- EQT Corp. (NYSE:EQT) says it expects to incur a Q4 impairment charge of $1.4B-$1.8B on the value of its assets, as natural gas prices slump to their lowest levels in a generation.
- The writedown is "a result of management's potential monetization of select, non-core exploration and production assets and depressed natural gas prices and... unproved properties which are primarily the result of changes to our development strategy and renewed focus on a refined core operating footprint," according to an 8-K filing.
- Yesterday, Moody's downgraded EQT's debt rating to junk, citing "EQT's significantly weakening cash flow metrics in light of the persistent weak natural gas price environment" and its "intent to refinance its 2020 maturities in lieu of debt reduction through repayment."
- EQT is the latest E&P company hit by weak returns from Appalachia assets; Range Resources last week suspended its dividend to help pay down debt, and more than half of Chevron's $10B-plus charge it took last month was related to gas resources in Appalachia.
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