Largest U.S. natural gas producer plans $1.8 billion write-down in Q4
EQT Corp., the largest U.S. natural gas producer, plans to take a fourth-quarter write-down of up to $1.8 billion.
Why it matters: EQT, which has major Appalachian operations, is the latest company to write down the value of U.S. assets amid a glut of supply and very low prices.
- The plan disclosed in a regulatory filing on Monday comes after Chevron last month announced an $11 billion write-down that was also focused largely on Appalachian gas holdings.
- Another big company, Range Resources, last week warned of a "significant non-cash impairment" related to holdings in Louisiana, and also said it planned to cut overall spending in 2020 by over $200 million.
The big picture: Via Natural Gas Intelligence, "Operators across Appalachia are expected to slash spending this year and curb output in the years ahead as prices are earthbound on a glut of natural gas."