Breaking News

Tweet TWEET

EQT Announces Proved Reserves Increase of 12% to 6.0 Tcfe

  EQT Announces Proved Reserves Increase of 12% to 6.0 Tcfe

                   3P Reserves Increase of 21% to 25.9 Tcfe

Business Wire

PITTSBURGH -- January 24, 2013

EQT Corporation (NYSE:EQT) today reported year-end 2012 total proved reserves
of 6,004 Bcfe. This represents a 639 Bcfe net increase over the 5,365 Bcfe
reported last year, with a reserve replacement ratio of 345%. The Company's
Marcellus proved reserves increased by 864 Bcfe based on wells drilled in
2012, a higher estimated ultimate recovery (EUR) from reduced cluster spacing
wells, and an increased well density across a portion of its acreage in Greene
County, Pennsylvania. The utilization of reduced cluster spacing increased EUR
an average of 23% per well, where applicable. Reduced cluster spacing was used
for approximately 25% of the proved developed wells, and will be used for 25%
of the proved undeveloped wells. The EUR of proved Marcellus wells averaged
6.4 Bcfe, with an average length of pay of 4,512 feet.

For 2012, drill bit finding costs were $0.53 per Mcfe. The Company's Marcellus
proved developed producing (PDP) additions totaled 309 Bcfe on $389 million of
capital for a development cost of $1.26 per Mcfe. PDP negative revisions
totaled 110 Bcfe, primarily due to a reduction in expected well life, as a
result of lower natural gas prices. Nearly all of the negative revisions
relate to Coal Bed Methane (CBM) and other vertical wells.

EQT estimates year-end 2012 total reserves, including proved, probable and
possible (3P) reserves, at 25.9 Tcfe, an increase of 4.5 Tcfe over the 2011
estimate. More than half of the 3P reserves increase was from a portion of the
Company's 170,000 Upper Devonian net acreage, which are expected to be
developed independently from the Marcellus. The Company also has approximately
13,600 net Utica acres in Ohio, which add an insignificant amount of possible
reserves. To delineate the plays, EQT plans to drill 11 Upper Devonian and 8
Utica wells in 2013.

Ryder Scott Company, petroleum consultants audited 100% of the Company’s
proved reserves, while estimated 3P reserves are determined in accordance with
the Securities and Exchange Commission regulations. The Company also made an
assessment of its total resource potential, which include 3P reserve totals.

3P Reserves by Play (year-end 2012):

Reserve                                      Upper        CBM /
Estimates       Marcellus   Huron*   Devonian   Other   Utica   Total
(Bcfe)
Proved          1,072       965      –          761     –       2,798
Developed
Proved          3,206       –        –          –       –       3,206
Undeveloped
Total           4,278       965      –          761     –       6,004
Proved
Probable        4,873       6,399    93         196     –       11,561
Possible        5,861       –        2,267      77      121     8,326
Total 3P        15,012      7,364    2,360      1,034   121     25,891
Reserves

*Includes the Lower Huron, Cleveland, Berea sandstone, and other Devonian aged
formations.

Annual Comparison of Estimated 3P Reserves by Play:

                                    Years Ended
                                   December 31,
(Bcfe)                              2012     2011
Marcellus                                           
Proved Developed                            1,072      1,015
Proved Undeveloped                  3,206    2,399
Total Proved                        4,278    3,414
Probable                                    4,873      4,235
Possible                            5,861    5,098
Total 3P Reserves                   15,012   12,747
                                           
Huron
Proved Developed                            965        1,062
Proved Undeveloped                  –        –
Total Proved                        965      1,062
Probable                                    6,399      4,340
Possible                            –        2,315
Total 3P Reserves                   7,364    7,717
                                           
Upper Devonian
Proved Developed                            –          –
Proved Undeveloped                  –        –
Total Proved                        –        –
Probable                                    93         –
Possible                            2,267    –
Total 3P Reserves                   2,360    –
                                           
CBM/Other
Proved Developed                            761        889
Proved Undeveloped                  –        –
Total Proved                        761      889
Probable                                    196        22
Possible                            77       2
Total 3P Reserves                   1,034    913
                                           
Utica
Proved Developed                            –          –
Proved Undeveloped                  –        –
Total Proved                        –        –
Probable                                    –          –
Possible                            121      –
Total 3P Reserves                   121      –
                                           
Totals                                      
Total Proved                        6,004    5,365
Total Probable and Possible         19,887   16,012
Total 3P Reserves                   25,891   21,377
                                                       
                                                       

Total Estimated Resource Potential by Play:

Resource Potential         Total (Tcfe)
Marcellus                  19.5
Huron                      11.3
Upper Devonian             2.8
CBM/Other                  1.6
Utica                      0.2
TOTAL                      35.4
                          
                                   

Summary of Changes in Proved Reserves:

Balance at December 31, 2011 (Bcfe)             5,365
Extensions, discoveries and other additions     1,656
Revisions*                                      (754)
Purchases                                       -
Sales                                           (1)
Production                                      (261)
Balance at December 31, 2012                    6,004

* A substantial portion of the revision is due to proved reserves being
re-classified as non-proved reserves, primarily as a result of lower gas
prices. Year-end 2012 reserves are based on a $2.79 per Mcfe price, which is
$1.33 lower than the price used to estimate the 2011 reserves. Both prices
were determined in accordance with the SEC requirement to use the 12-month
un-weighted arithmetic average of the first-day-of-the-month price for the
preceding twelve months without giving effect to derivative transactions.

DEFINITIONS
Reserve Replacement Calculations -- Reserve replacement ratio is the sum of
the net increase of proved reserves before production, divided by production.

Drill Bit Finding Cost  -- Drill bit finding cost is the total cost incurred
related to natural gas and oil activities, calculated in accordance with
Financial Accounting Standards Board Accounting Standards Codification 932
(ASC 932), less property acquisition costs for proved developed and unproved
properties, divided by extensions, discoveries and other additions.

About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on Appalachian
area natural gas production, gathering, transmission, and distribution. EQT is
the general partner and majority equity owner of EQT Midstream Partners, LP.
With more than 120 years of experience, EQT is a technology-driven leader in
the integration of air and horizontal drilling. 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. Company shares
are traded on the New York Stock Exchange as EQT.

Visit EQT Corporation on the Internet at www.EQT.com.

Cautionary Statements
The 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) and total resource potential, that the SEC's rules strictly prohibit
us from including in filings with the SEC. These measures are by their nature
more speculative than estimates of reserves prepared in accordance with SEC
definitions and guidelines and accordingly are less certain. We also note that
the SEC strictly prohibits us from aggregating proved, probable and possible
reserves in filings with the SEC due to the different levels of certainty
associated with each reserve category.

Disclosures in this press release contain 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 resource potential, EUR and projected well
drilling plans, including the projected capital budget and the use of reduced
cluster spacing. 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
filed for the year ended December 31, 2011 and in the company’s Form 10-K for
the year ended December 31, 2012 to be filed with the SEC, as updated by any
subsequent Form 10-Qs.

Any forward-looking statement speaks 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.

Contact:

EQT Corporation
Analyst inquiries please contact:
Patrick Kane, 412-553-7833
Chief Investor Relations Officer
pkane@eqt.com
or
Nate Tetlow, 412-553-5834
Manager, Investor Relations
ntetlow@eqt.com
or
Media inquiries please contact:
Natalie Cox, 412-395-3941
Corporate Director, Communications
ncox@eqt.com
 
Press spacebar to pause and continue. Press esc to stop.