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EQT Corporation Announces the Completion of the Sale of Big Sandy Pipeline to Spectra Energy Partners, LP

^{Published on 2011-07-01 10:21:01 - Market Wire}
 

PITTSBURGH--([ BUSINESS WIRE ])--EQT Corporation (NYSE: EQT) today announced the closing of the previously announced sale of the Big Sandy Pipeline to Spectra Energy Partners, LP (NYSE: SEP) for $390 million. 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.

"The proceeds from the sale of our Big Sandy Pipeline will be reinvested to accelerate our most profitable investment opportunities, which mean primarilyMarcellus and also Huron development activities. We expect to achieve volumetric and operating cash flow growth of greater than 30% per year for at least five years, funded through our operating cash flow, plus additional asset sales and/or available debt capacity," said David Porges, chairman, president and chief executive officer.

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

Operating cash flow is a non-GAAP financial measure which is an accepted indicator of an oil and gas exploration and production companya™s ability to internally fund exploration and development activities and to service or incur additional debt. The Company is unable to provide a reconciliation of its projected operating cash flow to projected net cash provided by operating activities, the most comparable financial measure calculated in accordance with generally accepted accounting principles, because of uncertainties associated with projecting future net income and changes in assets and liabilities.

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 guidance regarding the Companya™s expected use of proceeds from the sale of the Big Sandy Pipeline, projected natural gas production and sales volume growth, projected operating cash flow growth, the sources of funding to accelerate development activities, such as debt capacity and transactions, including asset sales and/or joint ventures involving the Company's assets. 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.