Company Overview - EQT Corporation is headquartered in Pittsburgh, PA, and is primarily engaged in the exploration and production of natural gas, focusing on the Appalachian Basin, which includes Ohio, Pennsylvania, and West Virginia [11] - EQT is recognized as the largest natural gas producer in the domestic market based on average daily sales volumes [11] Investment Ratings - EQT currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A, indicating a solid investment potential [12] - The company has a Momentum Style Score of A, with shares increasing by 9.1% over the past four weeks [12] Earnings Estimates - In the last 60 days, four analysts have revised their earnings estimates for EQT upwards, with the Zacks Consensus Estimate rising by $0.18 to $3.43 per share for fiscal 2025 [12] - EQT has demonstrated an average earnings surprise of 62.9%, suggesting strong performance relative to expectations [12] Investment Consideration - With a strong Zacks Rank and top-tier Momentum and VGM Style Scores, EQT is recommended for investors' consideration [13]

Industry Overview - Natural gas is gaining traction as a cleaner-burning fossil fuel compared to crude oil and coal, leading to a positive outlook for exploration and production companies [1] - The U.S. Energy Information Administration (EIA) forecasts natural gas spot prices to average $4.30 per million BTU this year, up from $2.20 last year [1] - U.S. natural gas demand is projected to increase by 4% to 116 billion cubic feet per day (Bcf/d), driven by rising exports and new LNG export facilities [1] Company Insights: EQT Corporation - EQT's current natural gas production is between 104 to 105 Bcf/day, which is below the projected demand of approximately 108 Bcf/day by the end of 2025 [2] - EQT can generate free cash flows even if natural gas prices drop to $2.00 per MMBtu, indicating strong financial resilience [4] - The company maintains an investment-grade credit profile, positioning it favorably in the current market environment [4] Company Insights: Antero Resources (AR) - Antero Resources is among the top five natural gas and NGL producers in the U.S. and has a lower exposure to debt capital, making it an investment-grade stock [5] - Approximately 75% of Antero's produced natural gas is directed to the export market, positioning it well to benefit from the expanding LNG export market [5] - Antero has sufficient high-quality drilling locations in the Appalachian Basin to sustain production levels for over two decades, enhancing its production outlook [5] Investment Considerations - The favorable pricing environment for natural gas incentivizes exploration and production, making EQT and Antero Resources attractive investment opportunities [3]

Company Overview - EQT Corporation is headquartered in Pittsburgh, PA, and is primarily engaged in the exploration and production of natural gas, focusing on the Appalachian Basin, which includes Ohio, Pennsylvania, and West Virginia [11] - EQT is recognized as the largest natural gas producer in the domestic market based on average daily sales volumes [11] Investment Ratings - EQT holds a Zacks Rank of 2 (Buy) and has a VGM Score of A, indicating strong potential for growth [12] - The company is particularly appealing to growth investors, with a Growth Style Score of B, forecasting year-over-year earnings growth of 123% for the current fiscal year [12] Earnings Estimates - In the last 60 days, six analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.55 to $3.59 per share [12] - EQT has demonstrated an average earnings surprise of 62.9%, further highlighting its strong performance [12] Conclusion - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EQT Corporation is positioned as a strong candidate for investors' portfolios [13]

Core Insights - EQT Corporation reported $2.15 billion in revenue for Q1 2025, marking a year-over-year increase of 25.1% and a surprise of +0.23% over the Zacks Consensus Estimate [1] - The EPS for the same period was $1.18, compared to $0.82 a year ago, resulting in an EPS surprise of +15.69% against the consensus estimate of $1.02 [1] Financial Performance Metrics - Average sales price for oil was $53.05, slightly below the five-analyst average estimate of $53.88 [4] - Total average daily sales volume was 6,342 MMcfe/D, exceeding the estimated 6,170.1 MMcfe/D [4] - Average natural gas price was $3.66, lower than the estimated $3.74 [4] - Oil sales volume was 395 MBBL, below the estimated 478.76 MBBL [4] - Average sales price for natural gas was $3.83, higher than the estimated $3.75 [4] - Total sales volume reached 570,751 MMcfe, surpassing the estimated 556,651.9 MMcfe [4] Revenue Breakdown - Operating revenues from sales of natural gas, natural gas liquids, and oil totaled $2.24 billion, exceeding the estimated $2.07 billion, representing a +72.2% change year-over-year [4] - Oil sales revenue was $20.96 million, below the average estimate of $25.18 million, reflecting a -19.9% year-over-year change [4] - Revenues from pipeline, net marketing services, and other sources were $174.04 million, significantly above the estimated $98.71 million, showing a +9297.5% year-over-year change [4] - NGLs sales revenue was $173.82 million, exceeding the estimated $153.23 million, with an +11.3% change year-over-year [4] - Total natural gas and liquids sales, including cash settled derivatives, reached $2.15 billion, surpassing the estimated $1.94 billion [4] - Natural gas sales revenue was $2.05 billion, exceeding the estimated $1.85 billion, representing an +82.8% year-over-year change [4]

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM__________ TO__________ COMMISSION FILE NUMBER: 001-03551 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q EQT CORPORATION (Exact name of registrant as specified in its charter) Pennsylvania 25-0464690 (State or other j ...

Financial Data and Key Metrics Changes - The first quarter of 2025 generated the strongest financial results in recent company history, with production at the high end of guidance due to robust well performance and minimal winter impact [7][10] - The company achieved over $1 billion in free cash flow during the quarter, nearly double the consensus estimates of the next closest natural gas producer [10] - Net debt decreased to $8.1 billion from $9.1 billion at year-end 2024, reflecting significant deleveraging [22] Business Line Data and Key Metrics Changes - The company tactically increased production by 300 million cubic feet per day during the quarter, capitalizing on strong winter demand and robust Appalachia pricing [8][10] - Operating expenses and capital spending were below the low end of guidance, driven by efficiencies and synergies [10][14] - The acquisition of Olympus Energy's assets is expected to enhance free cash flow per share by 4% to 8% over three years at natural gas prices ranging from $2.50 to $5 per million Btu [12] Market Data and Key Metrics Changes - Natural gas prices averaged $3.65 per million Btu during the quarter, contributing to the strong free cash flow generation [10] - The corporate gas price differential is projected to tighten from around $0.60 this year to approximately $0.30 in 2028, providing a $600 million pretax annual free cash flow tailwind [21] Company Strategy and Development Direction - The company is focused on reducing cash flow risk and creating pathways for sustainable cash flow growth, aiming for greater through-cycle free cash flow generation and a higher trading multiple [17] - There is a rapidly expanding pipeline of in-basin demand opportunities, with expectations for 6 to 7 Bcf per day of local demand growth by 2030 [19] - The company plans to opportunistically repurchase shares and steadily grow its base dividend as it de-risks its balance sheet [16] Management's Comments on Operating Environment and Future Outlook - Management expressed a bullish outlook for medium-term gas prices, anticipating a significant increase in LNG demand in 2025 and 2026 [25][32] - The company is confident in its ability to adapt to market conditions and drive operational efficiencies, fueling outsized free cash flow generation [33] - Management noted that the natural gas market is structurally tighter than pricing indicates, with expectations for pricing to move materially higher, particularly in 2026 [32] Other Important Information - The company has captured approximately $360 million in annual synergies from the Equitrans acquisition, with potential for ongoing initiatives to drive additional upside [14] - The Olympus acquisition is expected to close in early Q3, with pro forma guidance to be issued as part of the second quarter earnings [13] Q&A Session Summary Question: On the Olympus acquisition and its impact on levered break-even - Management indicated that the Olympus deal is modestly deleveraging and improves the levered break-even to about $2.35 for 2025 [40] Question: Pricing strategy and allocation of gas - Management explained that as the balance sheet improves, there will be more flexibility to sell into daily markets, enhancing value capture [46] Question: M&A strategy and future consolidation - Management stated that the bar for future acquisitions has been raised, focusing on value and operational efficiency rather than just growth [54][58] Question: In-basin demand opportunities - Management highlighted the growth in in-basin demand due to blocked pipeline projects, positioning EQT well for future gas sales [61] Question: Benefits of data center deals - Management noted that securing supply for data centers is critical, and EQT is well-positioned to provide reliable energy solutions [72] Question: Basis differentials and their impact - Management clarified that about half of the projected $600 million uplift in free cash flow is due to sales deals, with the other half from in-basin dynamics [78] Question: Olympus midstream integration - Management confirmed plans to integrate Olympus' midstream assets with Equitrans to optimize delivery points and enhance value [97] Question: Out-of-basin opportunities - Management emphasized the growing demand for power generation in the region as a key focus area, moving away from LNG [105] Question: Synergy savings specifics - Management detailed that the recent $85 million in synergy savings stemmed from water disposal costs and system optimization efforts [140]

Financial Data and Key Metrics Changes - The first quarter of 2025 generated the strongest financial results in recent company history, with production at the high end of guidance and free cash flow exceeding $1 billion [5][6][14] - Operating expenses and capital spending were below the low end of guidance, leading to nearly double the consensus free cash flow estimates of the next closest natural gas producer [6][14] - Net debt decreased from $9.1 billion at year-end 2024 to $8.1 billion at the end of Q1 2025, with a target of $5 billion in net debt by mid-2026 [14][15] Business Line Data and Key Metrics Changes - The company tactically increased production by 300 million cubic feet per day during the quarter, driven by strong well performance and minimal winter impact [5] - The acquisition of Olympus Energy's assets is expected to enhance free cash flow per share by 4% to 8% over three years, with a purchase price of $1.8 billion at an attractive 3.4 times adjusted EBITDA multiple [6][7] Market Data and Key Metrics Changes - Natural gas prices averaged $3.65 per million BTU during the quarter, with expectations for a tightening of the corporate gas price differential from $0.60 to $0.30 by 2028 [6][13] - The company anticipates local demand growth of 6 to 7 Bcf per day by 2030, driven by new power generation and data center projects in Appalachia [10][11] Company Strategy and Development Direction - The company aims to reduce cash flow risk and create pathways for sustainable cash flow growth, focusing on operational efficiencies and strategic acquisitions [10][21] - The integrated nature of the Olympus assets is expected to drive synergies and enhance the company's ability to capture local demand opportunities [7][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the natural gas market being structurally tighter than pricing indicated, with expectations for higher gas prices in 2026 due to increasing LNG demand [16][21] - The company is optimistic about its ability to adapt to market conditions and continue generating free cash flow, with a clear path for sustained momentum [22] Other Important Information - The company has captured approximately $360 million in annual savings from the Equitrans acquisition, with ongoing initiatives expected to drive additional upside [8] - The Olympus acquisition is expected to close in early Q3 2025, with pro forma guidance to be issued as part of the second quarter earnings [8] Q&A Session Summary Question: What does the Olympus acquisition do to your levered breakeven? - Management indicated that the levered breakeven is approximately $2.35 for 2025, with the acquisition modestly improving the unlevered metrics [25][27] Question: Can you elaborate on the in-basin demand opportunities? - Management highlighted that the blocking of pipeline projects has increased in-basin demand, with ongoing discussions for gas supply solutions [42][45] Question: How do you view the pricing strategy moving forward? - Management noted that as the balance sheet improves, there will be more flexibility to sell into daily markets, capturing more value [30][32] Question: What are the strategic and financial boxes for further M&A? - Management stated that the bar for acquisitions has been raised, focusing on value and the power of the existing platform [36][38] Question: Are there any out-of-basin opportunities to consider? - Management emphasized the growing demand for power generation in the region as a key opportunity, particularly related to data centers [82][84]

Industry Overview - The Zacks Oil and Gas - Exploration and Production - United States industry is experiencing a mixed outlook, with OPEC revising its 2025 oil demand growth forecast down to 1.3 million barrels per day due to sluggish global consumption and rising U.S. tariffs [1][3] - Natural gas prices have surged, increasing 44% in 2024 and another 13% in Q1 2025, driven by cold weather, tight supply, and strong global demand [1][4] - The clean energy transition poses a long-term risk to fossil fuel demand as renewables and electric vehicles gain traction [1][5] Key Trends - OPEC's downward revision of oil demand growth reflects concerns over slower consumption and trade dynamics affected by U.S. tariffs [3] - Natural gas fundamentals indicate tight supply and strong demand, with prices reaching a two-year high of $4.491 [4] - The shift towards clean energy could lead to a structural decline in traditional oil demand over the next 5 to 10 years [5] Industry Performance - The Zacks Oil and Gas - US E&P industry ranks 192 out of 246 Zacks industries, placing it in the bottom 22% [6] - The industry's earnings estimates for 2025 have decreased by 33.7% over the past year, indicating a negative earnings outlook [7] - Over the past year, the industry has declined by 32.9%, underperforming both the broader Zacks Oil - Energy Sector and the S&P 500 [9] Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 10.70X, lower than the S&P 500's 15.58X but above the sector's 4.36X [13] - Historical trading ranges for the industry show a high of 15.45X and a low of 3.56X over the past five years [13] Investment Opportunities - HighPeak Energy is highlighted as a strong investment opportunity, with a projected 92.5% increase in 2025 earnings and a 45% upward revision in earnings estimates over the past 60 days [15][16] - EQT Corporation, the largest natural gas producer in the U.S., has an expected EPS growth rate of 51.2% over the next three to five years, with an 11% increase in earnings estimates recently [18][19] - Antero Resources shows a remarkable projected 1,514.3% year-over-year growth in 2025 earnings, with a strong production outlook from its low-cost drilling inventory [20][21]

EQT Corporation (EQT) reported first-quarter 2024 adjusted earnings from continuing operations of $1.18 per share, which beat the Zacks Consensus Estimate of $1.02. The bottom line increased from the year-ago reported figure of 82 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Adjusted operating revenues increased to $2,153 million from $1,720 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $2,147 million.The strong quarterly results were ...

EQT Corporation (EQT) came out with quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 15.69%. A quarter ago, it was expected that this company would post earnings of $0.50 per share when it actually produced earnings of $0.69, delivering a surprise of 38%. Over the last four quarters, the company ha ...