EQT earnings out this morning

  • 2020E capex remains at $1.075B to $1.175B
  • The YTD spend = $565M, leaving $560M to be spent in 2H’20 (at the mid-point of guidance).
  • However, drilling and completion efficiencies will allow EQT to lower its activity metrics.
  • For 2020, the company now intends to average 2-3 frac crews and 2-3 HZ drilling rigs.  It will also use 2 top hole rigs.
  • As of its Q1 earnings call, the company had announced an expectation of 3-4 frac crews, 3-4 HZ rigs and 2-3 top hole rigs.
  • The conclusion: EQT is able to do more with less.
  • As for operational highlights, EQT has many.
  • The company reports a 20% increase in pumping hours per month from Q3’19 to Q2’20.
    • In Q2’20, it is averaging close to 350 hours/month.
  • The company reports a 20% increase in stages per month from Q3’19 to Q2’20.
    • In Q2’20, it is averaging close to 190 stages/month.
  • EQT’s horizontal drilling speed (feet/hour) is up 63% since Q2’19.
  • EQT has witnessed a 36% decrease in days to drill 1,000 feet.
  • The company uses an electric frac fleet and a hybrid drilling rig (provides reduced fuel consumption).
  • In its press release, EQT calls out an instance in June where it drilled over 10,500 feet in 24 hours.
  • Our note last night touched on the impact of efficiencies and how that might impact rig and frac crew demand.
  • The EQT comments add fuel to the fire.
  • Now off to get coffee.
  • Have a good day.
  • Take a look at the EQT slides.
  • One final thing before we hit send, the company’s operational performance improvement and cost cuts since new management came in is impressive.
  • To be fair, we haven’t taken a deep operational dive into the full EQT story, but we do watch its IR slide decks as they come out and the changes appear significant.
  • Based on these improvements, it’s time to book a trip to Pittsburgh to learn more.

Friendly reminder, this is not investment advice.  Just takeaways from EQT’s press release and IR slide deck.


Daniel Energy Partners is pleased to announce the publication of its first market research note. In this note, we reached out to executives across the oil service and E&P sectors to gauge leading edge sentiment.

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