EQT (EQT) Q1 2026 earnings summary

Executive summary

• Achieved record free cash flow of $1.83 billion and net income of $1.49 billion in Q1 2026, driven by strong well performance, higher realized natural gas prices, and operational efficiency during Winter Storm Fern.

• Production exceeded guidance, with sales volumes reaching 618 Bcfe and capital expenditures 4% below the low end due to efficiency gains.

• Vertical integration, low-cost model, and strategic acquisitions, including Olympus Energy and MVP interests, enhanced resilience and future growth prospects.

• Net debt reduced by $2 billion to $5.7 billion, nearing the $5 billion target and prompting a Fitch credit rating upgrade to BBB.

• Strategic LNG contracts, midstream expansions, and exposure to data center and power demand in Appalachia position the company for significant future free cash flow growth.

Financial highlights

• Total operating revenues reached $3.38 billion, up 94% year-over-year, with net income at $1.49 billion and diluted EPS at $2.36.

• Free cash flow attributable to shareholders was $1.83 billion, an all-time quarterly high.

• Adjusted EBITDA was $2.68 billion; capital expenditures totaled $608 million, 4% below guidance.

• Cash provided by operating activities was $3.06 billion, with liquidity at $3.8 billion.

• Retired or repurchased $1.73 billion in senior notes, reducing interest expense and net debt.

Outlook and guidance

• Q2 2026 sales volume expected at 570–620 Bcfe, including 10–15 Bcfe of strategic curtailments.

• Full-year 2026 sales volume guidance is 2,275–2,375 Bcfe, with per unit operating costs guided at $1.03–$1.21 per Mcfe.

• Peak capital investment expected in Q2, with declines in spending and higher free cash flow in H2.

• Net debt to EBITDA now below 1x, with $5 billion net debt target expected by year-end.

• Expectation of continued commodity price volatility and potential adjustments to development schedules.