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EQT Corporation Reports Fourth Quarter and Full Year 2024 Results

On February 18, 2025, EQT Corporation (NYSE: EQT) disclosed its financial and operational results for the fourth quarter and the entirety of 2024, alongside guidance for 2025. The operational milestones achieved during the fourth quarter were noted to drive notable performance enhancements.

Fourth Quarter Highlights

• - Sales Volume: Recorded at 605 Bcfe, which positioned at the higher end of the guidance range, primarily due to sustained efficiency in operations and impressive well performance, even with a total of 27 Bcfe in net curtailments.
• - Capital Expenditures: Totaled $583 million, which is notably 7% lower than the lower end of initial expectations, thanks to enhanced efficiencies and diminished midstream expenditure.
• - Differential Pricing: The differential price remained $0.13 per Mcf, showcasing resilience in value extraction strategies without yielding operational efficiencies.
• - Operating Costs: Averaged $1.07 per Mcfe, attaining the lower end of the guidance threshold driven by an uptick in production and reduction in lease operating expenses and administrative costs.
• - Cash Flow: Generated $756 million in net cash from operating activities, with $588 million of free cash flow demonstrated from enhanced operational productivity and efficient capital allocation.
• - Debt Position: Concluded the quarter with $9.3 billion of total debt and $9.1 billion in net debt, accounting for anticipated working capital utilization, which is expected to normalize by mid-2025.

EQT has made remarkable strides with their merger integration for Equitrans, achieving 90% completion, successfully mitigating 85% of base synergies while capturing further upside from compression investments, which have yielded 35% of anticipated benefits sooner than expected. The company's proved reserves were recorded at 26.3 Tcfe at the close of 2024, reflecting consistent performance amid a challenging sector backdrop.

2025 Outlook

EQT's outlook for 2025 appears promising with a forecasted production volume ranging from 2,175 Bcfe to 2,275 Bcfe, signaling an enhancement of 125 Bcfe over prior estimates driven by the preceding well performance and operational efficiency gains derived from compression initiatives. Maintenance capital guidance is set between $1,950 million and $2,120 million with an additional growth capital investment forecast between $350 million and $380 million. Importantly, the company anticipates free cash flow of around $2.6 billion in 2025, escalating to approximately $3.3 billion in 2026.

EQT President and CEO, Toby Z. Rice, emphasized the substantial operational efficiencies and the driving success of the Equitrans integration, which have spurred the company’s performance across the board, leading to nearly $600 million in free cash flow amidst an average natural gas price of only $2.81 per MMBtu during the quarter.

Given these factors, EQT is positioned strongly as it heads into 2025, showcasing an impressive operational framework and a commitment to efficient, responsible development of their world-class asset base, aligning closely with their strategic goals. This report reinforces EQT's standing as a leader in the natural gas sector and sheds light on their continued dedication to stakeholder engagement and environmental sustainability.