Integrated natural gas company EQT Corporation (formerly Equitable Resources) hopes to get its fair share of the natural gas market. EQT's Distribution unit provides gas to about 276,500 customers in Pennsylvania, West Virginia, and Kentucky. EQT Midstream operates 11,400 miles of gathering pipeline and 770 miles of transmission lines. EQT Production exploits proved reserves of 5.2 trillion cu. ft. of natural gas equivalent in the Appalachian region, operating some 14,000 active wells and drilling more than 700 new wells a year. EQT Production sells its natural gas products to Appalachian-area utilities and industrial customers and to marketers, including EQT Energy, its own gas marketing affiliate.
EQT Energy's operations include gas processing and transportation, storage, marketing, and trading.
EQT Corporation's overall strategy is to build up its vertically intregrated and complementary gas businesses. It has a substantial acreage position (where it focuses on long-lived, low-risk wells), extensive gas gathering and transmission assets, low cost structure, and proximity to northeastern US consumer markets.
Expanding its gas processing and natural gas liquid (NGL) marketing presence into lucrative shale areas, in 2010 the company formed a joint venture with DCP Midstream Partners to develop natural gas processing and related NGL infrastructure in the Marcellus and Huron shale plays in the Appalachian basin.
The company reported an increase in revenues and net income in 2010, driven by higher gas volumes (from 2009 and 2010 drilling programs), and by the increase in NGL volumes and prices. A decrease in purchased gas costs also helped to lift net income.
In order to raise cash to invest in production activities in its shale areas, in 2011 the company sold a Kentucky-based natural-gas processing complex and pipeline to MarkWest Energy Partners for $230 million. It also sold its 70-mile natural gas pipeline (Big Sandy Pipeline) in eastern Kentucky to Spectra Energy for $390 million.
In 2012 the company spun off EQT Midstream Partners as a public company; it retained a 63% limited partner interest in the company.
That year it also agreed to sell its natural gas distribution business, Equitable Gas Company, LLC, to Peoples Natural Gas for $720 million. In the deal EQT Corporation will receive some Marcellus midstream assets, including 200 miles of regulated transmission pipelines, and four storage pools with a 15.1 billion cu. ft. working gas capacity.