EQT released its 2016 capital investment budget Monday. The budget of $1bn is well below the $1.8bn that the company is spending this year. It includes $820 million for well development.
The 2016 budget anticipates 72 wells focused on the company’s core Marcellus acreage. The average lateral length of these wells will be 7,200 ft. and all will be drilled from multi-well pads.
In addition to the Marcellus plan, EQT plans to drill 5 deep Utica wells (average lateral of 5,200 ft.) plus 5 optional wells to be decided next year.
Based on current NYMEX natural gas prices, adjusted operating cash flow for EQT is projected to be $700 – $750 million for 2016. The capex budget will be funded with cash flow from operations, cash on hand and proceeds from midstream asset sales to EQT Midstream Partners.
EQT Production has been a major player in the Appalachian Basin for over 125 years. EQT owns approximately 3.4 million gross acres – including approximately 630,000 gross acres in the Marcellus play, more than 13,000 gross productive wells, and 10.7 trillion cubic feet of proved natural gas, NGL, and crude oil reserves.