EQT Corporation. Q3 2009 Earnings Call Transcript

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2009-10-29 20:16:08.0

Tags: Call Transcript, Earnings, RBC Capital Markets, Investment, Financial Services, Finance, Seeking Alpha, Equitable Resources Inc.

Question-and-Answer Session

Operator

(Operator Instructions). Our first question comes from Scott Hanold from RBC Capital Markets.

Scott Hanold - RBC Capital Markets

Murry you were talking about pacing and can you give us a sense of when you're looking at your capital budget and what you all would like to do within the current infrastructure that you have in the lower Huron, is there any limitations when you look at '010 or '011 or when do you have to really start thinking about building out that a little bit more?

Murry Gerber

I think there is not much right now because it depends on the pace of drilling, but there is not a whole lot right now. The big expenditure that will come or will need to come, as a result of accelerated drilling will eventually be the building of another processing plant to handle the liquids.

At this point in time, we think the decision to build that plant probably needs to occur somewhere in 2011 I would guess. With hopefully, that plant being online in 12 or early 13. But that depends on a lot on the pacing that we're expecting. But that’s the major barrier right now in the long-term for the Huron/Berea play.

Scott Hanold - RBC Capital Markets

Then when you kind of commented that to get similar growth rates in 2010 to what you saw this year with 15% to 20% less capital, that's specifically talking about drilling capital, or is that just kind of totaling?

Philip Conti

Yes I think we’ve we're going to spend about a $1 billion this year. So, to be more specific, we could achieve what we're saying is, we could achieve this year's growth rate for 15 to 20% less than the $1 billion that we're spend this year.

Murry Gerber

That's the reason we don't think we’d need to tap any external capital markets to be able to achieve that.

Philip Conti

Did you catch that, Scott?

Scott Hanold - RBC Capital Markets

One last question on the Marcellus. Obviously, you had a tremendous with that $9 million a day well in Green County. There is still a fair amount of variability that you’re seeing is. Can you point to something specific to that? Is it just the variability by nature of the acreage within the play? And, on that 9 million day well, I know you typically don't like to talk about 24 hours IP rates like others in the industry. But can you kind of give us a sense where that may have fallen out?

 

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