Group 1 - EQT Corporation (NYSE: EQT) reported earnings that exceeded expectations, largely due to a decrease in costs associated with the Equitrans acquisition [2] - The analysis of oil and gas companies focuses on identifying undervalued entities within the sector, examining their balance sheets, competitive positions, and development prospects [1] - The oil and gas industry is characterized as a boom-bust, cyclical market, requiring patience and experience for successful investment [2] Group 2 - The article serves as an example of the detailed analysis provided to members of the Oil & Gas Value Research service, which includes insights not available on the free site [1]

```markdown [PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section encompasses unaudited financial statements, management's discussion, market risk disclosures, and internal controls [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) Presents unaudited consolidated financial statements, reflecting significant revenue and net income growth post-Equitrans Midstream Merger Condensed Consolidated Operations Highlights (in thousands, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total operating revenues** | $2,557,719 | $952,512 | $4,297,569 | $2,364,780 | | **Operating income** | $1,134,038 | $2,971 | $1,630,288 | $185,691 | | **Net income attributable to EQT** | $784,147 | $9,517 | $1,026,286 | $113,005 | | **Diluted EPS** | $1.30 | $0.02 | $1.70 | $0.25 | Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,631,336 | $1,714,679 | | **Net property, plant and equipment** | $31,624,191 | $31,747,818 | | **Total assets** | $39,666,748 | $39,830,255 | | **Total current liabilities** | $2,306,407 | $2,461,549 | | **Total liabilities** | $14,568,898 | $15,552,119 | | **Total equity** | $25,097,850 | $24,278,136 | Condensed Consolidated Cash Flows Highlights (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $2,982,866 | $1,477,708 | | **Net cash used in investing activities** | $(1,198,032) | $(879,212) | | **Net cash used in financing activities** | $(1,431,435) | $(649,499) | | **Net change in cash and cash equivalents** | $353,399 | $(51,003) | - Net income attributable to EQT for Q2 2025 was **$784.1 million** (**$1.30/share**), a substantial increase from **$9.5 million** (**$0.02/share**) in Q2 2024. The growth was driven by higher operating revenues, gains on derivatives, and equity earnings from the MVP Joint Venture[196](index=196&type=chunk) - The company expects to spend approximately **$2.30 billion to $2.45 billion** in total capital expenditures in 2025, funded by cash from operations and its revolving credit facility[260](index=260&type=chunk) - Expected sales volume for 2025 is projected to be between **2,300 and 2,400 Bcfe**, including contributions from the **Olympus Energy Acquisition**[260](index=260&type=chunk) - Cash flow from operations increased to **$2.98 billion** for the first six months of 2025, up from **$1.48 billion** in the same period of 2024, due to higher revenues and favorable working capital changes[265](index=265&type=chunk) [Note 2: Financial Information by Business Segment](index=10&type=section&id=Note%202.%20Financial%20Information%20by%20Business%20Segment) Company restructured into Production, Gathering, and Transmission segments post-merger, Production remains primary revenue driver - As a result of the **Equitrans Midstream Merger**, the company changed its internal reporting from one reportable segment to three: Production, Gathering, and Transmission[33](index=33&type=chunk)[34](index=34&type=chunk) Segment Operating Income (Loss) - Q2 2025 (in thousands) | Segment | Operating Income (Loss) | | :--- | :--- | | Production | $1,007,110 | | Gathering | $205,405 | | Transmission | $90,056 | | **Total Segment Operating Income** | **$1,302,571** | Segment Total Assets - June 30, 2025 (in thousands) | Segment | Total Assets | | :--- | :--- | | Production | $22,027,485 | | Gathering | $8,276,505 | | Transmission | $7,635,142 | | **Total Segment Assets** | **$37,939,132** | [Note 3: Revenue from Contracts with Customers](index=16&type=section&id=Note%203.%20Revenue%20from%20Contracts%20with%20Customers) Total revenue significantly increased from natural gas sales and new pipeline revenues post-Equitrans Midstream Merger Disaggregated Revenue from Contracts with Customers - Q2 2025 vs Q2 2024 (in thousands) | Revenue Source | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Natural gas sales | $1,539,205 | $730,705 | | NGLs sales | $145,104 | $139,734 | | Total Gathering pipeline revenue | $320,269 | $74,300 | | Total Transmission pipeline revenue | $134,583 | $0 | | **Total revenues from contracts** | **$1,837,676** | **$892,633** | - As of June 30, 2025, the company has approximately **$11.9 billion** in remaining performance obligations from contracts with fixed consideration, primarily related to gathering and transmission firm reservation fees[82](index=82&type=chunk) - The weighted average remaining term for both third-party and affiliate firm gathering and transmission contracts is approximately **11 to 13 years** as of June 30, 2025[84](index=84&type=chunk) [Note 7: Debt](index=24&type=section&id=Note%207.%20Debt) Total debt decreased to **$8.3 billion** due to repayments, with new EQT notes issued post-Equitrans Midstream Merger Total Debt Outstanding (in thousands) | Date | Principal Value | Carrying Value | | :--- | :--- | :--- | | June 30, 2025 | $8,366,092 | $8,315,037 | | December 31, 2024 | $9,368,516 | $9,324,177 | - During the first six months of 2025, the company repaid, redeemed, or repurchased **$813 million** in principal of various debt tranches[120](index=120&type=chunk)[121](index=121&type=chunk) - On April 2, 2025, the company issued approximately **$3.9 billion** of New EQT Notes in exchange for tendered Existing EQM Notes following the **Equitrans Midstream Merger**[131](index=131&type=chunk) - On July 16, 2025, EQM issued notices for the full redemption of all its outstanding notes (approx. **$92.7 million**), which will be completed by July 31, 2025[122](index=122&type=chunk) [Note 11: Acquisitions](index=29&type=section&id=Note%2011.%20Acquisitions) Company completed **Equitrans Midstream Merger** and **Olympus Energy Acquisition**, adding significant assets and goodwill - On July 1, 2025, EQT completed its acquisition of **Olympus Energy Acquisition** for **$500 million** cash and **25.2 million shares** of EQT common stock[154](index=154&type=chunk)[155](index=155&type=chunk) - The **Equitrans Midstream Merger** was completed on July 22, 2024, with total consideration of **$6.0 billion**, including **$5.5 billion** in equity. The acquisition was accounted for as a business combination, resulting in **$2.06 billion** of goodwill[158](index=158&type=chunk)[159](index=159&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) - The goodwill from the **Equitrans Midstream Merger** is attributed to expected synergies from vertical integration (**$1.23B**) and deferred tax liabilities (**$831M**), and was allocated entirely to the Transmission segment[165](index=165&type=chunk) [Note 13: Commitments and Contingencies](index=32&type=section&id=Note%2013.%20Commitments%20and%20Contingencies) Company agreed to a **$167.5 million** settlement in Securities Class Action, expecting **$16 million** insurance recovery - On May 12, 2025, the parties in the Securities Class Action agreed to a settlement where the company will pay **$167.5 million** to the plaintiffs[179](index=179&type=chunk) - As a result of the settlement, the company increased its accrual for estimated loss contingencies by **$150 million** in Q2 2025, resulting in a total reserve of **$167.5 million**[179](index=179&type=chunk) - The company expects to recover approximately **$16 million** of the settlement amount through insurance[179](index=179&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses increased net income from mergers and higher commodity prices, detailing segment performance, capital expenditures, and liquidity - Net income attributable to EQT for Q2 2025 was **$784.1 million** (**$1.30/share**), a substantial increase from **$9.5 million** (**$0.02/share**) in Q2 2024. The growth was driven by higher operating revenues, gains on derivatives, and equity earnings from the MVP Joint Venture[196](index=196&type=chunk) - The company expects to spend approximately **$2.30 billion to $2.45 billion** in total capital expenditures in 2025, funded by cash from operations and its revolving credit facility[260](index=260&type=chunk) - Expected sales volume for 2025 is projected to be between **2,300 and 2,400 Bcfe**, including contributions from the **Olympus Energy Acquisition**[260](index=260&type=chunk) - Cash flow from operations increased to **$2.98 billion** for the first six months of 2025, up from **$1.48 billion** in the same period of 2024, due to higher revenues and favorable working capital changes[265](index=265&type=chunk) [Business Segment Results of Operations](index=40&type=section&id=Business%20Segment%20Results%20of%20Operations) New three-segment structure shows strong Q2 2025 performance, with Production income soaring and new Gathering and Transmission segments contributing Production Segment Operating Results - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total sales volume (MMcfe) | 568,227 | 507,512 | 12.0% | | Average sales price ($/Mcfe) | $2.99 | $1.75 | 70.9% | | Total operating revenues (thousands) | $2,420,542 | $949,396 | 155.0% | | Operating income (loss) (thousands) | $1,007,110 | $(7,012) | 14,462.7% | Gathering Segment Operating Results - Q2 2025 vs Q2 2024 | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total gathered volume (BBtu/d) | 9,827 | 1,555 | 532% | | Total operating revenues (thousands) | $320,269 | $74,300 | 331% | | Operating income (thousands) | $205,405 | $53,871 | 281% | Transmission Segment Operating Results - Q2 2025 | Metric | Q2 2025 | | :--- | :--- | | Total transmission pipeline throughput (BBtu/d) | 4,279 | | Total operating revenues (thousands) | $134,583 | | Operating income (thousands) | $90,056 | [Capital Resources and Liquidity](index=50&type=section&id=Capital%20Resources%20and%20Liquidity) Operating cash flow and credit facilities are sufficient for **$2.3-$2.45 billion** 2025 capital expenditures and debt service - The company plans total capital expenditures of **$2,300 million to $2,450 million** for 2025[260](index=260&type=chunk) - On July 1, 2025, the company funded the **$500 million** cash portion of the **Olympus Energy Acquisition** with cash on hand and borrowings under its revolving credit facility[262](index=262&type=chunk) - During the first six months of 2025, financing activities included repayment of debt, dividends, and **$152 million** in distributions to the Midstream Joint Venture's Class B Unitholder[272](index=272&type=chunk)[273](index=273&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.1575 per share**, payable on September 2, 2025[274](index=274&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Company manages natural gas and NGL price volatility through hedging; a **10%** price decrease would increase derivative fair value by **$146 million** - A hypothetical **10% decrease** in the NYMEX natural gas price as of June 30, 2025, would increase the fair value of the company's natural gas derivative instruments by approximately **$146 million**[296](index=296&type=chunk) - A hypothetical **10% increase** in the NYMEX natural gas price as of June 30, 2025, would decrease the fair value of the company's natural gas derivative instruments by approximately **$144 million**[296](index=296&type=chunk) - A **1% increase** in interest rates on borrowings under its revolving credit facilities during the first six months of 2025 would have increased interest expense by approximately **$2 million**[299](index=299&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were **effective**, with ongoing integration of **Equitrans Midstream Corporation's** internal controls - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were **effective** as of the end of the reporting period[306](index=306&type=chunk) - The company is in the process of integrating the internal controls of **Equitrans Midstream Corporation**, which was acquired on July 22, 2024. This integration process may result in changes to internal controls[307](index=307&type=chunk) [PART II. OTHER INFORMATION](index=57&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity security sales, and a list of exhibits filed with the report [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) Investigations into the Pratt Storage Field incident remain open, with a subsidiary facing a criminal complaint, no material adverse impact expected - Regarding the 2018 Pratt Storage Field incident, investigations by the Pennsylvania Public Utilities Commission and PHMSA are still open[311](index=311&type=chunk) - On October 30, 2023, Equitrans, L.P. received a criminal complaint from the PA Attorney General's Office for alleged violations of the Clean Streams Law related to the Pratt Incident. The company does not expect the resolution to have a material adverse impact[313](index=313&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) There are **no material changes** to the risk factors previously disclosed in the Annual Report on Form 10-K for 2024 - There are **no material changes** to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[314](index=314&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) **No equity securities were repurchased** in Q2 2025, with **$1.4 billion** remaining under the extended **$2 billion** share repurchase program - **No equity securities were repurchased** during the second quarter of 2025[315](index=315&type=chunk) - The Board of Directors extended the **$2 billion Share Repurchase Program** to expire on **December 31, 2026**[316](index=316&type=chunk) - As of June 30, 2025, approximately **$1.4 billion** remains available for purchase under the Share Repurchase Program[316](index=316&type=chunk) [Item 6. Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including supplemental indentures, registration rights agreements, and officer certifications ```

Market Trends & Industry Dynamics - Natural gas prices are currently soft due to disappointing weather and oversupply, but the long-term outlook is strong [2] - The rise of AI is creating major league demand for natural gas [2] - The United States winning the AI race is a significant economic and national security opportunity [4] - Natural gas demand for AI is projected to increase by 10% to almost 20%, representing 10 to 18 BCF (billion cubic feet) per day [7][8] EQT's Strategy & Performance - EQT has transformed into a large-scale integrated natural gas champion over the last 5 years [2] - EQT is positioning itself to meet the growing demand from AI by connecting natural gas supply to power plants [2][5] - EQT has announced over 15 BCF (billion cubic feet) per day of natural gas supply deals to power plants that will feed AI demand [5] - EQT added a power plant in West Virginia that's about 600 MW (megawatts) [6] - EQT believes this is just the beginning and has a robust growth pipeline [5]

Financial Data and Key Metrics Changes - EQT reported strong momentum in Q2 2025, with production at the high end of guidance, benefiting from robust well productivity and compression project outperformance [5] - Free cash flow for Q2 was approximately $240 million, despite incurring $134 million in net expenses related to a litigation settlement, which if excluded, would have resulted in free cash flow of approximately $375 million [7] - Cumulative free cash flow generation totaled nearly $2 billion over the past three quarters, with natural gas prices averaging $3.3 per million Btu during this period [7][8] Business Line Data and Key Metrics Changes - The compression program is ahead of schedule and below budget, driving production uplift well above expectations [5] - The acquisition of Olympus Energy on July 1, 2025, added significant production capacity and core inventory, enhancing EQT's operational capabilities [8] - The company expects to generate approximately $250 million of recurring free cash flow from new projects by 2029, with a collective growth CapEx opportunity of around $1 billion over the next several years [18][19] Market Data and Key Metrics Changes - EQT's updated 2025 production guidance range is 2,300 to 2,400 Bcfe, including approximately 100 Bcfe from Olympus in the second half of the year [27] - The company anticipates a tightening of the Appalachian gas market due to increasing demand from LNG exports and new power generation facilities [24][26] Company Strategy and Development Direction - EQT's strategy focuses on reducing cash flow risk and creating pathways for sustainable cash flow growth through a pipeline of low-risk, high-return projects [15][21] - The company is leveraging its integrated platform to meet new demand with supply backed by firm contracts, rather than chasing commodity price signals [14][15] - EQT aims to operate with a maximum of $5 billion in net debt, allowing for flexibility in capital allocation and growth opportunities [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed a structurally bullish view on natural gas prices, anticipating a tightening market due to slowing associated gas growth and increasing LNG demand [23][24] - The company remains disciplined in production growth, focusing on reallocating existing volumes to meet new demand rather than increasing production indiscriminately [39][40] - Management highlighted the importance of maintaining a low-cost structure and investment-grade credit ratings to support sustainable growth [15][17] Other Important Information - EQT has secured long-term agreements for natural gas supply to support significant power generation projects, including a 3.6 gigawatt facility in Pennsylvania [11][12] - The company is also advancing midstream projects that are expected to enhance natural gas delivery reliability and reduce energy costs for consumers [10][13] Q&A Session Summary Question: Can you address the CapEx cadence to achieve $250 million of free cash flow growth by 2029? - Management indicated that the $1 billion CapEx related to midstream projects will be back-weighted towards 2028, allowing for flexibility in upstream production growth [35][36] Question: What would it take for EQT to add production instead of reallocating? - Management emphasized the need to be disciplined and responsive to market pricing, with potential production growth translating to significant free cash flow upside [39][41] Question: Can you discuss the evolution of capital spending in the base business? - Management noted that maintenance capital spending is expected to decrease while growth capital spending will increase, reflecting ongoing efficiency gains [47][48] Question: How do you see the timeline for reaching full capacity in new power generation projects? - Management expects to reach full capacity for the Shippingport and Homer City projects by the end of 2028, coinciding with other significant infrastructure expansions [56] Question: How do you view the current pricing dynamics in the market? - Management acknowledged that while current production levels are higher than expected, they remain focused on aligning supply with known demand through their infrastructure [70][72]

Financial Data and Key Metrics Changes - The company reported approximately $240 million of Q2 free cash flow, despite incurring $134 million in net expenses related to a litigation settlement [6] - Cumulative free cash flow generation totaled nearly $2 billion over the past three quarters, with natural gas prices averaging just $3.3 per million Btu during this period [6] - The company exited the quarter with $7.8 billion of net debt, down approximately $350 million compared to Q1, marking nearly $6 billion of debt reduction over the past three quarters [16] Business Line Data and Key Metrics Changes - Production was at the high end of guidance, benefiting from robust well productivity and outperformance from compression projects [5] - Capital spending came in approximately $50 million below the low end of guidance, driven by midstream spending optimization and lower well costs [5] - The company closed on the acquisition of Olympus Energy, which is expected to enhance production and operational integration [7] Market Data and Key Metrics Changes - The company expects to add 180,000 horsepower of compression to the MVP mainline, increasing capacity from 2 to 2.5 Bcf per day, to serve Southeast markets [8] - The MVP Southgate project is expected to provide 550 million cubic feet per day of capacity into the Carolinas, enhancing natural gas delivery reliability [9] - The company anticipates significant demand growth in the Southeast, driven by new projects and partnerships [10] Company Strategy and Development Direction - The company is focused on sustainable growth through a pipeline of low-risk, high-return projects in both midstream and upstream businesses [8] - The strategy includes reducing cash flow risk and creating pathways for sustainable cash flow growth, with a focus on organic investment opportunities [14] - The company aims to leverage its low-cost structure and integrated infrastructure to capture new demand and meet it with supply backed by firm contracts [13] Management's Comments on Operating Environment and Future Outlook - Management expressed a structurally bullish view for natural gas prices looking out to 2026 and 2027, despite near-term headwinds [22] - The company noted that U.S. oil activity is expected to remain subdued, curbing a major source of incremental gas supply [23] - Management highlighted the importance of maintaining flexibility in production decisions based on market conditions and pricing signals [40] Other Important Information - The company has a pipeline of nearly $1 billion of organic investment opportunities, expected to generate an aggregate free cash flow yield of approximately 25% once fully online [12] - The company is working on long-term agreements to supply natural gas for significant power generation projects, enhancing its growth potential [10][11] - The company plans to continue focusing on debt paydown while also exploring opportunistic share buybacks during market downturns [20] Q&A Session Summary Question: Can the company continue to build cash while spending on growth? - Management emphasized the ability to generate robust free cash flow while funding sustainable growth opportunities, with capital expenditures back-weighted towards 2028 [34][36] Question: What would it take to add production instead of reallocating? - Management indicated that production growth decisions would be based on market pricing and demand signals, with a focus on maintaining flexibility [38][40] Question: Can management discuss the evolution of capital spending? - Management noted that maintenance capital expenditures are expected to decrease while growth capital expenditures will increase, reflecting operational efficiencies [46] Question: How does the company view the LNG contracting plans? - The company aims to link supply directly to end users in the LNG market, with a long-term goal of maintaining 5% to 10% of volume in LNG contracts [88][90] Question: What is the outlook for the M2 pricing dynamics? - Management discussed the potential for basis tightening in the M2 market, with a focus on matching supply with demand through existing infrastructure [95][100]

Financial Performance - EQT's 2Q25 total sales volumes reached 568 Bcfe[8] - The average realized price was $2.81 per Mcfe[8] - Adjusted EBITDA attributable to EQT was $1,033 million[8] - Free cash flow attributable to EQT was $240 million[8] - Capital expenditures amounted to $554 million[8] Operational Efficiency and Cost Reduction - Capital spending was 15% below guidance midpoint due to efficiency gains[9] - Per unit operating costs were below the low-end of guidance due to lower LOE and SG&A expense[9] - Updated guidance increases annual production by 100 Bcfe and lowers operating cost guidance by 6 cents per Mcfe[9] Strategic Growth and Infrastructure Projects - Working to finalize agreements for Shippingport Power Station (800 MMcf/d) and Homer City Redevelopment project (665 MMcf/d)[10] - Launched open season for MVP Boost, providing 500 MMcf/d of incremental takeaway capacity[10] - Closed on the Olympus Acquisition on July 1st[10] Debt Management - Total debt was ~$8.3 billion and net debt was ~$7.8 billion, down ~$1.4 billion from YE24 and nearly $6 billion below 3Q24 levels[9]

Core Insights - EQT Corporation reported second-quarter 2025 adjusted earnings from continuing operations of 45 cents per share, exceeding the Zacks Consensus Estimate of 44 cents, and a significant improvement from a loss of 8 cents in the same quarter last year [1][9] - Adjusted operating revenues rose to $1,599 million from $1,183 million year-over-year, although it fell short of the Zacks Consensus Estimate of $1,793 million [1][9] Production - Sales volume increased to 568 billion cubic feet equivalent (Bcfe) from 508 Bcfe year-over-year, but missed the estimate of 569 Bcfe [3] - Natural gas sales volume was 534.4 Bcf, up from 474.1 Bcf in the prior year, but also missed the estimate of 535.3 Bcf [3] - Total liquid sales volume reached 5,631 thousand barrels (MBbls), slightly up from 5,573 MBbls year-over-year, but below the projection of 5,660.6 MBbls [3] Commodity Price Realizations - The average realized price for natural gas equivalent was $2.81 per thousand cubic feet (Mcfe), an increase from $2.33 year-over-year [4] - The average natural gas price, including cash-settled derivatives, rose to $2.69 per Mcf from $2.16 [4] - The natural gas sales price was $3.63 per Mcf, significantly higher than $2.02 recorded a year ago [4] - Oil price was reported at $51.70 per barrel, down from $61.96 year-over-year, and below the estimate of $47.19 [5] Expenses - Total operating expenses increased to $1.42 billion from $949.5 million in the prior-year quarter [6] - Gathering expenses decreased to 8 cents per Mcfe from 59 cents year-over-year, while transmission expenses rose to 45 cents per Mcfe from 35 cents [6] - Lease operating expenses remained flat at 9 cents year-over-year [6] Cash Flows - Adjusted operating cash flow totaled $918 million, up from $405 million a year ago [7] - Free cash flow improved to $340 million from a negative $171 million in the same quarter last year [7] Capex & Balance Sheet - Total capital expenditure was $554 million, down from $576 million reported a year ago [10] - As of June 30, 2025, the company had cash and cash equivalents of $555 million and net debt of $7.76 billion [10] Guidance - For Q3 2025, EQT anticipates total sales volume between 590-640 Bcfe [11] - The full-year sales volume forecast has been raised to 2,300-2,400 Bcfe, an increase of 100 Bcfe from earlier projections [11] - Capital expenditures are projected to be in the range of $2,300-$2,450 million for the full year [11]

Group 1: Earnings Performance - EQT Corporation reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, compared to a loss of $0.08 per share a year ago, representing an earnings surprise of +2.27% [1] - Over the last four quarters, the company has surpassed consensus EPS estimates four times [2] - The company posted revenues of $1.6 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 10.81%, compared to year-ago revenues of $1.18 billion [2] Group 2: Stock Performance and Outlook - EQT shares have increased approximately 16.1% since the beginning of the year, outperforming the S&P 500's gain of 7.2% [3] - The current consensus EPS estimate for the coming quarter is $0.66 on revenues of $1.98 billion, and for the current fiscal year, it is $3.37 on revenues of $8.37 billion [7] - The estimate revisions trend for EQT was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently in the bottom 28% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5]

EQT Reports Second Quarter 2025 Results PITTSBURGH, July 22, 2025 -- EQT Corporation (NYSE: EQT) today announced financial and operational results for the second quarter of 2025. Second Quarter 2025 Results: Recent Highlights: President and CEO Toby Z. Rice stated, "Second quarter results highlight a continuation of operational excellence and robust financial performance at EQT. Production was at the high-end of guidance, benefiting from strong well productivity and compression project outperformance. Capit ...

Core Insights - EQT Corporation reported strong financial and operational results for Q2 2025, highlighting operational excellence and robust financial performance [3][6] - The company generated approximately $3.7 billion in cumulative net cash from operating activities and nearly $2 billion in cumulative free cash flow over the past three quarters [3][8] - EQT is focusing on in-basin supply and midstream growth projects to enhance sustainable growth pathways [3][8] Financial Performance - Total sales volume reached 568 Bcfe, an increase from 508 Bcfe in Q2 2024, reflecting strong well performance [6][8] - Average realized price increased to $2.81 per Mcfe from $2.33 per Mcfe year-over-year [6][8] - Net income attributable to EQT was $784 million, a significant increase from $10 million in Q2 2024 [6][8] - Adjusted net income attributable to EQT was $273 million, compared to a loss of $37 million in the same quarter last year [6][8] - Free cash flow attributable to EQT was $240 million, a recovery from a loss of $171 million in Q2 2024 [6][8] Operational Efficiency - Capital expenditures were $554 million, 15% below the mid-point of guidance due to efficiency gains [8] - Total per unit operating costs were $1.08 per Mcfe, below the low-end of guidance, driven by lower lease operating expenses and SG&A [7][8] - The company achieved a record-setting quarter for completion efficiency and lower well costs [3][8] Strategic Initiatives - EQT is advancing multiple in-basin natural gas power and data center demand projects, leveraging its production scale and integrated infrastructure [3][8] - The company closed the acquisition of Olympus Energy's upstream and midstream assets on July 1, 2025, with integration expected to be completed within 30 days [8] - EQT is working to finalize agreements for supplying natural gas to significant power projects, including the Shippingport Power Station and the Homer City Redevelopment project [8] Guidance and Outlook - The company updated its 2025 guidance, increasing total sales volume expectations to 2,300 – 2,400 Bcfe, an increase of 100 Bcfe from prior guidance [16] - Full-year per unit operating cost guidance was lowered by 6 cents per Mcfe, reflecting efficiency gains from the Olympus Acquisition [16] - EQT plans to turn-in-line 95 – 120 net wells in 2025, with expectations for Q3 sales volume between 590 – 640 Bcfe [16][17]