EQT Corp.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 21 July 2026: press release. Guidance figures: 1 raised, 1 lowered, 18 new. The quarter’s numbers.

Read the filing

Key takeaways

• Sales volume above guidance high end: Sales volume reached 634 Bcfe, above the high end of guidance, attributed to well performance, system pressure optimization and fewer price-related curtailments than expected. Source
• Ten-year power supply deal with CPV: Signed a ten-year agreement to supply 325,000 Dth/d of gas to the CPV Shay Energy Center in Doddridge County, West Virginia. Source
• Capital spending below guidance: Capital expenditures were $666 million, 9% below the low end of guidance, on efficiency gains and lower-than-expected infrastructure spending. Source
• MVP Southgate approvals secured: All key regulatory approvals for MVP Southgate have been secured, and the company is accelerating $85 million of capital contributions to finish construction in 2026. Source
• Free cash flow attributable to EQT $330 million: Net cash from operating activities was $1,048 million, and free cash flow attributable to EQT was $330 million, after $101 million of working capital usage. Source
• Debt and net debt reduced: Total debt was $5.7 billion and net debt $5.5 billion at June 30, 2026, down from $7.8 billion and $7.7 billion at December 31, 2025. Source
• Blackline acquisition closed for $77 million: The company acquired all operating subsidiaries of Blackline Midstream, which owns two propane storage and distribution terminals in New England. Source

“EQT delivered outstanding operational and financial performance in the second quarter, driven by record-setting execution and strong well productivity that resulted in production well above the high end of guidance.”

Toby Z. Rice, President and CEO

Guidance

What changed from last quarter

• Guidance raised: 2026 production guidance raised by about 90 Bcfe, attributed to compression investments improving existing and new wells and shallowing decline rates. Source
• Guidance lowered: Full-year capital spending guidance reduced by $25 million. Source
• New: Ten-year definitive gas supply agreement signed with Competitive Power Ventures for the CPV Shay Energy Center, priced against PJM power prices. Source
• New: Five-year LNG offtake agreement signed with a large Asian integrated energy company, starting in 2028. Source
• New: Blackline Midstream acquisition completed on July 21, 2026, adding two New England propane terminals. Source

Production and results

• Sales volume above guidance high end: Sales volume reached 634 Bcfe, above the high end of guidance, attributed to well performance, system pressure optimization and fewer price-related curtailments than expected. Source
• Net income and EPS fell year on year: Net income attributable to EQT was $211 million against $784 million a year earlier, and diluted EPS was $0.34 against $1.30. The prior-year quarter included a $720 million gain on derivatives. Source
• Adjusted EBITDA rose, adjusted EPS fell: Adjusted EBITDA was $1,203 million against $1,158 million, while adjusted EPS was $0.39 against $0.45 a year earlier. Source
• Compression lifts well productivity: Production guidance raised on compression investments that improve existing and new wells and shallow decline rates. Source
• Drilling records set in quarter: Drilled the longest lateral in shale development history, over 29,000 feet, staying in zone, and set a basin-wide 24-hour drilling record and an EQT 48-hour record. Source

Pricing and differentials

• Differential better than guidance: The differential of $(0.67) was favorable to guidance despite basis widening during the quarter, which management attributed to marketing optimization and the curtailment strategy. Source
• Realized price below prior year: Average realized price was $2.65 per Mcfe against $2.81 a year earlier, while NYMEX gas averaged $2.89 per MMBtu against $3.43. Source
• Oil and ethane prices higher: Oil averaged $70.14 per barrel against $51.70, ethane $7.33 against $6.85 and NGLs excluding ethane $39.29 against $35.86. Source

“We also announced another long-term gas supply agreement supporting a new 2-gigawatt power generation facility in the heart of West Virginia, further validating our view that the next wave of natural gas demand growth is emerging in our backyard.”

Toby Z. Rice, President and CEO

Costs and margins

• Operating costs at low end: Total per unit operating costs were $1.03 per Mcfe, against $1.08 a year earlier, at the low end of guidance on lower SG&A, transmission and LOE expenses. Source
• SG&A per unit rose on incentives: SG&A per Mcfe was $0.17 against $0.14, reflecting higher long-term incentive compensation and professional service costs. Source
• Transmission cost per unit fell: Transmission expense per Mcfe was $0.40 against $0.45, mainly because of higher sales volume. Source
• Depletion per unit unchanged: Production depletion was $0.95 per Mcfe in both the second quarter of 2026 and the same quarter of 2025. Source

Power and LNG supply contracts

• Ten-year power supply deal with CPV: Signed a ten-year agreement to supply 325,000 Dth/d of gas to the CPV Shay Energy Center in Doddridge County, West Virginia. Source
• Power deal priced above in-basin levels: Pricing for the CPV agreement is linked to PJM power prices, which management described as a substantial uplift over in-basin pricing. Source
• Five-year LNG offtake from 2028: Five-year offtake of 0.5 million tonnes per year of LNG sourced from Gulf Coast facilities, supplied to an Asian integrated energy company from 2028. Source

“EQT has become the partner of choice in Appalachia, leveraging our scale, infrastructure footprint and commercial capabilities to capture an outsized share of this demand growth.”

Toby Z. Rice, President and CEO

Capital spending and MVP Southgate

• Capital spending below guidance: Capital expenditures were $666 million, 9% below the low end of guidance, on efficiency gains and lower-than-expected infrastructure spending. Source
• MVP Southgate approvals secured: All key regulatory approvals for MVP Southgate have been secured, and the company is accelerating $85 million of capital contributions to finish construction in 2026. Source
• Capital contributions to joint ventures: Capital contributions to equity method investments were $29 million, against $24 million a year earlier. Source

Cash flow, debt and liquidity

• Free cash flow attributable to EQT $330 million: Net cash from operating activities was $1,048 million, and free cash flow attributable to EQT was $330 million, after $101 million of working capital usage. Source
• Debt and net debt reduced: Total debt was $5.7 billion and net debt $5.5 billion at June 30, 2026, down from $7.8 billion and $7.7 billion at December 31, 2025. Source
• Debentures repaid after quarter end: After the quarter end, the company repaid $115 million of 2026 debentures. Source
• Liquidity about $3.6 billion: Borrowings under the $3.5 billion revolver were $52 million at June 30, 2026, and total liquidity excluding Eureka's facility was about $3.6 billion. Source
• Dividends paid in first half: Dividends paid were $206 million in the six months ended June 30, 2026, against $188 million a year earlier, alongside debt repayments of $2.1 billion. Source

Blackline Midstream acquisition

• Blackline acquisition closed for $77 million: The company acquired all operating subsidiaries of Blackline Midstream, which owns two propane storage and distribution terminals in New England. Source
• Propane storage and supply share: The two terminals provide 46 million gallons of storage, and EQT currently supplies about 60% of Blackline's propane volumes. Source
• Terminals support propane production: Management said the assets give optionality for EQT's propane production, improve flow assurance and enhance pricing optimization. Source

Coming up, as management said on 21 July 2026

• MVP Southgate construction by year-end: Management expects MVP Southgate construction to be completed by year-end 2026, with $85 million of capital contributions accelerated. Source
• Third-quarter well turn-in-line plan: Plan to turn 34 - 50 net wells in line during the third quarter of 2026. Source

Risks management discussed

• External: Management said natural gas prices are volatile and outside its control. Source
• External: Basis widened during the quarter, which management offset through marketing optimization and its curtailment strategy. Source
• Financial: Working capital usage of $101 million during the quarter reduced operating cash flow relative to adjusted operating cash flow. Source

Earlier plans management reported on

• Ahead: Second-quarter sales volume came in above the high end of the guidance range. Source
• Not stated: Capital expenditures were 9% below the low end of the guidance range. Source
• Met: Per unit operating costs came in at the low end of the guidance range. Source
• Ahead: Differential was favorable to guidance despite basis widening. Source
• Not stated: Management elected to accelerate $85 million of capital contributions to complete construction by year-end 2026. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.