EQT Corporation (EQT) Earnings & Analysis

Latest quarter

EQT reported Q3 revenue of $1.8 billion, down from $2.0 billion a year earlier. Revenue missed the consensus by −0.91%, although both the reported figure and estimate rounded to $1.8 billion. Adjusted earnings per share were $0.42, above the consensus estimate of $0.38.

The filing shows natural gas, natural gas liquids and oil sales fell approximately $161 million from a year earlier, with lower volumes accounting for approximately $136 million of the decline. EQT attributed the volume decrease primarily to strategic production curtailments of 21 Bcfe and normal production declines that outpaced volumes from newly operating wells. It also cited a lower average sales price.

EQT’s operating margin narrowed to 26.0% from 30.8%, while gross margin fell to 73.4% from 75.7%. Free cash flow rose to $436.2 million from $389.0 million. The filing reported net income attributable to EQT of approximately $279 million, down from approximately $336 million, citing lower natural gas sales and derivative gains, partly offset by lower expenses.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On EQT’s Q2 2026 call, CEO Toby Rice said production exceeded guidance, with compression projects extending flat production on new wells and slowing declines on older wells. Rice said EQT was raising its 2026 production guidance by roughly 90 BCFE at the midpoint.

Rice said EQT was tracking Appalachian demand and pipeline projects, but that future production growth would be tied to demand supported by commercial agreements. When asked how much demand EQT might supply through new production, he said the company would first seek direct connections and then evaluate how much to grow; he did not specify an amount.

CFO Jeremy Knop said a gas supply agreement with Competitive Power Ventures linked pricing to PJM power prices rather than a gas-price index. He said the structure gave EQT exposure to power pricing without a capital commitment. Asked about the contract’s potential contribution, Knop described a hypothetical full-year, full-capacity case, while noting that actual utilization would be lower.

Rice said pipeline opportunities around Clarington could require infrastructure to move gas from EQT’s core production region. Knop said EQT was working with reservoir and finance teams to recalibrate forecasts after compression’s effects on well performance exceeded its original expectations.

On investment, Knop said EQT was accelerating MVP Southgate construction and moving $85 million of capital contributions from 2027 into 2026. He also said a five-year LNG offtake agreement was expected to increase 2028 free cash flow by roughly $45 million at recent strip pricing.

Knop said EQT was considering near-term natural gas market risks from potential Permian production growth and weather patterns. He also said the company intended to accumulate cash for share repurchases during industry down cycles.

Guidance

EQT’s current full-year 2026 sales volume outlook is 2,375 to 2,450 Bcfe. On the Q2 call, Rice said EQT had raised its 2026 production guidance by roughly 90 BCFE at the midpoint, while Knop said the company had lowered full-year capital expenditure guidance by $25 million.