EQT’s production mix
As you can see in the graph below, for 3Q15, EQT’s (EQT) production mix was ~90% natural gas, ~9% natural gas liquids, and only ~1% crude oil. This means that EQT is mainly a natural gas producer. Its total liquids production comes at only ~10%. Typically, upstream companies with more liquids production have better operating margins.
EQT’s production mix trend
In 3Q15, EQT’s natural gas percentage in its production mix decreased by ~0.3% when compared to 3Q14.
Since 1Q11, EQT’s natural gas percentage in its production mix oscillated between ~89.5% and ~93%. EQT’s natural gas percentage in its production mix averaged around ~91% during the same period.
EQT’s realized prices
Including the effect of hedges, EQT’s average realized natural gas price in 3Q15 was $2.83 per Mcf (thousand cubic feet), down ~26% from $3.83 per Mcf in 3Q14.
For 3Q15, EQT’s average realized price for natural gas liquids production decreased ~81% to $8.10 per barrel compared to $42.27 per barrel for the same period in 2014.
For 3Q15, EQT’s average realized price for crude oil production decreased ~55% to $39.13 per barrel compared to $87.91 per barrel for the same period in 2014.
EQT’s natural gas realized prices benefited from its gains on commodity hedges. We’ll look at EQT’s hedges in the next part.