October 31, 2019 / 3:51 PM / 8 months ago

EQT to cut spending on U.S. natural gas production in 2019, 2020

Oct 31 (Reuters) - EQT Corp, the biggest U.S. natural gas producer, said on Thursday it cut its capital expenditure guidance for 2019 by $115 million and reduced its 2020 spending forecast by $525 million from its prior 2019 guidance.

Despite the cut in 2019 CapEx, the company said in its third quarter earnings release that it was maintaining its 2019 full-year production guidance of 1,490-1,510 billion cubic feet equivalent (bcfe).

The company said it expects sales volumes in 2020 of 1,450-1,500 bcfe, which is roughly flat with projected 2019 production.

"We are committed to allocating our capital responsibly and effectively, with the intent to reduce absolute debt by at least $1.5 billion by mid-year 2020 to maintain investment grade metrics," EQT President and Chief Executive Toby Rice said in the earnings release.

EQT said it planned to spend $1.30-$1.40 billion in 2020. That compares with its previous capital expenditure expectation of $1.825-$1.925 billion in 2019. That previous expectation was before the $115 million reduction announced on Thursday.

Reporting by Scott DiSavino Editing by Marguerita Choy

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