Business Wire 14-Feb-2019 6:29 AM
2018 activity drives 11% increase in proved reserves1
EQT Corporation (NYSE:EQT) today reported year-end 2018 proved reserves of 21.8 Tcfe. Adjusting for the impact of asset divestitures in 2018, the Company's proved reserves increased 11%, or 2.1 Tcfe, which was 142% more than the 1,495 Bcfe production during the year. This increase was primarily driven by further development within the Marcellus and Utica formations.
Proved developed reserves increased to 11.6 Tcfe, mainly as a result of completing 237 wells during the year. The Company replaced 317% of its 2018 production through drilling activities and, including the negative offset from asset divestitures and changes to the five-year development plan, EQT replaced 242% of its 2018 production with new reserves.
The Company's 2018 proved undeveloped (PUD) reserves totaled 10.3 Tcfe – in-line with the previous year; however, with 14% fewer top-hole locations driven by longer laterals, resulting in significant fixed-cost savings. Approximately 2.7 Tcfe of PUD reserves were converted to proved developed reserves, largely due to the high activity levels during the year.
During 2018, EQT invested $2.7 billion in production capital projects – including $2.3 billion for reserve development.
Proved Reserves by Play (Bcfe)
|Year Ended December 31,|
|Total proved reserves||21,817||21,446|
1Adjusted for divestitures associated with Huron and Permian assets of 1,748 Bcfe22017 "other reserves" includes 1,748 Bcfe associated with the Huron and Perminan assets
Probable and Possible Reserves (Tcfe)
|Year Ended December 31,|
Total probable and possible
Total Resource Potential by Play (Tcfe)
|Year Ended December 31,|
Summary of Changes in Proved Reserves (Bcfe)
|Balance at December 31, 2017||21,446|
|Extensions, discoveries and other additions||4,739|
|Balance at December 31, 2018||21,817|
Year-end 2018 reserves are based on a $3.10 per MMBtu natural gas price (NYMEX), which is $0.12 higher than the price used to estimate the 2017 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 a natural gas production company with emphasis in the Appalachian Basin and operations throughout Pennsylvania, West Virginia and Ohio. With 130 years of experience and a long-standing history of good corporate citizenship, EQT is the largest producer of natural gas in the United States. As a leader in the use of advanced horizontal drilling technology, EQT is committed to minimizing the impact of drilling-related activities and reducing its overall environmental footprint. Through safe and responsible operations, EQT is helping to meet our nation's demand for clean-burning energy, while continuing to provide a rewarding workplace and support for activities that enrich the communities where its employees live and work. Visit EQT Corporation at https://www.eqt.com/; and to learn more about EQT's sustainability efforts, please visit csr.eqt.com.
Cautionary StatementsThe 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. The Company uses certain terms in this news release, such as total resource potential, that the SEC's rules strictly prohibit the Company 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. The Company also notes that the SEC strictly prohibits the Company 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.
Reserve engineering is a process of estimating underground accumulations of natural gas, natural gas liquids (NGLs) and oil that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development program. Accordingly, reserve estimates may differ significantly from the quantities of natural gas, NGLs and oil that are ultimately recovered.
This news release contains 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, taking into account all information currently available to the Company. 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, 2017 as filed with the SEC, and in the Company's Form 10-K for the year ended December 31, 2018 to be filed with the SEC, as updated by any subsequent Form 10-Qs, and those set forth in the other documents the Company files from time to time with the SEC.
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, except as required by law.