In its just released analyst presentation EQT Corporation announced that it will consider outside capital including upstream or midstream JVs or the sale of non-core assets.

EQT is an Appalachian-focused independent with 500,000 acres in the Marcellus and 2.7 million acres in the Huron. It expects to nearly double its gas production in 2011 relative to 2010 due largely to rapidly increasing Marcellus shale output as well as more modest gains in Huron horizontal well output. The company anticipates achieving a 20% compound average rate of growth of production over the next five years.

Despite this ambitious growth plan, David Porges, CEO, stated that EQT does not have enough capital available to pursue all of the above hurdle rate opportunities that it currently holds. As a result, the company is imposing tougher capital allocation decisions including 2011 plans to scale back the Huron and CBM programs. He specifically commented that (1) building significant takeaway capacity in Huron does not seem prudent in the current price environment and (2) CBM economics are currently marginal.

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