EQT Announces Year End Proved Reserves of 13.5 Tcfe

2016 activity drives 35% increase in proved reserves

Thursday, February 2, 2017 6:26 am EST

Dateline:

PITTSBURGH

Public Company Information:

NYSE:
EQT

PITTSBURGH--(BUSINESS WIRE)--EQT Corporation (NYSE: EQT) today reported year-end 2016 proved reserves of 13.5 Tcfe, a 35% increase over 2015, including proved developed reserves of 6.8 Tcfe, which was 9% higher than the previous year. Excluding the impact of 2016 acquisitions, the Company added 1.9 Tcfe of proved reserves, which was 246% more than the 776 Bcfe produced during the year. The increase in proved developed reserves resulted from the completion of 143 wells and the acquisition of 75 wells during 2016.

The Company's 2016 proved undeveloped (PUD) reserves totaled 6.7 Tcfe, an 80% increase over the previous year. This increase was due to the acquisition of core Marcellus acreage and the conversion of locations not previously classified as proved. Approximately 647 Bcfe of PUD reserves were converted to proved developed reserves, which partially offset the increase.

During 2016, EQT invested $2,074 million in production capital projects – including $1,284 million for property acquisitions and $783 million for well development.

Utica

Included in the proved developed reserves is 39 Bcfe from five Utica wells in Pennsylvania and West Virginia. There are no Utica reserves included in proved undeveloped, probable or possible reserves estimates.

 

Proved Reserves by Play

   
Years Ended December 31,
Reserve Estimates (Bcfe) 2016 2015
Proved developed
Marcellus 4,732 4,120
Upper Devonian 452 406
Other 1,659 1,754
Total 6,843 6,280
Proved undeveloped
Marcellus 6,468 3,649
Upper Devonian 197 48
Other
Total 6,665 3,697
Total proved reserves 13,508 9,977
 
Probable and Possible Reserves
Years Ended December 31,
Reserve Estimates (Tcfe) 2016 2015
Probable
Marcellus 7.4 4.4
Upper Devonian 2 0.8
Other* 0.9 8.2
Total 10.3 13.4
Possible
Marcellus 1.2 0.6
Upper Devonian 0.9 0.5
Other 0.1 0.1
Total 2.2 1.2
Total probable and possible 12.5 14.6

*Huron probable reserve estimates decreased by 7.3 Tcfe.

 
Total Resource Potential by Play
Years Ended December 31,
(Tcfe) 2016 2015
Marcellus 44 31
Utica 30 25
Upper Devonian 7 6
Other 16 16
Total 97 78
 
 
Summary of Changes in Proved Reserves:
Balance at December 31, 2015 (Bcfe) 9,977
Extensions, discoveries and other additions 2,384
Revisions

(473

)

Purchases 2,396
Production

(776

)

Balance at December 31, 2016 13,508  
 

Year-end 2016 reserves are based on a $2.48 per MMBtu natural gas price (NYMEX), which is $0.10 lower than the price used to estimate the 2015 reserves. Prices are determined in accordance with the Securities and Exchange Commission (SEC) requirement to use the un-weighted arithmetic average of the first-day-of-the-month price for the preceding twelve months without giving effect to derivative transactions.

Ryder Scott Company, L.P., the Company’s petroleum consultant, audited 100% of the Company’s proved reserves; and EQT made an assessment of its total resource potential, which includes proved, probable and possible (3P) reserve totals.

About EQT Corporation:

EQT Corporation is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, and transmission. With more than 125 years of experience, EQT continues to be a leader in the use of advanced horizontal drilling technology – designed to minimize the potential impact of drilling-related activities and reduce the overall environmental footprint. 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. EQT also owns a 90% 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.

Visit EQT Corporation at www.EQT.com.

EQT management speaks to investors from time-to-time and the analyst presentation for these discussions, which is updated periodically, is available via the Company’s investor relations website at http://ir.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 news release, such as 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 (3P) in filings with the SEC due to the different levels of certainty associated with each reserve category.

Disclosures in this news release contain certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. 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 news release specifically include the expectations of total resource potential and reserves. 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, many of which are difficult to predict and 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”, in the Company’s Form 10-K for the year ended December 31, 2015 as filed with the SEC, and in the Company’s Form 10-K for the year ended December 31, 2016 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 analyst inquiries please contact:
Patrick Kane, 412-553-7833
Chief Investor Relations Officer
pkane@eqt.com
pr
EQT Midstream Partners / EQT GP Holdings analyst inquiries please contact:
Nate Tetlow, 412-553-5834
Investor Relations Director
ntetlow@eqt.com
or
Media inquiries please contact:
Natalie Cox, 412-395-3941
Corporate Director, Communications
ncox@eqt.com

Media Contacts

(For credentialed news media)

Natalie Cox
Corporate Director,
Communications
ncox@eqt.com
Tel. 412.395.3941

Linda Robertson
Manager,
Media Relations
lrobertson@eqt.com
Tel. 412.553.7827

Investor Relations

Patrick J. Kane, CFA
Chief Investor Relations Officer
pkane@eqt.com
Tel. 412.553.7833

Nate Tetlow, CFA
Investor Relations Director
ntetlow@eqt.com
Tel. 412.553.5834

Corporate Communications

(For general inquiries)

Deborah Collier
Communications Assistant
dcollier@eqt.com
Tel. 412.395.3546