EQT - Earnings call transcript Q2 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to EQT Corporation Second Quarter Earnings Conference Call.

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Pat Kane, Chief Investor Relations Officer for EQT Corporation. Thank you, Mr. Kane.

begin. may You

Patrick J. Kane

available also consolidated was morning, EQT ticker Midstream remind and seven our days call replayed by issued GP, EQT's Officer. Partners, Schlosser, are scheduled EQGP. for morning, President EQT participating, this Good Rob joint in for results. as thank for of Jerry EQM call Officer; you EQM a Senior on previously conflict. and of and there this ticker replay you, telephone results will a Thanks, website. be not separate and will seven-day EQGP, evening. press President Exploration Blue with the release EQT EQM, and conference To everyone, Earlier today and call of call. joint is present XX:XX. XXXXXXXX. question in moment, and dial-in this he Production; David Financial number at replay Chief Corporation's President have XX:XX Senior are Vice With participating a President AM, is Vice we prepared President a confirmation the their earnings David be Jenkins, of period call conference requires XXX-XXX-XXXX. last that beginning remarks. for The for Vice Dave In Porges Doug. Ashcroft, EQGP code of Chief call and and is Senior today's The Commercial number and me the for The McNally, take which The a had will will that XXX-XXX-XXXX today Rob the Midstream; at

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

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

Robert J. McNally

means before and quarter. to XX, sale CEO EQM May the named occur to the closed The XX, the EQGP sale units August, and morning, a likely start good Pat, of update. plan items standard by purposes. key I'd $X.X all pay our IDRs quarterly our unit-for-unit we outstanding of and amounts exchange a repay for separation prior senior by of is an EQM's acquisition successfully of to two the progress the you, appointment to remaining midstream Ohio new we We X.X the expect gathering CEO will to to Midstream transaction and EQM the business transactions, our Proceeds made the businesses. term under separation. notes. X.XXXX. cash million and of We've On have two we underway and these April. transactions of Thank and quarter, EQM to XXX-day Upstream EQM the We've discussing previously $X.XX toward EQGP RMP's the CEO completed EQT's The like moving of Midstream to mid in everyone. RMP's in the achievements our during XX that assets Partners were Form fourth issued completed XX.X billion a at loan ratio announced in used separation several are for offering transactions, general support on search the for July million revolver to in tremendous the To streamlining from file important On of of filing well of billion plan XX. Rice which off in separation the units. Form the

timing cannot the they on SEC how While the and depends be ultimate as certain we IRS, act. will to quickly

to soon goal the is Our close possible. as separation as

will We will are with to grade objective, be emerge Midstream both and debt retain at EQT reduce ensuring stock, committed program. the Corp. that XX.X% this to and sheets. fund to the of separation achieve stock EQT from balance investment businesses To SpinCo's Production strong which the buyback used

SpinCo to share we at not indebtedness retention, the outstanding any the As do time of itself a this have of expect result separation.

$XXX authorized immediately. share program a Our board repurchase effective has million

our Given to that of our view value authority expect using businesses, as not as Midstream possible. E&P full reflecting we is the begin soon this and EQT buyback stock

the shareholders previously We Basin the are relieved non-core In this month, shareholders. EQT it $XXX its million repurchase second authorization. in did liabilities advantage taking approximately of value sale to million which million with Earlier same is assets. million completed the Buying relieved the of cash, shares for of completed EQT In we one for sale June, the our to the with and $XXX Huron return for will also in both we ahead cash companies. approved EQT we pleased assumed associated liabilities. of of split back repurchase assets XXX,XXX approval of $XX this of as quarter, of assets way our EQT light, Permian in benefit approximately $XX EQT share shares the the of

and press anticipates a can be to modification EQGP's Now, focusing a MVP date. information More schedule the MVP you EQM on the release issued in EQGP's this may announced JV construction morning. and on and side, now quarter its in first as in-service quarter XXXX Midstream earlier found press release, read have second EQM

a cash expenses year. Now, for announced related per $X.XX of back prevent adjusted flow. adding flow operating in from cash on to quarter EQT share separation for was the quarter. Adjusted adjusted of SEC $X.XX results EQT operating to $XXX $XXX quarter, to compared rules increase to attributable the us second year-over-year. quarter second million million earnings diluted second the to the last

of EQGP, As second EQM, was Midstream in $XX.X income a in interest EQT's last of million compared non-controlling the the consolidated results. reminder, million and Strike for Net to are Force $XXX.X the attributable RMP to quarter results quarter year.

Now, to EQT moving on the starting results, Production. with segment

Mcfe, or operating directly resulted guidance Total higher the compared the million segment came from X% by XXXX. Production revenue million the production Second in price EQT and were quarter average for $X.XX decrease $XX as $XXX quarter the second second second expenses, been third-party the including $XX segment. $XX XXXX, XXX to Adjusting net differentials million. recast, volumes our EQM compared XXXX, result million operating to Volumes impairment, to have XX% XX% Rice $XX Production's excluding and last to of the marketing with guidance million The Bcfe XX% net stated to April and the services of cost offset were a which stated the Bcfe. quarter of dropped Average in million better year-over-year was Operating Mcfe than of XXXX generated acquisition. compared lower fell Differential quarter a revenue sales segment improvements and assets $XX EQT primarily realized the than within the year. asset of for to lower of Gathering cash price, million in revenue. quarter gathering derivatives, operating to were $X.XX to per asset NYMEX pipeline higher were of considered cannot the drop, XX% second Approximately result would in recast year. XXX We Thus, reflect for million. services acquisition. $XXX revenues $XXX in quarter in quarter XXX $X.XX Production's negative revenue last moved second year. $X.XX than higher is the negative from settled million of of $XXX the associated be $X.XX the midstream per pipeline of the totaled increased than cash last the were marketing EQT of due range the being

Now, moving results. on to the Midstream

was assets the operating As mentioned, recast have quarter million assets. the $XXX $XX Operating gathering revenues million, second were the was Operating $XX than of EQM million, of assets. the EQT. to results variance than by of $XX EQM Transmission EQM's for was were the million, midstream the $X million acquired million results higher acquired which of quarter pre-acquisition second second the $XX acquired than operating from $X the the Gathering Gathering quarter million is income higher XXXX. second Expenses than higher for revenues income the XXXX. XXXX. quarter quarter $X quarter XXXX. EQM XXXX. been include the quarter higher of primarily second $XX EQM this Ohio $XX to were expenses were of XXXX million of second primarily due EQM million, higher for second Operating higher second from million for Again, than quarter than Transmission

income Now, of moving while RMP income an $XX $XX and Water, operating an Gathering of to RMP reported reported Gathering operating million, RMP Water RMP million.

our liquidity Now, flow and cash onto position.

credit has $X.X in With on does RMP. $XXX Please fund cash million for expect related of the credit and million billion costs $XXX flow $X.X billion. not EQGP, year the the approximately between capital is of EQM currently EQT's excluding to EQT, and the revolver. or $X.X $X.X outstanding sale and adjusted taxes As facility. and current $XXX been plan June EQGP to billion flow no guidance our XX, asset under availability operating EQT's from includes cash and EQM, expenditure and interest cash letters balance, operating Huron XXXX for adjusted forecasted approximately had cash is for there at million We forecasted our million our of to of EQT XXXX operating flow forecast we fully which billion cash billion the and that on full $XXX adjusted $X.X adjusted borrowings hand, note include separation. of

our Lastly, support. and With that, their I'll advisors comments dedication I our their the for to over make David want some operations. and to work and shareholders to hard for thank on call turn continued employees

David E. Schlosser

everyone. Thanks, and good Rob, morning,

start providing me update on Let an volume. sales by XXXX

an of Rob We represents year consistent expect growth over the for QX sequential growth X% XXX at with XXX Huron now volume within the is at the quarter-over-quarter are was remainder Bcfe Bcfe, and and – prior QX guidance guidance to Huron. mentioned, still QX As XXX X,XXX and XXX adjusting slight increase adjusted X,XXX a volume to full-year Bcfe. Bcfe guidance. for of quarterly guiding is increase

than synergies on continue XX,XXX to our expected XXXX now the deliver Core, operations, acquisition, higher contiguous Moving we to acquisition. realize our the length of develop Southwestern to average our average program acreage Pennsylvania position. an our Rice is which Rice to large prior Southwestern Pennsylvania from In capital drilling we as is XXXX feet, XX% lateral

addition, each. efforts of In land an allowed approximately also XX X,XXX DUCs our group's have average feet to prior year by lengthen us

well. had to creates for particular land As already laterals, reminder, after though EQT by a by in we rigs, the use drill out rigs well The the to section drill spud the even of This Rice. vertical six was following or a an wells, lengthen which rig importance those typically created timing and opportunity even gap many is we opportunity bring typically curve wells horizontal more to months, lateral. expensive extend acquisition, as then have the top-hole four significantly of and additional to been a the we a Rice spud swapping to

of drilling important lengths, resulted in fewer wells highest we'll and pay XX XXXX. these feet targets we longer with two and the planned as crews. pay quarter productivity activity targets, feet company result for feet lateral than fracked, On frac an was than our a in is which the of XXX,XXX of our as second drilled, in record. As XX% pay spudding many XX XX being of higher while than This and planned realizing history nearly reach the previous XXXX EQT efforts with our program level, completed operating in rigs conjunction

half numbers. with and manufacturing first day was side, our completed drilling These as the real-time XXXX significant over of benefits drilled did This the activity fracked efficiency footage the operating while have drilled we EQT's centers. On XX% XXXX up footage and XXXX. per much results footage specifically in day as of making and the model illustrate per gains full-year already we in XX% respectively

and QX the Finally, turning result increased XXXX half did QX activity QX higher in feet the XX% approximately in will half. of in in in more pay volumes the in us with second as first sales line we of

a more our reiterate the In to will XXXX, guidance we to to frac of the for now call crews full-year turn point be will moderate year the well and this the to seven rigs. to down at CapEx the ramping half QX activity expect return We running to Pat. for high I of and six second XX $X.X end XX level, development. of year billion over

Patrick J. Kane

Thank open the the you, of comments Doug, call for you call. questions? the portion This concludes David. please will

Operator

you. Thank

Our with proceed comes line your the first of with question Singer from Goldman Please Sachs. Brian question.

Brian Singer

Thank you. Good morning.

Robert J. McNally

Brian. Hi,

Brian Singer

two, looking sheet could be you how midstream slowing repurchase? about your then growth and SpinCo three lever the the it option consider constraints to midstream about cash used flow the which avenues also share like share using that You towards you done i.e., here, latter use from might be lot whether the you're are talk and Can and activity proceeds sales, key would Huron share a buyback what think as the the to might be you've for the free buyback: for for, asset here; about talked particularly sale your balance on would the excess be levels you repurchase; target seems you proceeds, SpinCo highlighting repurchase? which have third much an there growth. with and the And you're fund rate

Robert J. McNally

Yeah.

there's in several question, that So, Brian. things

Yeah, cash deal better with company, we'll appropriate a start we later as that growth. we free rate. let on working growth to and time. through rate and cash growth will for me balance for the what be. need moderate in have do see to think you We're generating between certainly be the a with the at about But a guidance one returning a forward board growth we to year has the the currently certainly them with with So, there rate think the shareholders think balance we

million on what further what In less once share and is leverage and authorization of looks consider like like, board, debt board the times environment the and certainly $XXX our more authorization. used balance we commentary, sheet previous repurchase, to to to from In terms that the EBITDA. have have a we and up, depending that the could for to levels we like said EBITDA our want at have times calls than back we preferably X see X.X debt we going

right target the forward. for we going that believe range And still so, EQT is that's

Brian Singer

the better is and situation you. environment a And Great, thank maybe nationally. follow-up has gas prices which then, to my natural here the do of as little for with bit reverse, storage locally well the

improvement what see local the storage some deficit about to some we've combined to activity efficiency seen do prices, or Given activity? you we the in how you've highlighted, would in you Appalachia need potentially and gains think have with increasing increase that of

Robert J. McNally

Yeah.

gas better rates production. math prices. price will haven't realizations, move realized clearly, the think growth tell that seen I and in Brian, But higher a we're environment, significant us a to on increase we higher in returns off

some been offset locally pricing. NYMEX been lower by modest have partially improvements that's While there in bases,

this dynamic that us production to isn't I would at increase point. pushing say So, that

Brian Singer

you Thank much. Great. very

Robert J. McNally

Thanks, Brian. Okay.

Operator

question comes from Capital Scott Hanold with your next Markets. with question. RBC of Please Our line proceed the

Scott Hanold

Yeah. Thanks. Good morning.

Robert J. McNally

Scott. Hi,

Scott Hanold

force And to been decision more for specifically those spin behind retaining a little spun the that with systematic, make we you would liquidity pretty SpinCo to to your little On what I bit a shares, the it it sense shares? was guess us Hi. making Was more, plan that was to quickly? cleaner during SpinCo be some it or driving like shares? investors have it monetize look opportunistic? for it Is – extra those expect something have the can going of access to retain that, how what that? give Is do process, really should to you is that,

Robert J. McNally

all the was I we us buyback an at were be because Yeah. get avenue that that capital share have right-size want fund we would mean EQT driver the it to the that the without for to this and SpinCo buyback and leverage liquidity value to a putting level, the balance available prior right. spin, was to able real the the retaining here levels undue fund us confidence gives sheet to we and

all would have the fund as and – strong the most goal want companies well we with along as independent to way this was healthy So, our sheets, that goal, two we balance accomplish was share buyback. elegant that

Scott Hanold

Okay. And you do that? how want to execute

Robert J. McNally

The share buyback?

Scott Hanold

no, no, the the No, sale shares. retained of

Robert J. McNally

sorry. Yes,

gate. of is and years. So, that we're those shares My not right required by that the spin IRS significantly five to something out quicker have than in dispose that, expectation that the of we will though we do it's likely it would happens within the

churn So, would exit as I to within that some position. they I the that think But natural years, shares trade of shareholders. there we SpinCo more couple be the would that will in first expect

Scott Hanold

Okay.

Robert J. McNally

within is we just years. requirement first the do But five the that it

Scott Hanold

to it. the there Got to And as at rates on versus – returns just follow-up shareholder. to the growth a shareholder returns question capital had Brian looking

the down previously path guys of change give little Can rates, you little You how moderation. a of a evaluating? of more separation, change about really sort talked bit a you've thought are that there's XX% and rate growth obviously, in had gone driven now with again, you that background growth when this process kind meaningful what's and

Robert J. McNally

us Well, that outside growth to really capital I that there's is markets an appetite from shareholders driver the market. the fund cash appears general think not feedback It of to in and by flow. really

as getting least moving shareholders then – been direction within we've some way as industry an right where a we that to at And can to that and in return our a cash – for position to go. that cash I within fund the is last year. we've we also is it company, the So, growth think been flow and think

particular growth would than going I of don't thing growth for be, company the that it's and rates terms to are XX%-plus say has do to for been in what rates the historically. I right the what it are So, think shareholders. less

as with rate more As be lower environments, it's it's environment, higher higher be and we that growth on budgeting think guidance board But in price work biased commodity price a a towards what also the our give this the process environment going where we'll be concrete you on going to is in I fall, lower. like. through looks suspect dependent growth, what price commodity bit commodity we'll well, to I

Scott Hanold

Yeah.

so pretty shift. Is to you would guys So, is or – right? much potential that – going an initiate with quickly, something is have the this are pretty on XXXX? drilling activity XXXX and loaded this it And looking XXXX and it's to in impact locked

Robert J. McNally

have XXXX. you activity point we profile. a impact undertaken XXXX as It XXXX modest could largely the But the growth on have in drilling out, that sets

Scott Hanold

color. Appreciate Understood. the Thanks.

Robert J. McNally

Okay. Scott. Thanks,

Operator

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

Arun Jayaram

us walk was you Yeah. I of steps in of could Rob, wondering the terms through if the kind separation.

kind of kind And provide would be mentioned kind in at from timing Form of to of the what here. happens be would XX standalone you and the You walk But guidance what filed mid-August. EQT time prepared that of kind us Production? through for

Robert J. McNally

Yeah.

from financing – that clean-up announced we we've the completed transactions. related essentially So, and April all transactions of the here in

we've hard what that extremely like our would with happy that really say teams work I the have we've progress I'm that to So, gotten the done. done. I'm made and with impressed

I – and get from rounds the on get to SEC, which then fourth we our IRS. the to has, file control. waiting think two pushes the that then I we us the items. SpinCo. do think get and And on is also to timing we a and the and meet process to XX, with that that that with the that at SEC get that now both out with depends many the you'll as those to from questions suspect separation, how we quarter closer expect EQT which likely mid-August, closer is now as gating standalone out point, and guidance will we're then we investors, likely left of – what's between So, want bit by into Form It of PLR starts

that guidance both So, expect finalized, know will us to But and spin don't be. I the more concrete EQT. to the in leading with month of for I SpinCo think the what dates would hear up you being from

Arun Jayaram

slight Okay. just delay MVP. in here follow-up, And my a

the can walk through you Obviously, you'll but costs, Just of of wondering, Rob, through kind will the where EQT the transportation to of from if maybe timing impact just to incur some the implications walk EQT that maybe delay the delay. Production.

Robert J. McNally

much not sell of time XXX. It EQT. which an Transco Yeah. delay There's for at impact volumes can we the at really will

at it the just more we'll prior limited that to EQT. that, impact sold but so MX financial being have means is volumes fairly And to

Arun Jayaram

Thanks great. right, a All lot.

Operator

proceed the question. next line Fitzpatrick SunTrust. Our with Please comes from of with question Welles your

Welles Fitzpatrick

Hey, good morning.

Robert J. McNally

morning. Good

Welles Fitzpatrick

To seemed from there CapEx of concerned. follow is into that up like all comment end the a delays? top range because up the on we little a on Is conservatism the guidance should was as as Is it last the bit of read MVP modest just of bump the caller, that? far that

Robert J. McNally

Yeah.

up. with costs go delays inefficiencies, and Just,

with instance, so place, it's become less to Circuit a stay costs for to a drive crossings, over in Fourth bit. So, us have jump that up bit caused Court water efficient does and hop and put around just and it that the the

Welles Fitzpatrick

that guys Have the provide the effect downward compatriots rate And basin flowing you growth that sense. have could just we to costs? think Obviously, year? that any you as some move completion slowing guys of follow-up. one so costs Halliburton. and have on you Do your pressure a through through makes then, seen about that in talked Okay, the bit, little well

David E. Schlosser

on especially is pressure the seen This we we've that pricing I it movement. most would environment think half side, one. the I'll the yes, first in than which the Yeah. of Certainly, have. say David. was is different pumping I tackle XXXX,

but number it's if So, exact know don't definitely on for I pressure pricing. downward I a have you,

Welles Fitzpatrick

I Great to guys. have. all That's Thanks, hear.

Operator

proceed of line next from the comes Company. Our Panjwani Please question Holt with with your Sameer & Tudor, Pickering, question.

Sameer Panjwani

Good morning. guys. Hey,

Robert J. McNally

morning. Good

Sameer Panjwani

pressure did guys you costs seeing on Sticking development down I that downward service But your saying couple percent. notice that you're costs. a are with came updated theme, the obviously,

anything an in efficiency there's capital So, if cost the on I'm that of is there wondering to update terms beside provide improvements.

David E. Schlosser

Yeah.

the I the that laterals think we of was script. that the in about lengthening talked driver my of

that's that, by believe think, development costs. I lowering those So, I $X.XX,

Sameer Panjwani

estimated the gains changes I Okay. of was then any in in cost light your to of previously, it service CapEx? the And maintenance Huron and billion you then, $X.X also that light think provided sale.

Robert J. McNally

No, unchanged. it's essentially

Sameer Panjwani

Thank Okay. you.

Operator

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

Drew Venker

morning, Good guys.

Robert J. McNally

Good morning.

Drew Venker

target you target you that share push between Rob, target I the or you one of there to are this some mind about guess And lower? on mentioned had you related and then your leverage, leverage thought as times it's previous return proceeds and shares buybacks using the to thinking to shareholders the Is for reduction? X.X monetize leverage the cash proceeds to debt from road. how SpinCo or that the down in those

Robert J. McNally

share fine and go be. majority Well, right all likely to that. too. think this the that's at have lower, that's of I move EBITDA X.X reduction. than to that in think position. a that for it debt rest But down will point, the have little need the the $XXX lot We the we And getting EQT to is that debt a repurchase to for of to times strong a don't feel it puts us place were liquidity get, if the authorized, lower million that do authorized that value we we It

Drew Venker

I Rob. all That's Thanks, had.

Robert J. McNally

you. Thank

Operator

with question. Weil. question Howard your from with of Holly Scotia Please proceed the next comes Our line Stewart

Holly Barrett Stewart

gentlemen. morning, Good

David E. Schlosser

Holly. Hi,

Robert J. McNally

morning. Good

Holly Barrett Stewart

David. first for the Maybe

and Just thinking big XQ kind than XQ which in XXXX. XQ, the for then, looks But lot XQ. of jump about schedule lower obviously down, up got XQ actually you a TIL a

XXXX different about as timing pace schedule? this think just on should we move this into is So, TIL or a we just

David E. Schlosser

Yeah.

I in should second timing. I impact active is just you were it think really about that and quarter. in the we has terms such it fracking of think an mean

that's TILs into in going third lead to of you should all happening really the to it. So, most quarter, that's and probably those read

Holly Barrett Stewart

pricing just we CX-plus come there bit. It also about side. of should a for the production. on stream? a Okay. more on to ethane ethane Is Is I the there up And adding wider. you the maybe looks NGL also the guess it's And think moving David a then, more terms on out of like that here side? can in NGLs, the little out do ethane, The pulling maybe something in guidance bit

David E. Schlosser

the you're gone. talking on Huron, of that. think first part being Well, the what CX-pluses to about, Maybe due was the second answer the will of Huron part Blue I the impact of question, the

Donald M. Jenkins

Yeah.

So, we of do out have pull ethane, incremental which gas in in plants ethane. at incremental our flexibility some the terms process we to so some

contract do We've would got we we portfolio and As expect, opportunities optimize you we do that. term spot in the will to the look and to then obviously continue that.

around flexibility Holly. that, some So,

Holly Barrett Stewart

there? during one housekeeping. for quarter. to And the great. Anything maybe just a bit one Okay, to maybe highlight last me, then, good little LOE seem come second a in

David E. Schlosser

that you you're saying? than expected, is lower what in Come

Holly Barrett Stewart

Yes. Yeah.

David E. Schlosser

the first the quarter it the in because didn't impacts. than maybe quarter, and little have of high a other those kind Nothing weather, of was on side second

Holly Barrett Stewart

guys. Thanks, Okay.

Robert J. McNally

Thanks, Holly.

David E. Schlosser

Yeah.

Operator

Please line from question. of comes Our next Stifel. the question proceed with Jane with your Trotsenko

Jane Trotsenko

need to Pipeline? watch what in Valley Thank Good My that are milestones first we Mountain to regards key morning. the you. question,

Jeremiah Ashcroft III

hopeful This be The to both Good the sure. is and Jerry weather question. on the pretty milestones stay soon. core key is Yeah, that Ashcroft. – are of motion We for the continues us lifted will the us and believe that merits Fourth be in waiting by Circuit.

Jane Trotsenko

Is like I other in public see. is know what environment? exactly service softening the service privates it you companies it causing see, on like do oilfield And the is the or I side, decelerating oilfield then, mostly?

Robert J. McNally

rigs, frac our and where Yeah. much few market activity slack by some down in a it I'd of for say crews, – to just broadly pricing. impact take peers, really we're a it's deceleration laid doesn't it us and we've of just a just that few

the there's bit So, just on particularly a excess a pressure I of side. pumping slowing think it's and then general capacity

Jane Trotsenko

So, do short-term trend it is overall in the the you is or a it think something like sub-basin? pointing deceleration to that's

Robert J. McNally

cash back companies appetite flow. there's outside think I Well, go not to of comments earlier much for to where that I'd some grow

towards I flow, pricing. if you on industry capacity a cash pressure is some think then might presumably model pressure whole where creates rate, in services on so, growth moving does as constrained to And downward that by growth continue excess think that that then is the which a some and terms put of put

Jane Trotsenko

you Do at cost will the or help reduce least it Okay. well to think future review you cost well in guys sometime assumptions? the that

Robert J. McNally

Certainly, progresses. on if you meaningful impact we that well that then that and update see service move-down we cost, as cost in our a would does

Jane Trotsenko

sounds Okay, good. you Thank so much.

Robert J. McNally

Thank you.

Operator

hand queue. call comments. to There I'd for in closing to like are no questions back management the the further

Patrick J. Kane

Thank participating. the today's (sic) – you, concludes David call. you This for concludes all [Doug]. Thank this comments

Operator

and this your today's does Thank Ladies you for conclude participation. gentlemen, teleconference.

You your time and day. at may lines this disconnect wonderful a have

EQT (EQT) 26 Jul 182018 Q2 Earnings call transcript