EQT Lowers Pipeline Costs via New Deals, Eyes Export Opportunities
EQT, the country’s largest natural gas producer, issued its third quarter update yesterday. There was a LOT of news in the update. Where to start? Three important things to note from yesterday’s update: (1) EQT blew it on hedges, losing $2 billion during 3Q21 compared with losing $600 million in 3Q20. (2) CEO Toby Rice says the company is done, for now, with expanding by buying other companies. No more mergers and acquisitions. (3) EQT produced a whopping 495 Bcfe (billion cubic feet equivalent) during 3Q21, up 35% from the same period last year. That works out to be 5.5 Bcfe per day.
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Although three major Marcellus/Utica drillers provided third quarter updates yesterday, we only cover EQT’s update in today’s lineup of stories. Come back Monday for details from both Antero Resources and CNX Resources. S&P Global Platts reviewed all three updates from yesterday and noticed a difference in how each of the three companies is approaching hedging, or preselling production for a specific price up to a year or more in advance. According to S&P, regaining investment-grade ratings for company stock was a stated goal by executives at all three companies during their 3Q earnings calls. They all aim to maximize free cash flows and paying down debt. Hedging programs were touted as the pathway to accomplish these balance-sheet goals.
Chesapeake Energy, which has gone through a transformation since declaring bankruptcy earlier this year, announced yesterday it has selected oilfield services (OFS) company Nabors Industries as its preferred drilling contractor across all of the company’s shale oil and natural gas assets moving forward. Nabors is Chessy’s new dancing partner. What’s that? Who is Nabors?
Once again the virulent anti-fossil fuel nuts that compose the federal Delaware River Basin Commission (DRBC) are targeting the shale industry. Earlier this year the lefties that run the DRBC voted to permanently ban fracking (and therefore all oil and gas drilling) anywhere in the DRBC’s jurisdiction (see 
Earlier this month MDN exclusively broke the news that earlier this year (slipping under the radar) the Ohio Department of Natural Resources (ODNR) issued permits to Powhatan Salt Company/Mountaineer NGL Storage for three planned solution mining wells in Monroe County (see 
MDN friend, someone we highly respect, is Tom Shepstone, author and compiler over at the 
MARCELLUS/UTICA REGION: Manchin, McConnell huddle on Senate floor amid Biden spending battle; NATIONAL: WTI futures back on rise again; INTERNATIONAL: Oil demand is soaring; Activist investor is calling for a breakup of Royal Dutch Shell; LNG demand to rise 25-50% by 2030: Morgan Stanley.