Chen Anis's questions to EQT Corp (EQT) leadership • Q1 2025
Question
Chen Anis asked for specifics on the $85 million of incremental synergies captured since the last update and inquired about the ongoing initiatives that could lead to further upside. He also questioned what market conditions would prompt EQT to pursue production growth and the thought process behind such a decision.
Answer
CEO Toby Rice explained the recent synergy gains came from water disposal cost reductions, CapEx optimization, and receipt point optimization, with future upside expected from discrete projects. Regarding production growth, Rice stated the trigger would be a clear demand signal in the form of a firm supply deal, not just a price signal. CFO Jeremy Knop added that the strategy is to pivot from selling to the market to selling directly to a customer, which provides a more durable business model.