8-KRegulation FD

EQT Corp 8-K Report, Regulation FD Disclosure (Jun 1, 2005)

Filed June 1, 2005For Securities:EQT

Summary

EQT Corporation (formerly Equitable Resources, Inc.) announced the closing of a significant divestiture of non-core natural gas properties to NCL Appalachian Partners for $147 million. This transaction involves the sale of approximately 66 billion cubic feet (Bcf) of proved reserves, with about 59 Bcf being developed. The divested assets are currently producing around 10,000 thousand cubic feet (Mcf) per day. This sale aligns with EQT's strategy of focusing on core assets and improving operational efficiency. The company anticipates no material gain or loss from the transaction and has reiterated its 2005 supply sales estimate of 73 Bcf. The proceeds are subject to customary purchase price adjustments, and a minor portion of the properties will close upon regulatory approval.

Key Highlights

  • 1Sale of non-core gas properties closed for $147 million.
  • 2Approximately 66 Bcf of proved reserves sold, with 59 Bcf developed.
  • 3Divested properties currently producing 10,000 Mcf per day.
  • 4Proceeds subject to purchase price adjustments.
  • 5No material gain or loss expected from the transaction.
  • 62005 Supply sales estimate reiterated at 73 Bcf.
  • 7NCL Appalachian Partners (a Locin Oil and GE Commercial Finance JV) is the buyer.

Frequently Asked Questions

This sale is part of EQT's strategy to divest non-core assets, allowing the company to focus on its primary operations and potentially improve capital allocation and operational efficiency.

EQT received $147 million, subject to adjustments. Importantly, the company expects no material gain or loss from the transaction, indicating the sale price was likely in line with the book value of the divested assets.

No, EQT has reiterated its 2005 Supply sales estimate of 73 Bcf, suggesting that the divested production was already accounted for or that other assets will offset the reduction.

The buyer is NCL Appalachian Partners, a joint venture formed between Locin Oil Corporation and GE Commercial Finance Energy Financial Services.