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Released November 04, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--EQT Corporation (NYSE:EQT) (Pittsburgh, Pennsylvania), the largest independent U.S. natural gas producer, is continuing with its big-ticket efforts in natural gas production and transportation as its industry faces a possible 25-year-low in natural gas prices. The boom in U.S. shale gas production has resulted in a glut that even record exports have been unable to offset. Industrial Info is tracking more than $2.3 billion worth of active projects from EQT, more than 75% of which is attributed to projects under construction.
Click on the image at right to see a map of EQT's active projects in North Carolina, Pennsylvania, Virginia and West Virginia, as tracked by Industrial Info.
The bulk of the spending attached to EQT projects is attributed to various phases of the Mountain Valley Pipeline, a 303-mile pipeline system that runs from northwestern West Virginia to southern Virginia, carrying natural gas extracted from the Marcellus and Utica shale plays. Among the portions under construction are an estimated $415 million segment from Wetzel County to Braxton County in West Virginia, and an estimated $800 million segment from Braxton County to Pittsylvania County, Virginia, running 199 miles. The company is targeting an in-service date for both segments toward the end of the year, although it has acknowledged that full completion in 2019 is unlikely.
Three compressor stations servicing these two segments are under or nearing construction: a $120 million station near New Martinsville; a $75 million station in Flatwoods; and a $75 million station in Meadows Bridge. The system is expected to have a capacity of 2 billion cubic feet per day of natural gas. For more information, see Industrial Info's project reports on the segments originating in Wetzel County and Braxton County, and the substations in New Martinsville, Flatwoods and Meadows Bridge.
EQT is preparing to sell its equity stake in Equitrans Midstream Corporation (NYSE:ETRN) (Pittsburgh, Pennsylvania) in an effort to cut its corporate debt 30% by mid-2020, according to statements from company executives in a recent quarterly earnings-related conference call. EQT spun off Equitrans late last year to house its midstream business, as EQT shifted its focus to upstream projects. EQT's existing equity stake was valued at roughly $750 million at the end of September, according to Pittsburgh Business Times. Lower commodity prices are among the factors pressuring EQT to reduce its debt load.
Although EQT will no longer own Equitrans, the latter will remain EQT's primary pipeline-based transporter of natural gas to market--a relationship fundamental to the Mountain Valley Pipeline. "In exchange for gathering fee relief, the timing of fee relief will likely be tied to the in-service date of Mountain Valley Pipeline, a project that, including other related projects, is expected to add over $300 million of EBITDA for Equitrans upon going in service," said Toby Rice, the chief executive officer of EQT, in the conference call.
Closely related to the Mountain Valley Pipeline is EQT's Hammerhead Pipeline, which is expected to carry about 1.2 billion standard cubic feet per day of natural gas from southwestern Pennsylvania to Mobley, West Virginia, where it will connect with Mountain Valley. Three major elements are under construction and set to begin service toward the end of the year: a $180 million line from Allegheny County, Pennsylvania, to the state border near Morgantown, West Virginia, which runs 28 miles; a $180 million line from Morgantown to Mobley, West Virginia, which runs 32 miles; and a $75 million compressor station in Morgantown.
Rice noted in the conference call that EQT's drilling speeds in the Marcellus are up 50% relative to the second quarter of 2018, while drilling speeds in the Utica are up 20%. For more information, see Industrial Info's project reports on the segments originating in Allegheny County and Morgantown and the compressor station.
EQT's progress on these big-ticket projects comes as the company announced it had slashed more than $100 million from its capital budget for 2019 and expects to cut more than $500 million from its 2020 plan. "We plan to spend between $1.3 billion to $1.4 billion of [capital] to execute a disciplined development program that will result in sales volumes roughly flat to the expected 2019 levels," Rice said. He noted that 65% of EQT's capital will be deployed to Pennsylvania, 19% to Ohio and the remaining 16% to West Virginia.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right to see a map of EQT's active projects in North Carolina, Pennsylvania, Virginia and West Virginia, as tracked by Industrial Info.The bulk of the spending attached to EQT projects is attributed to various phases of the Mountain Valley Pipeline, a 303-mile pipeline system that runs from northwestern West Virginia to southern Virginia, carrying natural gas extracted from the Marcellus and Utica shale plays. Among the portions under construction are an estimated $415 million segment from Wetzel County to Braxton County in West Virginia, and an estimated $800 million segment from Braxton County to Pittsylvania County, Virginia, running 199 miles. The company is targeting an in-service date for both segments toward the end of the year, although it has acknowledged that full completion in 2019 is unlikely.
Three compressor stations servicing these two segments are under or nearing construction: a $120 million station near New Martinsville; a $75 million station in Flatwoods; and a $75 million station in Meadows Bridge. The system is expected to have a capacity of 2 billion cubic feet per day of natural gas. For more information, see Industrial Info's project reports on the segments originating in Wetzel County and Braxton County, and the substations in New Martinsville, Flatwoods and Meadows Bridge.
EQT is preparing to sell its equity stake in Equitrans Midstream Corporation (NYSE:ETRN) (Pittsburgh, Pennsylvania) in an effort to cut its corporate debt 30% by mid-2020, according to statements from company executives in a recent quarterly earnings-related conference call. EQT spun off Equitrans late last year to house its midstream business, as EQT shifted its focus to upstream projects. EQT's existing equity stake was valued at roughly $750 million at the end of September, according to Pittsburgh Business Times. Lower commodity prices are among the factors pressuring EQT to reduce its debt load.
Although EQT will no longer own Equitrans, the latter will remain EQT's primary pipeline-based transporter of natural gas to market--a relationship fundamental to the Mountain Valley Pipeline. "In exchange for gathering fee relief, the timing of fee relief will likely be tied to the in-service date of Mountain Valley Pipeline, a project that, including other related projects, is expected to add over $300 million of EBITDA for Equitrans upon going in service," said Toby Rice, the chief executive officer of EQT, in the conference call.
Closely related to the Mountain Valley Pipeline is EQT's Hammerhead Pipeline, which is expected to carry about 1.2 billion standard cubic feet per day of natural gas from southwestern Pennsylvania to Mobley, West Virginia, where it will connect with Mountain Valley. Three major elements are under construction and set to begin service toward the end of the year: a $180 million line from Allegheny County, Pennsylvania, to the state border near Morgantown, West Virginia, which runs 28 miles; a $180 million line from Morgantown to Mobley, West Virginia, which runs 32 miles; and a $75 million compressor station in Morgantown.
Rice noted in the conference call that EQT's drilling speeds in the Marcellus are up 50% relative to the second quarter of 2018, while drilling speeds in the Utica are up 20%. For more information, see Industrial Info's project reports on the segments originating in Allegheny County and Morgantown and the compressor station.
EQT's progress on these big-ticket projects comes as the company announced it had slashed more than $100 million from its capital budget for 2019 and expects to cut more than $500 million from its 2020 plan. "We plan to spend between $1.3 billion to $1.4 billion of [capital] to execute a disciplined development program that will result in sales volumes roughly flat to the expected 2019 levels," Rice said. He noted that 65% of EQT's capital will be deployed to Pennsylvania, 19% to Ohio and the remaining 16% to West Virginia.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
