Company Overview - EQT Corporation has gained 1.2% in the past six months, outperforming the 0.9% improvement of the composite stocks in the industry [1] - EQT is a leading natural gas producer in North America with a strong presence in the Appalachian Basin, which offers numerous prime drilling locations [2] Production and Market Position - The company's production prospects are robust due to the growing demand for clean energy sources, as natural gas is a cleaner-burning fossil fuel [2] - EQT aims to achieve net zero scope 1 and scope 2 greenhouse gas emissions by 2025 or sooner, positioning itself as a leader in emissions reduction goals among its peers [3] Industry Context - Other major exploration and production firms, such as ConocoPhillips, Diamondback Energy, and EOG Resources, are also exposed to commodity price volatility, similar to EQT [4] - ConocoPhillips has a solid production outlook due to its diversified upstream asset base across low-cost regions [5] - Diamondback Energy is enhancing productivity per well in the Midland Basin, likely leading to increased production volumes [6] - EOG Resources is recognized as a leading explorer and producer with a strong inventory of high-quality drilling wells [7]

EQT Corporation (EQT) announced plans to reverse some of the production cuts it implemented earlier this year, starting in October and November. This move comes in response to rising demand and higher natural gas prices, according to a Reuters report. Earlier in 2024, EQT and other U.S. gas producers scaled back production when natural gas prices dropped to multi-year lows. This price drop was compelled by an unusually mild winter, which led to an oversupply of gas in storage. EQT alone had reduced producti ...

Investment thesis: EQT (NYSE: EQT ) is a solid shale performer with an emphasis on natural gas production. Its stock price is down significantly due to external factors such as low natural gas prices. Recent data, forecasts, and trends suggest that natural Analyst's Disclosure: I/we have a beneficial long position in the shares of EQT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other tha ...

EQT Corporation (EQT) reported robust second-quarter 2024 results, with both the bottom line and top line beating the Zacks Consensus Estimate. The stock price has increased marginally since its earnings release on Jul 23. EQT Corporation is among the leading upstream energy players producing natural gas, with a solid footprint in the prolific Appalachian Basin. In the United States, it ranks as one of the largest natural gas producers in terms of average daily sales volumes. In the first quarter of this ye ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) EQT's unaudited financial statements report Q2 2024 net income of $9.2 million, a significant improvement, and six-month net income of $112.3 million [Statements of Condensed Consolidated Operations](index=3&type=section&id=Statements%20of%20Condensed%20Consolidated%20Operations) EQT reported Q2 2024 operating revenues of $952.5 million and net income of $9.5 million, a turnaround from a prior-year loss Condensed Consolidated Operations Summary (Three Months Ended June 30) | Metric | 2024 ($ thousands) | 2023 ($ thousands) | | :--- | :--- | :--- | | **Total operating revenues** | $952,512 | $1,018,751 | | **Operating income (loss)** | $2,971 | ($34,993) | | **Net income (loss) attributable to EQT** | $9,517 | ($66,626) | | **Diluted EPS** | $0.02 | ($0.18) | Condensed Consolidated Operations Summary (Six Months Ended June 30) | Metric | 2024 ($ thousands) | 2023 ($ thousands) | | :--- | :--- | :--- | | **Total operating revenues** | $2,364,780 | $3,679,822 | | **Operating income** | $185,691 | $1,575,887 | | **Net income attributable to EQT** | $113,005 | $1,151,922 | | **Diluted EPS** | $0.25 | $2.94 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) EQT's balance sheet as of June 30, 2024, shows total assets of $24.7 billion, liabilities at $9.6 billion, and equity at $15.1 billion Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2024 ($ thousands) | Dec 31, 2023 ($ thousands) | | :--- | :--- | :--- | | **Total current assets** | $1,229,827 | $2,012,975 | | **Net property, plant and equipment** | $23,176,286 | $22,950,170 | | **Total assets** | $24,706,469 | $25,285,098 | | **Total current liabilities** | $1,685,568 | $2,036,840 | | **Total liabilities** | $9,581,721 | $10,504,281 | | **Total equity** | $15,124,748 | $14,780,817 | [Statements of Condensed Consolidated Cash Flows](index=6&type=section&id=Statements%20of%20Condensed%20Consolidated%20Cash%20Flows) Net cash from operations for H1 2024 was $1.48 billion, a decrease from prior year, with significant cash used in investing and financing activities Cash Flow Summary (Six Months Ended June 30) | Metric | 2024 ($ thousands) | 2023 ($ thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $1,477,708 | $2,099,881 | | **Net cash used in investing activities** | ($879,212) | ($983,831) | | **Net cash used in financing activities** | ($649,499) | ($1,359,202) | | **Net change in cash and cash equivalents** | ($51,003) | ($243,152) | | **Cash and cash equivalents at end of period** | $29,974 | $1,215,492 | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail revenue recognition, derivative hedging, debt structure, and key events including the NEPA asset divestiture and Equitrans Midstream Merger - On July 18, 2024, the company amended its Articles of Incorporation to increase the authorized number of common stock shares from **640 million** to **1.28 billion**[20](index=20&type=chunk) Disaggregated Revenue from Contracts with Customers (Six Months Ended June 30) | Revenue Source | 2024 ($ thousands) | 2023 ($ thousands) | | :--- | :--- | :--- | | Natural gas sales | $1,852,279 | $2,478,088 | | NGLs sales | $295,884 | $166,727 | | Oil sales | $45,259 | $33,868 | | **Total** | **$2,193,422** | **$2,678,683** | Outstanding Debt Summary | Debt Instrument | Carrying Value (June 30, 2024, $ thousands) | Carrying Value (Dec 31, 2023, $ thousands) | | :--- | :--- | :--- | | Revolving credit facility | $47,000 | $0 | | Term Loan Facility | $497,680 | $1,244,265 | | Senior notes | $4,321,702 | $4,176,180 | | Note payable to EQM | $85,404 | $88,483 | | **Total Debt** | **$4,951,786** | **$5,795,113** | - On May 31, 2024, the company completed the NEPA Non-Operated Asset Divestiture, selling a 40% interest in non-operated assets for **$500 million** in cash and other assets, recognizing a gain of approximately **$320 million**[107](index=107&type=chunk)[124](index=124&type=chunk) - On July 22, 2024, after the reporting period, the company completed its merger with Equitrans Midstream. Equitrans shareholders received **0.3504 shares** of EQT common stock for each share held[146](index=146&type=chunk)[135](index=135&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q2 2024 net income of $9.5 million to the NEPA asset divestiture, with six-month results impacted by lower commodity prices and the Equitrans Midstream Merger [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q2 2024 sales volume increased 7.8% to 507.5 Bcfe, with revenue up 4.9% to $889.5 million, while six-month revenue decreased 18.1% to $2.19 billion - Q2 2024 net income was **$9.5 million**, compared to a net loss of **$66.6 million** in Q2 2023, primarily due to a gain on the NEPA Non-Operated Asset Divestiture[159](index=159&type=chunk) - For the six months ended June 30, 2024, net income was **$113.0 million**, a decrease from **$1,151.9 million** in the same period of 2023, mainly due to a lower gain on derivatives and decreased commodity sales revenue[186](index=186&type=chunk) Sales Volume and Revenue Comparison (Three Months Ended June 30) | Metric | 2024 (MMcfe) | 2023 (MMcfe) | % Change | | :--- | :--- | :--- | :--- | | Total sales volume | 507,512 | 470,839 | 7.8% | | Sales of natural gas, NGLs and oil ($ thousands) | $889,517 | $848,325 | 4.9% | | Average realized price ($/Mcfe) | $2.33 | $2.11 | 10.4% | Operating Expenses Per Unit ($/Mcfe) (Three Months Ended June 30) | Expense Category | 2024 ($/Mcfe) | 2023 ($/Mcfe) | | :--- | :--- | :--- | | Gathering | $0.59 | $0.68 | | Transmission | $0.35 | $0.33 | | LOE | $0.12 | $0.08 | | Production taxes | $0.08 | $0.04 | | Production depletion | $0.90 | $0.83 | [Capital Resources and Liquidity](index=35&type=section&id=Capital%20Resources%20and%20Liquidity) EQT's liquidity is supported by $1.48 billion in H1 2024 operating cash flow, with significant investing and financing outflows, and revised capital expenditure guidance post-merger - Net cash provided by operating activities decreased to **$1.48 billion** for the first six months of 2024 from **$2.10 billion** in the prior year period, mainly due to lower cash operating revenues and working capital changes[254](index=254&type=chunk) Capital Expenditures (Six Months Ended June 30) | Category | 2024 ($ millions) | 2023 ($ millions) | | :--- | :--- | :--- | | Reserve development | $912 | $792 | | Land and lease | $68 | $60 | | **Total cash capital expenditures** | **$1,093** | **$982** | - Following the Equitrans Midstream Merger, estimated total capital expenditures are **$620-$720 million** for Q3 2024 and **$580-$680 million** for Q4 2024[223](index=223&type=chunk) - On July 16, 2024, the Board of Directors declared a quarterly cash dividend of **$0.1575 per share**[228](index=228&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) EQT manages primary market risks from natural gas and NGL price volatility through derivative hedging, also addressing interest rate and counterparty credit risks - The company's main market risk exposure is the volatility of natural gas and NGL prices, which it manages through a hedging program using derivative instruments like swaps and options[297](index=297&type=chunk)[268](index=268&type=chunk) - A hypothetical **10% decrease** in the NYMEX natural gas price as of June 30, 2024, would increase the fair value of the company's natural gas derivative instruments by approximately **$537 million**[271](index=271&type=chunk) - A **1% increase** in interest rates on variable-rate debt (revolving credit facility and Term Loan Facility) during the first six months of 2024 would have increased interest expense by approximately **$3.0 million**[302](index=302&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting during Q2 2024 - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report (June 30, 2024)[307](index=307&type=chunk) - No changes in internal control over financial reporting occurred during Q2 2024 that have materially affected, or are reasonably likely to materially affect, internal controls[308](index=308&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material updates to legal proceedings previously disclosed in its 2023 Annual Report on Form 10-K - There are no material updates to the legal proceedings disclosed in the company's 2023 Form 10-K[309](index=309&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) New risks associated with the Equitrans Midstream Merger include potential failure to realize anticipated benefits, operational disruption, and higher-than-expected integration costs - The company may not achieve the anticipated benefits of the Equitrans Midstream Merger, which could disrupt current plans and operations[281](index=281&type=chunk)[311](index=311&type=chunk) - The company expects to continue incurring significant, and potentially higher than anticipated, non-recurring transaction and integration costs related to the Equitrans Midstream Merger[282](index=282&type=chunk)[320](index=320&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No equity securities were repurchased in Q2 2024, with approximately $1.4 billion remaining under the $2 billion share repurchase program expiring December 31, 2024 - No equity securities were repurchased during the second quarter of 2024[283](index=283&type=chunk) - As of June 30, 2024, approximately **$1.4 billion** remains available for purchase under the company's **$2 billion** share repurchase program, which is set to expire on December 31, 2024[321](index=321&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including credit agreement amendments, gas gathering agreements, and officer certifications

Adjusted operating revenues increased to $1.18 billion from $993 million in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $1.14 billion. As of Jun 30, 2024, the company had cash and cash equivalents of $29.9 million, and net debt worth $4.92 billion. The Zacks Consensus Estimate for HES' 2024 EPS is pegged at $10.98. The company has a Zacks Style Score of A for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days. Cash Flows SM ...

EQT Corporation (EQT) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.19. This compares to loss of $0.17 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 57.89%. A quarter ago, it was expected that this company would post earnings of $0.65 per share when it actually produced earnings of $0.82, delivering a surprise of 26.15%. Over the last four quarters, the company has surp ...

PITTSBURGH, July 23, 2024 -- EQT Corporation (NYSE: EQT) today announced financial and operational results for the second quarter of 2024. (1) A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure. Second Quarter 2024 Earnings Webcast Information Diluted weighted average common shares outstanding 441,968 361,982 444,893 393,435 Diluted EPS $ 0.02 $ (0.18) $ 0.25 $ 2.94 Adjusted ...

PITTSBURGH, July 23, 2024 /PRNewswire/ -- EQT Corporation (NYSE: EQT) today announced financial and operational results for the second quarter of 2024. Three Months Ended June 30, Second Quarter 2024 and Recent Highlights: Closed the acquisition of Equitrans Midstream Corporation (Equitrans) a full quarter ahead of plan, resulting in approximately $150 million of savings relative to initial expectations; accelerates synergy capture and the commencement of deleveraging plan Sales volume of 508 Bcfe, above th ...

In the last reported quarter, the company's earnings of 82 cents per share beat the Zacks Consensus Estimate of 65 cents, backed by higher sales volumes. EQT's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met the same once, delivering an average surprise of almost 103.3%. This is depicted in the graph below. Factors to Consider With commodity prices having improved in the final month of the June quarter, production is likely to have increased, aiding the company's bo ...