EQT Announces Proved Reserves Increase of 12% to 6.0 Tcfe

3P Reserves Increase of 21% to 25.9 Tcfe

PITTSBURGH--()--EQT Corporation (NYSE: EQT) today reported year-end 2012 total proved reserves of 6,004 Bcfe. This represents a 639 Bcfe net increase over the 5,365 Bcfe reported last year, with a reserve replacement ratio of 345%. The Company's Marcellus proved reserves increased by 864 Bcfe based on wells drilled in 2012, a higher estimated ultimate recovery (EUR) from reduced cluster spacing wells, and an increased well density across a portion of its acreage in Greene County, Pennsylvania. The utilization of reduced cluster spacing increased EUR an average of 23% per well, where applicable. Reduced cluster spacing was used for approximately 25% of the proved developed wells, and will be used for 25% of the proved undeveloped wells. The EUR of proved Marcellus wells averaged 6.4 Bcfe, with an average length of pay of 4,512 feet.

For 2012, drill bit finding costs were $0.53 per Mcfe. The Company's Marcellus proved developed producing (PDP) additions totaled 309 Bcfe on $389 million of capital for a development cost of $1.26 per Mcfe. PDP negative revisions totaled 110 Bcfe, primarily due to a reduction in expected well life, as a result of lower natural gas prices. Nearly all of the negative revisions relate to Coal Bed Methane (CBM) and other vertical wells.

EQT estimates year-end 2012 total reserves, including proved, probable and possible (3P) reserves, at 25.9 Tcfe, an increase of 4.5 Tcfe over the 2011 estimate. More than half of the 3P reserves increase was from a portion of the Company's 170,000 Upper Devonian net acreage, which are expected to be developed independently from the Marcellus. The Company also has approximately 13,600 net Utica acres in Ohio, which add an insignificant amount of possible reserves. To delineate the plays, EQT plans to drill 11 Upper Devonian and 8 Utica wells in 2013.

Ryder Scott Company, petroleum consultants audited 100% of the Company’s proved reserves, while estimated 3P reserves are determined in accordance with the Securities and Exchange Commission regulations. The Company also made an assessment of its total resource potential, which include 3P reserve totals.

3P Reserves by Play (year-end 2012):

Reserve Estimates (Bcfe)

        Marcellus     Huron*    

Upper
Devonian

   

CBM /
Other

    Utica     Total
Proved Developed         1,072     965         761         2,798
Proved Undeveloped         3,206                     3,206
Total Proved         4,278     965         761         6,004
Probable         4,873     6,399     93     196         11,561
Possible         5,861         2,267     77     121     8,326
Total 3P Reserves         15,012     7,364     2,360     1,034     121     25,891

*Includes the Lower Huron, Cleveland, Berea sandstone, and other Devonian aged formations.


Annual Comparison of Estimated 3P Reserves by Play:

                Years Ended
                  December 31,
(Bcfe)                 2012     2011
Marcellus    
Proved Developed 1,072 1,015
Proved Undeveloped                 3,206     2,399
Total Proved                 4,278     3,414
Probable 4,873 4,235
Possible                 5,861     5,098
Total 3P Reserves                 15,012     12,747
                         
Huron
Proved Developed 965 1,062
Proved Undeveloped                    
Total Proved                 965     1,062
Probable 6,399 4,340
Possible                     2,315
Total 3P Reserves                 7,364     7,717
                         
Upper Devonian
Proved Developed
Proved Undeveloped                    
Total Proved                    
Probable 93
Possible                 2,267    
Total 3P Reserves                 2,360    
                         
CBM/Other
Proved Developed 761 889
Proved Undeveloped                    
Total Proved                 761     889
Probable 196 22
Possible                 77     2
Total 3P Reserves                 1,034     913
                         
Utica
Proved Developed
Proved Undeveloped                    
Total Proved                    
Probable
Possible                 121    
Total 3P Reserves                 121    
                         
Totals                        
Total Proved                 6,004     5,365
Total Probable and Possible                 19,887     16,012
Total 3P Reserves                 25,891     21,377
 
 

Total Estimated Resource Potential by Play:

Resource Potential                 Total (Tcfe)
Marcellus                 19.5
Huron                 11.3
Upper Devonian                 2.8
CBM/Other                 1.6
Utica                 0.2
TOTAL                 35.4
               
 

Summary of Changes in Proved Reserves:

Balance at December 31, 2011 (Bcfe)         5,365
Extensions, discoveries and other additions         1,656
Revisions*         (754)
Purchases         -
Sales         (1)
Production         (261)
Balance at December 31, 2012         6,004

* A substantial portion of the revision is due to proved reserves being re-classified as non-proved reserves, primarily as a result of lower gas prices. Year-end 2012 reserves are based on a $2.79 per Mcfe price, which is $1.33 lower than the price used to estimate the 2011 reserves. Both prices were determined in accordance with the SEC requirement to use the 12-month un-weighted arithmetic average of the first-day-of-the-month price for the preceding twelve months without giving effect to derivative transactions.


DEFINITIONS
Reserve Replacement Calculations -- Reserve replacement ratio is the sum of the net increase of proved reserves before production, divided by production.

Drill Bit Finding Cost -- Drill bit finding cost is the total cost incurred related to natural gas and oil activities, calculated in accordance with Financial Accounting Standards Board Accounting Standards Codification 932 (ASC 932), less property acquisition costs for proved developed and unproved properties, divided by extensions, discoveries and other additions.

About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, transmission, and distribution. EQT is the general partner and majority equity owner of EQT Midstream Partners, LP. With more than 120 years of experience, EQT is a technology-driven leader in the integration of air and horizontal drilling. Through safe and responsible operations, the company is committed to meeting the country’s growing demand for clean-burning energy, while continuing to provide a rewarding workplace and enrich the communities where its employees live and work. Company shares are traded on the New York Stock Exchange as EQT.

Visit EQT Corporation on the Internet at www.EQT.com.

Cautionary Statements
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that a company anticipates as of a given date to be economically and legally producible and deliverable by application of development projects to known accumulations. We use certain terms in this press release, such as EUR (estimated ultimate recovery) and total resource potential, that the SEC's rules strictly prohibit us from including in filings with the SEC. These measures are by their nature more speculative than estimates of reserves prepared in accordance with SEC definitions and guidelines and accordingly are less certain. We also note that the SEC strictly prohibits us from aggregating proved, probable and possible reserves in filings with the SEC due to the different levels of certainty associated with each reserve category.

Disclosures in this press release contain forward-looking statements. Statements that do not relate strictly to historical or current facts are forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of resource potential, EUR and projected well drilling plans, including the projected capital budget and the use of reduced cluster spacing. These statements involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The company has based these forward-looking statements on current expectations and assumptions about future events. While the company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, most of which are difficult to predict and many of which are beyond the company’s control. The risks and uncertainties that may affect the operations, performance and results of the company’s business and forward-looking statements include, but are not limited to, those set forth under Item 1A, “Risk Factors” of the company’s Form 10-K filed for the year ended December 31, 2011 and in the company’s Form 10-K for the year ended December 31, 2012 to be filed with the SEC, as updated by any subsequent Form 10-Qs.

Any forward-looking statement speaks only as of the date on which such statement is made and the company does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

Contacts

EQT Corporation
Analyst inquiries please contact:
Patrick Kane, 412-553-7833
Chief Investor Relations Officer
pkane@eqt.com
or
Nate Tetlow, 412-553-5834
Manager, Investor Relations
ntetlow@eqt.com
or
Media inquiries please contact:
Natalie Cox, 412-395-3941
Corporate Director, Communications
ncox@eqt.com

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Contacts

EQT Corporation
Analyst inquiries please contact:
Patrick Kane, 412-553-7833
Chief Investor Relations Officer
pkane@eqt.com
or
Nate Tetlow, 412-553-5834
Manager, Investor Relations
ntetlow@eqt.com
or
Media inquiries please contact:
Natalie Cox, 412-395-3941
Corporate Director, Communications
ncox@eqt.com