EQT Projects Production Volume Growth in 2017
PITTSBURGH, Pa. 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. As one of Appalachia’s largest natural gas exploration and production companies, EQT considers the Mountain State its second home. In fact, EQT was one of the first producers to initiate development in West Virginia and has had natural gas development and production operations throughout the state for more than a century.
The company states, “Through safe and responsible operations, EQT 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.”
According to EQT’s 2017 Operational Forecast, 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 their properties in Pennsylvania this year. Their 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 stated, “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.”
Additionally, according to the company’s website, “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.”
EQT Midstream Partners (EQM) is anticipating 2017 net income to be between $555 million and $595 million, according to that company’s operational forecast.
The forecast said at least 80% of 2017 revenue is expected to be generated from firm reservation fees under long-term contracts and, additionally, listed the company’s top growth projects for the year: Mountain Valley Pipeline, Gathering, Transmission and Header pipeline for an energy peer.
The announcement forecasts a EQM 2017 growth of 20 percent in annual per unit distribution, and 40 percent increase for EQT GP Holdings, LP.
The forecast report also stated 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 report further stated, “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.