EQT Corp. reported year-end 2015 proved developed reserves of 6.3 trillion cubic feet equivalent (Tcfe), 30% higher than year-end 2014’s, the company said Feb. 4. The increase was related to the completion of 245 wells and the addition of 386 Bcfe of positive revisions, which was primarily due to improved performance from producing wells.
Total proved reserves decreased by 0.7 Tcfe from the previous year, down to 10 Tcfe.
The proved undeveloped (PUD) reserves decreased by 2.2 Tcfe, to 3.7 Tcfe at year-end 2015. The conversion of 1.5 Tcfe of PUD reserves into proved developed reserves partly influenced this decrease, as did the decision to slow the five-year development plan to 74 wells per year, down from the original 144.
For 2015, there was $1.7 billion in drilling capital, including reserve extensions, discoveries and other additions. The expected EUR proved Marcellus wells averaged 9.3 Bcfe, with an average lateral length of 5,130 ft.
In the deep Utica, 24 Bcf from two Pennsylvania wells completed during 2015 were included in proved developed producing reserves. The deep Utica program is in early stages, so there are no PUD, probable or possible reserves booked, but 25 Tcfe of resource potential attributed to the Utica core were included.
The net income during 2015 was $85.2 million, down from 2014’s $387 million.
Adjusted operating cash flow was $233.9 million, lower than 2014’s $390 million.
The year’s production sales volumes increased 27% over 2014’s, to 603.1 Bcfe. About 84% of total production sales volume came from horizontal Marcellus wells.
During 2015, $2 billion was spent, including $1.7 billion for production well development, $182 million for well and lease acreage acquisitions and $110.6 million for company-owned midstream projects.
The capex budget for 2016 is $1 billion, including $820 million for well development, and excluding business development, land acquisitions, and EQT Midstream capital associated with planned asset dropdowns in first-half 2016, and capital investment at EQT Midstream Partners LP.
Pittsburgh-based EQT plans to drill 72 Marcellus wells on multiwall pads and will drill five deep Utica wells.
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