Appalachian shale producer EQT Corp. may take $1.8 billion fourth quarter charge

first_imgAppalachian shale producer EQT Corp. may take $1.8 billion fourth quarter charge FacebookTwitterLinkedInEmailPrint分享Natural Gas Intelligence:EQT Corp. said in a regulatory filing on Monday it may incur a steep one-time impairment of up to $1.8 billion for the fourth quarter due to a new development plan and low natural gas prices.Under a new management team that took over last July, the nation’s largest natural gas producer is aiming to aggressively cut debt and realign operations to boost performance and value. Management has outlined plans to cut debt by $1.5 billion by mid-2020, which it expects to achieve with a mix of initiatives, including asset sales.The monetization, along with a decrease in the value of its reserves and the writedown of unproven properties no longer in the development plan, is likely to result in a 4Q2019 impairment of $1.4-1.8 billion, the company said in a Form 8-K filed with the U.S. Securities and Exchange Commission. The figure could change as year-end results are finalized.Fourth quarter production is expected to average 370-375 Bcfe, or toward the high-end of previously announced guidance, according to preliminary estimates. The company produced 394 Bcfe in the year-ago period and 381 Bcfe in 3Q2019. It is guiding for 1.45-1.50 Tcfe of production this year, roughly flat to 2019 levels.Averaged realized prices are also expected to average $2.51-2.56/Mcfe in 4Q2019, or below the 4Q2018 average of $3.13/Mcfe.EQT also said Monday it would offer two new series of fixed rate senior notes. Moody’s Investors Service downgraded the company following Monday’s filing.[Jamison Cocklin]More: Appalachian heavyweight EQT warns of $1B-plus impairment for fourth quarterlast_img