EQT Corporation
EQT · NYSE
Sep 2026
Next quarter
Reports Oct 20, 2026.
Consensus is $0.49 EPS for Sep 2026 across 7 estimates, ranging $0.34 to $0.69.
EQT Jun 2026
- 4.88%
- +8.45%
- $0.41
- $0.39
- —
- $1.81B
Reported results
- $1.81B
- 78.73%
- $394.04M
- 21.77%
- $211.43M
- $0.34
Highlights
- Production: Sales volume reached 634 Bcfe, above the high end of guidance and 11.7% above the year-ago 568 Bcfe, prompting EQT to raise 2026 guidance by approximately 90 Bcfe to 2,375–2,450 Bcfe.
- Earnings: Adjusted EPS was $0.39, 4.9% below the $0.41 consensus estimate; GAAP diluted EPS was $0.34 versus $1.30 a year ago and $2.36 in Q1 2026.
- Cash generation: Free cash flow attributable to EQT rose 38% year over year to $330 million, while net cash from operations was $1.05 billion.
- Capital efficiency: Capital expenditures were $666 million, 9% below the low end of guidance, and full-year capital guidance was reduced by $25 million.
- Pricing pressure: Average realized price declined to $2.65/Mcfe from $2.81/Mcfe a year ago, as lower NYMEX prices outweighed higher volumes; the basis differential of $(0.67)/Mcf was favorable to guidance.
- Cost control: Total operating costs were $1.03/Mcfe, at the low end of guidance and below $1.08/Mcfe in Q2 2025, despite higher SG&A, lease operating and gathering costs.
- Balance sheet: Total debt fell to $5.7 billion and net debt to $5.5 billion from $7.8 billion and $7.7 billion, respectively, at year-end 2025; EQT subsequently repaid $115 million of debentures.
- Demand positioning: EQT signed a 10-year agreement to supply 325,000 Dth/d to CPV's 2-GW Shay Energy Center at pricing linked to PJM power prices, alongside a five-year LNG offtake agreement expected to add approximately $45 million to 2028 free cash flow.
Analysis
EQT's second quarter was an operational outperformance but an earnings quarter constrained by lower gas prices and less favorable derivative marks. Adjusted EPS of $0.39 missed the $0.41 consensus by 4.9%, while GAAP diluted EPS fell to $0.34 from $1.30 a year ago and $2.36 in Q1. Revenue declined 29% year over year to $1.81 billion and 46% sequentially from $3.38 billion; operating income was $394 million versus $1.13 billion a year ago and $2.04 billion in Q1. The year-ago comparison also benefited from a $720 million derivative gain, compared with just $45 million this quarter.
The defining positives were volume, cost execution and cash deployment. Sales volume rose 11.7% to 634 Bcfe, helped by well optimization and the Olympus assets, while operating costs fell to $1.03/Mcfe. Capex of $666 million was below guidance, supporting $330 million of attributable free cash flow, up from $240 million a year ago. EQT used its cash generation to reduce net debt by more than $2.1 billion from year-end and raised full-year production guidance. Commercially, the CPV power agreement, LNG offtake and accelerated MVP Southgate investment sharpen the company's longer-term demand and infrastructure strategy.
Production and efficiency
- Volume upside: EQT sold 634 Bcfe, or 6,972 MMcfe/d, versus 568 Bcfe and 6,244 MMcfe/d in Q2 2025. Management attributed the outperformance to strong well performance, system pressure optimization, compression investments and lower price-related curtailments.
- Guidance raised: Full-year 2026 sales-volume guidance increased by approximately 90 Bcfe to 2,375–2,450 Bcfe, with Q3 guidance set at 570–620 Bcfe. The company expects to turn in line 34–50 net wells in Q3.
- Lower unit costs: Total operating costs were $1.03/Mcfe, down from $1.08/Mcfe a year ago and at the low end of guidance. Transmission and processing costs benefited from higher volumes, although gathering, LOE and SG&A increased.
- Execution signal: EQT drilled a more-than-29,000-foot lateral while remaining 100% in zone, and reported new basin-wide and company drilling records.
Gas prices and earnings
- Lower realized pricing: Average realized price was $2.65/Mcfe, down from $2.81/Mcfe in Q2 2025. Average natural gas price including settled derivatives was $2.51/Mcf versus $2.69/Mcf, reflecting a lower $2.89/MMBtu NYMEX price versus $3.43/MMBtu.
- Derivative comparison: EQT recorded a $45 million derivative gain, compared with a $720 million gain in the year-ago quarter. The 2026 gain primarily reflected a $37 million increase in NYMEX hedge values and an $8 million increase in basis and liquids hedge values.
- Underlying sales: Upstream adjusted operating revenue, which includes settled derivative effects but excludes mark-to-market movements, increased 5% to $1.68 billion. Higher volume added approximately $198 million to sales, but lower pricing reduced sales by approximately $288 million.
- Profit decline: Net income attributable to EQT fell to $211 million from $784 million, while operating income declined to $394 million from $1.13 billion. Lower derivative gains and realized prices were only partly offset by lower taxes and the absence of the prior-year legal reserve.
Free cash flow and debt
- Cash flow: Net cash from operations was $1.05 billion, while adjusted operating cash flow attributable to EQT was $1.01 billion, up from $794 million a year ago. Attributable free cash flow rose to $330 million from $240 million.
- Capex below plan: Capital expenditures were $666 million, compared with $554 million a year ago, but 9% below the low end of quarterly guidance because of operational efficiencies and lower infrastructure spending. Full-year capital guidance was reduced by $25 million.
- Deleveraging: Total debt ended the quarter at $5.7 billion and net debt at $5.5 billion, down from $7.8 billion and $7.7 billion at December 31, 2025. EQT repaid $2.12 billion of debt during the first half and repaid another $115 million of debentures on July 15.
- Liquidity: EQT had approximately $3.6 billion of liquidity excluding Eureka's revolver capacity, with $52 million drawn on its $3.5 billion corporate revolver at quarter-end.
Power and LNG demand
- Power supply agreement: EQT signed a 10-year agreement to supply 325,000 Dth/d to Competitive Power Ventures' 2-GW Shay Energy Center in West Virginia. Pricing is linked to PJM power prices and is expected to provide a substantial premium to in-basin pricing.
- LNG offtake: A five-year agreement with a large Asian integrated energy company covers 0.5 million tonnes per annum of LNG beginning in 2028. EQT expects the contract to increase 2028 free cash flow by approximately $45 million at recent strip pricing.
- Infrastructure acceleration: EQT secured all key regulatory approvals for MVP Southgate and will accelerate $85 million of capital contributions to target construction completion by year-end 2026. The project is expected to enter service by mid-2028.
- Vertical integration: The company completed its $77 million Blackline Midstream acquisition, buying two New England propane storage and distribution terminals with 46 million gallons of capacity. EQT expects approximately $15 million of average annual free cash flow over 2027–2031, implying an approximately 20% projected free-cash-flow yield.
