EQT Corp Announces 2018 CAPEX Forecast Of $2.4 Bln

(RTTNews) - EQT Corp. (EQT) announced the company's 2018 capital expenditure (CAPEX) forecast of $2.4 billion, which includes $2.2 billion for well development and $150 million for acreage fill-ins and bolt-on leasing.

The 2018 drilling program is expected to be fully funded through adjusted operating cash flow attributable to EQT.

EQT forecasts 2018 production sales volume of 1,520 - 1,560 Bcfe. The 2018 drilling program anticipates a 15% increase in production sales volume in 2019. It is anticipated that the 2019 development plan will be funded entirely by the cash flow provided by EQT Production.

In 2018, the company plans to drill 139 Marcellus wells with an average lateral length of 11,800 feet - all of which will be on multi-well pads to maximize operational efficiency and well economics.

Adjusted operating cash flow attributable to EQT is projected to be $2,350 - $2,450 million for 2018, which includes $325 - $375 million from EQT's interests in EQT GP Holdings, LP (EQGP) and RMP.

Based on standalone EQT Midstream Partners, LP (EQM), annual per unit distribution growth is expected to be 15% - 20% for several years, including 2018, while targeting a long-term coverage ratio of 1.1x. The corresponding annual per unit distribution growth target for standalone EQT GP Holdings, LP (EQGP) is 30% - 40%.

Based on standalone Rice Midstream Partners, LP (RMP), annual per unit distribution growth is expected to be 15% - 20% for several years, including 2018, while targeting a long-term coverage ratio of 1.1x.

EQM investments in organic projects, including capital contributions to Mountain Valley Pipeline, LLC (MVP JV), are expected to total approximately $1.4 - $1.6 billion in 2018. Ongoing maintenance capital expenditures are expected to be $35 - 40 million, net of expected reimbursements.