We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
EQT Corp Sets 2017 Capital Expenditure Budget at $1.5B
Read MoreHide Full Article
EQT Corporation (EQT - Free Report) recently came up with 2017 capital expenditure budget, which has been set at $1.5 billion. The price impact of this news is yet to be seen. Year to date, the stock price has moved up by 34.1%, while Zacks categorised Zacks sub industry Oil & Gas-U.S. Exploration & Production Market has increased by 47.5%. Of the total, $1.3 billion has been allotted for well development but excludes business development and land acquisitions. The capital expenditure is expected to be funded by cash generated from operations and cash on hand. EQT Corp.’s capital expenditure for 2017 does not include capex for EQT Midstream Partners, LP (EQM), a master limited partnership controlled by it.
For 2017, EQT Corp. estimates production sales volume of 810–830 billion cubic feet equivalent (Bcfe), which includes volume growth of 70 Bcfe. The upside is likely to be supported mainly by the drilling program started earlier year. Similarly, the majority of the volume anticipated from the 2017 drilling program will be realized in 2018. From 2018 onward, EQT Corp. estimates production volume growth of 15–20% per year for several years.
In 2017, the company intends to drill 119 Marcellus wells with an average lateral length of 7,000 feet – all of which will be on multi-well pads to maximize operational efficiency and well economics. The Marcellus drilling program will concentrate on the company’s core Marcellus acreage, with 76 wells in Pennsylvania and 43 wells in West Virginia.
In Upper Devonian, the company intends to drill 81 wells with an average lateral length of 7,300 feet. These wells will be restricted to co-development on Marcellus pads in Pennsylvania. In 2017, EQT Corp. plans to employ six to eight rigs in Marcellus/ Utica, and about five to seven top-hole rigs are expected to be used.
The company plans to drill seven deep Utica exploratory wells with an average lateral length of 6,800 feet. EQT Corp. owns about 490,000 net acres, which it believes to be prospective for the deep Utica.
In 2017, EQT Corp. expects liquids sales volume, excluding ethane, in the range of 10,000 – 10,400 thousand barrels (Mbbls). Ethane sales are expected between 3,100 Mbbls and 3,300 Mbbls.
Per unit costs for gathering to EQT Midstream, transmission to EQT Midstream and processing are expected in the range of 46–48 cents, 20–22 cents and 40–42 cents, respectively.
Similarly, per unit costs for LOE, excluding production taxes, SG&A and DD&A are expected in the range of 13–15 cents, 17–19 cents and $1.10–$1.12, respectively.
SunCoke Energy posted a positive earnings surprise of 177.78% in the last reported quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It reported an average earnings surprise of 40.55% for the four preceding quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the last reported quarter. It reported a positive earnings surprise in all of the four preceding quarters.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
EQT Corp Sets 2017 Capital Expenditure Budget at $1.5B
EQT Corporation (EQT - Free Report) recently came up with 2017 capital expenditure budget, which has been set at $1.5 billion. The price impact of this news is yet to be seen. Year to date, the stock price has moved up by 34.1%, while Zacks categorised Zacks sub industry Oil & Gas-U.S. Exploration & Production Market has increased by 47.5%.
Of the total, $1.3 billion has been allotted for well development but excludes business development and land acquisitions. The capital expenditure is expected to be funded by cash generated from operations and cash on hand. EQT Corp.’s capital expenditure for 2017 does not include capex for EQT Midstream Partners, LP (EQM), a master limited partnership controlled by it.
For 2017, EQT Corp. estimates production sales volume of 810–830 billion cubic feet equivalent (Bcfe), which includes volume growth of 70 Bcfe. The upside is likely to be supported mainly by the drilling program started earlier year. Similarly, the majority of the volume anticipated from the 2017 drilling program will be realized in 2018. From 2018 onward, EQT Corp. estimates production volume growth of 15–20% per year for several years.
In 2017, the company intends to drill 119 Marcellus wells with an average lateral length of 7,000 feet – all of which will be on multi-well pads to maximize operational efficiency and well economics. The Marcellus drilling program will concentrate on the company’s core Marcellus acreage, with 76 wells in Pennsylvania and 43 wells in West Virginia.
In Upper Devonian, the company intends to drill 81 wells with an average lateral length of 7,300 feet. These wells will be restricted to co-development on Marcellus pads in Pennsylvania. In 2017, EQT Corp. plans to employ six to eight rigs in Marcellus/ Utica, and about five to seven top-hole rigs are expected to be used.
The company plans to drill seven deep Utica exploratory wells with an average lateral length of 6,800 feet. EQT Corp. owns about 490,000 net acres, which it believes to be prospective for the deep Utica.
In 2017, EQT Corp. expects liquids sales volume, excluding ethane, in the range of 10,000 – 10,400 thousand barrels (Mbbls). Ethane sales are expected between 3,100 Mbbls and 3,300 Mbbls.
Per unit costs for gathering to EQT Midstream, transmission to EQT Midstream and processing are expected in the range of 46–48 cents, 20–22 cents and 40–42 cents, respectively.
Similarly, per unit costs for LOE, excluding production taxes, SG&A and DD&A are expected in the range of 13–15 cents, 17–19 cents and $1.10–$1.12, respectively.
Zacks Rank and Stocks to Consider
EQT Corp. currently has a Zacks Rank #3 (Hold). Some better-ranked players in the same sector include SunCoke Energy Inc. (SXC - Free Report) , Suncor Energy, Inc. (SU - Free Report) and Futurefuel Corp. (FF - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke Energy posted a positive earnings surprise of 177.78% in the last reported quarter. It reported a positive earnings surprise in three of the four preceding quarters.
Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It reported an average earnings surprise of 40.55% for the four preceding quarters.
Futurefuel Corp. posted a positive earnings surprise of 20.83% in the last reported quarter. It reported a positive earnings surprise in all of the four preceding quarters.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>