Despite a volatile energy market and the widespread impacts of the coronavirus (COVID-19), EQT has a positive outlook on its current standing in the energy landscape. The company released its preliminary first-quarter operational and financial highlights this week, stating that it has exceeded its expectations for the start of the year.
EQT has sales volumes of 380 to 385 Bcf (10.7 to 10.9 X 109 m3), exceeding its high-end guidance range of 360 to 370 Bcf (10.2 to 10.4 X 109 m3); well costs of US$740 to $750 per lateral foot in the Pennsylvania Marcellus Shale play, which is on target for the company’s well costs; and have capital expenditures of US$250 to $270 million, which is 25% lower than its fourth-quarter 2019 numbers.
“The benefits of our transformation strategy have come to fruition during the first quarter 2020,” said EQT President and CEO Toby Rice. “We exceeded our production expectations through continued operational efficiencies, made substantial progress towards our well cost targets and outperformed our operating cost projections, all while spending roughly 25% less capital than the prior quarter.”
EQT also has experienced “limited operational impacts” from the coronavirus. The company has been able to continue operations while following state mandates. The company’s new management team also implemented a 100-day plan to create a digital work environment for its employees. This plan minimizes the number of employees in the office and the field, while still keeping everyone connected.
EQT will hold its official first-quarter earnings call on May 7 at 9:30 a.m. CST. Topics of the teleconference will include financial and operational results and other matters regarding the first quarter of 2020. A brief question and answer session for security analysts will immediately follow the discussion. EQT plans to issue its financial and operating results before the market opening on the same day.