EQT Corp, EQT Midstream Partners Announce 2014 CAPEX Forecast - Quick Facts

(RTTNews) - EQT Corp. (EQT) announced its 2014 capital expenditure or CAPEX forecast of $2.4 billion. The CAPEX forecast includes $1.9 billion for EQT Production, $475 million for EQT Midstream, and the remainder for other corporate items. Funding will be provided by cash-on-hand at year-end, which includes proceeds from the sale of Equitable Gas Company, and cash generated from operations.

EQT Corp.'s operating cash flow is projected to be about $1.5 billion in 2014, which includes $55 million for distribution to EQT Midstream Partners' public common unitholders.

The company noted that it intends to release full-year 2013 earnings and host a live webcast for security analysts on February 13, 2014.

EQT noted that its 2014 CAPEX excludes CAPEX for EQT Midstream Partners, LP, an entity controlled by EQT Corp. and consolidated in EQT's financial statements.

In a separate press release, EQT Midstream Partners LP (EQM), an EQT Corporation company, announced its 2014 financial and capital expenditure forecast. Adjusted EBITDA is expected to be $170 - $175 million and distributable cash flow is expected to be $148 - $153 million. The adjusted EBITDA, distributable cash flow and CAPEX forecasts do not include financial impacts of potential acquisitions.

EQT Midstream Partners, LP or Partnership forecasts quarterly distribution increases of at least $0.03 per unit through the end of 2014. The distribution forecast is based on accretion from the 2013 acquisition of the Sunrise Pipeline and expected organic growth, which is driven by ongoing development of the Marcellus shale. The 2014 expected per unit distribution of $2.14 is 29% higher than the 2013 expected per unit distribution of $1.66.

The Partnership forecasts total CAPEX to be approximately $80 million - $85 million in 2014, and expects to increase Equitrans transmission capacity by 650 BBtu per day in 2014, which will bring the total transmission throughput capacity to 2.9 TBtu per day.

The Partnership expects to complete the fully subscribed Jefferson compression expansion project in the third quarter of 2014, which will add 550 BBtu per day of transmission capacity. The Jefferson compression expansion is a $30 million project, with $20 million - $25 million investment expected in 2014.