EQT (EQT) Q3 2024 earnings summary

Executive summary

• Closed the Equitrans Midstream acquisition, creating a large-scale, vertically integrated natural gas business and completing over 60% of integration tasks in three months, capturing $145 million in annualized synergies and de-risking more than 50% of total base plan synergies.

• Achieved net zero Scope 1 and 2 GHG emissions ahead of the 2025 goal, eliminating or offsetting over 900,000 metric tons of CO2e in five years.

• Announced sale of remaining non-operated Northeast Pennsylvania assets for $1.25 billion, supporting deleveraging and reaffirming confidence in achieving year-end 2025 debt target.

• Production exceeded guidance despite curtailments, driven by operational efficiency and strong well performance.

• Strategic production curtailments in response to low natural gas prices reduced sales volume by up to 130 Bcfe year-to-date.

Financial highlights

• Q3 2024 sales volumes reached 581 Bcfe, 4% above the high end of guidance, with average realized price of $2.38/Mcfe and total operating revenues of $1.28 billion.

• Net loss attributable to EQT for Q3 2024 was $(301) million, compared to net income of $81 million in Q3 2023; adjusted EBITDA was $832 million, up from $521 million.

• Capital expenditures for Q3 2024 were $558 million, with pro forma capital expenditures of $573 million, both below guidance.

• Third-party midstream revenue was $142 million, at the high end of guidance.

• Cash provided by operating activities for the nine months ended September 30, 2024 was $2.07 billion.

Outlook and guidance

• Q4 2024 production guidance is 555–605 Bcfe, with capital expenditures expected at $630–$730 million.

• Per unit operating costs for Q4 2024 expected at $1.07–$1.21/Mcfe; 2024 production tracking above the high end of original guidance when normalized for curtailments.

• Approximately 60% of 2025 production hedged at an average floor price of $3.25.

• 2025 sales volumes expected to remain flat year-over-year at around 2,100 Bcfe post-asset sales.

• Cumulative free cash flow forecasted at $14.5 billion from 2025–2029 at $3.50/MMBtu gas.