Courtesy of Benzinga.
EQT Corporation (NYSE: EQT) today announced the company’s 2012 capital expenditure (CAPEX) forecast of $1.6 billion. Sales of produced natural gas in 2012 are projected at between 255 and 260 Bcfe, approximately 32% higher than the 2011 estimate of 195 Bcfe.
The CAPEX forecast includes $1,190 million for EQT Production, $365 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 proceeds from the November 7, 2011 debt issuance. Operating cash flow is projected to be approximately $1,000 million in 2012 at current NYMEX natural gas prices.
EQT Production expects to invest more than 80% of its drilling capital to drill 132 Marcellus wells with an average length of 4,240 feet of pay, with 49 of these wells completed using 30 foot frac spacing. EQT Production also expects to drill 120 Huron wells with an average length of 5,200 feet of pay. Geological and geophysical activities supporting the drilling program are expected to total $10 million. The remainder of the EQT Production spending is for capitalized overhead, maintenance and to complete wells spud in 2011.
The company plans to spend $155 million on Equitrans’ transmission expansion and $125 million for Marcellus gathering. The Marcellus gathering investments are expected to increase capacity by 220 MMcf per day in Pennsylvania and 160 MMcf per day in West Virginia. The Equitrans expansion project is expected to increase transmission capacity by 450 MMcf per day in 2012. The remainder of the EQT Midstream spending is for maintenance and compliance activities.
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