EQT CEO Toby Rice: NatGas Price Below $3.50 Means Less Production
EQT CEO Toby Rice appeared on CNBC’s ‘Money Movers’ program last Friday to discuss what he expects for natural gas prices this year, what lower natural gas production means for EQT, and more. It was an interesting segment (watch it below; it is just four minutes long). Rice said, among other things, that a key issue for people to understand is that the marginal cost (i.e., the breakeven cost) in the U.S. to produce natural gas is around $3.50/MMBtu, which will hold production levels flat. Prices lower than that lead to lower production.
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We are catching up on permits issued…for the last two weeks of December. Normally we cover permits issued for a single week. This report covers permits issued for the two weeks covering Dec. 18 – 31. Perhaps it’s a good thing we’re reporting on two weeks as Ohio’s ODNR seems to have taken the last two weeks of the year off, issuing just a single permit. There were 24 new permits issued for the final two weeks of the year, cumulatively, versus 
How was 2023 with respect to the return on investment (ROI) in the stocks of gas-focused (largely Marcellus/Utica) drillers? Of the three classes of O&G companies — oil-focused, diversified, and gas-focused — it was the gas-focused drillers who had the best stock returns in 2023, according to an analysis by RBN Energy. Gas-weighted E&Ps posted a 7% median gain last year, according to RBN. Most of the companies in RBN’s list of gas-focused drillers have major operations in the M-U. Let’s have a look at how each one did.
Reuters is reporting a rumor, based on “people familiar with the matter,” that EQT Corporation, the largest natural gas driller in the United States (by production), is shopping its 25% non-operated interest in a number of producing gas wells in northeastern Pennsylvania for $3 billion. Chesapeake Energy is the majority owner and operator of the wells.
There’s been a lot of news coming from the UN COP28 climate event in Dubai. In some respects, we feel like it’s a firehose of news about leftists targeting fossil energy (even though the event is being hosted by the CEO of a fossil fuel company). COP28 runs from Nov. 30 to Dec. 12, so we will bring you important news from the event in due course. Today, we focus on one bit of news: Some 50 oil and gas companies from around the world, representing 40% of global oil production, launched a new initiative called the Oil and Gas Decarbonization Charter (OGDC). EQT Corporation is one of the 50 participants.
In July 2022, MDN brought you news of a possible frac-out, or “inadvertent return” that happens when drilling mud pops out of places where it’s not supposed to — places outside the borehole being drilled (see 
It’s been a financial roller coaster for oil and gas drillers over the past 15 years. Investors in shale oil and gas companies suffered for years with little or no returns for their invested money. Five of eight large Marcellus/Utica drillers saw their share prices decrease by an astonishing 85% or more from 2008 to 2019 (see 
A lawsuit of interest for all landowners is playing out in West Virginia between a class of landowners and EQT Corporation, the largest natural gas producer in the country. We searched our extensive archives high and low and found no mention of this lawsuit! Somehow, it has escaped our attention — until now. As these cases often are, this one is long and complicated. However, the nub of the case, the essence of the dispute, is whether or not EQT can pay royalties to landowners based on the “raw” gas that comes out of the borehole (methane plus NGLs) or whether, as the plaintiffs argue, EQT should pay royalties based on the post-processed gas and NGLs (presumably at a much higher rate).