EQT continues to combat low prices, selling assets and cutting costs
Tuesday, March 3, 2020
Last week EQT announced it renegotiated its gas transportation rates and sold half its stake in pipeline company Equitrans Midstream Corp, according to Reuters. The recent moves are in line with the company’s ongoing effort to try to cope with low fuel prices.
In the fourth quarter, EQT recorded a $1.6 billion non-cash impairment charge. With U.S. natural gas prices trading at its lowest in nearly two decades, the country’s largest natural gas producer has been forced to find ways to mitigate prices.
In addition to selling its stake in the pipeline operator and renegotiating gas transportation rates, EQT has refined its hedging strategy and cut annual capital expenditure. The company expects 2020 capital expenditure between $1.15 billion and $1.25 billion, compared with a prior outlook of between $1.25 billion and $1.35 billion.
Learn more: Reuters > EQT Corp sells half its stake in pipeline operator, strike rate relief deal
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