EQT Earnings: Strong Production

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Here’s our initial take on EQT‘s (EQT) financial report.

Key Metrics

Metric Q2 2024 Q2 2025 Change vs. Expectations
Production-adjusted revenue $1.18 billion $1.60 billion +36% n/a
Earnings per share (adjusted) ($0.08) $0.45 n/a Beat
Sales volume 508 Bcfe 568 Bcfe +12% n/a
Average realized price per Mcfe $2.33 $2.81 21% n/a

Strong Production and Lower Costs

In Q2 of 2025, EQT surpassed profit expectations for adjusted earnings, achieving this through increased production alongside reduced capital expenditures. The company reported a sales volume of 568 billion cubic feet equivalent (Bcfe), marking a 12% rise compared to the same period last year. This growth was fueled by strong well performance and compression projects. Contrastingly, capital spending for the quarter amounted to $554 million, which is 15% less than the company’s midpoint projection. The lower-than-anticipated capital spending can be attributed to efficiency enhancements and optimizations in their midstream projects.

On July 1st, I witnessed EQT completing the acquisition of Olympus Energy’s upstream and midstream assets. Although Olympus didn’t contribute to EQT’s second-quarter outcomes, the company raised its full-year production projection by an additional 100 Bcfe due to this acquisition. Moreover, EQT has recently sealed a deal to become the sole provider of midstream infrastructure for a substantial natural gas power plant in West Virginia.

In the second quarter, the average realized price for Mcfe jumped by 21% to $2.81, and production-adjusted revenue surged 36% to reach $1.6 billion. CEO Toby Rice commented, “We’re experiencing significant growth in demand for in-basin natural gas for power and data centers, and EQT is particularly well-suited to take advantage of this trend thanks to our extensive production capacity, abundant reserves, top-tier integrated infrastructure, strong credit ratings, and commitment to low emissions.”

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Immediate Market Reaction

On Tuesday evening, EQT’s shares saw a roughly 1% increase in after-hours trading. Despite the company surpassing analyst expectations for adjusted earnings and showing impressive production-related revenue growth, these results didn’t significantly boost the stock price. It’s worth noting that prior to this report, EQT’s stock had already grown by approximately 18% throughout the year so far.

What to Watch

EQT raised its anticipated annual sales volume due to the Olympus acquisition, now expecting it to be between 2,300 billion cubic feet equivalent (Bcfe) and 2,400 Bcfe. Additionally, the company adjusted its projected per-unit operating costs down by $0.06 per thousand cubic feet equivalent (Mcfe), setting a new range of $1.03 to $1.17 per Mcfe, to account for the advantages brought by the Olympus deal.

As an excited enthusiast, I’m sharing some exciting news about my company, EQT. This year, we aim to drill and complete somewhere between 95 to 120 wells across our operations. Despite the additional spending required for Olympus-related activities, our capital expenditure plans remain steady.

In 2025, you can expect us to invest between $2.3 billion and $2.45 billion, maintaining our commitment to growth and efficiency. Stay tuned for more updates as we continue our journey towards success!

As the need for electricity in data centers increases due to advancements in Artificial Intelligence, EQT stands poised to seize this opportunity and expand output, benefiting from the ongoing AI growth.

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2025-07-23 16:42