EQT Reports Fourth Quarter and Full Year 2024 Results and Provides 2025 Guidance
EQT reported its Q4 and full-year 2024 results, achieving sales volume of 605 Bcfe in Q4, at the high end of guidance. The company generated $588 million in free cash flow with capital expenditures of $583 million, 7% below guidance. Year-end 2024 proved reserves totaled 26.3 Tcfe.
For 2025, EQT initiated production guidance of 2,175-2,275 Bcfe, 125 Bcfe above prior expectations. The company projects approximately $2.6 billion in free cash flow for 2025 and $3.3 billion for 2026 at recent strip pricing. Maintenance capital guidance is set at $1,950-$2,120 million with additional growth capital of $350-$380 million.
The company plans to reduce from 3 to 2 frac crews by end of Q1 2025, ahead of schedule due to efficiency gains. EQT expects to exit 2025 with approximately $7 billion of net debt, beating their $7.5 billion target.
EQT ha riportato i risultati del quarto trimestre e dell'intero anno 2024, registrando un volume di vendite di 605 Bcfe nel Q4, al limite superiore delle previsioni. L'azienda ha generato 588 milioni di dollari di flusso di cassa libero con spese in conto capitale di 583 milioni di dollari, inferiori del 7% rispetto alle attese. Le riserve accertate a fine anno 2024 ammontavano a 26,3 Tcfe.
Per il 2025, EQT ha avviato una guida alla produzione di 2.175-2.275 Bcfe, 125 Bcfe oltre le aspettative precedenti. L'azienda prevede circa 2,6 miliardi di dollari di flusso di cassa libero per il 2025 e 3,3 miliardi di dollari per il 2026 ai recenti prezzi di mercato. La guida per il capitale di mantenimento è fissata tra 1.950 e 2.120 milioni di dollari, con un capitale aggiuntivo per la crescita di 350-380 milioni di dollari.
L'azienda prevede di ridurre da 3 a 2 squadre di fracking entro la fine del primo trimestre 2025, in anticipo rispetto al programma grazie ai guadagni di efficienza. EQT si aspetta di chiudere il 2025 con circa 7 miliardi di dollari di debito netto, superando l'obiettivo di 7,5 miliardi di dollari.
EQT informó sus resultados del cuarto trimestre y del año completo 2024, alcanzando un volumen de ventas de 605 Bcfe en el Q4, en el extremo superior de las proyecciones. La compañía generó 588 millones de dólares en flujo de caja libre con gastos de capital de 583 millones de dólares, un 7% por debajo de las expectativas. Las reservas probadas a fin de año 2024 totalizaron 26,3 Tcfe.
Para 2025, EQT inició una guía de producción de 2.175-2.275 Bcfe, 125 Bcfe por encima de las expectativas anteriores. La compañía proyecta aproximadamente 2.6 mil millones de dólares en flujo de caja libre para 2025 y 3.3 mil millones de dólares para 2026 a los precios actuales del mercado. La guía de capital de mantenimiento se establece entre 1.950 y 2.120 millones de dólares, con un capital adicional para crecimiento de 350-380 millones de dólares.
La compañía planea reducir de 3 a 2 equipos de fracturación para finales del primer trimestre de 2025, anticipándose al cronograma debido a las ganancias de eficiencia. EQT espera cerrar 2025 con aproximadamente 7 mil millones de dólares en deuda neta, superando su objetivo de 7.5 mil millones de dólares.
EQT는 2024년 4분기 및 전체 연도 결과를 발표하며, 4분기에 605 Bcfe의 판매량을 달성하여 가이던스의 상단에 도달했습니다. 회사는 5억 8,800만 달러의 자유 현금 흐름을 생성했으며, 자본 지출은 5억 8,300만 달러로 가이던스보다 7% 낮았습니다. 2024년 연말 기준 검증된 매장량은 26.3 Tcfe에 달합니다.
2025년을 위해 EQT는 2,175-2,275 Bcfe의 생산 가이던스를 시작했으며, 이는 이전 예측보다 125 Bcfe 높습니다. 회사는 2025년 약 26억 달러의 자유 현금 흐름과 2026년에 33억 달러를 예상하고 있습니다. 유지 관리 자본 가이던스는 19억 5천만에서 21억 2천만 달러로 설정되며, 추가 성장 자본은 3억 5천만에서 3억 8천만 달러입니다.
회사는 효율성 향상으로 인해 2025년 1분기 말까지 3개에서 2개의 프랙 크루로 줄일 계획입니다. EQT는 2025년 말에 약 70억 달러의 순 부채로 종료할 것으로 예상하며, 75억 달러 목표를 초과할 것으로 보입니다.
EQT a annoncé ses résultats du quatrième trimestre et de l'année 2024, atteignant un volume de ventes de 605 Bcfe au Q4, au niveau supérieur des prévisions. L'entreprise a généré 588 millions de dollars de flux de trésorerie libre avec des dépenses d'investissement de 583 millions de dollars, soit 7 % en dessous des attentes. Les réserves prouvées à la fin de l'année 2024 totalisaient 26,3 Tcfe.
Pour 2025, EQT a lancé une prévision de production de 2.175-2.275 Bcfe, soit 125 Bcfe au-dessus des attentes précédentes. L'entreprise projette environ 2,6 milliards de dollars de flux de trésorerie libre pour 2025 et 3,3 milliards de dollars pour 2026 aux prix récents du marché. La prévision des investissements de maintien est fixée entre 1.950 et 2.120 millions de dollars, avec un capital supplémentaire pour la croissance de 350 à 380 millions de dollars.
L'entreprise prévoit de réduire de 3 à 2 équipes de fracturation d'ici la fin du premier trimestre 2025, en avance sur le calendrier grâce aux gains d'efficacité. EQT s'attend à terminer 2025 avec environ 7 milliards de dollars de dette nette, dépassant son objectif de 7,5 milliards de dollars.
EQT hat seine Ergebnisse für das vierte Quartal und das Gesamtjahr 2024 veröffentlicht und einen Verkaufsvolumen von 605 Bcfe im Q4 erreicht, am oberen Ende der Prognosen. Das Unternehmen generierte 588 Millionen Dollar an freiem Cashflow bei Investitionen von 583 Millionen Dollar, was 7% unter den Erwartungen liegt. Die nachgewiesenen Reserven zum Jahresende 2024 beliefen sich auf 26,3 Tcfe.
Für 2025 gab EQT eine Produktionsprognose von 2.175-2.275 Bcfe bekannt, 125 Bcfe über den vorherigen Erwartungen. Das Unternehmen rechnet mit etwa 2,6 Milliarden Dollar an freiem Cashflow für 2025 und 3,3 Milliarden Dollar für 2026 zu den aktuellen Marktpreisen. Die Richtlinie für Instandhaltungsinvestitionen liegt bei 1.950-2.120 Millionen Dollar, mit zusätzlichen Wachstumsinvestitionen von 350-380 Millionen Dollar.
Das Unternehmen plant, bis Ende des ersten Quartals 2025 von 3 auf 2 Frac-Teams zu reduzieren, was aufgrund von Effizienzgewinnen vor dem Zeitplan liegt. EQT erwartet, 2025 mit etwa 7 Milliarden Dollar Nettoverschuldung abzuschließen und damit das Ziel von 7,5 Milliarden Dollar zu übertreffen.
- Q4 sales volume of 605 Bcfe at high-end of guidance
- Generated $588 million free cash flow in Q4 2024
- Capital expenditures 7% below guidance at $583 million
- 2025 production guidance increased by 125 Bcfe
- Projected $2.6B and $3.3B free cash flow for 2025/2026
- Expected to beat $7.5B debt target by end of 2025
- Full-year average realized price decreased to $2.74/Mcfe from $2.79/Mcfe in 2023
- Net income decreased by $1.5B year-over-year
- Free cash flow declined by $163M compared to 2023
- Total debt increased to $9.3B from $5.8B year-over-year
Insights
EQT's Q4 results showcase a company executing at an elite level across multiple fronts. The 7% reduction in capital expenditures while achieving high-end production guidance demonstrates exceptional operational efficiency. The ability to generate
The Equitrans integration is proving transformative, with
The decision to reduce frac crews from 3 to 2 in Q1 2025 represents a step-change in completion efficiency, allowing EQT to maintain production growth with less capital intensity. This operational leverage, combined with the integrated midstream platform, positions EQT to generate substantial free cash flow of
The company's proved reserves of 26.3 Tcfe remained resilient despite a challenging SEC pricing environment, highlighting the economic strength of EQT's Appalachian asset base. Notably, these reserves exclude potential upside from compression investments, suggesting future reserve additions as these benefits materialize.
The projected reduction in net debt to
Fourth Quarter and Recent Highlights:
- Sales volume of 605 Bcfe, at the high-end of guidance driven by continued operational efficiency gains and strong well performance, despite 27 Bcfe of total net curtailments
- Capital expenditures of
$583 million 7% below the low-end of guidance, benefiting from efficiency gains and lower-than-expected midstream spending - Differential
$0.13 - Total per unit operating costs of
$1.07 - Net cash provided by operating activities of
$756 million $588 million - Closed on non-operated asset sale and midstream joint venture transaction, receiving proceeds of
~ , net of certain transaction fees and expenses$4.7 billion - Exited the quarter with
$9.3 billion $9.1 billion ~ of working capital usage, which is expected to reverse as pricing stabilizes in 2025$475 million - Equitrans integration
90% complete; actions to date have de-risked ~85% of base synergies, while ~35% of upside synergies have been de-risked given faster-than-expected benefits from compression investments - Year-end 2024 proved reserves totaled 26.3 Tcfe, flat year-over-year when normalizing for the impact of non-operated asset sales despite SEC price deck dropping toward
$2
2025 Outlook Highlights:
- Initiated 2025 production guidance of 2,175 – 2,275 Bcfe, 125 Bcfe above prior expectations due to strong well performance and benefits from compression investments
- Initiated 2025 maintenance capital guidance of
$1,950 $2,120 million $350 $380 million ~ lower year-over-year reflecting continued efficiency gains and benefits from compression investments$200 million - Planning to drop from 3 to 2 frac crews at the end of first quarter 2025, several months ahead of prior plan due to further completion efficiency gains
- Projecting
~ and$2.6 billion ~ of free cash flow attributable to EQT(1,2) in 2025 and 2026, respectively, at recent strip pricing$3.3 billion - Expect to exit 2025 with
~ of net debt(1) at recent strip pricing, well ahead of$7 billion $7.5 billion
President and CEO Toby Z. Rice stated, "EQT's operations are firing on all cylinders, with material efficiency gains, robust well performance and Equitrans integration momentum driving outperformance across the board. This was on clear display in the fourth quarter, as higher-than-expected production and capital spending well below the low end of guidance resulted in nearly
Rice continued, "This momentum is carrying forward into 2025, with continued efficiency gains and quicker-than-expected benefits from midstream compression investments driving production upside relative to our original outlook, while reserve development capital spending is expected to decline by approximately
(1) | A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure. |
(2) | Assumes PipeBox LLC (Midstream JV) cash distributions of |
Fourth Quarter 2024 Financial and Operational Performance
Three Months Ended December 31, | |||||
($ millions, except average realized price and EPS) | 2024 | 2023 | Change | ||
Total sales volume (Bcfe) | 605 | 564 | 41 | ||
Average realized price ($/Mcfe) | $ 3.01 | $ 2.75 | $ 0.26 | ||
Net income attributable to EQT | $ 418 | $ 502 | $ (84) | ||
Adjusted net income attributable to EQT (a) | $ 416 | $ 214 | $ 202 | ||
Diluted income per share (EPS) | $ 0.69 | $ 1.13 | $ (0.44) | ||
Adjusted EPS (a) | $ 0.69 | $ 0.48 | $ 0.21 | ||
Net income | $ 427 | $ 501 | $ (74) | ||
Adjusted EBITDA (a) | $ 1,412 | $ 840 | $ 572 | ||
Net cash provided by operating activities | $ 756 | $ 624 | $ 132 | ||
Adjusted operating cash flow (a) | $ 1,231 | $ 775 | $ 456 | ||
Capital expenditures | $ 583 | $ 539 | $ 44 | ||
Capital contributions to equity method investments | $ 60 | $ 7 | $ 53 | ||
Free cash flow (a) | $ 588 | $ 229 | $ 359 | ||
Free cash flow attributable to EQT (a) | $ 580 | $ 229 | $ 351 | ||
(a) | A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure. |
Full Year 2024 Financial and Operational Performance
Years Ended December 31, | |||||
($ millions, except average realized price and EPS) | 2024 | 2023 | Change | ||
Total sales volume (Bcfe) | 2,228 | 2,016 | 212 | ||
Average realized price ($/Mcfe) | $ 2.74 | $ 2.79 | $ (0.05) | ||
Net income attributable to EQT | $ 231 | $ 1,735 | $ (1,504) | ||
Adjusted net income attributable to EQT (a) | $ 827 | $ 960 | $ (133) | ||
Diluted EPS | $ 0.45 | $ 4.22 | $ (3.77) | ||
Adjusted EPS (a) | $ 1.61 | $ 2.32 | $ (0.71) | ||
Net income | $ 242 | $ 1,735 | $ (1,493) | ||
Adjusted EBITDA (a) | $ 3,729 | $ 3,016 | $ 713 | ||
Net cash provided by operating activities | $ 2,827 | $ 3,179 | $ (352) | ||
Adjusted operating cash flow (a) | $ 3,109 | $ 2,795 | $ 314 | ||
Capital expenditures | $ 2,266 | $ 1,925 | $ 341 | ||
Capital contributions to equity method investments | $ 148 | $ 12 | $ 136 | ||
Free cash flow (a) | $ 695 | $ 858 | $ (163) | ||
Free cash flow attributable to EQT (a) | $ 684 | $ 860 | $ (176) | ||
(a) | A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure. |
Per Unit Operating Costs
The following table presents certain of the Company's consolidated operating costs on a per unit basis.(a)
Three Months Ended December 31, | Years Ended December 31, | ||||||
Per Unit ($/Mcfe) | 2024 | 2023 | 2024 | 2023 | |||
Gathering | $ 0.09 | $ 0.58 | $ 0.35 | $ 0.64 | |||
Transmission | 0.41 | 0.30 | 0.38 | 0.32 | |||
Processing | 0.14 | 0.12 | 0.13 | 0.12 | |||
Lease operating expense (LOE) | 0.09 | 0.07 | 0.09 | 0.07 | |||
Production taxes | 0.09 | 0.06 | 0.08 | 0.05 | |||
Operating and maintenance (O&M) | 0.07 | 0.02 | 0.05 | 0.01 | |||
Selling, general and administrative (SG&A) | 0.18 | 0.12 | 0.15 | 0.12 | |||
Operating costs | $ 1.07 | $ 1.27 | $ 1.23 | $ 1.33 | |||
Production depletion | $ 0.90 | $ 0.87 | $ 0.90 | $ 0.84 | |||
(a) | References in this release to the "Company" refer to EQT Corporation together with its consolidated subsidiaries. As used throughout this release, per unit operating costs reflect, for each period presented, the consolidated amount of such operating cost for the Company (aggregated irrespective of business segment) divided by total sales volume of natural gas and liquids (Mcfe). |
Gathering expense per Mcfe decreased for the three months ended December 31, 2024 compared to the same period in 2023 due primarily to the Company's ownership of the gathering, transmission and storage assets acquired in the Company's acquisition of Equitrans Midstream Corporation (Equitrans) in July 2024 (the Equitrans Midstream Merger) and the Company's acquisition of additional interest in gathering assets located in
Transmission expense per Mcfe increased for the three months ended December 31, 2024 compared to the same period in 2023 due primarily to capacity charges related to the in service of the Mountain Valley Pipeline (the MVP), which commenced long-term firm capacity obligations on July 1, 2024.
Processing expense per Mcfe increased for the three months ended December 31, 2024 compared to the same period in 2023 due primarily to increased volumes of gas requiring processing from wells that the Company turned-in-line in 2024.
LOE per Mcfe increased for the three months ended December 31, 2024 compared to the same period in 2023 due primarily to increased LOE from the Company's operation and maintenance of its production assets, including water assets acquired in the Equitrans Midstream Merger and water assets internally-developed in the prior year.
Production tax expense per Mcfe increased for the three months ended December 31, 2024 compared to the same period in 2023 due primarily to increased property tax expense from higher price as well as increased severance tax expense from increased sales volume in
O&M expense per Mcfe increased for the three months ended December 31, 2024 as a result of the Company's operation of gathering, transmission and storage assets acquired in the Equitrans Midstream Merger.
SG&A expense per Mcfe increased for the three months ended December 31, 2024 compared to the same period in 2023 due primarily to higher personnel costs due to increased workforce headcount, including as a result of the Equitrans Midstream Merger, and higher legal and professional services costs.
Production depletion expense per Mcfe increased for the three months ended December 31, 2024 compared to the same period in 2023 due to increased sales volume and higher annual depletion rate.
Liquidity
As of December 31, 2024, the Company had
As of December 31, 2024, total debt and net debt(1) were
(1) | A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure. |
Proved Reserves
The Company reported 2024 total proved reserves of 26.3 Tcfe, a decrease of 1,332 Bcfe, or
The following table presents the Company's reserves, standardized measure of discounted future net cash flow (the Standardized Measure) and PV-10 as compared to five-year strip pricing sensitivity. Of note, these values include ~3 years of the more than 30 years of the Company's future inventory and exclude the value associated with the Company's third-party midstream revenue, the MVP and Hammerhead pipelines and the Company's 1.2 Bcf per day of premium firm sales deals with major utilities in the Southeast region, which are tied to the future in-service of the Transco Southeast Expansion, the timing of which was not known with reasonable certainty as of December 31, 2024.
Year Ended December 31, 2024 | |||||
Proved Developed | Proved Undeveloped | Total | |||
(Millions) | |||||
SEC pricing (a): | |||||
Reserves (Bcfe) | 18,805 | 7,460 | 26,265 | ||
Standardized Measure | $ 7,662 | $ 337 | $ 7,999 | ||
PV-10 (b) | $ 9,113 | $ 731 | $ 9,844 | ||
Five-year strip pricing sensitivity (c): | |||||
Reserves (Bcfe) | 19,279 | 7,463 | 26,742 | ||
Standardized Measure | $ 17,671 | $ 4,349 | $ 22,020 | ||
PV-10 (b) | $ 21,005 | $ 5,707 | $ 26,712 | ||
(a) | Reserves as of December 31, 2024 were based on a natural gas price (NYMEX) of |
(b) | A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure. |
(c) | Pricing used in the five-year strip pricing sensitivity reflects five-year strip pricing as of December 31, 2024 and held constant thereafter using (i) the NYMEX five-year strip adjusted for regional differentials using Texas Eastern Transmission Corp. M-2, Transcontinental Gas Pipe Line, Leidy Line, and Tennessee Gas Pipeline Co., Zone 4-300 Leg for gas and (ii) the NYMEX West Texas Intermediate five-year strip for oil, adjusted for regional differentials consistent with those used in the SEC pricing, and holding all other assumptions constant. The average realized product prices weighted by production over the remaining lives of the properties would be |
The NYMEX strip price for proved reserves and related metrics are intended to illustrate reserve sensitivities to market expectations of commodity prices and should not be confused with SEC pricing for proved reserves and do not comply with SEC pricing assumptions. The Company's management believes that the presentation of reserve volume and related metrics using NYMEX forward strip prices provides investors with additional useful information about the Company's reserves because the forward prices are based on the market's forward-looking expectations of oil and gas prices as of a certain date. The price at which the Company can sell its production in the future is the major determinant of the likely economic producibility of the Company's reserves. The Company hedges certain amounts of future production based on futures prices. In addition, the Company uses such forward-looking market-based data in developing its drilling plans, assessing its capital expenditure needs and projecting future cash flows. While NYMEX strip prices represent a consensus estimate of future pricing, such prices are only an estimate and are not necessarily an accurate projection of future oil and gas prices. Actual future prices may vary significantly from NYMEX prices; therefore, actual revenue and value generated may be more or less than the amounts disclosed. Investors should be careful to consider forward prices in addition to, and not as a substitute for, SEC pricing, when considering the Company's reserves. |
Netherland, Sewell & Associates, Inc. an independent consulting firm hired by management, reviewed
2025 Outlook
In 2025, the Company expects total sales volume of 2,175 – 2,275 Bcfe. The Company expects maintenance capital expenditures to total
(1) | A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure. |
(2) | Defined as the average Henry Hub price needed to generate positive free cash flow in 2025, inclusive of the impact of 2025 hedges. |
2025 Guidance
Production | Q1 2025 | Full Year 2025 | ||
Total sales volume (Bcfe) | 525 – 575 | 2,175 – 2,275 | ||
Liquids sales volume, excluding ethane (Mbbl) | 3,900 – 4,200 | 15,700 – 16,500 | ||
Ethane sales volume (Mbbl) | 1,500 – 1,700 | 6,300 – 6,700 | ||
Total liquids sales volume (Mbbl) | 5,400 – 5,900 | 22,000 – 23,200 | ||
Btu uplift (MMBtu/Mcf) | 1.055 – 1.065 | 1.055 – 1.065 | ||
Average differential ($/Mcf) | ( | ( | ||
Resource Counts | ||||
Top-hole rigs | 1 – 2 | 1 – 2 | ||
Horizontal rigs | 2 – 3 | 2 – 3 | ||
Frac crews | 2 – 3 | 2 – 3 | ||
Midstream Revenue ($ Millions) | ||||
Third-party revenue | ||||
Per Unit Operating Costs ($/Mcfe) | ||||
Gathering | ||||
Transmission | ||||
Processing | ||||
LOE | ||||
Production taxes | ||||
O&M | ||||
SG&A | ||||
Operating costs | ||||
Equity Method Investments and Midstream JV Noncontrolling Interest ($ Millions) | ||||
Distributions from MVP, Laurel Mountain Midstream (LMM) | ||||
Distributions to Midstream JV Noncontrolling Interest (a) | ||||
Capital Expenditures and Capital Contributions ($ Millions) | ||||
Upstream maintenance | ||||
Midstream maintenance | ||||
Corporate & capitalized costs | ||||
Total maintenance capital expenditures | ||||
Strategic growth capital expenditures | ||||
Total capital expenditures | ||||
Strategic growth capital contributions to MVP Expansion, MVP Southgate, LMM | ||||
(a) | Assumes Midstream JV cash distributions of |
Fourth Quarter and Full Year 2024 Earnings Webcast Information
The Company's conference call with securities analysts begins at 10:00 a.m. ET on Wednesday February 19, 2025 and will be broadcast live via webcast. An accompanying presentation is available on the Company's investor relations website, www.ir.eqt.com under "Events & Presentations." To access the live audio webcast, visit the Company's investor relations website at ir.eqt.com. A replay will be archived and available for one year in the same location after the conclusion of the live event.
Hedging (as of February 14, 2025)
The following table summarizes the approximate volume and prices of the Company's NYMEX hedge positions. The difference between the fixed price and NYMEX price is included in average differential presented in the Company's price reconciliation.
Q1 2025(a) | Q2 2025 | Q3 2025 | Q4 2025 | ||||
Hedged Volume (MMDth) | 332 | 336 | 281 | 281 | |||
Hedged Volume (MMDth/d) | 3.7 | 3.7 | 3.1 | 3.1 | |||
Swaps – Short | |||||||
Volume (MMDth) | 250 | 290 | 281 | 95 | |||
Avg. Price ($/Dth) | $ 3.49 | $ 3.11 | $ 3.26 | $ 3.27 | |||
Calls – Short | |||||||
Volume (MMDth) | 188 | 46 | — | 137 | |||
Avg. Strike ($/Dth) | $ 4.19 | $ 3.48 | $ — | $ 5.49 | |||
Puts – Long | |||||||
Volume (MMDth) | 82 | 46 | — | 186 | |||
Avg. Strike ($/Dth) | $ 3.19 | $ 2.83 | $ — | $ 3.30 | |||
Option Premiums | |||||||
Cash Settlement of Deferred Premiums (millions) | $ — | $ — | $ — | $ (45) |
(a) | January 1 through March 31. |
The Company has also entered into transactions to hedge basis. The Company may use other contractual agreements from time to time to implement its commodity hedging strategy.
Non-GAAP Disclosures
This news release includes the non-GAAP financial measures described below. These non-GAAP measures are intended to provide additional information only and should not be considered as alternatives to, or more meaningful than, net income attributable to EQT Corporation, net income, diluted EPS, net cash provided by operating activities, total Production operating revenues, total debt, or any other measure calculated in accordance with GAAP. Certain items excluded from these non-GAAP measures are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital, tax structure, and historic costs of depreciable assets.
As a result of the completion of the Equitrans Midstream Merger, the Company adjusted its non-GAAP measures of adjusted EBITDA, adjusted net income attributable to EQT and free cash flow. In particular, adjusted EBITDA (and the related non-GAAP financial measure of adjusted EBITDA attributable to EQT) and adjusted net income attributable to EQT (and the related non-GAAP financial measure of adjusted EPS) have been changed to include distributions received from equity method investments. Free cash flow (and the related non-GAAP financial measure of free cash flow attributable to EQT) has been changed to exclude capital contributions to equity method investments. In addition, certain prior period amounts have been recast for comparability.
Adjusted Net Income Attributable to EQT and Adjusted EPS
Adjusted net income attributable to EQT is defined as net income attributable to EQT Corporation, excluding (gain) loss on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fair value of derivative instruments prior to settlement and certain other items that the Company's management believes do not reflect the Company's core operating performance. Adjusted EPS is defined as adjusted net income attributable to EQT divided by diluted weighted average common shares outstanding. The Company's management believes adjusted net income attributable to EQT and adjusted EPS provide useful information to investors regarding the Company's financial condition and results of operations because it helps facilitate comparisons of operating performance and earnings trends across periods by excluding the impact of items that, in their opinion, do not reflect the Company's core operating performance. For example, adjusted net income attributable to EQT and adjusted EPS reflect only the impact of settled derivative contracts; thus, the measures exclude the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement.
The table below reconciles adjusted net income attributable to EQT and adjusted EPS with net income attributable to EQT Corporation and diluted EPS, respectively, the most comparable financial measures calculated in accordance with GAAP, each as derived from the Statements of Consolidated Operations to be included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.
Three Months Ended December 31, | Years Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Thousands, except per share information) | |||||||
Net income attributable to EQT Corporation | $ 418,395 | $ 502,055 | $ 230,577 | $ 1,735,232 | |||
(Deduct) add: | |||||||
(Gain) loss on sale/exchange of long-lived assets | (454,179) | (369) | (764,044) | 17,445 | |||
Impairment and expiration of leases | 38,405 | 87,131 | 97,368 | 109,421 | |||
Loss (gain) on derivatives | 183,543 | (671,797) | (51,117) | (1,838,941) | |||
Net cash settlements received on derivatives | 180,574 | 275,599 | 1,217,895 | 900,650 | |||
Premiums paid for derivatives that settled during the period | (889) | (90,741) | (45,454) | (322,869) | |||
Other expenses (a) | 5,253 | 14,778 | 334,166 | 84,043 | |||
Income from investments | (39,365) | (2,286) | (76,039) | (7,596) | |||
Distributions from equity method investments | 55,013 | 620 | 66,200 | 18,693 | |||
Loss on debt extinguishment | 62,648 | 135 | 68,299 | 80 | |||
Non-cash interest expense (amortization) | 4,107 | 4,087 | 14,416 | 14,484 | |||
Tax impact of non-GAAP items (b) | (37,372) | 94,766 | (265,684) | 249,717 | |||
Adjusted net income attributable to EQT | $ 416,133 | $ 213,978 | $ 826,583 | $ 960,359 | |||
Diluted weighted average common shares outstanding | 602,521 | 445,400 | 514,593 | 413,224 | |||
Diluted EPS | $ 0.69 | $ 1.13 | $ 0.45 | $ 4.22 | |||
Adjusted EPS | $ 0.69 | $ 0.48 | $ 1.61 | $ 2.32 | |||
(a) | Other expenses consist primarily of transaction costs associated with acquisitions and other strategic transactions, costs related to exploring new venture opportunities and executive severance. For the year ended December 31, 2024, other expenses also included a nonrecurring corporate litigation expense. |
(b) | The tax impact of non-GAAP items represents the incremental tax expense/benefit that would have been incurred by the Company had these items been excluded from net income attributable to EQT Corporation, which resulted in a blended tax rate of |
Adjusted EBITDA and Adjusted EBITDA Attributable to EQT
Adjusted EBITDA is defined as net income excluding interest expense, income tax (benefit) expense, depreciation, depletion and amortization, (gain) loss on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fair value of derivative instruments prior to settlement and certain other items that the Company's management believes do not reflect the Company's core operating performance. Adjusted EBITDA attributable to EQT is defined as adjusted EBITDA less adjusted EBITDA attributable to noncontrolling interests. Adjusted EBITDA attributable to noncontrolling interests is defined as the proportionate share of adjusted EBITDA attributable to the third-party ownership interest in any of the Company's non-wholly-owned consolidated subsidiaries. The Company's management believes that these measures provide useful information to investors regarding the Company's financial condition and results of operations because they help facilitate comparisons of operating performance and earnings trends across periods by excluding the impact of items that, in their opinion, do not reflect the Company's core operating performance. For example, adjusted EBITDA reflects only the impact of settled derivative instruments and excludes the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement. In addition, adjusted EBITDA includes the impact of distributions received from equity method investments, which excludes the impact of depreciation included within equity earnings from equity method investments and helps facilitate comparisons of the core operating performance of the Company's equity method investments.
The table below reconciles adjusted EBITDA and adjusted EBITDA attributable to EQT with net income, the most comparable financial measure as calculated in accordance with GAAP, as reported in the Statements of Consolidated Operations to be included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.
Three Months Ended December 31, | Years Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Thousands) | |||||||
Net income | $ 427,245 | $ 501,447 | $ 242,115 | $ 1,734,544 | |||
Add (deduct): | |||||||
Interest expense, net | 186,435 | 72,804 | 454,825 | 219,660 | |||
Income tax expense | 146,869 | 150,979 | 22,079 | 368,954 | |||
Depreciation, depletion and amortization | 620,319 | 501,887 | 2,162,350 | 1,732,142 | |||
(Gain) loss on sale/exchange of long-lived assets | (454,179) | (369) | (764,044) | 17,445 | |||
Impairment and expiration of leases | 38,405 | 87,131 | 97,368 | 109,421 | |||
Loss (gain) on derivatives | 183,543 | (671,797) | (51,117) | (1,838,941) | |||
Net cash settlements received on derivatives | 180,574 | 275,599 | 1,217,895 | 900,650 | |||
Premiums paid for derivatives that settled during the period | (889) | (90,741) | (45,454) | (322,869) | |||
Other expenses (a) | 5,253 | 14,778 | 334,166 | 84,043 | |||
Income from investments | (39,365) | (2,286) | (76,039) | (7,596) | |||
Distributions from equity method investments | 55,013 | 620 | 66,200 | 18,693 | |||
Loss on debt extinguishment | 62,648 | 135 | 68,299 | 80 | |||
Adjusted EBITDA | $ 1,411,871 | $ 840,187 | $ 3,728,643 | $ 3,016,226 | |||
Less: Adjusted EBITDA attributable to noncontrolling interests | 12,286 | (500) | 19,625 | 3,754 | |||
Adjusted EBITDA attributable to EQT | $ 1,399,585 | $ 840,687 | $ 3,709,018 | $ 3,012,472 | |||
(a) | Other expenses consist primarily of transaction costs associated with acquisitions and other strategic transactions, costs related to exploring new venture opportunities and executive severance. For the year ended December 31, 2024, other expenses also included a nonrecurring corporate litigation expense. |
Adjusted Operating Cash Flow, Free Cash Flow and Free Cash Flow Attributable to EQT
Adjusted operating cash flow is defined as net cash provided by operating activities less changes in other assets and liabilities. Free cash flow is defined as adjusted operating cash flow less accrual-based capital expenditures and capital contributions to equity method investments. Free cash flow attributable to EQT is defined as free cash flow excluding the proportionate share of free cash flow attributable to the third-party ownership interest in any of the Company's non-wholly-owned consolidated subsidiaries. The Company's management believes adjusted operating cash flow, free cash flow and free cash flow attributable to EQT provide useful information to investors regarding the Company's liquidity, including the Company's ability to generate cash flow in excess of its capital requirements and return cash to shareholders.
The table below reconciles adjusted operating cash flow, free cash flow and free cash flow attributable to EQT with net cash provided by operating activities, the most comparable financial measure calculated in accordance with GAAP, as derived from the Statements of Consolidated Cash Flows to be included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.
Three Months Ended December 31, | Years Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Thousands) | |||||||
Net cash provided by operating activities | $ 756,276 | $ 624,386 | $ 2,826,973 | $ 3,178,850 | |||
Decrease (increase) in changes in other assets and liabilities | 474,635 | 150,202 | 281,805 | (383,632) | |||
Adjusted operating cash flow (a) | $ 1,230,911 | $ 774,588 | $ 3,108,778 | $ 2,795,218 | |||
Less: | |||||||
Capital expenditures | 582,937 | 538,507 | 2,265,948 | 1,925,243 | |||
Capital contributions to equity method investments | 60,245 | 7,092 | 148,049 | 12,092 | |||
Free cash flow (a) | $ 587,729 | $ 228,989 | $ 694,781 | $ 857,883 | |||
Less: Free cash flow attributable to noncontrolling interests | 7,506 | (494) | 11,146 | (2,508) | |||
Free cash flow attributable to EQT | $ 580,223 | $ 229,483 | $ 683,635 | $ 860,391 | |||
(a) | Included in adjusted operating cash flow and free cash flow for the three months and year ended December 31, 2024 is the impact of approximately |
The Company has not provided projected net cash provided by operating activities or reconciliations of projected adjusted operating cash flow, free cash flow and free cash flow attributable to EQT to projected net cash provided by operating activities, the most comparable financial measure calculated in accordance with GAAP. The Company is unable to project net cash provided by operating activities for any future period because this metric includes the impact of changes in operating assets and liabilities related to the timing of cash receipts and disbursements that may not relate to the period in which the operating activities occurred. The Company is unable to project these timing differences with any reasonable degree of accuracy without unreasonable efforts such as predicting the timing of its payments and its customers' payments, with accuracy to a specific day, months in advance. Furthermore, the Company does not provide guidance with respect to its average realized price, among other items, that impact reconciling items between net cash provided by operating activities and adjusted operating cash flow, free cash flow and free cash flow attributable to EQT, as applicable. Natural gas prices are volatile and out of the Company's control, and the timing of transactions and the income tax effects of future transactions and other items are difficult to accurately predict. Therefore, the Company is unable to provide projected net cash provided by operating activities, or the related reconciliations of projected adjusted operating cash flow, free cash flow and free cash flow attributable to EQT to projected net cash provided by operating activities, without unreasonable effort.
Production Adjusted Operating Revenues
Production adjusted operating revenues (also referred to as total natural gas and liquids sales, including cash settled derivatives; and, prior to the Equitrans Midstream Merger, was referred to as adjusted operating revenues) is defined as total Production operating revenues, less the revenue impact of changes in the fair value of derivative instruments prior to settlement and Production net marketing services and other revenues. The Company's management believes that this measure provides useful information to investors regarding the Company's financial condition and results of operations because it helps facilitate comparisons of operating performance and earnings trends across periods. Production adjusted operating revenues reflects only the impact of settled derivative contracts; thus, the measure excludes the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement. The measure also excludes Production net marketing services and other revenues because it is unrelated to the revenue from the Company's natural gas and liquids production.
The table below reconciles Production adjusted operating revenues to total Production operating revenues, the most comparable financial measure calculated in accordance with GAAP, as reported in the Statements of Consolidated Operations to be included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.
Three Months Ended December 31, | Years Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Thousands, unless otherwise noted) | |||||||
Total Production operating revenues | $ 1,473,569 | $ 2,038,973 | $ 5,009,833 | $ 6,896,358 | |||
Add (deduct): | |||||||
Production loss (gain) on derivatives | 172,453 | (671,797) | (67,880) | (1,838,941) | |||
Net cash settlements received on derivatives | 180,574 | 275,599 | 1,217,895 | 900,650 | |||
Premiums paid for derivatives that settled during the period | (889) | (90,741) | (45,454) | (322,869) | |||
Production net marketing services and other | (4,830) | (2,974) | (7,587) | (12,649) | |||
Production adjusted operating revenues | $ 1,820,877 | $ 1,549,060 | $ 6,106,807 | $ 5,622,549 | |||
Total sales volume (MMcfe) | 605,183 | 563,929 | 2,228,159 | 2,016,273 | |||
Average sales price ($/Mcfe) | $ 2.71 | $ 2.42 | $ 2.21 | $ 2.50 | |||
Average realized price ($/Mcfe) | $ 3.01 | $ 2.75 | $ 2.74 | $ 2.79 | |||
Net Debt
Net debt is defined as total debt less cash and cash equivalents. Total debt includes the Company's current portion of debt, revolving credit facility borrowings, term loan facility borrowings, senior notes and, as of December 31, 2023, the Company's note payable to EQM Midstream Partners, LP (EQM). The Company's management believes net debt provides useful information to investors regarding the Company's financial condition and assists them in evaluating the Company's leverage since the Company could choose to use its cash and cash equivalents to retire debt.
The table below reconciles net debt with total debt, the most comparable financial measure calculated in accordance with GAAP, as derived from the Consolidated Balance Sheets to be included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.
December 31, | |||
2024 | 2023 | ||
(Thousands) | |||
Current portion of debt (a) | $ 320,800 | $ 292,432 | |
EQT's revolving credit facility borrowings | 150,000 | — | |
Term loan facility borrowings | — | 1,244,265 | |
Senior notes | 8,853,377 | 4,176,180 | |
Note payable to EQM | — | 82,236 | |
Total debt | 9,324,177 | 5,795,113 | |
Less: Cash and cash equivalents | 202,093 | 80,977 | |
Net debt | $ 9,122,084 | $ 5,714,136 | |
(a) | As of December 31, 2024, the current portion of debt included Eureka Midstream, LLC's revolving credit facility. Eureka Midstream, LLC is a wholly-owned subsidiary of Eureka Midstream Holdings, LLC, a consolidated joint venture EQT acquired a controlling, |
The Company has not provided a reconciliation of projected net debt to projected total debt, the most comparable financial measure calculated in accordance with GAAP. The Company is unable to project total debt for any future period because total debt is dependent on the timing of cash receipts and disbursements that may not relate to the periods in which the operating activities occurred. The Company is unable to project these timing differences with any reasonable degree of accuracy and therefore cannot reasonably determine the timing and payment of revolving credit facility borrowings or other components of total debt without unreasonable effort. Furthermore, the Company does not provide guidance with respect to its average realized price, among other items that impact reconciling items between certain of the projected total debt and projected net debt, as applicable. Natural gas prices are volatile and out of the Company's control, and the timing of transactions and the distinction between cash on hand as compared to revolving credit facility borrowings are too difficult to accurately predict. Therefore, the Company is unable to provide a reconciliation of projected net debt to projected total debt, without unreasonable effort.
PV-10
PV-10 is derived from the Standardized Measure, which is the most comparable financial measure calculated in accordance with GAAP. PV-10 differs from the Standardized Measure in that PV-10 excludes the effects of income taxes on future net revenues. The Company's management believes the presentation of PV-10 is relevant and useful to investors because it provides the discounted future net cash flows attributable to the Company's proved reserves without regard to any of the Company's specific income tax characteristics and is a useful measure for evaluating the relative monetary significance of the Company's oil and natural gas properties. Investors may use PV-10 as a basis for comparing the relative size and value of the Company's proved reserves to that of other companies. PV-10 should not be considered as a substitute for, or more meaningful than, the Standardized Measure. Neither PV-10 nor the Standardized Measure represents an estimate of the fair market value of the Company's oil and natural gas properties.
The table below reconciles PV-10 to the Standardized Measure, the most comparable financial measure calculated in accordance with GAAP, as derived from the footnotes to be included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.
Year Ended December 31, 2024 | |||||
Proved | Proved | Total | |||
(Millions) | |||||
SEC pricing: | |||||
Standardized Measure | $ 7,662 | $ 337 | $ 7,999 | ||
Estimated income taxes on future net revenues | 1,451 | 394 | 1,845 | ||
PV-10 | $ 9,113 | $ 731 | $ 9,844 | ||
Five-year strip pricing sensitivity: | |||||
Standardized Measure | $ 17,671 | $ 4,349 | $ 22,020 | ||
Estimated income taxes on future net revenues | 3,334 | 1,358 | 4,692 | ||
PV-10 | $ 21,005 | $ 5,707 | $ 26,712 | ||
Investor Contact
Cameron Horwitz
Managing Director, Investor Relations & Strategy
412.445.8454
Cameron.Horwitz@eqt.com
About EQT Corporation
EQT Corporation is a premier, vertically integrated American natural gas company with production and midstream operations focused in the Appalachian Basin. We are dedicated to responsibly developing our world-class asset base and being the operator of choice for our stakeholders. By leveraging a culture that prioritizes operational efficiency, technology and sustainability, we seek to continuously improve the way we produce environmentally responsible, reliable and low-cost energy. We have a longstanding commitment to the safety of our employees, contractors, and communities, and to the reduction of our overall environmental footprint. Our values are evident in the way we operate and in how we interact each day – trust, teamwork, heart, and evolution are at the center of all we do.
EQT Management speaks to investors from time to time and the analyst presentation for these discussions, which is updated periodically, is available via EQT's investor relations website at https://ir.eqt.com.
Cautionary Statements Regarding Forward-Looking Statements
This news release contains certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Statements that do not relate strictly to historical or current facts are forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this news release specifically include the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of EQT Corporation (EQT) and its consolidated subsidiaries (collectively, the Company), including guidance regarding EQT's strategy to develop its reserves; drilling plans and programs (including the number and type of drilling rigs and the number of frac crews to be utilized by the Company, the projected amount of wells to be turned-in-line and the timing thereof); projected natural gas prices, basis and average differential; the impact of commodity prices on the Company's business; total resource potential; projected production and sales volumes; projected well costs and unit costs; the Company's ability to successfully implement and execute its operational, organizational, technological and environmental, social and governance (ESG) initiatives, the timing thereof and the Company's ability to achieve the anticipated results of such initiatives; the Company's ability to achieve the intended operational, financial and strategic benefits from recently completed strategic transactions, including the Equitrans Midstream Merger and the anticipated synergies therefrom and the timing of achieving such synergies, if at all; the amount and timing of any redemptions, repayments or repurchases of EQT's common stock, the Company's outstanding debt securities or other debt instruments; the Company's ability to reduce its debt and the timing of such reductions, if any; projected free cash flow; liquidity and financing requirements, including funding sources and availability; the Company's hedging strategy and projected margin posting obligations; the Company's tax position and projected effective tax rate; and the expected impact of changes in laws.
The forward-looking statements included in this news release involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The Company has based these forward-looking statements on current expectations and assumptions about future events, taking into account all information currently known by the Company. While the Company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond the Company's control. These risks and uncertainties include, but are not limited to, volatility of commodity prices; the costs and results of drilling and operations; uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future; the assumptions underlying production forecasts; the quality of technical data; the Company's ability to appropriately allocate capital and other resources among its strategic opportunities; access to and cost of capital; the Company's hedging and other financial contracts; inherent hazards and risks normally incidental to drilling for, producing, transporting, storing and processing natural gas, natural gas liquids (NGLs) and oil; operational risks and hazards incidental to the gathering, transmission and storage of natural gas as well as unforeseen interruptions; cyber security risks and acts of sabotage; availability and cost of drilling rigs, completion services, equipment, supplies, personnel, oilfield services and pipe, sand and water required to execute the Company's exploration and development plans, including as a result of inflationary pressures or tariffs; risks associated with operating primarily in the Appalachian Basin; the ability to obtain environmental and other permits and the timing thereof; construction, business, economic, competitive, regulatory, judicial, environmental, political and legal uncertainties related to the development and construction by the Company or its joint ventures of pipeline and storage facilities and transmission assets and the optimization of such assets; the Company's ability to renew or replace expiring gathering, transmission or storage contracts at favorable rates, on a long-term basis or at all; risks relating to the Company's joint venture arrangements; government regulation or action, including regulations pertaining to methane and other greenhouse gas emissions; negative public perception of the fossil fuels industry; increased consumer demand for alternatives to natural gas; environmental and weather risks, including the possible impacts of climate change; risks related to the Company's ability to integrate the operations of Equitrans in a successful manner and in the expected time period and the possibility that any of the anticipated benefits and projected synergies of the Equitrans Midstream Merger will not be realized or will not be realized within the expected time period; and disruptions to the Company's business due to recently completed or pending divestitures, acquisitions and other significant strategic transactions, including the Equitrans Midstream Merger. These and other risks and uncertainties are described under the "Risk Factors" section and elsewhere in EQT's Annual Report on Form 10-K for the year ended December 31, 2024 to be filed with the SEC, and in other documents EQT subsequently files from time to time with the SEC. In addition, the Company may be subject to currently unforeseen risks that may have a materially adverse impact on it.
Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, EQT does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.
EQT CORPORATION AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED OPERATIONS | |||||||
Three Months Ended December 31, | Years Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Thousands, except per share amounts) | |||||||
Operating revenues: | |||||||
Sales of natural gas, natural gas liquids and oil | $ 1,641,192 | $ 1,364,202 | $ 4,934,366 | $ 5,044,768 | |||
(Loss) gain on derivatives | (183,543) | 671,797 | 51,117 | 1,838,941 | |||
Pipeline, net marketing services and other | 167,078 | 7,000 | 287,826 | 25,214 | |||
Total operating revenues | 1,624,727 | 2,042,999 | 5,273,309 | 6,908,923 | |||
Operating expenses: | |||||||
Transportation and processing | 386,523 | 564,326 | 1,915,616 | 2,157,260 | |||
Production | 103,965 | 75,038 | 377,007 | 239,001 | |||
Operating and maintenance | 44,569 | 9,591 | 110,393 | 15,699 | |||
Exploration | 159 | 728 | 2,735 | 3,330 | |||
Selling, general and administrative | 107,994 | 67,172 | 336,724 | 236,171 | |||
Depreciation, depletion and amortization | 620,319 | 501,887 | 2,162,350 | 1,732,142 | |||
(Gain) loss on sale/exchange of long-lived assets | (454,179) | (369) | (764,044) | 17,445 | |||
Impairment and expiration of leases | 38,405 | 87,131 | 97,368 | 109,421 | |||
Other operating expenses | (4,473) | 14,778 | 349,864 | 84,043 | |||
Total operating expenses | 843,282 | 1,320,282 | 4,588,013 | 4,594,512 | |||
Operating income | 781,445 | 722,717 | 685,296 | 2,314,411 | |||
Income from investments | (39,365) | (2,286) | (76,039) | (7,596) | |||
Other income | (2,387) | (362) | (25,983) | (1,231) | |||
Loss on debt extinguishment | 62,648 | 135 | 68,299 | 80 | |||
Interest expense, net | 186,435 | 72,804 | 454,825 | 219,660 | |||
Income before income taxes | 574,114 | 652,426 | 264,194 | 2,103,498 | |||
Income tax expense | 146,869 | 150,979 | 22,079 | 368,954 | |||
Net income | 427,245 | 501,447 | 242,115 | 1,734,544 | |||
Less: Net income (loss) attributable to noncontrolling interests | 8,850 | (608) | 11,538 | (688) | |||
Net income attributable to EQT Corporation | $ 418,395 | $ 502,055 | $ 230,577 | $ 1,735,232 | |||
Income per share of common stock attributable to EQT Corporation: | |||||||
Basic: | |||||||
Weighted average common stock outstanding | 597,224 | 416,792 | 509,597 | 380,902 | |||
Net income attributable to EQT Corporation | $ 0.70 | $ 1.20 | $ 0.45 | $ 4.56 | |||
Diluted: | |||||||
Weighted average common stock outstanding | 602,521 | 445,400 | 514,593 | 413,224 | |||
Net income attributable to EQT Corporation | $ 0.69 | $ 1.13 | $ 0.45 | $ 4.22 | |||
EQT CORPORATION AND SUBSIDIARIES PRICE RECONCILIATION | |||||||
Three Months Ended December 31, | Years Ended December 31, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Thousands, unless otherwise noted) | |||||||
NATURAL GAS | |||||||
Sales volume (MMcf) | 565,867 | 532,816 | 2,086,441 | 1,907,343 | |||
NYMEX price ($/MMBtu) | $ 2.81 | $ 2.88 | $ 2.30 | $ 2.74 | |||
Btu uplift | 0.16 | 0.16 | 0.13 | 0.14 | |||
Natural gas price ($/Mcf) | $ 2.97 | $ 3.04 | $ 2.43 | $ 2.88 | |||
Basis ($/Mcf) (a) | $ (0.43) | $ (0.82) | $ (0.41) | $ (0.51) | |||
Cash settled basis swaps ($/Mcf) | 0.01 | 0.08 | (0.07) | (0.03) | |||
Average differential, including cash settled basis swaps ($/Mcf) | $ (0.42) | $ (0.74) | $ (0.48) | $ (0.54) | |||
Average adjusted price ($/Mcf) | 2.55 | 2.30 | 1.95 | 2.34 | |||
Cash settled derivatives ($/Mcf) | 0.31 | 0.28 | 0.64 | 0.34 | |||
Average natural gas price, including cash settled derivatives ($/Mcf) | $ 2.86 | $ 2.58 | $ 2.59 | $ 2.68 | |||
Natural gas sales, including cash settled derivatives | $ 1,615,584 | $ 1,371,031 | $ 5,401,642 | $ 5,112,278 | |||
LIQUIDS | |||||||
NGLs, excluding ethane: | |||||||
Sales volume (MMcfe) (b) | 24,171 | 23,054 | 87,564 | 64,859 | |||
Sales volume (Mbbl) | 4,028 | 3,842 | 14,594 | 10,810 | |||
NGLs price ($/Bbl) | $ 41.65 | $ 38.29 | $ 39.13 | $ 36.39 | |||
Cash settled derivatives ($/Bbl) | (0.55) | (0.77) | (0.30) | (1.27) | |||
Average NGLs price, including cash settled derivatives ($/Bbl) | $ 41.10 | $ 37.52 | $ 38.83 | $ 35.12 | |||
NGLs sales, including cash settled derivatives | $ 165,576 | $ 144,154 | $ 566,808 | $ 379,663 | |||
Ethane: | |||||||
Sales volume (MMcfe) (b) | 12,170 | 5,243 | 44,586 | 34,441 | |||
Sales volume (Mbbl) | 2,028 | 874 | 7,431 | 5,740 | |||
Ethane price ($/Bbl) | $ 6.20 | $ 6.54 | $ 6.03 | $ 6.00 | |||
Ethane sales | $ 12,569 | $ 5,718 | $ 44,806 | $ 34,417 | |||
Oil: | |||||||
Sales volume (MMcfe) (b) | 2,975 | 2,816 | 9,568 | 9,630 | |||
Sales volume (Mbbl) | 496 | 469 | 1,595 | 1,605 | |||
Oil price ($/Bbl) | $ 54.75 | $ 59.98 | $ 58.67 | $ 59.93 | |||
Oil sales | $ 27,148 | $ 28,157 | $ 93,551 | $ 96,191 | |||
Total liquids sales volume (MMcfe) (b) | 39,316 | 31,113 | 141,718 | 108,930 | |||
Total liquids sales volume (Mbbl) | 6,552 | 5,185 | 23,620 | 18,155 | |||
Total liquids sales | $ 205,293 | $ 178,029 | $ 705,165 | $ 510,271 | |||
TOTAL | |||||||
Total natural gas and liquids sales, including cash settled derivatives (c) | $ 1,820,877 | $ 1,549,060 | $ 6,106,807 | $ 5,622,549 | |||
Total sales volume (MMcfe) | 605,183 | 563,929 | 2,228,159 | 2,016,273 | |||
Average realized price ($/Mcfe) | $ 3.01 | $ 2.75 | $ 2.74 | $ 2.79 | |||
(a) | Basis represents the difference between the ultimate sales price for natural gas, including the effects of delivered price benefit or deficit associated with the Company's firm transportation agreements, and the NYMEX natural gas price. |
(b) | NGLs, ethane and oil were converted to Mcfe at a rate of six Mcfe per barrel. |
(c) | Also referred to herein as Production adjusted operating revenues, a non-GAAP supplemental financial measure. |
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SOURCE EQT Corporation (EQT-IR)
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