EQT Corporation

EQT said Q2 free cash flow attributable to EQT was $330 million, despite natural gas prices averaging $2.89 per MMBtu. Management did not provide revenue or EPS in the transcript. The company raised 2026 production guidance by roughly 90 Bcfe at the midpoint, lowered full-year CapEx by $25 million, and pulled forward $85 million of capital contributions to equity method investments from 2027 into 2026. Looking ahead, EQT said the CPV power deal could improve free cash flow by about $100 million a year if it were fully online for a full year, and it expects the 2028 LNG offtake agreement to add roughly $45 million to 2028 free cash flow at recent strip pricing.

Toby Z. Rice framed the quarter as evidence that EQT's integrated upstream and midstream platform is translating into stronger operations, better realizations, and more strategic optionality. He stressed that the company is not pursuing growth for its own sake; instead, it wants growth tied to contractual demand and durable returns. His tone was confident and expansive, highlighting record drilling performance, improved base production from compression projects, and what he described as a much larger Appalachia demand opportunity set.

Jeremy Knop focused on financial outperformance and capital discipline, saying EQT exceeded expectations across production, price realizations, operating costs, and capital spending. He highlighted $330 million of Q2 free cash flow attributable to EQT, the 2026 production guide increase of 90 Bcfe, the $25 million reduction in full-year CapEx, and the $85 million pull-forward tied to MVP Southgate. He also said EQT is nearing its $5 billion net debt target and intends to build cash in the near term so it can be aggressively deployed into share repurchases during down cycles.

Analysts pressed management on how much cash EQT wants to keep on hand versus deploy into buybacks, and Knop said the company could accumulate a few billion dollars of cash but would be more aggressive with repurchases at current stock levels. Several questions focused on the CPV contract and EQT's expanding power strategy; management said the deal is linked to PJM power pricing, offers a material premium to local index pricing, and gives EQT exposure to power economics without committing capital. There were also questions about Appalachia demand timing and risk; management said only a portion of the large demand wedge may materialize, but even then it expects basis to strengthen materially and believes its integrated platform gives EQT an advantage in capturing those opportunities.