EQT (EQT) Q4 2024 earnings summary

Executive summary

• Achieved high-end Q4 2024 production guidance of 605 Bcfe despite 27 Bcfe in curtailments, driven by operational efficiency and strong well performance.

• Equitrans acquisition closed in July 2024, with 90% integration within six months and ~85% of base synergies realized, accelerating cost reductions.

• Generated $588 million in free cash flow in Q4, with asset sales and JV proceeds of ~$4.7 billion reducing net debt to ~$9.1 billion by year-end.

• Proved reserves remained stable at 26–26.3 Tcfe year-over-year, despite lower SEC price decks and asset sales.

• 2025 production guidance set at 2,175–2,275 Bcfe, 125 Bcfe above prior outlook, reflecting well performance and compression investments.

Financial highlights

• Q4 sales volumes reached 605 Bcfe, at the high end of guidance; normalized for curtailments, production would have been 632 Bcfe.

• Q4 net cash from operating activities was $756 million; free cash flow was $588 million; adjusted EBITDA was $1.41 billion.

• Q4 operating costs were $1.07 per Mcfe, at the low end of guidance; CapEx was $583 million, 7% below guidance.

• Asset sales and JV proceeds totaled ~$4.7 billion, reducing net debt from $13.7 billion to $9.1 billion by year-end.

• Q4 average realized price was $3.01 per Mcfe, up from $2.75 in Q4 2023.

Outlook and guidance

• 2025 production guidance is 2,175–2,275 Bcfe, with a midpoint 125 Bcfe above prior outlook, driven by well performance and efficiency gains.

• Maintenance capital budget for 2025 is $1.95–2.12 billion, with $350–380 million for growth projects.

• Reserve development capital budget is $1.35–1.45 billion, down nearly 10% per unit from 2024.

• Free cash flow expected at ~$2.6 billion in 2025 and ~$3.3 billion in 2026 at recent strip pricing.

• Net debt expected to fall to ~$7 billion by end of 2025, with a medium-term target of $5 billion.