EQT Subleasing Most of its Downtown Pittsburgh Office Building
EQT is downsizing its footprint in the city of Pittsburgh–again. Last October we told you that EQT was looking to sublease space in its mammoth downtown office building (see EQT Looks to Sublease HQ Space – Leaving Downtown Pittsburgh?). The EQT building has 32 floors. Lately, the company has occupied 15 floors. By next month EQT’s occupancy will shrink to just five floors. Is EQT getting ready to leave downtown?
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EQT is working on a deal to sell an “overriding royalty interest” (future share of royalty revenues) generated from the company’s prolific Marcellus/Utica production in return for a cool $1 billion. That’s according to a Reuters article published on Friday.
On Monday EQT, the nation’s largest natural gas producer (based in Pittsburgh) filed an update with the SEC to say it would write down the value (called an impairment) for some of it’s Marcellus/Utica assets–to the tune of $1.8 billion (see 
In a Securities and Exchange Commission (SEC) filing made yesterday, EQT, the country’s largest natural gas producer, informed the SEC (and investors) it will likely take an impairment charge (“write down”) for the value of some of its Marcellus/Utica assets–by $1.4 to $1.8 billion. Which pales in comparison to Chevron’s write down of it’s M-U assets to the tune of $5+ billion (see 
Last July MDN broke the news that LOLA Energy had filed a lawsuit in Greene County, PA against EQT for allegedly drilling shale wells under property EQT formerly leased, but property for which the leases had lapsed and were subsequently scooped up by LOLA Energy II (see 
For months MDN has brought you bits and pieces of news from individual drillers, detailing plans to cut back on spending for new drilling in the Marcellus/Utica in 2020. It’s not just happening in the M-U–it’s happening across the country. The experts at RBN Energy have a terrific new post that pulls information about major drillers scaling back into one place. They analyze spending by three different groups of drillers: oil-focused, diversified, and gas-focused drillers. In the third category, all but one of the gas-focused drillers have major operations in the M-U. The stats are sobering. As a collective group, M-U gas drillers have pledged to cut their 2020 budgets 25% from the already-lower spending that happened this year. Ouch.
West Virginia’s co-tenancy law was signed into law by Gov. Jim Justice in March 2018 (see 
Masquerading as a nonpartisan, independent nonprofit, the Institute for Energy Economics and Financial Analysis (IEEFA) reportedly “conducts research and analyses on financial and economic issues related to energy and the environment.” The Institute’s stated mission is “to accelerate the transition to a diverse, sustainable and profitable energy economy.” In other words, they’re anti-fossil fuels. We spotted an article appearing on OilPrice.com that quotes a new “study” issued by IEEFA. The article opens by saying, “drillers in Appalachia are in particularly bad shape.” Is it true? Is the end near? Is it a shalepocalypse?
What’s the clinical term for a person who intentionally wants to harm him or herself? Self harm? Self injury? Self flagellation? That’s what we call the situation at the NGSA (Natural Gas Supply Association) which yesterday said it supports an economy and shale-killing carbon tax “as a critical pathway to aggressively reducing carbon emissions.” Are they nuts? Have they lost their collective minds?!
During the proxy fight earlier this year to control EQT Corporation’s board–and ultimately its management team–Toby Rice threw some sharp barbs including talk that EQT’s existing management was not up to the task of effectively running the company. The Rice boys said so, their board nominees said so, and Institutional Shareholder Services (ISS) said so. There will be change (i.e. personnel change) at the “operational level” said ISS. Imagine our surprise when, after assuming control, Toby said there would *not* be a wholesale replacement of top management (see 
Toby Rice, still relatively new in his role of CEO at EQT, spoke about changing the culture at the nation’s largest natural gas-producing company. At a Southpointe CEO Association event yesterday afternoon in Washington County, Rice said, “These past 100 days, I tell everybody, they’re on the happiness campaign, they just don’t know it.” Our summary of his comments: “All Aboard the Happy Train!”
The Pittsburgh Business Times is reporting that EQT and Equitrans (formerly EQT Midstream) are “inching closer” to a renegotiated agreement for Equitrans to continue EQT’s natural gas gathering and shipping. During conference calls with analysts last week, both EQT CEO Toby Rice and Equitrans President Diana Charletta were said to be “optimistic” about the eventual outcome of those negotiations. Our interpretation is that EQT is hammering Equitrans to lower the cost of gathering and transporting their gas.
EQT, the largest natural gas producing company in the U.S., issued its third quarter update yesterday–the first such update since Toby Rice took over as CEO of the company in July. There was a LOT of news coming out of yesterday’s update and conference call. Perhaps the biggest news is that EQT plans to whittle down its outstanding debt by $1.5 billion by selling its stake in Equitrans (formerly EQT Midstream), and by selling “noncore” assets outside of its wet gas operating area. That is, EQT is looking to sell its assets in southern West Virginia, Ohio and central Pennsylvania.