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EQT Corporation Announces the Sale of Big Sandy Pipeline

^{Published on 2011-05-11 13:40:38 - Market Wire}
 

PITTSBURGH--([ BUSINESS WIRE ])--EQT Corporation (NYSE: EQT) today announced the sale of the Big Sandy Pipeline (Big Sandy) to Spectra Energy Partners, LP (NYSE: SEP) for $390 million. The transaction is expected to close during the third quarter of 2011.

"We have contracted for capacity to ensure delivery of our growing Huron production and look forward to working with Spectra Energy Partners."

Big Sandy is an approximately 70-mile, 20-inch diameter, natural gas pipeline regulated by the Federal Energy Regulatory Commission (FERC). Placed in service in April 2008 with a current capacity of 171,000 Dth per day, Big Sandy transports natural gas from the Langley, Kentucky natural gas processing complex, to ultimately the Mid-Atlantic and Northeast markets.

"The sale of our Big Sandy Pipeline is another step in our commitment to prioritize our capital and accelerate our most profitable investment opportunities, which means primarilyMarcellus and also Huron development activities. We will continue to fund this acceleration through our operating cash flow, additional asset sales and available debt capacity,a said David Porges, chairman, president and chief executive officer. aWe have contracted for capacity to ensure delivery of our growing Huron production and look forward to working with Spectra Energy Partners.a

EQT will invest the majority of the proceeds in developing the Companya™s approximately 520,000 Marcellus acres, including associated midstream gathering; and to develop its extensive Huron reserves. EQT now expects to drill 100 Marcellus wells and 120 Huron wells in 2011. The Companya™s 2011 CAPEX forecast is increased to between $1,200 and $1,250 million; of which approximately 75% will be used for well development. As a result of this additional investment, EQT is increasing its 2011 production sales volume guidance to between 185 and 190 Bcfe; and establishes a preliminary 2012 volume target of between 245 and 250 Bcfe. A final 2012 target will be set when the Company establishes its 2012 capital budget later this year.

About EQT

EQT Corporation is an integrated energy Company with emphasis on Appalachian area natural gas production, gathering, transmission and distribution. Additional information about the Company can be obtained through the Companya™s web site, [ http://www.eqt.com ]. Investor information is available on that site at [ http://ir.eqt.com. ] The Company uses its web site as a channel of distribution of important information about the Company, and routinely posts financial and other important information regarding the Company and its financial condition and operations on the Investors web pages.

Wells Fargo Securities, LLC acted as exclusive financial advisor to EQT on the sale.

Cautionary Statements

Disclosures in this press release contain forward-looking statements. Statements that do not relate strictly to historical or current facts are forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the Companya™s expectations of plans; strategies; objectives and growth, including guidance regarding the Companya™s drilling and infrastructure programs; transactions, including asset sales and/or joint ventures involving the Companya™s assets; production and sales volumes; projected number of wells to be drilled; reserves; projected operating cash flows; capital resources and expenditures, which 2011 CAPEX forecast excludes acquisitions; debt capacity; the expected timing of closing, if at all, of the sale of the Big Sandy Pipeline; the amount of consideration to be received for the Big Sandy Pipeline; the use of proceeds from the sale of the Big Sandy Pipeline; and the availability of pipeline capacity for Huron production. These statements involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements on current expectations and assumptions about the future events. While the Company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, most of which are difficult to predict and many of which are beyond the Companya™s control. The risks and uncertainties that may affect the operations, performance and results of the Companya™s business and forward-looking statements include, but are not limited to, those set forth under Item 1A, aRisk Factorsa of the Companya™s Form 10-K filed for the year ended December 31, 2010, as updated by any subsequent Form 10-Qs.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.