Equitable Resources sets 09 capital budget at $1B

PITTSBURGH - Equitable Resources Inc., a natural gas company that focuses its operations in the Appalachians, said Thursday it approved a $1 billion capital budget for 2009 and forecast its 2008 gas sales rate to reach the high end of its previously estimated rate.

The 2009 budget entails $600 million for well development, $360 million for midstream projects and $40 million for distribution infrastructure projects and other corporate items. Funding for this spending is expected to come from cash generated from operations and an existing credit facility.

The company said its year-end gas sales rate will hit the high end of 255 to 260 millions of cubic feet equivalent per day, its previous estimate. The company currently sells 255 MMcfe per day.

Equitable Resources also expects its 2009 investment to result in a 15 percent boost in natural gas sales to 96 to 97 billions of cubic feet equivalent compared with the 2008 estimate of 84 Bcfe.

Shares of the company rose 13 cents, or 0.4 percent, to $30.21. The 52-week share price range is $20.71 to $76.14.

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