discuss execution Good then appointed CFO. I'll pass an the Today balance evolution morning. our he newly I initiatives, liquidity our will Dave brings sheet, philosophy XXXX plans. that the to of provide and Khani strategic certain our discuss and update as to discuss on the our call
we've tactical business office the October. controllable $XXX a XX% and XXXX than budget $XXX steps million is July costs We've million annualized today less and only or released CapEx guidance overhaul field, to execution Since across removed months, strategy company. our six taken in the and oil in the our decisive over we've that the from election at of this to
enhancement volume base from continued announced January a the removed additional initiatives, as result optimization in of an operation $XX well resulting production million as the was that million reflects as schedule. which of This our we $XXX a
find costs for to new our continue We to create reduce and shareholders. value ways our
EQT has our reducing LOE and and on towards our cost focus transportation has recent G&A costs the lowest been and costs. gathering well pure leading marching
We structure for provides will of partnership the rate significant today. are in and legacy EQT In our towards contract from extensions essentially and our that pleased EQM announce gathering commitments in which the acreage. renegotiation high strengthening EQM is of will all a the we structure dedication with resulting rates EQT This a favorable on-dedicated our a of fee represents long-term. meaningful to successful long-term our with a reduction with increase relief be this short-term goals. contracts, deal step level, the volume big At rate exchange through for lower our minimum rates, provide and
true our partnership EQT's the EQMs of highly to gathering efficiently systems. potential deliver ability combo Realizing projects to development strategic rests on
assumed reduced Mountain Valley execute deal EQT EQM detail you X X, XXXX. of across agreements XXXX. combines which inservice Virginia to X and goes to analyst West global entire affords nearly extending January the operational I and our direct gathering upon the of The combo footprint. Slide of to operational flexibility be effect development components This agreement Pennsylvania in the our presentation. one the Now to into gathering The legacy all the pipeline, the agreement, we've into will rate EQM
through this of discuss coming is our significantly with we leverage approximately ETRN expect navigating to the period, in and enhances nearly commodity This moment in exchange, in relief of which relief the receive three challenging $XXX first inclusive price half outlook, million equity fee our the I'll EBITDA impact year Over of critical which environment. XXXX. and a
and rates levels. gathering than that duration XXXX XX% XXXX are the agreement, By lower long-term the receive of will EQT through
and providing X BCF a cost BCF to of and visibility. upon builds X.X a by leading day Effective day today, to increases peer our long-term the Solidifying the rate structure inservice commitment day minimum X MVP a volume BCF XXXX. from
Additionally, have XXX,XXX were result requirements to in current acres West also EQT additional has downgrades we Virginia of over with as agreed providing in credit credit approximately $XXX insurance and a recent EQM. to defer liquidity our dedicated that EQM million flexibility. triggered
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generate this EQT in free cash true and Both to flow grow emerged and mutually desired. will if environment XXX Ultimately Equitrans stronger, ability a agreement beneficial gas win-win. modestly EQT with provide the
gathering delivering shareholder turn that value was While be is sustainable XXXX. capital three were focused more direction, To our into there the to in prudent EQT the balance still agreement objectives work step a be durable business. team do main cost and one on simple, is our and strategic philosophy right operator, done low there behind The in large through was plan strengthen the as this, sheet the allocation. we maximize
we XXXX; and we to XXXX to aim monetization plan million execute efficiencies, operational $XXX on technological asset costs, removing free by pushing business will guidance optimize our exceed by incremental or enhancing innovation. cash adjusted our to and continue $XXX second, boundaries we meet the flow of the mid-year million; plan third, First, to
flow generation, gains, accrue business. efficiency will All incremental and deliver free proceeds cash reduction cash cost realized the to
to aggregate as addition face maturities execute pricing. On greater to these debt The value is weaker back cash half provides the we plan. with the front, free flow generation feel The despite the of confident to refinancing of we our opportunities we target better longer January in billion continue $X.X our year. no executed in in than asset footing our monetization potential ability in the us
EQT receives be fair presentations that line as value prudent Management with ongoing are stakeholders. making in the We'll planned. for these and intrinsic progressing is assets are the benefiting value all certain processes
both seen updated the and solid to progress. interest and have market We assets things E&P for as the minerals we'll continue keep
remaining Equitrans Our XXX of valued approximately is equity million. stake in as $XXX at
are We the out we holders expect continue by this of of be that we to stock. long-term as mid-year position not will
lower way At EQT's the monetizations efficient development lower continue to the combo deployment. cost execute effort near high is we break-even heart can for term the our sheet most capital While of commodity our a reduction the costs. asset leading to of the management, are is to best to that offset importance runs balance ability price
In X% costs well to the quarter-over-quarter. average PA and foot. per $XXX nearly Marcellus quarter, our legacy cost This down is fourth as compared XX% down
we speeds have highlights drilling reduction XX%, X XX% that since been reduced improved have this election efficiencies drilling operations across seen our Call well. leads days horizontal July. by Slide total days in in to all XX% by per drilling drilling pole have a
PA per ability us real savings cost improvements in XXXX. to of Marcellus translate the by well our in our confidence foot second give the into material achieve $XXX target half and These
driving are costs, costs to other reduce down we ways there margins. many and can well addition In improve
contractors. built our dependency and reduce we technology have On the processes side, on G&A that
aiming increase uptime. costs, recycled and usage water we continued our LOE to For to our water logistics optimize production
will continued Dave transportation that improve lastly, touch strategically cost And which hedging to can manage, on interest our expense our strategically places optimize a We and to firm we structure. in moment. portfolio our both are
structure that game we The the macro gathering in future largest allows Equitrans into corporate initiatives drivers constraint will development have with process the our of in removed, environment, of outcome strategic decisions the cost with board returns. agreement better of future the our insight be
are productivity has the XXXX We're inventory are and core fundamentals returns the production shale Gas gas We drawn drilled prices. declined basins plays down and trends duck November and slowing, producers fully-loaded right improving in recognized counts transfer that several very off measure. as seeing being have being its watching materially peak its decline, inventory key up. rig natural see closely
Our outlook positive. view is on the commodity
we is to the activity development the most However, can continue the the we fundamentals, study determine to our optimal we production maintenance recovery in for follow that until analyze a take is will reflected the strategy as market sustainably proven market and levels cadence.
newly that, our will the to appointed Khani. With David call CFO, over I pass
