EQT (EQT) Q1 2025 earnings summary

Executive summary

• Achieved record financial results in Q1 2025, with sales volume of 571 Bcfe at the high end of guidance, driven by strong well performance, cost discipline, and minimal weather impact.

• Generated over $1 billion in free cash flow, nearly double the next closest peer, supported by robust pricing and operational efficiencies.

• Net income attributable to EQT was $242 million, up from $103 million year-over-year; adjusted net income was $713 million.

• Announced a $1.8 billion acquisition of Olympus Energy's upstream and midstream assets, expected to be highly accretive and close in Q3 2025.

• Achieved early net zero (Scope 1 & 2) emissions target, with ongoing ESG initiatives and community engagement.

Financial highlights

• Q1 2025 revenue from natural gas, NGLs, and oil was $2.24 billion; total operating revenues $1.74 billion after derivatives.

• Adjusted EBITDA attributable to EQT was $1.64 billion; free cash flow was $1.04 billion, up from $399 million in Q1 2024.

• Net debt reduced to $8.1 billion from $9.1 billion at year-end 2024 and $13.7 billion at the end of Q3.

• Per unit operating costs were $1.05/Mcfe, 8% below guidance midpoint; capital spending was $497 million, 19% below guidance.

• Retired ~$740 million of senior notes and completed a successful exchange offer for EQM midstream notes.

Outlook and guidance

• Raised 2025 production guidance by 25 Bcfe to 2,200–2,300 Bcfe and lowered capital spending midpoint by $25 million.

• Olympus Energy acquisition expected to add 500 MMcf/d production and over 10 years of Marcellus inventory.

• Pro forma year-end 2025 net debt forecasted at ~$7 billion, with a medium-term target of $5 billion by mid-2026.

• Q2 2025 sales volume guidance is 520–570 Bcfe; full-year per unit operating costs guided at $1.10–$1.24/Mcfe.

• Anticipate a $600 million pre-tax annual free cash flow tailwind from firm sales deals and tightening price differentials by 2028.