John Ennis

John Ennis asked about the pace of entering into new supply agreements, given the projected Gulf Coast demand growth, Hanzo inventory depth, and egress constraints, specifically if Expand Energy plans to be more patient. He also inquired about the similarities between the Western Hanzo and Nacogdoches Fault Zone (NFZ) in terms of depth and temperature, and if NFZ operating experience would accelerate the learning curve in Western Hanzo.

Answer

CEO Nick Dell'Osso affirmed the company's willingness to be patient, prioritizing deals that offer higher revenue, lower volatility, and premium payments for reliable and flexible supply, noting the Lake Charles Methanol deal's attractive floating price and lack of balance sheet commitments. COO Josh Viets acknowledged some similarities between Western Hanzo and NFZ, with Western Hanzo being deeper. He expressed confidence that NFZ operational learnings would significantly reduce Western Hanzo's current higher well costs.

John Ennis of Texas Capital inquired about how much of the previously discussed completion footage improvement is already in 2025 guidance versus representing potential upside. He also asked about the criteria for shifting back to a sustainable growth strategy.

Answer

President and CEO Toby Rice stated that EQT will be conservative in its efficiency assumptions, with a focus on cost reduction through compression. On growth, Rice reiterated that EQT will only grow to meet tangible, sustainable demand, not just in response to a strong commodity strip. CFO Jeremy Knop added that the industry has learned its lesson from 2021-22 and is now focused on corporate returns and free cash flow.