EQT Reports Second Quarter 2025 Results
PITTSBURGH, July 22, 2025 /PRNewswire/ -- EQT Corporation (NYSE:EQT) today announced financial and operational results for the second quarter of 2025.
Second Quarter 2025 Results:
Production: Sales volume of 568 Bcfe, at the high-end of guidance driven by strong well performance and compression project outperformance, underscoring continued synergy capture momentum from the Company's acquisition of Equitrans Midstream Corporation (the Equitrans Midstream Merger)
Capital Expenditures: $554 million, 15% below the mid-point of guidance due to continued efficiency gains and midstream project optimization
Realized Pricing: Differential in-line with mid-point of guidance despite much wider-than-expected local basis as tactical curtailment strategy continues to optimize value
Operating Costs: Total per unit operating costs of $1.08 per Mcfe, below the low-end of guidance driven by lower-than-expected LOE and SG&A expense
Cash Flow: Net cash provided by operating activities of $1,242 million; generated $240 million of free cash flow attributable to EQT,(1) after the impact of $134 million of net expense related to a securities class action settlement
Balance Sheet: Exited the quarter with $8.3 billion total debt and $7.8 billion net debt,(1) with net debt down approximately $1.4 billion from year-end 2024
Updated Guidance: Updating 2025 guidance to reflect Olympus Acquisition; increasing annual production guidance by 100 Bcfe, lowering full-year per-unit operating cost guidance by 6 cents per Mcfe with no change to 2025 capital spending as efficiency gains offset added Olympus activity
Recent Highlights:
In-Basin Demand Growth: Working to finalize agreement to supply natural gas for the 800 MMcf/d Shippingport Power Station;(2) working to finalize agreement to supply natural gas and provide midstream infrastructure for the 665 MMcf/d Homer City Redevelopment project;(2) signed agreement to be the exclusive provider of midstream infrastructure for West Virginia's first large-scale natural gas power plant; secured third-party gathering contract to expand Saturn pipeline system in West Virginia
MVP Projects: Launched open season for MVP Boost project to provide 500 MMcf/d of incremental takeaway capacity into strong demand markets; advancing MVP Southgate project to provide 550 MMcf/d into the Carolinas
Olympus Acquisition: Closed the acquisition (the Olympus Acquisition) of Olympus Energy's upstream and midstream assets on July 1st; integration off to a fast start with the majority of operations expected to be integrated within the next 30 days
President and CEO Toby Z. Rice stated, "Second quarter results highlight a continuation of operational excellence and robust financial performance at EQT. Production was at the high-end of guidance, benefiting from strong well productivity and compression project outperformance. Capital spending came in well below the low-end of guidance, driven by another record-setting quarter for completion efficiency and lower well costs. EQT has generated approximately $3.7 billion of cumulative net cash provided by operating activities and nearly $2 billion of cumulative free cash flow attributable to EQT(1) over the past three quarters during which natural gas prices averaged $3.30 per MMBtu, underscoring the differentiated earnings power of our low-cost, integrated platform."
Rice continued, "We also announced multiple in-basin supply and midstream growth projects, taking a material step forward in our strategy to create low-risk pathways for value-enhancing sustainable growth. We are seeing tremendous momentum for in-basin natural gas power and data center demand and EQT is uniquely positioned to capitalize on this set up due to our production scale, inventory duration, world-class integrated infrastructure, investment grade credit ratings and low emissions credentials."
(1)
A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure.
(2)
Final terms remain subject to negotiation of definitive agreements between the parties thereto.
Second Quarter 2025 Financial and Operational Performance
Three Months Ended
June 30,
($ millions, except average realized price and EPS)
2025
2024
Change
Total sales volume (Bcfe)
568
508
60
Average realized price ($/Mcfe)
$ 2.81
$ 2.33
$ 0.48
Net income attributable to EQT
$ 784
$ 10
$ 774
Adjusted net income (loss) attributable to EQT (a)
$ 273
$ (37)
$ 310
Diluted income per share (EPS)
$ 1.30
$ 0.02
$ 1.28
Adjusted EPS (a)
$ 0.45
$ (0.08)
$ 0.53
Net income
$ 857
$ 9
$ 848
Adjusted EBITDA (a)
$ 1,158
$ 470
$ 688
Adjusted EBITDA attributable to EQT (a)
$ 1,033
$ 470
$ 563
Net cash provided by operating activities
$ 1,242
$ 322
$ 920
Adjusted operating cash flow (a)
$ 918
$ 405
$ 513
Adjusted operating cash flow attributable to EQT (a)
$ 794
$ 405
$ 389
Capital expenditures
$ 554
$ 576
$ (22)
Capital contributions to equity method investments
$ 24
$ ,
$ 24
Free cash flow (a)
$ 340
$ (171)
$ 511
Free cash flow attributable to EQT (a)
$ 240
$ (171)
$ 411
(a)
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.
Per Unit Operating CostsThe following table presents certain of the Company's consolidated operating costs on a per unit basis.(a)
Three Months Ended
June 30,
Six Months Ended
June 30,
Per Unit ($/Mcfe)
2025
2024
2025
2024
Gathering
$ 0.08
$ 0.59
$ 0.08
$ 0.58
Transmission
0.45
0.35
0.45
0.33
Processing
0.15
0.13
0.15
0.13
Lease operating expense (LOE)
0.09
0.09
0.08
0.09
Production taxes
0.07
0.08
0.08
0.08
Operating and maintenance (O&M)
0.10
0.03
0.09
0.03
Selling, general and administrative (SG&A)
0.14
0.13
0.15
0.13
Operating costs
$ 1.08
$ 1.40
$ 1.08
$ 1.37
Production depletion
$ 0.95
$ 0.90
$ 0.95
$ 0.90
(a)
References in this release to the "Company" refer to EQT Corporation together with its consolidated subsidiaries. As used throughout this release, per unit operating costs reflect, for each period presented, the consolidated amount of such operating cost for the Company (aggregated irrespective of business segment) divided by total sales volume (Mcfe).
Gathering expense per Mcfe decreased for the three months ended June 30, 2025 compared to the same period in 2024 due primarily to the Company's ownership of the gathering, transmission and storage assets acquired in the Equitrans Midstream Merger completed in the third quarter of 2024 and the Company's ownership of additional interest in gathering assets located in Northeast Pennsylvania acquired in the second quarter of 2024. In addition, gathering expense per unit decreased due to the Company's divestitures of assets in Northeast Pennsylvania completed during 2024 (the NEPA Non-Operated Asset Divestitures).
Transmission expense per Mcfe increased for the three months ended June 30, 2025 compared to the same period in 2024 due primarily to capacity charges on the Mountain Valley Pipeline (the MVP) and additional contracted capacity on the Transco pipeline, partly offset by capacity released in connection with the NEPA Non-Operated Asset Divestitures.
Processing expense per Mcfe increased for the three months ended June 30, 2025 compared to the same period in 2024 due primarily to increased production of gas requiring processing from wells turned-in-line during and subsequent to the second quarter of 2024.
O&M expense per Mcfe increased for the three months ended June 30, 2025 compared to the same period in 2024 as a result of the Company's operation of the gathering, transmission and storage assets acquired in the Equitrans Midstream Merger.
Production depletion expense per Mcfe increased for the three months ended June 30, 2025 compared to the same period in 2024 due to increased sales volume and higher annual depletion rate.
LiquidityAs of June 30, 2025, the Company had no borrowings outstanding under EQT Corporation's $3.5 billion revolving credit facility. Total liquidity, excluding available capacity under Eureka Midstream, LLC's (Eureka Midstream) revolving credit facility, as of June 30, 2025 was $4.1 billion.
As of June 30, 2025, total debt and net debt(1) were $8.3 billion and $7.8 billion, respectively, compared to $9.3 billion and $9.1 billion, respectively, as of December 31, 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.
2025 OutlookThe Company now expects total sales volume of 2,300, 2,400 Bcfe in 2025, an increase of 100 Bcfe from its prior guidance. The Company is reducing its projected full-year 2025 per unit operating costs by 6 cents per Mcfe attributable to benefits from the Olympus Acquisition and upstream LOE outperformance. The Company reaffirms its total capital expenditures guidance of $2,300, $2,450 million as efficiency gains offset activity adds related to the Olympus Acquisition. During 2025, the Company plans to turn-in-line (TIL) 95, 120 net wells, including 24, 36 net wells in the third quarter of 2025. Total sales volume in the third quarter of 2025 is expected to be 590, 640 Bcfe.
2025 Guidance
Production
Q3 2025
Full Year 2025
Total sales volume (Bcfe)
590, 640
2,300, 2,400
Liquids sales volume, excluding ethane (Mbbl)
4,000, 4,300
15,700, 16,500
Ethane sales volume (Mbbl)
1,600, 1,750
6,600, 7,000
Total liquids sales volume (Mbbl)
5,600, 6,050
22,300, 23,500
Btu uplift (MMBtu/Mcf)
1.055, 1.065
1.055, 1.065
Average differential ($/Mcf)
($0.85), ($0.75)
($0.70), ($0.50)
Resource Counts
Top-hole rigs
1, 2
2, 3
Horizontal rigs
3, 4
3, 4
Frac crews
2, 3
2, 3
Third-party Midstream Revenue ($ Millions)
$130, $155
$550, $650
Per Unit Operating Costs ($/Mcfe)
Gathering
$0.06, $0.08
$0.07, $0.09
Transmission
$0.40, $0.42
$0.42, $0.44
Processing
$0.13, $0.15
$0.13, $0.15
LOE
$0.10, $0.12
$0.09, $0.11
Production taxes
$0.06, $0.08
$0.07, $0.09
O&M
$0.09, $0.11
$0.09, $0.11
SG&A
$0.17, $0.19
$0.16, $0.18
Operating costs
$1.01, $1.15
$1.03, $1.17
Equity Method Investments and Midstream JV Noncontrolling Interest ($ Millions)
Distributions from Mountain Valley Pipeline, LLC (the MVP Joint Venture) and Laurel Mountain Midstream LLC (LMM)
$60, $70
$230, $255
Distributions to Pipebox LLC (the Midstream JV) Noncontrolling Interest (a)
$100, $115
$350, $380
Capital Expenditures and Capital Contributions ($ Millions)
Upstream maintenance
$390, $440
$1,540, $1,630
Midstream maintenance
$100, $110
$280, $300
Corporate & capitalized costs
$50, $60
$190, $200
Total maintenance capital expenditures
$540, $610
$2,010, $2,130
Strategic growth capital expenditures
$100, $125
$290, $320
Total capital expenditures
$640, $735
$2,300, $2,450
Capital contributions to equity method investments (b)
$20, $30
$100, $110
(a)
Assumes Midstream JV cash distributions of 60% to third-party noncontrolling interest.
(b)
Includes capital contributions to the MVP Joint Venture (including the MVP mainline, MVP Southgate and MVP Boost) and LMM.
Second Quarter 2025 Earnings Webcast InformationThe Company's conference call with securities analysts begins at 10:00 a.m. ET on Wednesday July 23, 2025 and will be broadcast live via webcast. An accompanying presentation is available on the Company's investor relations website, www.ir.eqt.com under "Events & Presentations." To access the live audio webcast, visit the Company's investor relations website at ir.eqt.com. A replay will be archived and available for one year in the same location after the conclusion of the live event.
Hedging (as of July 15, 2025)The following table summarizes the approximate volume and prices of the Company's NYMEX hedge positions. The difference between the fixed price and NYMEX price is included in average differential presented in the Company's price reconciliation.
Q3 2025 (a)
Q4 2025
2026
Hedged Volume (MMDth)
321
332
166
Hedged Volume (MMDth/d)
3.5
3.6
0.5
Swaps, Short
Volume (MMDth)
281
95
—
Avg. Price ($/Dth)
$ 3.26
$ 3.28
$ ,
Calls, Short
Volume (MMDth)
40
189
166
Avg. Strike ($/Dth)
$ 4.12
$ 5.34
$ 4.97
Puts, Long
Volume (MMDth)
40
237
166
Avg. Strike ($/Dth)
$ 3.22
$ 3.35
$ 3.55
Option Premiums
Cash Settlement of Deferred Premiums (millions)
$ ,
$ (45)
$ ,
(a)
July 1 through September 30.
The Company has also entered into transactions to hedge basis. The Company may use other contractual agreements from time to time to implement its commodity hedging strategy.
Non-GAAP DisclosuresThis news release includes the non-GAAP financial measures described below. These non-GAAP measures are intended to provide additional information only and should not be considered as alternatives to, or more meaningful than, net income attributable to EQT Corporation, diluted EPS, net income, net cash provided by operating activities, total Production operating revenues, total debt, or any other measure calculated in accordance with GAAP. Certain items excluded from these non-GAAP measures are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital, tax structure, and historic costs of depreciable assets.
Adjusted Net Income Attributable to EQT and Adjusted EPSAdjusted net income attributable to EQT is defined as net income attributable to EQT Corporation, excluding loss (gain) on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fair value of derivative instruments prior to settlement and certain other items that the Company's management believes do not reflect the Company's core operating performance. Adjusted EPS is defined as adjusted net income attributable to EQT divided by diluted weighted average common shares outstanding.
As a result of the Class B Unitholder's noncontrolling equity interest ownership in the Midstream JV that commenced on December 30, 2024, the Company has adjusted its non-GAAP measure of adjusted net income attributable to EQT. Beginning in the first quarter of 2025, adjusted net income attributable to EQT and the related non-GAAP financial measure of adjusted EPS are no longer adjusted for income from investments, distributions received from equity method investments or non-cash interest expense (amortization). Adjusted net income attributable to EQT and adjusted EPS presented in this news release for the comparative period have also been calculated based on the updated definition.
The Company's management believes adjusted net income attributable to EQT and adjusted EPS provide useful information to investors regarding the Company's financial condition and results of operations because it helps facilitate comparisons of operating performance and earnings trends across periods by excluding the impact of items that, in their opinion, do not reflect the Company's core operating performance. For example, adjusted net income attributable to EQT and adjusted EPS reflect only the impact of settled derivative contracts; thus, the measures exclude the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement.
The table below reconciles adjusted net income attributable to EQT and adjusted EPS with net income attributable to EQT Corporation and diluted EPS, respectively, the most comparable financial measures calculated in accordance with GAAP, each as derived from the Statements of Condensed Consolidated Operations to be included in EQT Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.
Three Months Ended
June 30,
Six Months Ended
June 30,
2025
2024
2025
2024
(Thousands, except per share amounts)
Net income attributable to EQT Corporation
$ 784,147
$ 9,517
$ 1,026,286
$ 113,005
Add (deduct):
Loss (gain) on sale/exchange of long-lived assets
2,990
(320,129)
3,221
(319,982)
Impairment and expiration of leases
3,254
37,659
5,915
46,868
Gain on derivatives
(719,964)
(61,333)
(41,045)
(167,844)
Net cash settlements (paid) received on derivatives
(101,364)
298,181
(193,350)
749,185
Premiums paid for derivatives that settled during the period
—
(4,925)
—
(39,594)
Other expenses (a)
147,105
26,310
153,731
49,162
Loss on debt extinguishment
5,889
1,837
17,569
5,286
Tax impact of non-GAAP items (b)
151,016
(23,892)
13,956
(108,834)
Adjusted net income (loss) attributable to EQT
$ 273,073
$ (36,775)
$ 986,283
$ 327,252
Diluted weighted average common shares outstanding
602,924
441,968
602,896
444,893
Diluted EPS
$ 1.30
$ 0.02
$ 1.70
$ 0.25
Adjusted EPS
$ 0.45
$ (0.08)
$ 1.64
$ 0.74
(a)
Other expenses consist primarily of transaction costs associated with acquisitions and other strategic transactions and costs related to exploring new venture opportunities. In addition, other expenses included net expense related to a securities class action settlement of $133.7 million for both the three and six months ended June 30, 2025 and $17.5 million for both the three and six months ended June 30, 2024.
(b)
The tax impact of non-GAAP items represents the incremental tax expense/benefit that would have been incurred by the Company had these items been excluded from net income attributable to EQT Corporation, which resulted in a blended tax rate of 22.8% and (106.7)% for the three months ended June 30, 2025 and 2024, respectively, and 25.9% and 33.7% for the six months ended June 30, 2025 and 2024, respectively. The blended tax rates differ from the Company's statutory tax rate due primarily to state taxes, including valuation allowances limiting certain state tax benefits.
Adjusted EBITDA, Adjusted EBITDA Attributable to Noncontrolling Interests and Adjusted EBITDA Attributable to EQTAdjusted EBITDA is defined as net income excluding net interest expense, income tax expense (benefit), depreciation, depletion and amortization, loss (gain) on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fair value of derivative instruments prior to settlement and certain other items that the Company's management believes do not reflect the Company's core operating performance. Adjusted EBITDA attributable to EQT is defined as adjusted EBITDA less adjusted EBITDA attributable to noncontrolling interests. Adjusted EBITDA attributable to noncontrolling interests is defined as the proportionate share of adjusted EBITDA attributable to the third-party ownership interests in the Non-Wholly-Owned Consolidated Subsidiaries (defined below).
As a result of the Company's completion of the Equitrans Midstream Merger in July 2024, which meaningfully increased the Company's equity method investments, the Company adjusted its non-GAAP measure of adjusted EBITDA. Beginning in the third quarter of 2024, adjusted EBITDA was changed to include distributions received from equity method investments. In addition, as a result of the Class B Unitholder's noncontrolling equity interest ownership in the Midstream JV that commenced on December 30, 2024, beginning in the first quarter of 2025, the amounts attributable to noncontrolling interests meaningfully impacted the Company's consolidated results, and, therefore the Company began presenting adjusted EBITDA attributable to noncontrolling interests. Adjusted EBITDA and adjusted EBITDA attributable to noncontrolling interests presented in this news release for the prior comparative period has also been calculated based on the updated definition, and, certain prior period amounts have been recast for comparability.
The Company's management believes that these measures provide useful information to investors regarding the Company's financial condition and results of operations because they help facilitate comparisons of operating performance and earnings trends across periods by excluding the impact of items that, in their opinion, do not reflect the Company's core operating performance. For example, adjusted EBITDA reflects only the impact of settled derivative instruments and excludes the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement. In addition, adjusted EBITDA includes the impact of distributions received from equity method investments, which excludes the impact of depreciation included within equity earnings from equity method investments and helps facilitate comparisons of the core operating performance of the Company's equity method investments.
The table below reconciles adjusted EBITDA and ...
