EQT Corporation, formerly Equitable Resources, Inc., is an integrated energy company engaged on Appalachian area natural gas activities, including production, gathering and processing, and distribution, transmission, storage and marketing. EQT Corporation, its divisions and its subsidiaries, offer energy products and services to wholesale and retail customers through two business segments: Equitable Supply and Equitable Utilities. The Equitable Supply segment develops, produces, and sells natural gas, crude oil, and natural gas liquids. It also gathers gas produced by the company and third parties, as well as engages in the processing of natural gas liquids. The Equitable Utilities segment engages in the gathering, transportation, storage, distribution, and sale of natural gas, as well as in the pipeline and storage operations. The company is headquartered in Pittsburgh, Pennsylvania.
625 LIBERTY AVENUE SUITE 1700 PITTSBURGH, PA 15222, USA Phone: 4125535700 Fax: 412-553-5757 Web: http://www.eqt.com Email: pkane@eqt.com
Industry:UTIL-GAS DISTR Sector: Utilities Fiscal Year End:December Last Reported Quarter:03/31/12 Next EPS Date:07/26/12
Capital Structure Solvency and Cash Flow
Financials
Total current assets were $827.9 million in 2010 versus $695.2 million in 2009. Long-term debt was $1,943.2 million versus $1,949.2 million in 2009. Total common stockholders’ equity was $3,078.7 million in 2010 versus $2,151.0 million in 2009.
Net cash provided by operating activities in 2010 were $789.7 million versus $725.7 million in the year-ago period. Net cash used in investing activities were $1,239.4 million in 2010 versus $985.5 million in 2009. Net cash provided by financing activities were $449.7 million in 2010 versus $259.8 million in the year-ago period.
Capital Expenditure (Capex)
EQT invested $1,478 million in capital projects during 2010. This included $888 million for EQT Production, $358 million for acreage acquisitions, $193 million for EQT Midstream, and $39 million for distribution infrastructure projects and other corporate items.
The company expects its 2011 capital expenditure of $970 million, 19% lower than the 2010 capex forecast. The capex forecast includes $691 million for EQT Production, $244 million for EQT Midstream and $35 million for distribution infrastructure projects and other corporate items. Funding will be provided by cash generated from operations plus approximately $230 million in proceeds from the sale of the Kentucky natural gas processing complex announced today. Operating cash flow is projected to be $750-$800 million in 2011 at current NYMEX natural gas prices, net of approximately $18 million of annual cash flow associated with the sold Kentucky assets.
EQT Production expects to invest $413 million to drill 86 Marcellus shale wells with an average length of 4,200 feet of pay and $84 million to drill 58 Huron/Berea wells with an average length of 5,200 feet of pay. The company expects to invest $45 million in land and geological and geophysical activities supporting the drilling program. The remainder of the EQT Production spending is for capitalized overhead, maintenance and to finish wells spud in 2010.
EQT Midstream projects will support the Marcellus drilling program. The company plans to spend $94 million on Equitrans transmission expansion and $69 million for Marcellus gathering in Pennsylvania. The Equitrans expansion project, projected to cost $220 million over two years, is expected to increase transmission capacity by 230 MMcf per day in 2011 and 330 MMcf per day in 2012 and will, among other things, connect the outlet of the MarkWest processing plant in West Virginia to five interstate pipelines. The Marcellus gathering investments are expected to increase capacity by 130 MMcf per day in Pennsylvania in 2011. The remainder of the EQT Midstream spending is for maintenance and compliance activities.
The company will continue to evaluate additional asset sales and joint ventures to fund further development of its extensive reserves.
Dividend
On January 19, 2011, the Board of Directors of the company declared a quarterly cash dividend of $0.22 per share. The dividend was paid on March 1, 2011, to shareholders of record on February 4, 2011.
Last edited Mon Apr 18, 2011 11:50 PM by SudiptaMukherjee (Zacks Investment Research)
6
Governance Social Responsibility and Employee Relations
On February 1, 2011, MarkWest Energy Partners, L.P. (MarkWest) and EQT Corporation announced the closing of MarkWest's previously announced acquisition of EQT's natural gas processing complex in Langley, Kentucky and an associated natural gas liquids (NGL) pipeline for $230 million.
The acquisition includes a 100 MMcf/d cryogenic processing plant, a 75 MMcf/d refrigeration processing plant, approximately 28,000 horsepower of compression, and a partially constructed NGL pipeline that MarkWest will complete. In conjunction with the acquisition, MarkWest executed a long-term agreement with the company to provide processing services for EQT's Kentucky Huron shale gas and to extend its existing agreement with EQT to provide NGL transportation, fractionation, and marketing services.
Last edited Mon Apr 18, 2011 11:51 PM by SudiptaMukherjee (Zacks Investment Research)
