EQT Announces an Increase in Proved Reserves to 5.4 Tcfe

PITTSBURGH--(BUSINESS WIRE)--EQT Corporation (NYSE: EQT) today reported year-end 2011 total natural gas proved reserves of 5,365 Bcfe. This represents a 145 Bcfe net increase over the 5,220 Bcfe the company reported last year, and a reserve replacement ratio of 173%. Proved reserves increased in the Marcellus shale play as a result of wells drilled in 2011 and continued improvement in the estimated ultimate recovery (EUR) per Marcellus well. The EUR of proved developed Marcellus wells averaged 5.7 Bcfe, with an average length of pay of 4,050 feet; while proved undeveloped Marcellus wells averaged 6.3 Bcfe, with an average length of pay of 3,765 feet. Partially offsetting the Marcellus reserve additions was the elimination of Huron proved undeveloped reserves, consistent with the company’s decision to suspend development of this play. Lower natural gas prices, the resultant reduction in projected cash flow and the company’s decision to live within its means financially, drove this decision. Drill bit finding costs were $1.36 per Mcfe in 2011.

EQT estimates year-end 2011 total natural gas reserves, including proved, probable and possible reserve categories (3P), at 21.4 Tcfe.

Summarized below are the company’s estimated 3P reserves broken out by play:

Reserve Estimates (Bcfe)	Marcellus	Huron*	CBM / Other	Total
Proved Developed	1,015	1,062	889	2,966
Proved Undeveloped	2,399	–	–	2,399
Total Proved	3,414	1,062	889	5,365
Probable	4,235	4,340	22	8,597
Possible	5,098	2,315	2	7,415
Total Proved, Prob. and Poss.	12,747	7,717	913	21,377

* The company includes the Lower Huron, Cleveland, Berea sandstone and other Devonian shales, except Marcellus, in its Huron play.

100% of the company’s proved reserves have been audited by Ryder Scott Company, petroleum consultants. The company’s 3P reserves have been determined in accordance with the SEC guidelines.

Estimated 3P Reserves by Play

	Years Ended
	December 31,
(Bcfe)	2011	2010
Marcellus
Proved Developed	1,015	577
Proved Undeveloped	2,399	2,302
Total Proved	3,414	2,879
Probable	4,235	4,164
Possible	5,098	5,194
Total Proved, Probable and Possible	12,747	12,237
Huron
Proved Developed	1,062	1,092
Proved Undeveloped	–	383
Total Proved	1,062	1,475
Probable	4,340	4,236
Possible	2,315	1,641
Total Proved, Probable and Possible	7,717	7,352
CBM/Other
Proved Developed	889	866
Proved Undeveloped	–	–
Total Proved	889	866
Probable	22	72
Possible	2	650
Total Proved, Probable and Possible	913	1,588
Totals
Total Proved	5,365	5,220
Total Probable and Possible	16,012	15,957
Total Proved, Probable and Possible	21,377	21,177

The company has also made an assessment of its total resource potential, including 3P reserves and its estimate of the potential resources beyond the 3P totals. This resource potential is estimated to be:

Resource Potential	Total (Tcfe)
Marcellus	20.8
Huron	11.2
CBM/Other	1.9
TOTAL	33.9

Summary of Changes in Proved Reserves
Natural Gas and Oil* (in Bcfe)
Balance at December 31, 2010	5,220
Extensions, discoveries and other additions	694
Revisions**	(388)
Purchases	39
Sales	(1)
Production	(199)
Balance at December 31, 2011	5,365

*Oil is converted to natural gas reserves using a 6 Mcfe per Bbl of oil.

**Huron and CBM/Other reserves that were previously booked as proved undeveloped have been removed, as they are not expected to be developed over the next five years.

Reserve Replacement Calculations

Reserve replacement ratio is the sum of the net increase of reserves before production, divided by production.

Drill Bit Finding Cost

Drill bit finding cost is the total cost incurred related to natural gas and oil activities calculated in accordance with Financial Accounting Standards Board Accounting Standards Codification 932 (ASC 932) less property acquisition costs for proved developed and unproved properties, divided by extensions, discoveries and other additions.

Cautionary Statements

The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that a company anticipates as of a given date to be economically and legally producible and deliverable by application of development projects to known accumulations. We use certain terms in this press release, such as EUR (estimated ultimate recovery) and total resource potential, that the SEC's rules strictly prohibit us from including in filings with the SEC. These measures are by their nature more speculative than estimates of reserves prepared in accordance with SEC definitions and guidelines and accordingly are less certain. We also note that the SEC strictly prohibits us from aggregating proved, probable and possible reserves in filings with the SEC due to the different levels of certainty associated with each reserve category.

Disclosures in this press release contain forward-looking statements. Statements that do not relate strictly to historical or current facts are forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of resource potential, EUR and projected well drilling plans, including the projected capital budget. These statements involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The company has based these forward-looking statements on current expectations and assumptions about future events. While the company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, most of which are difficult to predict and many of which are beyond the company’s control. The risks and uncertainties that may affect the operations, performance and results of the company’s business and forward-looking statements include, but are not limited to, those set forth under Item 1A, “Risk Factors” of the company’s Form 10-K filed for the year ended December 31, 2010 and in the company’s 10-K for the year ended December 31, 2011 to be filed with the SEC, as updated by any subsequent Form 10-Qs.

Any forward-looking statement speaks only as of the date on which such statement is made and the company does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

EQT is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, transmission and distribution. Additional information about the company can be obtained through the company’s web site, http://www.eqt.com. Investor information is available on EQT’s web site at http://ir.eqt.com. EQT uses its web site as a channel of distribution of important information about the company, and routinely posts financial and other important information regarding the company and its financial condition and operations on the Investors web pages.