EQT Corporation EQT boasts a peer-leading natural gas inventory, with more than 30 years of de-risked drilling locations across its 1 million net acres in the Appalachian Basin. This extensive footprint solidifies EQT’s position as the largest natural gas producer in the United States. Despite widespread inventory depletion in Appalachia, the company maintained its 2024 proved reserves at 26 trillion cubic feet equivalent, even as SEC pricing declined from $2.64 to $2.13 per million British thermal units (MMBtu).
The company’s recent integration of Equitrans Midstream strengthens its long-term infrastructure position, ensuring cost-effective and reliable gas transportation. This acquisition significantly reduces third-party reliance while capturing additional midstream revenue streams.
EQT’s financial resilience remains evident in its strong free cash flow (FCF) generation, even in a low-price environment. In the fourth quarter of 2024, the company generated $588 million in FCF despite Henry Hub prices averaging just $2.81/MMBtu. Looking ahead, EQT projects $2.6 billion in FCF for 2025 and $3.3 billion for 2026, with $15 billion over the next five years.
The company’s aggressive debt reduction strategy strengthens its financial flexibility. EQT reduced its net debt from $13.7 billion in the third quarter of 2024 to $9.1 billion by the end of 2024. The company targets $7.5 billion in 2025 and aims for a long-term goal of $5 billion. This deleveraging enhances investor confidence and positions the company to navigate commodity price fluctuations with greater stability.
EQT Corp implemented significant cost-cutting measures to enhance its competitive advantage. The company expects reserve development capital intensity to decline 5-10% year over year in 2025 and 15% from the 2023 reported level. Additionally, well costs are forecast to drop $70 per foot in 2025 from that reported in 2024.
Completion efficiencies are also at record highs, with completed lateral footage per day increasing 35% in the second half of 2024 compared to historical performance. These efficiency gains directly reduce capital expenditure, allowing EQT to sustain production levels with lower maintenance spending.
EQT structured its hedge book to balance risk management with upside potential. Hedge coverage is likely to decrease to 40% in the fourth quarter of 2025, with full market exposure beginning in 2026. This strategy positions EQT Corp to capitalize on rising natural gas prices while maintaining downside protection.
The company’s environmental leadership differentiates it from its peers. EQT is the first large-scale traditional energy company to achieve Scope 1 and Scope 2 net-zero greenhouse gas emissions, strengthening its appeal to utilities, data centers and industrial customers seeking lower-carbon energy solutions.
With rising demand for natural gas amid constrained supply, EQT Corp is positioned for price appreciation. Its vertically integrated model, robust cash flow and disciplined financial strategy provide a unique blend of stability and growth potential for investors.
As the company continues to optimize costs, expand its infrastructure advantage and maintain financial flexibility, EQT remains a compelling investment in the evolving energy landscape.
In 2025, U.S. natural gas prices at Henry Hub are forecast to average $4.20 per MMBtu, 11% higher than the previous estimate due to increased consumption and lower storage levels, per the U.S. Energy Information Administration data. Colder weather and increased electricity generation demand will further drive natural gas consumption, with the electric power sector's use rising 2% over the prior forecasts. Companies like Range Resources RRC and Antero Resources AR will continue to witness gains as the commodity price trajectory is expected to remain healthy.
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