On July 23, 2024, EQT Corp (EQT, Financial) released its 8-K filing detailing the financial and operational results for the second quarter of 2024. EQT Corp is an independent natural gas production company with operations focused in the Marcellus and Utica shale plays in the Appalachian Basin. At year-end 2023, EQT's proven reserves totaled 27.6 trillion cubic feet equivalent, with net production of 5.79 billion cubic feet equivalent per day. Natural gas accounted for 94% of production.
Performance Highlights
EQT Corp reported a net income of $10 million for Q2 2024, a significant improvement from a net loss of $67 million in Q2 2023. The company’s adjusted net loss was $34 million, compared to an adjusted net loss of $62 million in the same period last year. Diluted earnings per share (EPS) stood at $0.02, while adjusted EPS was -$0.08, both showing improvement from the previous year’s figures.
Key financial metrics include:
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Total sales volume (Bcfe) | 508 | 471 | 37 |
| Average realized price ($/Mcfe) | $2.33 | $2.11 | $0.22 |
| Net income (loss) attributable to EQT | $10 million | -$67 million | $77 million |
| Adjusted EBITDA | $464 million | $360 million | $104 million |
| Net cash provided by operating activities | $322 million | $437 million | -$115 million |
| Capital expenditures | $576 million | $470 million | $106 million |
Operational Efficiency and Strategic Moves
EQT Corp closed the acquisition of Equitrans Midstream Corporation a full quarter ahead of plan, resulting in approximately $150 million of savings. This acquisition accelerates synergy capture and the commencement of the deleveraging plan. The company reported sales volume of 508 Bcfe, surpassing the high-end of guidance due to continued operational efficiency gains and strong well performance.
Capital expenditures were $576 million, below the midpoint of guidance despite a faster activity pace. Recent developments indicate a step change improvement in completion efficiency, with potential for structurally lower well costs. Total per unit operating costs were $1.40 per Mcfe, below the low-end of guidance driven by lower-than-expected lease operating expense (LOE) and selling, general, and administrative (SG&A) expenses.
Financial Achievements and Liquidity
Total debt and net debt decreased from $5.8 billion and $5.7 billion at year-end 2023 to $5.0 billion and $4.9 billion, respectively, at the end of Q2 2024. The company retired approximately $600 million of 2025 senior notes with proceeds from partial non-operated asset monetization and increased revolving credit facility lender commitments from $2.5 billion to $3.5 billion.
President and CEO Toby Z. Rice commented,
"This week marked a significant milestone in the history of our company as we closed the acquisition of Equitrans, transforming EQT into America’s only large-scale, vertically integrated natural gas business. This combination creates a truly differentiated business model among the energy investment landscape, as EQT is now at the low end of the North American natural gas cost curve."
Outlook and Guidance
EQT Corp reaffirms its expectation of 2024 total sales volume of 2,100 – 2,200 Bcfe, which includes approximately 180 Bcfe of net production curtailments in 2024. The company maintains its 2024 EQT maintenance capital expenditures guidance of $1,950 – $2,050 million and strategic growth capital expenditures guidance of $200 – $300 million.
For Q3 2024, EQT Corp expects total sales volume to be between 510 – 560 Bcfe, inclusive of planned curtailments. The company plans to turn-in-line 40 – 60 net wells during the third quarter.
For more detailed information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from EQT Corp for further details.
