EQT Projects Production Volume Growth in 2017


Staff Writer

PITTSBURGH –EQT is an integrated energy company, headquartered in Pittsburgh, with more than 125 years of experience in natural gas production, gathering, and transmission with an emphasis in the Appalachian basin, including the Ohio Valley.

EQT’s 2017 Operational Forecast states, “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.”

In 2017, the company anticipates drilling 119 Marcellus wells in their core acreage, which currently has 43 wells in West Virginia and 76 in Pennsylvania, according to the report.

The forecast also said, EQT plans to drill 81 Upper Devonian wells exclusively on its properties in Pennsylvania this year. Its 2017 plans also include to drill seven deep Utica exploratory wells across nearly half a million net acres, according to the announcement.

When it comes to earnings forecasts the report states, “The majority of the volume expected from the 2017 drilling program will be realized in 2018, at which time EQT forecasts production volume growth of 15-20 percent per year for several years.”

The announcement further explains, “EQT owns 90 percent limited partner interest in EQT GP Holdings LP. EQT GP Holdings LP owns the general partner interest, all of the incentive distribution rights, and a portion of the limited partner interests in EQT Midstream Partners, LP.”

EQM is anticipating 2017 net income to be between $555 million and $595 million, according to that company’s operational forecast.

The forecast said these EQM 2017 revenues will be generated from the growth projects: Mountain Valley, Gathering, Transmission and Header pipelines.

The announcement forecasts an EQM 2017 growth of 20 percent in annual per unit distribution, and 40 percent increase for EQT GP Holdings LP.

The forecast report also states EQT modified its midstream agreement with Williams Ohio Valley Midstream LLC regarding approximately 62,500 Marcellus acres the company acquired from Statoil USA Onshore Properties, Inc. in 2016.

The modification forecasts a 25 percent annual increase in production over four years from these properties.

The report further states, “The investment opportunity for EQM is estimated to be $600 million for full buildout of wellhead gathering and high pressure pipeline services.”

EQT, EQM and EQGP all released their full-year 2016 earnings on Feb. 2, and the numbers are available on the companies’ respective websites.


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