EQT hikes capex for 2022 after robust Q4
US producer EQT plans to boost capital expenditure to $1.30-1.45bn in 2022, up from a spend of $1.1bn last year, the company said on February 9.
EQT announced the increase while reporting a surge in net income to $1.8bn for the final three months of 2021, up from only $64mn a year earlier. Its adjusted EBITDA came to $766mn, up from $410mn in Q4 2020.
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The company's free cash flow came to $422mn, up from $109mn a year before, on the back of increased sales volumes and higher prices. It projects its free cash flow in 2022 to come to $1.40-1.75bn, up from $935mn in 2021.
EQT fetched on average $2.68/'000 ft3 for the natural gas it sold in Q4 2021, up 17% year/year, reflecting higher prices on the New York Mercantile Exchange, partly offset by unfavourable differential and cash-settled derivatives.
"In 2021, we further improved our balance sheet, successfully completed the acquisition and integration of Alta Resources, announced ambitious net-zero targets and rewarded shareholders by implementing a comprehensive shareholder return programme, consisting of a quarterly cash dividend and authorisation to repurchase $1bn of our common stock," EQT CEO Toby Rice said.
“Through continued execution of our modern operating model, our company expects to generate tremendous free cash flow from our deep inventory of core long-lateral inventory, contractually-declining gathering rates and improved capital efficiency," he said.
EQT also gained from a growth in sales volumes to 527bn ft3 in Q4 2021, up from 401bn ft3 a year earlier. The growth was primarily due to the company's acquisition of Alta Resources in 2021, which added 96bn ft3 of fourth-quarter production.