EQT - Earnings call transcript Q3 2017

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Operator

Greetings, and welcome to EQT Corporation's Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host for today's call, Mr. Kane. Patrick you. Thank

begin. You may

Patrick Kane

VP the Good Midstream. evening replay Production; call will in morning, Steve telephone you Rob. starting President McNally, and this President Schlosser, for Officer; Vice confirmation seven-day Senior VP XXXXXXXX. this number Jerry XXX-XXX-XXXX everyone, code President for conference call. website. be Ashcroft, participating and Senior The Rob also EQT's Officer; are is for Exploration Chief for Chief With Financial and David days and for Thanks, of and with a call The replay on Executive our President thank and be The a and me of Schlotterbeck, seven period. of today available replayed Senior will

by at www.sec.gov. website, www.riceenergy.com, be EQT www.eqt.com; Rice's EQT's free we Rice applicable; Included logistical of registration at Rice proxy EQT or solicitation Dip] third of [Audio acquisition which includes a regarding of release proposed a not or website, and any on our EQT's First, statement, with filed SEC. to buy comments. with statement, has In our with release, S-X or the joint can offer the filed of offer the morning, been The portion prospectus in obtained solicitation connection the proposed or Energy. securities SEC an www.eqt.com. transaction registration Investor this approval. does Earlier our be effective pending issued statement which may the that few documents prospectus website, the declared Form any on sell and an the vote other – website, SEC a to has regarding accessed joint earnings quarter comments a This proxy by transaction, or communication statement are SEC's as charge of constitute the

participants information carefully include officers employees be regarding information including and the and they about such who the should or EQT Rice deemed in and to holdings as EQT special executive with important transaction, held be review the their materials a directors, interest otherwise. meeting filed security and solicitation of in proposed to is will direct the on The may SEC You transaction and scheduled proposed respective by to of description respect X. their shareholders indirect November be of proxies

and number ticker XX:XX focus and dial The the results at you, facilitate investor third transaction, a to remind quarter last results. the will take XX:XX. EQGP; prepared by results brief joint separate To which and The EQGP. call Midstream your release requires moment, on morning, our remarks call of will is XXX-XXX-XXXX. we consolidated conference Given that today, will issued the we today In a in this brief press will update. earnings question are Holdings, joint give in EQM a EQT have questions. partnerships the GP was ticker EQM; at Rob that EQT for Steve EQT keep Partners, a order there Earlier summarize

you will to call Jerry answer available and Dave like be your Rob, Steve, remarks, prepared questions. that forward-looking their contain I'd remind Following to statements. may today's

measures. call comparable Please McNally. certain press turn for and that, with call this the Rob available GAAP With important XX, press for which differ the could in are subsequent by XX-K You ended any refer Form over to to XXXX, under financial including reconciliations I'll file regarding also release morning's the to may measures. Form listed company's results the updated EQT's these release Today's in factors the disclosures forward-looking non-GAAP website. materially can SEC from XX-Qs, such as Factors our statements cause find most actual on financial Risk today's contain year that on to December and measures,

Rob McNally

interest I Thanks, clean on we quarter of and there's good keep quarter straightforward brief a more non-operational was Pat, some and comments relatively expect morning, will as and everyone. in it the the my topics.

tax you in income items third the for in to loss quarter EPS adjusted third added $X.XX XXXX and release September decrease third to impacted adjusted of $XX.X were to read of compared to income per $XXX.X in per Adjusted discrete a the the diluted million an compared a EPS EQT share in $X.XX morning, this by quarter XX, attributable months annual diluted that cash $X.XX operating Net totaling and the XXXX. earnings As quarter. EQT the rate million adjusted $XXX.X increased effective announced as XXXX. this income income for tax press benefit share resulted XXXX, million quarter flow ended to and estimated that favorably net three of

as third reminder, the net EQT results. quarter results a attributable XXXX. Partners GP EQT Corporation's recorded As million of income consolidated are compared Midstream million $XX.X non-controlling $XX.X to quarter XXXX EQT Holdings and in EQT interest in third in of of the to

to production. for were quarter, Sales the X% XXXX. quarter over representing of the moving So third XXX.X third volumes increase Bcfe a

the approximately Bcfe The outages systems. Despite the third-party from which quarter During on stated fell this within production impact, we curtailments experienced resulted the of curtailments guidance range X.X quarter, quarter. third expected. were for not

volumes the you for we to per year fourth that expect not but we'll vote, rate be how timing we full on the approximately guidance. with given will EQT-only we Bcfe tell close Additionally, exit X.X provide guidance day. the previously to And are stated XXXX our track are Rice in quarter,

third last XXXX the million, operating cash-settled experienced. higher company was which $XXX.X quarter is totaled derivatives, $XX.X million quarter expenses quarter the were higher production with the $XXX.X growth for revenue to Operating than of consistent price, including the third for is XXXX, volume realized quarter, which that of second per XX% a $X.XX was million year. Mcfe, Total the third compared the we The XXXX. increase production X% which than of quarter

than expected. weaker a basis Moving bit was we on to pricing. Local

over third negative a $X.XX exposure the of a second in, XXXX. in $X.XX quarter our per However, of local a was quarter which third over differential of for of the the Mcf, range differential represents XXXX our but guidance $X.XX XXXX is decline basis majority resulting improvement within quarter This a is quarter. locked

the were to XXXX. moving quarter expenses year. $XX.X results. was on than the revenue EQT third third period was operating Operating million EQT $XXX.X were a over was Operating over quarter $X.X of higher transmission million, operating a gathering out XXXX. quarter million third million $XX.X income the over million, last quarter, million million, of $XX.X income I increase midstream $XX.X XXXX. $X Now increase higher XXXX. for same the expenses million, quarter revenues $XX.X providing Operating $XX.X a $XX.X brief million were $XX the by of million update. a third the third with $X.X quarter remarks Operating over million will of the liquidity my which for you million, the a XXXX. close quarter than increase of increase

successfully be completed credit may proceeds you previous over revolving that, we redeem a indebtedness portion $X to and our Rice I in billion that together used the to XXXX. repay cash coupon due bonds acquisition, the will seen, have existing With at of bond under a blended cash call EQT turn X.XX%. on brought the that of early of are As Steve. facility rate hand offering finance borrowings with will offering This in and

Steve Schlotterbeck

many interest Thank following We taken June, the that Consistent Through point, shareholders. a committee in few done, over conversations and to of you, interest. doing we've announcing the for shareholders' our of with this we committed by feel driven had the board our we've hundreds were in we've discount. Rob. action the heard what it's we We options last we've Good morning, to acquisition best best listened to many everybody. steps, dialogue, always to take with in months, sum-of-the-parts the committed Since opinions the committed new evaluate by moving to tasked Rice the shareholders. announcing our We the of which suggestions. To all We addressing establishing the what's decision experience. with include quarter to metrics. independent on on board we and to our to acted. these volume two shareholders focus plans listened operating announcement. the we've a sum-of-the-parts be short, directors and first XXXX. the compensation adding on of the In review. committed end midstream nomination to cost We And to committed development decision with and the director of as growth that sum-of-the-parts return from deadline future we've capital and it directors after replace a metric new removed with committee lastly, review when will

of from Before low-cost questions, Rice call the the vote are two since your footprint transaction the sustained for producer, development is primary once to drive do in This real of per being the our to allows and away competitive longer again industry the weeks a I that most emphasize success what unit a deadline, creates of contiguous is impactful laterals. long driver transaction. through Establishing dominant want Rice lower we the costs opening The is for merits now acreage lateral is advantage. the us. way highly and to

new competitors supports core to they can't the that technology Marcellus. XX,XXX-foot techniques, Our things or acreage new in drilling able like an drilling may position but be of replicate replicate laterals the

share. create many the XXXX. transaction accretive is benefits is in cash there is deal per in transaction, for that our this main XXXX of NAV the It accretive real While XX% The and the of shareholders. XX% are attribute flow value to

from base appreciate of enhanced support, had ability and way Rice the the to to We for our There for that, business. turn vote is In synergies the I'll synergies. it more our we you a proxy lastly, $X.X also sum address over please urge are the Pat shareholder in to you conclusion, are to midstream shareholders. Thank And the midstream be Q&A. most we synergy upside continued of significant we've your for upstream on confident in and creating transaction dialogue white our robust the ability the deliver that value With and to card. deliver with by parts billion value value-accretive substantial realized.

Patrick Kane

call Steve. for Thanks, the open questions? can Rob, we

Operator

comes Absolutely. Goldman At Sachs. Please Singer proceed we first the session. question-and-answer your Brian this Our time, Instructions] question from be conducting [Operator question. with with will

Brian Singer

needed make of in to holes increasing contiguous discussion about the whether in – on There's Appalachia. increasing truly third not successful? Can you and the acquisition this or lateral to capital you risks efforts Rice talk much acreage ongoing that to in length, the see the fill is your quarter to

Steve Schlotterbeck

Brian. the for thanks and question, Sure,

expect with million to disclosed for $XXX acreage takes million average achieve what laterals have together. year that our That's and actually we it we lateral put So per fill-in these between us for X,XXX-foot to yes, additional already roughly $XXX today. consistent

without we million about year spend – spend X,XXX $XXX we feet. getting per Rice, I think So to

with the to roughly to Rice. expect spend XX,XXX-foot laterals together much that continue We put to

the to every part department operators. do. it only that's land in puzzle We've we work got the field they the So day upstream And the It's together. putting do day. a personnel, second-biggest do, every what just they and large company, of jigsaw the what we department. second That's

won't is this we part day, that and So every what parcel change Rice. with do of and

ways, running fact, Rice in good be and will we're that overlay perhaps a even that those missing into there's to – those it of have In Rice it Rice frequently us, when up work – we likely we're lot consolidated facilitate pieces is such cheaper. in picking we're a if And will easier holes. trying – will then the fill overlay with since with because be

Brian Singer

endeavor, you be you. talk in of and about, of the value, Thank the you of considered? board embark the sum would then scenario the in considers considered And Great. past? just a, been as-is what's can And the unlocking then the this null ways as option specifically as board whether more parts

Steve Schlotterbeck

going Brian, discount special that speak the the talking I the that what parts. the expectation But can't would in addressing done of and should unlikely status clear best of actions described to address is hypothesis, the what it committee to say, the forward. for we've indication that a committee sum we the all to is I past But are parts I been matters quo our that the answer be don't the null that the be a going the what's about sum highly think taking will do determine. about to is fact I presuppose want given because is

again, the discount conclusions. to We wouldn't do be well going to the are the way that – make So parts committee its we nothing work if was talking be got we about and a result. the its of doing thought sum

Brian Singer

you. Thank Great.

Operator

proceed Our Please next with Scott with from question Capital. question. your comes RBC Hanold

Scott Hanold

morning, Good guys. Thanks.

Steve Schlotterbeck

Good Scott. morning,

Scott Hanold

the deal expect of point, what you the to managing maybe into A of go-forward right mode? vote shareholders And big broad us of to that look? returning X, focus is November a you some bit more think of going of also Can little quickly on color combination to on cash do shareholders. assuming how part get that's you the the Rice give brush kind for to growth kind that a how

Steve Schlotterbeck

Yes.

below I think, flow in being cash Scott, neutral XXXX cash flow we living in roughly our and anticipate XXXX.

the So of won't line on part have is, – the that laid quite MVP economic out. time yet big there that's of be online. fill we've And our sense. capacity that the want coming XXXX, most roughly bulk And we we position makes the capacity that because that to we

So be little otherwise, quicker. we'd a it doing

Scott Hanold

Okay, okay.

So time? timing specific various that? Can some to on you getting you short of guess, could all that timing you here in my one? on for And project to second to timing led sort Do the go-forward updates the this I on us update And you on, recently. big how term. question. been done that certificates the expect – on – remind What's NBP there's impacts me a get

Jerry Ashcroft

is FERC here. a Ashcroft we to in really were the still We're of That's got certificate speaking. get Jerry XXXX. – proceed pleased This we've at XX% notice the have of beginning looking the XXXX, and be which recently. Yes, to Hi. for gone of line XXXX. pipe project service have a We'll us shovel-ready puts end the ready in at for XXX% to still already

we So really, have that to permits for any the we obstacles. have federal some major but us. state see through, we the get was Obviously, certificate FERC kickoff and don't

Scott Hanold

Okay.

you proceed. need to that the you notice So indicated

needs that done to So get to to And group us, needs you that? as give to be key of what what's okay? remind the that kind

Jerry Ashcroft

notice we doing Once we'll give have things and them. will Virginia – up and though of be finish proceed. will we Virginia, December. State then West which that's and Yes, to some the the in We're November the still FERC we done, feel conversations us with in with as to constant

XXXX. timing the that's for So

Scott Hanold

Got thank it. Understand, you.

Operator

proceed Hall Heikkinen Michael Energy Our next from Advisors. question your with comes question. Please with

Michael Hall

first Thanks. up with exploration discuss have XX the keep question little just to and a follow leasehold Good Can to of the on morning. to regards maintenance leasehold over want And sort to that you the in months. XX you it, of sort I guess we leasing. I ought Rice? existing coming, with leasehold mind what EQT between any requirements call

Steve Schlotterbeck

acreage Yes, don't have There is to Mike. no think is We the more would renewal have specific remind acreage, so that but there are don't of specific Rice back HBP, maintenance you I ongoing could it's I numbers, related I the bulk that I or material. don't costs. to the handy. EQT's a but some get you with number.

Michael Hall

say, to suffice to material a a is or way expire it? of amount that the interim. But Okay. up, hung to are the you could there pursuing that that a while large leasehold fair isn't the extent any ongoing think Is that about in leasing, of

Steve Schlotterbeck

there most would options didn't drilling expire. expiration. that have that and we But before they to likely will the options No, if hold decide exercise no. they would road, expirations, they down which in some several that had extend, They by may minimal we drilling to we expect those years program they fit near-term our before some of have be

will be but a So little material. won't there be bit, it

Michael Hall

Understood transaction, any within blend and might the if through And there to things, those transportation extend any that And have side then this sort for EQM, renegotiations. helpful. and of agreements opportunities what following and EQM? that expense terms should within EQT to of up come renewal just the second, sets with gathering all you any of of be how trying – on of think

Steve Schlotterbeck

don't We near-term agreements any have Mike. Yes, expiring.

to – start XXXX hit all a to they before you XXXX are few those expire. So quite –

for But are win- are. or companies. to win-win extend think It renegotiations certainty, I the be we out I the and is get blend to only too to way if parties contracts a explore in likely will see way has trade-offs between it's – two can both say analysis win. we're going I whether to the value and come transfer any run early tell the have renegotiated a really there with no what think to for

Michael Hall

on I as Henry relative then Hub them maybe pricing bring think just as that on the And you last to it. on? appreciate you you guess MVP? And how will as – I my market in you see about maybe, comes markets region and play could in line Helpful. dynamics the talk a new Okay. supply Southeast out of

Jerry Ashcroft

Station to us Yes. Gulf both gives go This into is the We're the XXX. Ashcroft about again. It Jerry going in the MVP at opportunity Coast. and Southeast is excited move into really really where to

as also really so both. pet We in a know, and hub chem growth that that big an the the the supply As expanding. in Appalachian we population just facilities being can opportunity, are Louisiana the see Texas feed and Southeast see you pull,

Michael Hall

proceed impact is without Okay. market that volumes sufficient And to to, think with I that, you guess, material the any price?

Jerry Ashcroft

utilities in feel I we're sustain Yes, that with can do. we good it. mean, that, a market plants we power down that and – that conversations have so there and

Michael Hall

it Thanks the Okay, for great. That’s for for guys. me now. time

Operator

Our Stewart your with proceed Holly next from with question Please Scotia. comes question.

Holly Stewart

gentlemen. come of these Steve, the a for advisory Maybe a and quick recommendation? guess couple on provide just first, housekeeping-type timing morning, Good items. best to out firms two maybe

Steve Schlotterbeck

get think is but sure, the estimate Lewis Don't I know Friday I ISS is Glass we for our Friday expect and think for – recommendation. think likely. best when we we'll

Holly Stewart

of mean, the Okay. here imminent? And you've then of Is forward-looking historically, in also guidance Rice case still the done that with your December. – kind I potentially close

Rob McNally

Holly. right, That's Yes.

Holly Stewart

the me, the chimed agencies in, on given and come Okay. And one maybe, Rob, their then out deal? opinion Remind since ratings you. for have

Rob McNally

and have, ratings. our affirmed they've They

summer. up offering, this and expect were hold. earlier process we the did They we So them – through to ratings so date when kept them bond our to they we went the RAS/RES with –

Holly Stewart

Investment-grade.

if for just Steve, on Permian, know maybe could. final I one about? me, I you the one process, Okay. Great. Barnett and have asset sales guys any talked update that And

Steve Schlotterbeck

for Barnett not Permian… Well, us.

Holly Stewart

Permian. Actually,

Steve Schlotterbeck

update. business we'll There's to We've back once so put get in think distracted bring the again. been back we for burner things, more on little a the other But actually to I no usual, now. been as have those those forefront

Holly Stewart

Okay, great. guys. Thanks,

Operator

comes Dingmann proceed next from with SunTrust with question. Humphrey. Our Robinson question your Neal Please

Neal Dingmann

that – through expand all remarks Good – you Could from the outages this little that the about year? mentioned reoccurring do you on And Steve, party. you the third morning, prepared of what perceive bit? at that guys. on the rest just

Steve Schlotterbeck

mean, know. expect outages you again. do we that see certainly I never The had, with outages, Well, I specific third-party not to

So one processing the and the a a out major related to for was line one plants. of they biggest the taken line After liquids had a at several days. thunderstorm, was slip,

And operate. plant couldn't so the

So Shouldn't they back, repaired that. operational. It's again. happen

So you point at recurring can in completely happen of were something different but would kind the that occurrences. onetime future, should But out rule not some these these be incidents. never

Neal Dingmann

to deal think on give described those details what going use maybe guess for lot a plan? was I – on or least this to those? you it once of fair as as And at that's think you but wells. year, – continue or Good just for I thoughts Okay. lose depend now, the over just least The XX upward I on at of active? – I'm you rest a details. Devonian plan, your of amount what's the it XX will know consummating, line had you sorry, be turning Could then Devonian Upper those. it Upper of sort

David Schlosser

so last a a I apologize, have This is year. the my same is little through of voice the the But David. about quarter rough. cold, I

Upper Devonians estimating we're quarter. think I next XX

Steve Schlotterbeck

doing only we that would are ones the less would would a as I Devonian post percentage the expect our Neal, are Rice, And that to Upper that long. at say ones we exceptionally point be of And program. do

of XX,XXX, Marcellus. think, I where that XX,XXX-foot economics a is XX,XXX-footers, competitive roughly, So the maybe with

Upper So post long shift to see Rice, Devonians. you'll extremely only

Neal Dingmann

deal Okay. And just of bit on a lastly, then just this Rice a hypothetical closing.

triples Gulf. shows, capacity of the You've to this the out that this slide had acquisition that how amount really,

that And that towards reallocation reallocating start just some once some some? those marketing in of I'm immediately your will you wondering, doing step of sort close, So of does markets? will team start and

Steve Schlotterbeck

we'll where mean, we have assess commercial where we'll get the netbacks our that best the team – Well, capacity available. the definitely. I daily. for stuff And monitors

will create capture will to it optionality, more prices. So better opportunities provide which

it. able between around, differentials demand the with As basins we'll in stay moves to be sync

Neal Dingmann

Perfect. Good and Thanks, Steve deal. on the Dave. luck

Operator

question question. with Our your Vikram next Citi. from proceed comes with Bagri Please

Vikram Bagri

midstream longer gathering morning. it would on to following entities bit, up I'm deal? XXXX How address the rates question, gathering after have is look these think the transaction. should we it ease term? after in frame compression address disparity you be Or XXXX, a a understand about How Good after an here and just at gun rates I jumping would time disparity rates between the to but Would the you'll earlier that look that the you to mentioned? you rates? both

Rob McNally

would something – exist this Rob. makes both for rates of is blend-and-extend negotiation businesses. rates. there rates think would I I the be remain think that And And I unless kind the will that Yes, that – place, sense expect of then market is at going in sort forward, some

they down think of middle the the right fairway. be I would

think market a the see be is and to so projects. rates rates, combination future lower And what for production Rice's company rates I you'll lower the the then with will of blended that

Vikram Bagri

I Great. That’s have. all

Operator

Drew comes from proceed Stanley. question. with your Morgan with Please question Our next Venker

Drew Venker

fully Good made from XXXX profile cash be XXXX, if and would flow EQGP comments the if you separated free remains just clarify morning, everyone. Or for the on if the and clarify I cash E&P the… whether just XXXX, those that's stand-alone flow free to consolidated, still business be positive EQM. want that case in it in to you'll

Steve Schlotterbeck

GP. assumes the it – flow not from Rice that it transaction the forward, moves assume does cash but the Well,

E&P to apply does that the business yes, stand-alone. So

Rob McNally

applies cash then there from flow add there a It or there that stand-alone significant obviously, a of GP sort some ways, the be was separated. of to wouldn't is that. if coming transaction. to But both Just lot separation

Drew Venker

XXXX? you about your XXXX the tying sales Pennsylvania program into on next how to Virginia, versus in drilling Can you much activity comparing XXXX helpful. Okay. in West expect just then That’s versus talk very for be And of year.

Steve Schlotterbeck

we of We're you our share – still one point so I but a this is is kind plan, out working probably gate point area, going the right XX,XXX-foot can't XXXX at In bit to average the come on data preliminary, acquisition minimum. I least this area. able average of we're XXXX XX,XXX it's the said feet The that that in we to detail. where laterals, and give and can expect think at to be I in

of we're So on going be to able in terms the one. start to synergies, delivering demonstrating that day from

we're and our So to excited the we that we more as up. that, pretty the the for incorporated get the going data deliver our work keeps maps confidence that, plan ability integration, on in

at come we're XX,XXX So to go least probably at the up from out of and there. going gate

Drew Venker

And would closes. you'd be – Steve, the after right that transaction once spud

sound turning And does XX months from is in right? line that so about then,

Steve Schlotterbeck

Yes. be average. XX Yes. X to would the

Andrew Venker

if plan being return on it up mind your And Does if I business? still Okay. could, stand-alone shareholders ends to to sense the just the to make Steven one a cash cash follow-up in profiles. E&P free

Steven Schlotterbeck

I Rice because in about. growth business of Rice we'll of be all than terms benefits same with ability and the transaction we than still to industry talked the there, to do Rice. less in. will say, Rice, think it's the more without strategy. – And get money without yes the I that, because the would rates we that's to structure, of a attractive have we're improved growth much spend but the just with the it's for sound the rate cost more I achievable answer Without will think is

think and about Rice that gaining that much talking conceptually, well. think than entire And it the again, attractive contemplating and I I more right direction I without for it to direction frankly, will traction, Rice. as it's much that the So and others seems industry. EQT, be are doable go be But is with so others it. hope more

Operator

Our Arun with Please your next comes Jayaram proceed question. question from JPMorgan. with

Arun Jayaram

interpretations maps you pro just Obviously, of you you locations long-lateral Steve, wondering down forma the on on of could, wanted on your and you have pro a many see dig long-lateral maybe lot kind Yes, recently just through focus locations a if I acreage basis. again, a of little around to number a how if could basis. confidence go X,XXX I forma bit.

Steven Schlotterbeck

gave going this. that where pretty one we – I I extremely And come that have to the given stat of to average. Well, supports all confident. gate we're think above that's that the just re-permit you remarkable, confidence, out that's

get have We started from scratch. to

confidence. give you couple So the noise confidence, that contrast this some where been maybe relay of there. high, a other high which acreage the And to Greene I'll especially is will stats out of bulk some County, in In that's if To over Washington, too, acreage focus – total is developed. there's second. a lot in County of XX,XXX but years, you Greene XX just the of on those acres. Greene acres has County a for last XXX,XXX date, been have

XXX,XXX and Greene of control acres. produce still stat will alone and EQT those of undrained. transaction, in XX,XXX that and from the for acres. XXX,XXX acres Rice for Greene as now, there's County, are, un-yet to undeveloped acres. XX% one is of about available County the XXX,XXX Greene gas. That's County – other is us And the drained in After least being gas again, So At acreage undrilled

control XX% is be EQT, So will under % of of the remaining of county where XX that to drilled. the be

there's So amount in of lots acreage. remaining of Tremendous place. resource inventory

So that confident to ability very synergy. our very, deliver in on

Arun Jayaram

wondering, was of Steve, team support of standpoint, you logic industrial just you from think That’s kind other could And very transaction. also would a the if the I technical about, helpful. factors that talk

Steven Schlotterbeck

your can there. will so you to hard the of most think head in list are think, wrap in not see I created included But value not at that of look synergies, be Well upside those, economics that presentation, our and I deal. ones you of around. it's There the

offer get. we'll purchasing for obviously, we offer, Rice, more With the when drilling be fracking more we power. work work. to we and better the we able So rates services, know contract

folks a improve lot technical or certain line, get drilling we'll over engineers technologies involves have a I Appalachia and many or to And year new of have various better effective that So the EQT technique, – the a that to of in testing production the ideas is not. that data been Both way mean we've well, EQT gathering testing months terms the technique leaders that And in a was that tested. the well is recoveries. in – modifying ideas developing the techniques prices. have. works determine whether new and Rice amongst getting

test only a of you So can number ideas. certain

So we've they've ideas EQT's tested the had, ideas. not tested necessarily has had, same ideas Rice they're

to best there the will and costs. be and So lower to together practices sides review can technical combined certainly be teams the when as recoveries of one, improve can from databases that data get we both all that

exactly So what predict at it's hard techniques are those point. this to

We and not working get there. the to teams be And to could going But hard on that technical be is value imagine it do have there to incremental the work it. drive significant a because then there's upside And doesn't of presentation. significant take our improvement see can in much to in value. list seven synergies it of recovery you a amount shareholder

which there's So get if makes that, sense any think I happen. even don't ton deal of But plenty won't of of a upside. we the

Arun Jayaram

to bit versus X.X least stand-alone raised XX my rate about to And question. little your the exit XX. – year-end basis, you looks to you on X.X tied-in you. a final X.X guided did to line, It X.X. Wanted Got on ask from a like guide, the at

of fourth So little terms Is quarter. maybe a a that and there? et – availability, in wells this less XX your timing is cetera. of spread previous guide those wells. quarter to bit fracture, Any just going for issues few the Are

Steven Schlotterbeck

Yes.

tell X What have into is were – running all X we issues. X crews you next So or late now. it timing. will no this I all quarter quarter. will frac that shift that Those

rigs that need, have that noted the shifting now. just the we rate reason need. all activity fourth quarter frac And that we exit shifted we all the is up into have crews the is we So

Arun Jayaram

a Thanks Great. lot.

Operator

Our next question. Michael question Heikkinen Advisors. is Energy with proceed from Please with Hall your

Michael Hall

Or thanks. the first a question. fourth just that that be and was the rate, appreciate And average follow-up on will exit clear, a I like the To it be between – Hi, average? last an fourth follow-up. is that actually quarter? quarter

David Schlosser

is a average. This That's David. December

Michael Hall

Okay, perfect.

Operator

the call back turn question-and-answer closing Patrick of I'd to end Ladies we've Kane to Mr. and session. for the gentlemen, comments. reached our like

Patrick Kane

Thank participating. for thank you you, Rob, and all

Operator

teleconference. This concludes today's

thank disconnect your at your We for you this lines time. may You participation.

EQT (EQT) 26 Oct 172017 Q3 Earnings call transcript