EQT(US:EQT)2025-10-21 20:31Financial Performance - Total sales volume for Q3 2025 was 634 Bcfe, a 9.1% increase from 581 Bcfe in Q3 2024[6] - Net income attributable to EQT was $336 million, compared to a loss of $301 million in Q3 2024, representing a $637 million improvement[7] - Free cash flow attributable to EQT was $484 million, a significant turnaround from a loss of $125 million in Q3 2024[7] - Adjusted net income attributable to EQT for Q3 2025 was $328.58 million, compared to $91.43 million in Q3 2024, reflecting a significant increase[26] - The company reported a net income of $407.22 million for Q3 2025, compared to a net loss of $297.43 million in Q3 2024[31] - Net income for the three months ended September 30, 2025, was $158,088,000, compared to $8,320,000 for the same period in 2024, representing a significant increase[35] - Net income attributable to EQT Corporation for the nine months ended September 30, 2025, was $1,362,148, compared to a loss of $187,818 in the same period of 2024[61] - For the nine months ended September 30, 2025, EQT Corporation reported a net income of $1,579,290, compared to a net loss of $185,130 in the same period of 2024[63] Revenue and Sales - Total production operating revenues for the nine months ended September 30, 2025, were $4.27 billion, compared to $2.36 billion for the same period in 2024[31] - Total operating revenues for Q3 2025 reached $1,958,571, a 53% increase from $1,283,802 in Q3 2024[61] - The company reported a total of $1,677,617 in sales of natural gas, natural gas liquids, and oil for Q3 2025, up from $1,099,752 in Q3 2024[61] - EQT Corporation's total sales, including cash settled derivatives, amounted to $5,504,453 for the nine months ended September 30, 2025, up from $4,285,930 in 2024, indicating a growth of 28.5%[65] Cash Flow and Expenses - Adjusted operating cash flow for the three months ended September 30, 2025, was $1,221,140,000, compared to $522,286,000 in 2024, reflecting a 133.4% increase[42] - Free cash flow for the three months ended September 30, 2025, was $600,888,000, a turnaround from a negative $120,799,000 in the same period of 2024[42] - Operating cash flow increased significantly to $4,000,565 for the nine months ended September 30, 2025, up from $2,070,697 in 2024, reflecting a growth of approximately 93.5%[63] - The company incurred $28.96 million in other expenses in Q3 2025, primarily related to transaction costs associated with acquisitions[31] - The Olympus Energy Acquisition incurred cash transaction costs of $21 million in Q3 2025, impacting other expenses significantly[31] - The impact of cash transaction costs related to the Olympus Energy Acquisition was $21.0 million for the three months ended September 30, 2025[42] Capital Expenditures and Investments - Capital expenditures for Q3 2025 were $618 million, 10% below the midpoint of guidance due to efficiency gains[6] - Capital expenditures for the nine months ended September 30, 2025, were $1,675,691, slightly higher than $1,662,112 in 2024[63] - The company utilized $2,223,895 in net cash for investing activities during the nine months ended September 30, 2025, compared to $2,162,332 in 2024[63] Market and Strategic Developments - The company signed LNG offtake agreements for 4.5 million tonnes per annum starting in 2030-2031, reflecting successful execution of its LNG strategy[6] - The MVP Boost project capacity was upsized to 600 MDth/d due to strong demand, with a projected build multiple of approximately 3.0x adjusted EBITDA[6] - The company expects total sales volume of 550-600 Bcfe for Q4 2025, including 15-20 Bcfe of strategic curtailments[13] - The company expects adjusted net income attributable to EQT to continue improving, driven by operational efficiencies and market conditions[21] Debt and Financial Position - Net debt as of September 30, 2025, was $7,982,086, a decrease from $9,122,084 as of December 31, 2024[54] - Total debt as of September 30, 2025, was $8,217,822, down from $9,324,177 as of December 31, 2024[54] - The current portion of debt increased to $506,690 as of September 30, 2025, compared to $320,800 at the end of 2024[62] - The total liabilities decreased to $14,404,987 as of September 30, 2025, from $15,552,119 at the end of 2024[62] Operational Performance - Average realized price increased to $2.76 per Mcfe, up $0.38 from $2.38 in Q3 2024[7] - Operating costs reached a record low of $1.00 per Mcfe, 7% below the midpoint of guidance[6] - Adjusted EBITDA for Q3 2025 reached $1.33 billion, up from $831.94 million in Q3 2024, indicating strong operational performance[31] - Operating income for Q3 2025 was $603,210, a significant recovery from an operating loss of $281,840 in Q3 2024[61] - Production adjusted operating revenues reached $1,752,577 for the three months ended September 30, 2025, compared to $1,382,917 in the prior year, reflecting a 27% increase[50] - Natural gas sales volume reached 1,666,421 MMcf for the nine months ended September 30, 2025, a 9.6% increase from 1,520,574 MMcf in 2024[65] - The average realized price for natural gas, including cash settled derivatives, was $2.99 per Mcf for the nine months ended September 30, 2025, compared to $2.49 per Mcf in 2024, representing a 20.1% increase[65] Shareholder Returns - The dividend was increased by 5% to $0.66 per share, with a compounded annual growth rate of approximately 8% since 2022[6] - The company believes that using its distribution share from the Midstream JV best reflects the economic impact on adjusted operating cash flow and free cash flow trends[44]