EQT’s 3Q17 production
EQT’s (EQT) production volume in 3Q17 was 205.1 Bcfe (billion cubic feet equivalent). In comparison, EQT’s 3Q16 production volumes were 196 Bcfe, while its 2Q17 production volumes were 198.1 Bcfe.
In its 3Q17 earnings conference, EQT said that it experienced ~3.5 Bcfe of unexpected curtailments in 3Q17 due to outages on third-party systems. However, EQT’s production was still higher compared to 3Q16 and 2Q17. It was within the 3Q17 guidance range of 205 Bcfe–210 Bcfe.
3Q17 operational activity
EQT drilled 35 gross wells in 3Q17, including 29 wells in the Marcellus and six Upper Devonian wells. The company had 49 turn-in-line wells including 32 Marcellus wells and 16 Upper Devonian wells in 3Q17.
EQT’s 3Q17 realized prices
The average realized price for natural gas (UNG) rose from $2.16 per thousand cubic feet in 3Q16 to $2.59 per thousand cubic feet in 3Q17. EQT’s average realized price for natural gas liquids rose from $14.82 per barrel in 3Q16 to $29.37 per barrel in 3Q17.
EQT’s production guidance for 2017
Speaking about the value the Rice transaction would add to the company, EQT’s management commented in the 3Q17 earnings conference, “Establishing a dominant footprint of highly contiguous acreage that allows for sustained long lateral development is a real competitive advantage. This is what the Rice transaction creates for us.”
EQT’s management pointed out that without Rice, it spends ~$140 million per year getting to 8,000 feet. By spending around the same amount, the company expects to drill 12,000-foot laterals with Rice Energy.