Although not to the Rice’s satisfaction, their proxy and director challenges have already impacted the direction of EQT to lower costs and stir up management.
All questions I think all of us have, but as a land owner who has dealt with both Rice and EQT, I have to say that land owner and community relations were better with Rice. They definitely took a more personal interest and were more approachable with their land owners. As far as the bottom line, maximum production and market sales are our most important considerations, no matter who ends up running the company. After 2.5 yrs production under Rice and 1.25 yrs with EQT, on the land owner end, return was better under Rice BUT market conditions have as much to do with that as production rate and marketing. My biggest question would be which leadership has plans to expand on what they started, as opposed to being content with the status quo. We expected additional drilling and production under both entities yet have remained stagnant, whether that is part of Rice's complaint with EQT management or a holdover from Rice. In any case, increased drilling and production at the best market prices for the least investment is advantageous to both land owners and investors so we are anxious to see how this all pans out. Don't think anyone really knows. EQT seems to be much more secretive with their plans, keeping everyone without explicit need out of the loop. That doesn't go over well with land owners, who should be kept informed of expansion, or lack thereof, since they'd have NOTHING without them and have a vested interest in operations. I guess time will tell.
I like Rice better as a Co. to work with as a whole Rice was easy to talk too and didn't seem to mind any questions I had. I would think EQT should be drilling the heck out of the leases to cover the cost of buying out rice. There are many permits in Springhill TWP. Greene Co. PA and no one knows if and when EQT will act on these.So the jury is still out for me.
Curious how drilling out the acreage would cover the cost of the acquisition. The market has shown that the only E&P stocks to climb under the current conditions are those that have curtailed production, entertained buy-backs or increased dividends.
Those who have turned a blind eye to that have continued to plummet.
well as I see if your not selling gas your aren't making any money All the acres in the world don't make money if your not producing or selling any gas. CASH FLOW
My gas got sold in 2017, but I have not been paid for it. All up to date for 2018. Shitty customer relations (EQT) and I make the same tired call several times a month. Well went into production Oct 17. Gulfport\EQT(Rice) well. Gulfport paid and current. I get nothing but runaround from customer relations. Can we say pass the buck? Rooting for the Rice brothers. I think they now see what a fool move they made, but as always rear sight is always 20\20
I agree with the customer relations of EQT.I have been trying to resolve an issue on a well payment for months.I tell the person that answers my call what the problem is,she says she'll make a note and send it up.It can be 2 or 3 weeks before I get a call,and heaven forbid I'm not home.You return the call,get the main switchboard and,once again,they make a note to pass along.Instead of a return call that day or the next,even after I plead that I don't want to be placed on their 10 day(lol) wait list,it can be 2 or 3 more weeks.I bet if you owed them money,they wouldn't piddle around like that.....
I have been getting this same runaround since January. I've been calling, I have sent emails that don't get returned, I even resorted to snail mail. No one ever calls me back. I've talked to people who can't help and just try to send my issue up the line, with no resolve.
Somehow in the transition, EQT has messed up my paperwork and given me two separate accounts with different owner numbers, with one having federal taxes withheld (they should not have done this because my initial account had a W9). So I am out thousands in taxes that I was going to handle myself. There was no error on my end, and it started out by them sending me paper checks and stopping my direct deposit, which I didn't ask for either, one in my maiden name and one in my married name (mind you I've been married since before they took over and there was no issue with Rice).
All my statements are finally paid current, with the exception of one month. Gulfport still owes me from Aug. 2018-current.
so I now call weekly. Started documented who\when\date and response so that when ( no doubt that "IF" will not come into play) I am forced to file, I can show their lack of response.
Got this Email , which is the first time this has happened with their typical canned response.
This is in regards to 3 months revenue from the initial first 3 months of production. Now gulfport was able to finalize their portion (it is their well) so what could EQTs issue possibly be?
These "Units" that they refer to are the same ones I am getting payments on currently. How can they be finalized for 2018 moving forward and not the last 3 months of 2017 (well went online oct 17)
"We received your correspondence regarding missing revenue, after further review the analyst has determined that these units are currently being worked on but unfortunately are not yet complete. We understand your frustration and we do apologize, and we will release the three months of production as soon as possible. Should you have any further questions please feel free to contact us back, thanks so much and have a great day."
EQT Production Company
2400 Ansys Drive Suite 200
Canonsburg, PA 15317
In a vacuum that makes sense, but they certainly are selling a lot of gas from their existing wells. Undeveloped acreage doesn't make money, but spending $45-60mm to develop a new pad under current market conditions doesn't either. Across the board, those basic economics have driven down stock prices for companies that have gone with the blindly plug-and-chug approach.
That makes sense however the acreage and existing well pads EQT acquired in the Rice deal aren't being expanded on either. Existing, already producing pads with plenty of room for expansion DO make money however from what I've seen of EQT's operation is continuing business as usual on their own existing pads and ignoring the huge potential in the newly acqired Rice producing pads. Example: I've seen them add lateral after lateral to one pad (upwards of 20) in my area while at least 3 large formerly Rice pads with exponentially more room for expansion sit with no additional drilling. That is wasting assets. I sincerely hope either this Rice Team takeover is successful OR it lights a fire under EQT. As far as customer svc, Rice was the best.
There is a drilling rig now on Mohawk Warrior (former rice and producing. One of the early wells. )