Before the market opened this morning, Equitable Resources (NYSE:EQT) announced a capital expenditure budget of $1 billion for 2009. This amount is down from Equitable’s expected capex of $1.4 billion this year. The company plans to finance the spending from cash flow and existing credit lines.
When the company reported its third quarter results, it said it wouldnot have to go to the capital markets to fund a 2009 capex budget ofabout $1 billion. It appears to have made good on that statement.
The company also expects to increase natural gas sales by 15% in 2009.That amounts to about 97 billion cubic feet equivalent. The bigquestion, of course, is how much they can sell the gas for. Equitableholds swaps on about 30% of its production at $5.91 per thousand cubicfeet, and collars on about a fourth at a low of $7.34 and a high of$13.68. Unless the market turns around completely, these hedges shouldpay off for the company.
Equitable shares closed at $30.09 yesterday, about 60% below the 52-week high.
Paul Ausick
December 4, 2008
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.