EQT (EQT) Q2 2024 earnings summary

Executive summary

• Closed the Equitrans Midstream acquisition a quarter ahead of schedule, creating a large-scale, vertically integrated natural gas business, achieving $150 million in savings, and accelerating synergy realization and deleveraging plans.

• Achieved record operational efficiencies, including strong well performance, improved completion speeds, and sales volume of 508 Bcfe, surpassing guidance.

• Net income for Q2 2024 was $9.5–$10 million, reversing a prior year loss, mainly due to asset sale gains and higher volumes.

• Capital expenditures were $576 million, below guidance midpoint, reflecting improved efficiency.

• Entered binding agreement for 2 million tonnes per annum of LNG liquefaction tolling capacity and released 2023 ESG report, achieving emissions targets ahead of schedule.

Financial highlights

• Q2 2024 sales volume was 507.5–508 Bcfe; H1 2024 sales volume was 1,041.6–1,042 Bcfe.

• Q2 2024 average realized price was $2.33/Mcfe; H1 2024 was $2.79/Mcfe.

• Q2 2024 adjusted EBITDA was $464 million; H1 2024 adjusted EBITDA was $1,476 million.

• Q2 2024 free cash flow was negative $171 million; H1 2024 free cash flow was $230 million.

• Net debt at quarter-end was $4.9 billion, down from $5.7 billion at 2023 year-end.

Outlook and guidance

• 2024 total sales volume guidance reaffirmed at 2,100–2,200 Bcfe, including 180 Bcfe of net production curtailments.

• 2025 capital budget preliminarily set at $2.3–$2.6 billion; long-term capital spending forecasted at $2.1–$2.4 billion annually.

• Cash operating expenses expected at $1.10–$1.25 per Mcfe in H2 2024, dropping to $0.75–$0.85 per Mcfe by Q4.

• 2025E adjusted EBITDA projected at $5.0–$5.6 billion at $3.50/MMBtu NYMEX; free cash flow at $1.7–$1.9 billion at $3.00/MMBtu.

• Company expects continued commodity price volatility and may further adjust production in response to market conditions.