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*||UpperDevonian||CBM / UticaOther /||Total|
|Total 3P Reserves||18,471||11,481||4,817||1,584||36,353|
|Annual Comparison of Estimated 3P Reserves by Play:|
|Total 3P Reserves||18,471||15,012|
|Total 3P Reserves||11,481||7,364|
|Total 3P Reserves||4,817||2,360|
|CBM / Utica / Other|
|Total 3P Reserves||1,584||1,155|
|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)|
|CBM / Utica / Other||2.0|
|Summary of Changes in Proved Reserves:|
|Balance at December 31, 2012 (Bcfe)||6,004|
|Extensions, discoveries and other additions||2,047|
|Balance at December 31, 2013||8,348|
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.