 extended lateral wells this year. Results continue to be consistent
with EQT's expectations of EURs per foot of pay. The company expects
extended lateral wells to become the preferred standard operating
procedure by the end of 2010, which should increase EURs per well and
decrease unit development costs going forward.
EQT Midstream
EQT Midstream earned $67.3 million of operating income, 37% higher
quarter-over-quarter. Net operating revenues for the first quarter were
$116.8 million, representing an increase of 26%. Processing net revenues
were $22.7 million, or $16.1 million higher, as a result of a 72%
increase in the average natural gas liquids (NGLs) sales price and a 21%
increase in liquids volume, nearly all of which was produced by EQT
Production. Net gathering revenues increased by $10.1 million, or 26%,
driven by a 16% increase in gathering volumes and a 7% increase in
rates. Storage, marketing and other revenues were $3.6 million lower.
Operating expenses increased quarter-over-quarter to $49.5 million,
compared to $43.6 million. The increase is primarily attributable to a
$2.8 million increase in O&M costs and a $2.7 million increase in DD&A.
The increase in O&M is largely attributable to higher growth-related
operational costs, including increased electric and labor costs and
non-income-related taxes to operate the additional infrastructure. The
increase in DD&A resulted primarily from the increased investment in
gathering, processing and transmission infrastructure during 2009. Per
unit gathering and compression expense decreased quarter-over-quarter.
Distribution
Distribution's operating income totaled $47.4 million; an 8% increase
quarter-over-quarter. Net operating revenues were $76.8 million,
compared to $70.4 million, primarily as a result of higher residential
base rates approved by the Pennsylvania Public Utility Commission in
late February 2009.
Operating expenses totaled $29.4 million, or $2.9 million higher
quarter-over-quarter; mainly attributable to an increase in SG&A due to
higher bad debt expense as Federal energy assistance funding for
low-income customers decreased.
Hedging
EQT recognized a $6.5 million net gain from its production hedges in the
first quarter 2010. The net gain includes a $2.7 million non-cash gain
for hedge ineffectiveness in accordance with Accounting Standards
Codification Topic 815. The reduction in hedge ineffectiveness increased
reported average wellhead price to EQT Corporation by $0.09 per Mcf. The
company's total hedge position for 2010 through 2012 production are:
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2010**
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2011
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2012
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Swaps
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Total Volume (Bcf)
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17
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19
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-
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Average Price per Mcf (NYMEX)*
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$5.12
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$5.10
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$-
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2010**
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2011
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2012
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Puts
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Total Volume (Bcf)
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3
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3
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-
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Average Floor Price per Mcf (NYMEX)*
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$7.35
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$7.35
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$-
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2010**
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2011
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2012
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Collars
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Total Volume (Bcf)
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13
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14
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14
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Average Floor Price per Mcf (NYMEX)*
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$7.28
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$7.11
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$7.11
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Average Cap Price per Mcf (NYMEX)*
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$14.05
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$14.12
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$14.07
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* The above price is based on a conversion rate of 1.05 MMBtu/Mcf
**April through December
Natural Gas Liquids
EQT Production's sales of produced natural gas consisted of
approximately 11% NGLs in the first quarter. EQT Midstream bought the
NGLs from EQT Production at natural gas market prices and sold the NGLs
at higher NGL market prices, capturing a higher margin to EQT
Corporation. EQT Corporation realized an average premium over the NYMEX
natural gas price of $1.22 per Mcfe as a result of its liquids rich
production; $0.58 per Mcfe is recognized as production revenue and $0.64
per Mcfe as processing net revenue at EQT Midstream.
Price Reconciliation
EQT Production's average wellhead sales price is calculated by
allocating some revenues to EQT Midstream for the gathering, processing
and transportation of the produced gas and NGLs. EQT Production's
average wellhead sales price for the three months ended March 31, 2010
and 2009 were as follows:
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Three Months Ended
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March 31,
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2010
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2009
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Average NYMEX price ($ / MMBtu)
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$5.30
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$4.89
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Average Btu premium
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0.53
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0.46
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Average NYMEX price ($ / Mcfe)
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$5.83
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$5.35
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Average net liquids revenues
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0.69
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0.19
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Average basis
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0.23
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0.16
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Hedge impact
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0.21
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0.57
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Average hedge adjusted price ($ / Mcfe)
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$6.96
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$6.27
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Gathering, processing and transportation revenues
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to EQT Midstream ($ /Mcfe)
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$(1.75
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)
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$(1.72
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)
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Average net liquids revenues to EQT Midstream
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(0.64
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(0.17
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Third party gathering, processing and
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transportation
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(0.34
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)
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(0.22
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)
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Total revenue deductions ($/Mcfe)
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$(2.73
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)
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$(2.11
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)
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Average wellhead sales price to EQT Production
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$4.23
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$4.16
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EQT Revenue ($/ Mcfe)
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Revenues to EQT Midstream
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$2.39
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$1.89
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Revenues to EQT Production
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4.23
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4.16
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Average wellhead price to EQT Corporation
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$6.62
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$6.05
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Unit Costs
EQT's unit costs to produce, gather, process and transport EQT's
produced natural gas and NGLs were:
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Three Months Ended
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March 31,
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2010
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2009
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Production segment costs: ($ / Mcfe)
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LOE
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$0.25
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$0.25
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Production taxes
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0.26
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0.36
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G&A
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0.39
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0.36
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$0.90
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$0.97
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Midstream segment costs: ($ / Mcfe)
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Gathering, processing and transmission
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$0.53
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$0.52
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G&A
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0.17
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0.18
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$0.70
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$0.70
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Total
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$1.60
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$1.67
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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:
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Three Months Ended
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March 31,
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2010
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2009
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Operating income (thousands):
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EQT Production
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$58,493
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$44,417
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EQT Midstream
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67,315
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48,980
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Distribution
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47,419
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43,852
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Unallocated expenses
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(4,114
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)
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(1,113
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)
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Operating income
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$169,113
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$136,136
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Unallocated expenses are primarily due to certain incentive compensation
and administrative costs in excess of budget that are not allocated to
the operating segments. 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. Other segment
financial measures identified in this press release are reconciled to
the most comparable financial measures calculated in accordance with
generally accepted accounting principles (GAAP) below and on the
attached operational and financial reports.
Non-GAAP Reconciliations
Operating Cash Flows
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.
Operating cash flow should not be considered in isolation or as a
substitute for net cash provided by operating activities prepared in
accordance with GAAP. The table below reconciles operating cash flow
with net cash provided by operating activities as derived from the
statements of condensed consolidated cash flows to be included in the
company's Form 10-Q for the three months ended March 31, 2010.
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Three Months Ended
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March 31,
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(thousands)
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2010
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2009
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Net Income:
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$88,065
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$71,993
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Add back:
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Deferred income taxes
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50,150
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56,417
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Depreciation, depletion, and amortization
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61,879
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44,589
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Other items, net
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4,683
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1,236
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Operating cash flow:
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$204,777
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$174,235
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Add back (deduct):
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Changes in operating assets and liabilities
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70,636
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38,411
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Net cash provided by operating activities
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$275,413
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$212,646
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Net Operating Revenues and Net Operating Expenses
Net operating revenues and net operating expenses, both of which exclude
purchased gas costs, are presented because they are important analytical
measures used by management to evaluate period-to-period comparisons of
revenue and operating expenses. Purchased gas cost, which is subject to
commodity price volatility and a significant portion of which is passed
on to customers with no income impact, is typically excluded by
management in such analyses.
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Three Months
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Ended
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March 31,
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(thousands)
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2010
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2009
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Net operating revenues
|
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$322,678
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$260,396
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Plus: Purchased gas
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cost
|
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113,962
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|
|
|
209,007
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Operating revenues
|
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$436,640
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|
|
|
$469,403
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|
|
|
Net operating expenses
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$153,565
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|
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$124,260
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Plus: Purchased gas
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cost
|
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113,962
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|
|
|
209,007
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Operating expenses
|
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$267,527
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$333,267
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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 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 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 in this press release, such as "EUR" (estimated ultimate
recovery), that the SEC's guidelines prohibit us from including in
filings with the SEC. This measure is by its nature more speculative
than estimates of reserves prepared in accordance with SEC definitions
and guidelines and accordingly is less certain.
Total sales volumes per day is an operational estimate of the daily
sales volume on a typical day (excluding curtailments).
Unit development costs are calculated as the direct costs to drill a
well divided by the gross expected EUR of the well. Direct well costs do
not include capitalized overhead.
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 (including
the Equitrans expansion project) and technology, the estimated number of
acres to be held in the high-pressure Marcellus fairway following and
the timing of the closing of the previously announced Marcellus acreage
acquisition, the timing of construction of public-access natural gas
refueling stations, production and sales volumes, reserves, EUR, F&D
costs, unit costs, direct well costs, 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, 2009, 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 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.
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EQT CORPORATION AND SUBSIDIARIES
|
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STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)
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(Thousands except per share amounts)
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|
|
|
|
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|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
Operating revenues
|
|
|
|
$436,640
|
|
|
|
$469,403
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Purchased gas costs
|
|
|
|
113,962
|
|
|
|
209,007
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|
Operation and maintenance
|
|
|
|
34,339
|
|
|
|
31,590
|
|
Production
|
|
|
|
16,800
|
|
|
|
15,020
|
|
Exploration
|
|
|
|
1,335
|
|
|
|
3,311
|
|
Selling, general and
|
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administrative
|
|
|
|
39,212
|
|
|
|
29,750
|
|
Depreciation, depletion and
|
|
|
|
|
|
|
|
|
|
amortization
|
|
|
|
61,879
|
|
|
|
44,589
|
|
Total operating expenses
|
|
|
|
267,527
|
|
|
|
333,267
|
|
|
|
|
|
Operating income
|
|
|
|
169,113
|
|
|
|
136,136
|
|
|
|
Other income
|
|
|
|
527
|
|
|
|
590
|
|
Equity in earnings of
|
|
|
|
|
|
|
|
|
|
nonconsolidated investments
|
|
|
|
2,527
|
|
|
|
1,122
|
|
Interest expense
|
|
|
|
34,134
|
|
|
|
19,243
|
|
|
|
Income before income taxes
|
|
|
|
138,033
|
|
|
|
118,605
|
|
Income taxes
|
|
|
|
49,968
|
|
|
|
46,612
|
|
|
|
Net income
|
|
|
|
$88,065
|
|
|
|
$71,993
|
|
|
|
Earnings per share of common
|
|
|
|
|
|
|
|
|
|
stock:
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
|
|
|
|
|
|
|
|
|
|
outstanding
|
|
|
|
134,084
|
|
|
|
130,743
|
|
Net income
|
|
|
|
$0.66
|
|
|
|
$0.55
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
|
|
|
|
|
|
|
|
|
|
outstanding
|
|
|
|
135,009
|
|
|
|
131,400
|
|
Net income
|
|
|
|
$0.65
|
|
|
|
$0.55
|
(A) Due to the seasonal nature of the Company's natural gas distribution
and storage businesses, and the volatility of commodity prices, the
interim statements for the three month periods are not indicative of
results for a full year.
|
|
|
|
|
|
|
|
|
|
|
EQT PRODUCTION
|
|
OPERATIONAL AND FINANCIAL REPORT
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
OPERATIONAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas and oil production (MMcfe)
|
|
|
|
31,397
|
|
|
|
|
24,478
|
|
|
Company usage, line loss (MMcfe)
|
|
|
|
(1,397
|
)
|
|
|
|
(1,502
|
)
|
|
Total sales volumes (MMcfe)
|
|
|
|
30,000
|
|
|
|
|
22,976
|
|
|
|
|
Average (well-head) sales price
|
|
|
|
|
|
|
|
|
|
($/Mcfe)*
|
|
|
|
$4.23
|
|
|
|
|
$4.16
|
|
|
|
|
Sales of Produced Natural Gas detail
|
|
|
|
|
|
|
|
|
|
(MMcfe)
|
|
|
|
|
|
|
|
|
|
Horizontal Huron / Berea Play
|
|
|
|
8,777
|
|
|
|
|
5,483
|
|
|
Horizontal Marcellus Play
|
|
|
|
3,765
|
|
|
|
|
298
|
|
|
CBM Play
|
|
|
|
3,184
|
|
|
|
|
2,982
|
|
|
Other (vertical non-CBM)
|
|
|
|
14,274
|
|
|
|
|
14,213
|
|
|
|
|
Total sales of produced natural gas
|
|
|
|
30,000
|
|
|
|
|
22,976
|
|
|
|
|
Lease operating expenses, excluding
|
|
|
|
|
|
|
|
|
|
production taxes ($/Mcfe)
|
|
|
|
$0.25
|
|
|
|
|
$0.25
|
|
|
Production taxes ($/Mcfe)
|
|
|
|
$0.26
|
|
|
|
|
$0.36
|
|
|
Production depletion ($/Mcfe)
|
|
|
|
$1.24
|
|
|
|
|
$1.03
|
|
|
|
|
Production depletion (thousands)
|
|
|
|
$38,977
|
|
|
|
|
$25,205
|
|
|
Other depreciation, depletion and
|
|
|
|
|
|
|
|
|
|
amortization (thousands)
|
|
|
|
1,933
|
|
|
|
|
1,228
|
|
|
Total depreciation, depletion and
|
|
|
|
|
|
|
|
|
|
amortization (thousands)
|
|
|
|
$40,910
|
|
|
|
|
$26,433
|
|
|
|
|
Capital expenditures (thousands)
|
|
|
|
$178,415
|
|
|
|
|
$137,436
|
|
|
|
|
FINANCIAL DATA (Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues
|
|
|
|
$128,990
|
|
|
|
|
$97,763
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Lease operating expense excluding
|
|
|
|
|
|
|
|
|
|
production taxes
|
|
|
|
7,803
|
|
|
|
|
6,042
|
|
|
Production taxes
|
|
|
|
8,069
|
|
|
|
|
8,824
|
|
|
Exploration expense
|
|
|
|
1,335
|
|
|
|
|
3,311
|
|
|
Selling, general and administrative
|
|
|
|
12,380
|
|
|
|
|
8,736
|
|
|
Depreciation, depletion and amortization
|
|
|
|
40,910
|
|
|
|
|
26,433
|
|
|
|
|
Total operating expenses
|
|
|
|
70,497
|
|
|
|
|
53,346
|
|
|
|
|
|
|
Operating income
|
|
|
|
$58,493
|
|
|
|
|
$44,417
|
|
* Average wellhead sales price is calculated as market price adjusted
for hedging activities less deductions for gathering, processing and
transmission and NGL revenues included in EQT Midstream revenues. These
deductions totaled $2.39 and $1.89/Mcfe for the three months ended March
31, 2010 and 2009, respectively.
|
|
|
|
|
|
|
|
|
|
|
EQT MIDSTREAM
|
|
OPERATIONAL AND FINANCIAL REPORT
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2010
|
|
|
|
2009
|
|
OPERATIONAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
Gathered volumes (BBtu)
|
|
|
|
44,623
|
|
|
|
38,479
|
|
Average gathering fee ($/MMBtu)
|
|
|
|
$1.10
|
|
|
|
$1.03
|
|
Gathering and compression expense
|
|
|
|
|
|
|
|
|
|
($/MMBtu)
|
|
|
|
$0.37
|
|
|
|
$0.40
|
|
NGLs Sold (Mgal) (a)
|
|
|
|
33,214
|
|
|
|
27,374
|
|
Average NGL sales price ($/gal)
|
|
|
|
$1.15
|
|
|
|
$0.67
|
|
Transmission pipeline throughput
|
|
|
|
|
|
|
|
|
|
(BBtu)
|
|
|
|
24,993
|
|
|
|
17,218
|
|
|
|
Net operating revenues (thousands):
|
|
|
|
|
|
|
|
|
|
Gathering
|
|
|
|
$48,734
|
|
|
|
$38,679
|
|
Processing
|
|
|
|
22,734
|
|
|
|
6,620
|
|
Transmission
|
|
|
|
21,553
|
|
|
|
19,810
|
|
Storage, marketing and other
|
|
|
|
23,827
|
|
|
|
27,447
|
|
|
|
Total net operating revenues
|
|
|
|
$116,848
|
|
|
|
$92,556
|
|
|
|
Capital expenditures (thousands)
|
|
|
|
$34,687
|
|
|
|
$62,173
|
|
|
|
FINANCIAL DATA (Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues
|
|
|
|
$185,465
|
|
|
|
$123,374
|
|
Purchased gas costs
|
|
|
|
68,617
|
|
|
|
30,818
|
|
|
|
Total net operating revenues
|
|
|
|
116,848
|
|
|
|
92,556
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Operating and maintenance
|
|
|
|
23,977
|
|
|
|
21,201
|
|
Selling, general and administrative
|
|
|
|
10,632
|
|
|
|
10,137
|
|
Depreciation and amortization
|
|
|
|
14,924
|
|
|
|
12,238
|
|
Total operating expenses
|
|
|
|
49,533
|
|
|
|
43,576
|
|
|
|
|
|
Operating income
|
|
|
|
$67,315
|
|
|
|
$48,980
|
|
|
|
Other income
|
|
|
|
$195
|
|
|
|
$550
|
|
Equity in earnings of
|
|
|
|
|
|
|
|
|
|
nonconsolidated investments
|
|
|
|
$2,464
|
|
|
|
$1,067
|
|
|
|
|
|
|
|
|
|
|
(a) NGLs sold includes NGLs recovered at the Company's processing plant
and transported to a fractionation plant owned by a third-party for
separation into commercial components, net of volumes retained, as well
as equivalent volumes sold at liquid component prices under the
Company's contractual processing arrangements with third parties.
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTION
|
|
OPERATIONAL AND FINANCIAL REPORT
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
OPERATIONAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
Heating degree days (30 year average: 2,930)
|
|
|
|
2,860
|
|
|
|
2,887
|
|
|
|
Residential sales and transportation
|
|
|
|
|
|
|
|
|
|
volume (MMcf)
|
|
|
|
11,865
|
|
|
|
11,961
|
|
Commercial and industrial volume
|
|
|
|
|
|
|
|
|
|
(MMcf)
|
|
|
|
11,436
|
|
|
|
10,190
|
|
Total throughput (MMcf) -
|
|
|
|
|
|
|
|
|
|
Distribution
|
|
|
|
23,301
|
|
|
|
22,151
|
|
|
|
Net operating revenues (thousands):
|
|
|
|
|
|
|
|
|
|
Residential
|
|
|
|
$49,630
|
|
|
|
$44,179
|
|
Commercial & industrial
|
|
|
|
19,823
|
|
|
|
19,610
|
|
Off-system and energy services
|
|
|
|
7,388
|
|
|
|
6,603
|
|
|
|
Total net operating revenues
|
|
|
|
$76,841
|
|
|
|
$70,392
|
|
|
|
Capital expenditures (thousands)
|
|
|
|
$3,975
|
|
|
|
$6,776
|
|
|
|
FINANCIAL DATA (Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues
|
|
|
|
$222,255
|
|
|
|
$293,172
|
|
Purchased gas costs
|
|
|
|
145,414
|
|
|
|
222,780
|
|
|
|
Net operating revenues
|
|
|
|
76,841
|
|
|
|
70,392
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Operating and maintenance
|
|
|
|
10,600
|
|
|
|
9,779
|
|
Selling, general and administrative
|
|
|
|
12,828
|
|
|
|
11,323
|
|
Depreciation and amortization
|
|
|
|
5,994
|
|
|
|
5,438
|
|
Total operating expenses
|
|
|
|
29,422
|
|
|
|
26,540
|
|
|
|
|
|
Operating income
|
|
|
|
$47,419
|
|
|
|
$43,852
|
