EQT Proved Reserves Increase 39% To 8.3 Tcfe

EQT Corporation (NYSE: EQT) today reported year-end 2013 total proved reserves of 8.3 Tcfe. This represents a 2.3 Tcfe net increase over the 6.0 Tcfe reported last year, with a reserve replacement ratio of 738%.

The Company's 2013 Marcellus proved reserves increased by 1.7 Tcfe primarily from wells drilled in 2013, acreage acquisitions, higher estimated ultimate recoveries (EUR) per well, and the inclusion of natural gas liquids (NGL). For 2013, the EUR of proved Marcellus wells averaged 7.2 Bcfe, with an average lateral length of 4,335 feet (1,668 Mcfe per foot), compared to the 2012 EUR of 6.4 Bcfe, with an average lateral length of 4,512 feet (1,421 Mcfe per foot). Average EUR per foot increased by 17%; primarily due to the additional use of reduced cluster spacing (RCS). Approximately 41% of proved developed Marcellus wells and a majority of the proved undeveloped Marcellus wells utilize RCS.

Other proved reserves increases include 215 Bcfe for Upper Devonian, 351 Bcfe for Huron, and 100 Bcfe for coal bed methane (CBM) and Utica.

For 2013, drilling capital totaled $1.3 billion and reserve extensions, discoveries, and other additions totaled 2.0 Tcfe, resulting in a drill bit finding cost of $0.62 per Mcfe. In 2013, total drilling and acquisition capital was $1.4 billion and, excluding production, the total proved reserve increase was 2.7 Tcfe - which resulted in a finding and development cost from all sources of $0.52 per Mcfe. The Company's proved developed additions totaled 475 Bcfe on $475 million of capital for a development cost of $1.00 per Mcfe. Proved developed positive revisions totaled 540 Bcfe, primarily due to an increase in economic well life, as a result of higher natural gas prices and the inclusion of NGL reserves.

EQT estimates year-end 2013 total proved, probable and possible (3P) reserves at 36.4 Tcfe, an increase of 10.5 Tcfe, or 40%, over the 2012 estimate. The increase is primarily due to additional economic reserves in the Huron, the acquisition of additional Marcellus acreage and initial development in the Upper Devonian.

EQT now forecasts a 2014 depletion rate of $1.25 per Mcfe, compared to $1.50 per Mcfe in 2013.

Ryder Scott Company, L.P., the Company’s petroleum consultant, audited 100% of the Company’s proved reserves; 3P reserves are determined in accordance with the Securities and Exchange Commission (SEC) regulations. The Company also made an assessment of its total resource potential, which includes 3P reserve totals.

3P Reserves by Play (year-end 2013):

Reserve Estimates (Bcfe)
      Marcellus     Huron*    


CBM / UticaOther /
Proved Developed       1,899     1,118     109     860     3,986
Proved Undeveloped       4,057     198     106     1     4,362

Total Proved

    1,316     215     861     8,348
Probable       6,933     10,057     703     417     18,110
Possible       5,582     108     3,899     306     9,895

Total 3P Reserves
      18,471     11,481     4,817     1,584    


* 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)     2013   2012
Proved Developed 1,899 1,072
Proved Undeveloped     4,057   3,206
Total Proved     5,956   4,278
Probable 6,933 4,873
Possible     5,582   5,861
Total 3P Reserves     18,471   15,012
Proved Developed 1,118 965
Proved Undeveloped     198  
Total Proved     1,316   965
Probable 10,057 6,399
Possible     108  
Total 3P Reserves     11,481   7,364
Upper Devonian
Proved Developed 109
Proved Undeveloped     106  
Total Proved     215  
Probable 703 93
Possible     3,899   2,267
Total 3P Reserves     4,817   2,360
CBM / Utica / Other
Proved Developed 860 761
Proved Undeveloped     1  
Total Proved     861   761
Probable 417 196
Possible     306   198
Total 3P Reserves     1,584   1,155
Total Proved     8,348   6,004
Total Probable and Possible     28,005   19,887

Total 3P Reserves
    36,353   25,891

Total Estimated Resource Potential by Play:

Resource Potential
      Total (Tcfe)
Marcellus       23.9
Huron       12.7
Upper Devonian       5.5
CBM / Utica / Other      



Summary of Changes in Proved Reserves:

Balance at December 31, 2012 (Bcfe)
Extensions, discoveries and other additions       2,047
Revisions*       191
Purchases       473
Sales       -
Production       (367)
Balance at December 31, 2013       8,348

* A substantial portion of the revision is due to the first time inclusion of NGL reserves for 2013.

Year-end 2013 reserves are based on a $3.65 per Mcfe price, which is $0.86 higher than the price used to estimate the 2012 reserves. Both prices were determined in accordance with the SEC requirement to use the 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 Ratio -- 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.

Finding and Development Cost -- Finding and development cost from all sources is the total cost incurred related to natural gas and oil activities, calculated in accordance with ASC 932, divided by the sum of extensions, discoveries and other additions; purchase of natural gas and oil in place; and revisions of previous estimates.

About EQT Corporation:EQT Corporation is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, and transmission. EQT is the general partner and significant equity owner of EQT Midstream Partners, LP. With more than 125 years of experience, EQT continues to be a leader in the use of advanced horizontal drilling technology – designed to minimize the potential impact of drilling-related activities and reduce the overall environmental footprint. 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 at www.EQT.com.

Cautionary StatementsThe 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 news 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 (3P) in filings with the SEC due to the different levels of certainty associated with each reserve category.

Disclosures in this news release contain certain 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 news release specifically include the expectations of resource potential, EUR and forecasted depletion rate. 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 for the year ended December 31, 2012 and in the Company’s Form 10-K for the year ended December 31, 2013 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.

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