Production Strategy & Flexibility - EQT is strategically curtailing production to capitalize on higher price markets, viewing this as a normal part of operations [3][4] - EQT can shut in up to 1 to 1.5 BCF (Billion Cubic Feet) per day of natural gas due to its vertical integration, showcasing operational flexibility [5] - Strategic curtailments involve approximately 20 BCF (Billion Cubic Feet), which is a small portion of EQT's total annual production [5][6] Natural Gas Demand Outlook - Natural gas demand is driven by replacing coal, increasing LNG exports, and the AI buildout [7] - US LNG exports are projected to exceed 30 BCF (Billion Cubic Feet) per day by 2030, up from 18 BCF (Billion Cubic Feet) per day currently [8] - The AI buildout in the US may require over 100 GW (Gigawatts) of power, equivalent to the energy needs of 20 New York cities [10][11] Company Performance - EQT's Q3 earnings beat expectations on both revenue and earnings [1] - EQT aims to make energy cheaper, cleaner, and more reliable [2]

Energy Policy & PJM Reform - Pennsylvania's Governor advocates for PJM (the largest U S power grid operator) reform to control costs and increase power generation, giving states more say [2][3] - The Governor is willing to consider Pennsylvania going its own way if PJM is unwilling to enact real reforms [4][6] - Pennsylvania saved consumers nearly $20 billion by successfully suing PJM when they tried to raise rates [9] - The Governor wants PJM to move more quickly and not constrain Pennsylvania's energy development [15] Energy Production & Economic Development - Pennsylvania is the second largest energy producer in the U S and needs to produce more energy for economic opportunity and freedom [5] - Economic development in Pennsylvania is directly tied to energy generation and keeping consumer costs down [16] - Pennsylvania is converting old coal-fired power plants into natural gas-run power plants [14] - Pennsylvania has secured a $20 billion investment pledge from Amazon for data centers [11][13] Renewable Energy & Federal Policy - The Governor criticizes President Trump's policies for cutting tax credits for clean energy projects, putting 26,000 Pennsylvania jobs at risk [19] - The Governor supports an "all of the above" energy approach, including solar, wind, natural gas, and nuclear energy [20] - The Governor believes President Trump's immigration policies, including a potential $100,000 fee for H-1B visa applicants, are making it harder for Pennsylvania to compete [21][22]

Industry Outlook - Canada is expected to witness significant new electricity transmission projects on both the east and west coasts [1] - The government's initiative aims to boost energy production [1]

Energy & AI Strategy - The US aims to dominate energy creation and technology to win the global race, addressing previous shortcomings through the AI action plan [2] - The administration prioritizes unlocking the American technology stack within the energy sector [3] - AI is crucial for unlocking energy potential, requiring physical intelligence data to fuel AI models [4] - The US has the opportunity to out-innovate its way in energy generation due to its lead in AI, robotics, and physical intelligence [6] - The focus of the action plan includes cutting red tape and deregulation to unleash private sector involvement in energy creation [7][8] - Exporting American AI and robotic technology ensures American values lead in technology development [9] Competitive Landscape - By 2030, China is predicted to have three times the energy generation capacity of the US, posing a significant challenge [5] Infrastructure & Technology - By 2030, the US could face 100 times more blackouts and brownouts if energy manufacturing isn't supercharged [3] - Critical assets powering the grid have only four years of remaining life [4] - Gecko Robotics is rolling out products to 250 power plants by 2026 to unlock more capacity and extend the life of power plants [7]

Renewable Energy & Government Subsidies - The industry expresses concern about dependence on government-subsidized energy, questioning its long-term sustainability [1] - The industry emphasizes the need for a continuous engine for new energy production to achieve nonlinear growth [2] - The industry notes potential negative impacts on solar and wind energy demand due to the reduction of government programs [2] Nuclear Energy & Market Forces - The industry anticipates a natural market force for nuclear energy as a result of reduced government support for other renewable sources [3] - The industry suggests that removing clean energy tax credits could drive demand for more naturally sustainable and scalable energy production sources [4] - The industry believes the existing energy demand will incentivize new electricity generation, potentially favoring nuclear energy [3][4]

Energy Sector Overview - Lazard managing director George Bilicic discusses the energy sector [1] - The discussion includes ramping up production to meet demand [1]

Financial Performance & Growth - Forum Energy Technologies (FET) reported Q1 2025 revenue of $193 million[7] - The company's revenue has grown from $541 million in 2021 to $816 million in 2024[7] - Adjusted EBITDA increased from $20 million in 2021 to $100 million in 2024[7] - EBITDA margin has improved from 4% in 2021 to 12% in 2024[7] - The company anticipates 2025 EBITDA to be in the range of $85 million to $105 million and free cash flow between $40 million and $60 million[39] Strategy & Market Position - FET's geographical revenue split is 51% US and 49% international (TTM ended March 31, 2025)[7] - The company has a $75 million share repurchase program and repurchased $2 million of shares in Q1 2025[10, 42] - The company focuses on niche markets with competitive advantages and high barriers to entry[20, 22] - FET aims to allocate 50% of free cash flow to net debt reduction[41] Debt Reduction - The company has substantially deleveraged since 2019, with net debt decreasing from $344 million to $146 million as of March 31, 2025[44] - Net leverage ratio has decreased from 473x in December 31, 2019 to 156x in March 31, 2025[44]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 was $2.4 billion with a distribution coverage ratio of 1.7 times and retained DCF of $842 million [6][14] - Net income attributable to common unitholders was $1.4 billion or $0.64 per common unit, compared to $0.66 per common unit in Q1 2024 [14] - Distribution declared was $0.0535 per common unit, a 3.9% increase from Q1 2024 [15] - Total debt principal outstanding was approximately $31.9 billion with a weighted average cost of debt of 4.7% [17] Business Line Data and Key Metrics Changes - The company moved 13.2 million barrels of oil equivalent per day and 2 million barrels per day of liquid hydrocarbon exports [6] - PDH facilities experienced downtime; PDH1 was down for 63 days due to unplanned maintenance, but both PDH plants are now operational [6][7] - Total capital investments in Q1 2025 were $1.1 billion, including $964 million for growth capital projects [16] Market Data and Key Metrics Changes - The company noted a strong demand for U.S. hydrocarbons globally, particularly from China and India, despite tariff uncertainties [8][10] - LPG exports have not been significantly disrupted, with 85% to 90% of LPG exports contracted [22][60] Company Strategy and Development Direction - The company plans to bring online two gas processing plants in the Permian and several other projects throughout 2025 [7][16] - The focus remains on increasing capacity to gather, process, transport, and export hydrocarbons, with a significant backlog of wells expected to be connected [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for U.S. energy production and exports, citing supportive policies from the current administration [12] - The company anticipates continued growth in the Permian Basin, with expectations of connecting a similar number of wells in 2025 as in 2024 [39] Other Important Information - The company has returned approximately $58 billion to unitholders since its IPO in 1998 through distributions and buybacks [16] - The expected range of growth capital expenditures for 2025 is $4 billion to $4.5 billion, with sustaining capital expenditures around $525 million [16] Q&A Session Summary Question: Current U.S. LPG rerouting and competitive landscape - Management indicated that trade flows are balancing, with no disruptions in exports, and highlighted their capital-efficient expansion plans [22][23] Question: Incremental EBITDA from upcoming projects - Management confirmed that many projects are expected to be fully contracted upon coming online, leading to a rapid ramp-up in EBITDA [26][32] Question: Impact of recent market price volatility on buybacks - Management discussed their strategy for excess distributable cash flow and indicated a significant increase in cash flow expected in 2026 [53] Question: Outlook for the petchem and refined product segment - Management noted that both PDH plants are running well and expressed optimism for the segment's performance for the remainder of the year [42][44] Question: Global demand and tariff impacts - Management acknowledged a demand slowdown internationally but emphasized that pricing would adjust to clear the market [61] Question: CapEx plans in light of potential demand slowdown - Management stated that current projects are well contracted and unlikely to slow down despite tariff concerns [70] Question: Update on major capital projects - Management confirmed that major capital projects are progressing well and are expected to come online ahead of schedule [81]