EQT(EQT) - 2025 Q2 - Quarterly Results

Production Performance - Second quarter 2025 production reached 568 Bcfe, at the high-end of guidance, reflecting strong well performance and compression project outperformance, an increase of 60 Bcfe from 508 Bcfe in Q2 2024[6] - The company reported a production volume of 568,227 MMcfe for the three months ended June 30, 2025, compared to 507,512 MMcfe in the previous quarter[57] - Natural gas sales volume increased to 534,441 MMcf in Q2 2025, up from 474,075 MMcf in Q2 2024, representing a growth of 12.7%[71] - The company reported a total sales volume of 568,227 MMcf in Q2 2025, an increase from 507,512 MMcf in Q2 2024, representing a growth of 11.9%[71] Financial Performance - Net income attributable to EQT for Q2 2025 was $784 million, a significant increase of $774 million compared to $10 million in Q2 2024[8] - Adjusted EBITDA attributable to EQT was $1,033 million, up $563 million from $470 million in the same quarter last year[8] - Total operating revenues for Q2 2025 reached $2,557,719, a significant increase from $952,512 in Q2 2024, representing a growth of approximately 168%[67] - Net income attributable to EQT Corporation for the first half of 2025 was $1,026,286, compared to $113,005 in the same period of 2024, marking an increase of about 810%[67] - Operating income for the first half of 2025 was $1,630,288, up from $185,691 in the first half of 2024, reflecting a growth of approximately 777%[67] Cash Flow and Expenditures - The company generated $240 million of free cash flow attributable to EQT in Q2 2025, a turnaround from a negative $171 million in Q2 2024[8] - Free cash flow for the three months ended June 30, 2025, was $340,218,000, compared to a negative free cash flow of $171,095,000 in the same period of 2024[46] - Capital expenditures for Q2 2025 were $554 million, 15% below the mid-point of guidance, due to efficiency gains and midstream project optimization[6] - Capital expenditures for the first half of 2025 were $1,049,289, slightly lower than $1,092,633 in the same period of 2024[69] Debt and Liquidity - Total debt as of June 30, 2025, was $8.3 billion, with net debt down approximately $1.4 billion from year-end 2024[14] - Total liquidity as of June 30, 2025, was $4.1 billion, with no borrowings outstanding under the $3.5 billion revolving credit facility[14] - Net debt as of June 30, 2025, was $7,759,545, down from $9,122,084 at the end of 2024[60] Guidance and Future Plans - Updated guidance for 2025 includes an increase in total sales volume guidance by 100 Bcfe to 2,300 – 2,400 Bcfe, while lowering per-unit operating cost guidance by 6 cents per Mcfe[15] - The company plans to turn-in-line 95 – 120 net wells in 2025, including 24 – 36 net wells in Q3 2025[15] Market and Pricing - Average sales price for natural gas was $2.99 per Mcfe for the three months ended June 30, 2025, up from $1.75 per Mcfe in the previous quarter[57] - Average natural gas price rose to $3.63 per Mcf in Q2 2025, compared to $2.02 per Mcf in Q2 2024, reflecting a significant increase of 80%[71] - The average NGLs price, including cash settled derivatives, was $35.64 per Bbl in Q2 2025, down from $37.44 per Bbl in Q2 2024, a decrease of 4.3%[71] Strategic Transactions - The Olympus Acquisition was completed on July 1, 2025, with integration expected to be largely completed within 30 days[6] - The company completed the Equitrans Midstream Merger in July 2024, which significantly increased its equity method investments[32] - The company expects to continue benefiting from its equity method investments following the Equitrans Midstream Merger completed in July 2024[43] Adjusted Metrics - Adjusted net income attributable to EQT for Q2 2025 was $273.1 million, resulting in an adjusted EPS of $0.45[29] - Adjusted EBITDA for Q2 2025 was $1.16 billion, with adjusted EBITDA attributable to EQT at $1.03 billion[36] - Adjusted operating cash flow for the three months ended June 30, 2025, was $917,878,000, up from $405,040,000 in the same period of 2024[46]