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EQT Announces 2019 Capital Expenditure Forecast

EQT Corp.(EQT) announced 2019 capital expenditure or CAPEX forecast of $1.9 billion - $2.0 billion, which includes about $1.6 billion for reserve development. EQT Plans to deliver about $350 million of Adjusted Free Cash Flow in 2019, and at least $2.7 billion through 2023. The company noted that it has initiated a search for a chief operating officer and is identifying a shortlist of highly-qualified, external candidates for the role. The company expects to announce an appointment during the first quarter of 2019.

EQT forecasts 2019 production sales volume of 1,470 - 1,510 Bcfe. The 2019 drilling program anticipates a 5% increase in production sales volume in 2020.

Production for the fourth quarter was 394 Bcfe, an increase of 20 Bcfe, or 5%, over the third quarter. Production for full year 2018 exceeded the Company's recent guidance at approximately 1,488 Bcfe, or 1,447 Bcfe adjusted for assets divested during 2018. Excluding volumes from divestitures, adjusted 2018 production is approximately 1,488 Bcfe, exceeding the Company's recent guidance.

Additionally, EQT forecasts fourth quarter 2018 Free Cash Flow of approximately $100 million.

The company plans to spud 20 net Ohio Utica wells, with an average lateral length of 11,200 feet and TIL 23 net Ohio Utica wells, with an average lateral length of 12,200 feet, during the year.

The company has identified approximately $100 million of annual reductions in administrative and well development costs.

The company is also executing a "Target 10% Initiative" to look at the entire development program and identify opportunities to further reduce capital costs. The management team has identified achievable cost saving opportunities across materials management and purchasing, optimization of water logistics, drilling and completion processes and design, and several other functions across the organization. The Company expects to fully capture these opportunities in 2020.

EQT also announced today the formation of a new standing Board committee tasked with an ongoing review of the Company's operations and capital deployment. The Operating and Capital Efficiency Committee was formed on December 4, 2018, and is composed of Philip G. Behrman, Anita M. Powers, Stephen A. Thorington and Christine J. Toretti. Ms. Powers serves as committee chair.

Adjusted Operating Cash Flow, which includes dividends from Equitrans Midstream Corporation, is projected to be $2.2 - $2.3 billion for 2019.

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