EQT(US:EQT)2025-10-22 20:16Financial Performance - For the three months ended September 30, 2025, net income attributable to EQT Corporation was $335.9 million, or $0.53 per diluted share, compared to a net loss of $300.8 million, or $0.54 per diluted share, for the same period in 2024[204]. - For the nine months ended September 30, 2025, net income attributable to EQT Corporation was $1,362.1 million, or $2.23 per diluted share, compared to a net loss of $187.8 million, or $0.39 per diluted share, for the same period in 2024[205]. - Increased sales of natural gas, decreased gathering expenses, and increased pipeline revenues contributed to the improved financial performance in 2025[205]. - Total operating revenues for the nine months ended September 30, 2025, were approximately $976.7 million, an increase of 138.3% compared to $409.8 million in 2024[242]. - Operating income for the nine months ended September 30, 2025, was approximately $639.2 million, reflecting a 115.1% increase from $297.2 million in the same period of 2024[242]. Sales and Production - Natural gas sales volume for Q3 2025 reached 595,642 MMcf, a 8.8% increase from 547,225 MMcf in Q3 2024[209]. - Total sales volume for Q3 2025 was 634,395 MMcfe, an increase of 9.1% compared to 581,414 MMcfe in Q3 2024[216]. - For the nine months ended September 30, 2025, total sales volume was 1,773,373 MMcfe, a 9.3% increase from 1,622,976 MMcfe in the same period of 2024[224]. - Sales of natural gas, NGLs, and oil for the nine months ended September 30, 2025 increased by approximately $2,330 million, reflecting a $2,025 million increase from higher average sales prices[225]. Pricing and Revenue - Average natural gas price increased to $3.24 per Mcf in Q3 2025, up 42.7% from $2.27 per Mcf in Q3 2024[209]. - Average sales price rose to $2.64 per Mcfe in Q3 2025, a 39.7% increase from $1.89 per Mcfe in Q3 2024[216]. - Average realized price for total sales volume was $2.76 per Mcfe in Q3 2025, up from $2.38 per Mcfe in Q3 2024, representing a 16% increase[213]. - For the nine months ended September 30, 2025, average sales price increased by 56.2% to $3.17 per Mcfe, compared to $2.03 per Mcfe in the same period of 2024[224]. Expenses and Costs - Total operating expenses for Q3 2025 were $1,445,429 thousand, a slight increase of 2.3% from $1,413,500 thousand in Q3 2024[216]. - Total operating expenses for the nine months ended September 30, 2025, were approximately $337.5 million, an increase of 199.6% compared to $112.6 million in 2024[242]. - Gathering expenses decreased on an absolute and per Mcfe basis for the nine months ended September 30, 2025, primarily due to the ownership of gathering assets acquired in the Equitrans Midstream Merger[228]. - Processing expenses increased due to higher production of gas requiring processing from wells turned-in-line during and after the third quarter of 2024[230]. Acquisitions and Mergers - The Olympus Energy Acquisition included approximately 90,000 net acres with approximately 500 million cubic feet per day of net production, with a total purchase price of $1,471 million in EQT common stock and $475 million in cash[193]. - The Equitrans Midstream Merger has resulted in a decrease in third-party gathering expenses for the Production segment, while increasing affiliate transportation and processing expenses[197]. - Firm reservation fee revenue increased by approximately $343.8 million for the nine months ended September 30, 2025, primarily due to the gathering assets acquired in the Equitrans Midstream Merger[245]. Tax and Regulatory Impact - The enactment of the One Big Beautiful Bill Act is expected to favorably impact projected cash income tax obligations over the next five years by deferring a significant portion of current federal income taxes[202]. - The company anticipates that changes in regulations and tariffs could impact future sales volume, operating revenues, and capital expenditures[203]. Cash Flow and Financing - Net cash provided by operating activities was approximately $4,001 million for the nine months ended September 30, 2025, compared to $2,071 million in 2024, reflecting higher cash operating revenues[1]. - Net cash used in financing activities was approximately $1,743 million for the nine months ended September 30, 2025, compared to net cash provided of $100 million in the same period of 2024[1]. - Capital expenditures for the nine months ended September 30, 2025, totaled $1,669 million, slightly down from $1,683 million in 2024[1]. Debt and Credit Ratings - As of September 30, 2025, EQT's credit ratings are Baa3 from Moody's, BBB– from S&P, and BBB– from Fitch, all with a stable outlook[282]. - EQT's debt agreements require a total debt to total capitalization ratio no greater than 65%, and as of September 30, 2025, the company was in compliance with all provisions and covenants[283]. Risk Management - The hedging program primarily protects cash flows from natural gas price fluctuations, with a hedged volume of 332 MMDth for Q4 2025 and 3.6 MMDth/d[286]. - The commodity risk management program includes derivative instruments such as swaps, collars, and options to hedge against price changes[285]. Legal and Regulatory Matters - EQT is subject to various legal and regulatory claims, but does not anticipate that the ultimate aggregate liability will materially affect its financial position[291]. - The company evaluates legal proceedings regularly and accrues liabilities when a loss is probable and can be reasonably estimated[288].