EQT to sell 1% royalty interest from natural gas production
Monday, February 17, 2020
EQT Corp is considering selling a 1% royalty interest in its revenue from natural gas production, according to ShaleOhio.
EQT’s new management team has been working to cut drilling costs and improve its financial outlook as domestic shale has experienced sharp price declines.
During a third-quarter conference call, EQT evaluated 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.”
Learn more: ShaleOhio > EQT may sell ‘small portion’ of royalties from natural gas production
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.