EQT may sell “small portion” of royalties from natural gas production

Pittsburgh-based EQT Corp., the largest independent natural gas producer, “is in talks to have an investor take a 1 percent royalty interest in revenue from natural gas production,” the Pittsburgh Business Times reports. The company’s new management team “has been working to cut drilling costs and improve the company’s financial picture” as the domestic shale industry is experiencing sharp declines, according to the article. EQT said during the third-quarter conference call “it was evaluating ways to monetize its interest in natural gas production.” Then-Interim CFO Kyle Derham said, “[w]e are confident this strategy could generate significant proceeds that can be used to de-lever without a significant impact on development returns.” For more, read the full article.

Pennsylvania

Continued low natural gas prices spark new round of impairments

Several oil and gas companies have been “forced to recalculate and reduce the value of their assets to reflect a down market,” as continued low natural gas prices “have been putting a damper on corporate earnings for many months,” the Pittsburgh Post-Gazette reports. CNX Resources Corp. recently “wrote down $46 million in assets in Central Pennsylvania,” according to the article, following a “blockbuster $10 billion impairment by Chevron Corp. last month, more than half of which was attributed to Appalachian oil and gas assets.” EQT Corp, the largest natural gas producer in the country, “is expected to write down between $1.4 billion and $1.8 billion in assets” next month. The wave of impairments means “some oil and gas leases will be allowed to expire without follow-up and some potential drilling locations are now off the table.” For more, read the full article.

Pennsylvania

Cabot to sell stake in Meade Pipeline Company

Houston-based Cabot Oil & Gas Corp. has reached an agreement to sell its 20 percent stake in Meade Pipeline Co. to NextEra Energy Partners for $256 million, the Pittsburgh Business Times reports. Cabot’s regional headquarters is based in Pittsburgh; Meade “carries Marcellus Shale gas on the Atlantic Sunrise in eastern Pennsylvania,” and is “30 percent owner of the Central Penn Line, a 185-mile segment of the Atlantic Sunrise pipeline,” according to the article. The deal is expected to close by the end of this year. For more, read the full article.  

National, Pennsylvania

Rice installs executives at EQT

The Pittsburgh Post-Gazette reports that EQT’s new CEO Toby Rice has appointed a slate of executives from his former company Rice Energy, Inc., including general counsel William Jordan, CIO Tony Duren and CHRO Lesley Evancho. Other key positions have been filled but were not yet named. These executives have been tasked with leading EQT through the transition period and implementing Mr. Rice’s proposed 100-day plan. Read the full story, including market and production goals and Mr. Rice’s thoughts on company culture.

Pennsylvania