EQT to spend within its cash flow, has no plans to issue debt

By Jennifer Lanning Drey

Portland, Ore., Aug. 23 - EQT Corp. will grow within its cash flow rather than risk its investment-grade rating, David Porges, its chief executive officer, said Tuesday during a presentation at EnterCom, Inc.'s Oil and Gas Conference in Denver.

The company also has no plans to issue equity in the foreseeable future, he said.

"Prudently, we believe that is the right thing for our company to do," Porges said.

As a result, EQT has many opportunities that meet its internal hurdle rate but are not being pursued based on the company's desire to take a more prudent approach to its capital structure, he said.

However, given the size of the investment opportunity compared to the size of the company, EQT will eventually require another form of capital to exploit its asset base, he said.

The CEO noted that EQT has been pursuing a midstream venture on the liquids side and is open to other forms of ventures.

The company is also willing to sell non-core assets, even though it has not done so recently, he said.

EQT is an energy exploration and production company based in Pittsburgh.

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