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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."

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