f9ca51157b1d5fbc17918ffec1c4066b066e76f64426003aeb8b960bae4db4b6

1. **Capital Spending Reduction**  
   **Q:** Will run-rate capital drop below $2B with synergies?  
   **A:** Yes, with the synergies and compression benefits, our run-rate capital spending could fall under **$2 billion**, simplifying our capital needs.

2. **Hedging Strategy Post-Acquisition**  
   **Q:** How will E-Train deal affect hedging plans?  
   **A:** In the near term, we're focused on debt reduction through 2025. Beyond that, the E-Train acquisition provides a structural hedge, reducing the need to hedge at all. If we do hedge, it will be minimal, perhaps **20%** at most.

3. **Production and Curtailment Outlook**  
   **Q:** Will you maintain current production levels?  
   **A:** We plan to keep production in maintenance mode, targeting **550 to 600 Bcfe per quarter**, depending on the quarter, assuming no significant curtailments due to market conditions.

4. **Debt Reduction Plans**  
   **Q:** Will you reduce gross debt with asset sales?  
   **A:** Yes, proceeds from selling minority interests in our regulated assets will be used to reduce debt. Our initial target is to reduce debt to **$7.5 billion** by the end of 2025.

5. **Capital Budget and Compression Projects**  
   **Q:** How does compression spending affect capital budget?  
   **A:** We plan to invest a few hundred million dollars in compression projects over the next couple of years, starting in about 12 months. These projects offer superior returns, potentially **2.5× to 3×** at $3 gas.

6. **Impact of MVP Pipeline**  
   **Q:** How is MVP affecting market dynamics?  
   **A:** With MVP online, we've seen stronger pricing than expected, with premiums of **$0.50 to $0.70** above M2 and periods over **$1**. Production remains flat, with no signs of increased activity from other producers.

7. **Supply/Demand Outlook for 2025**  
   **Q:** What's the gas market outlook for 2025?  
   **A:** We are monitoring production levels and LNG developments. If production surges or LNG projects are delayed, it could create headwinds. However, at **$2.75** gas prices, we still generate over **$1 billion** in free cash flow.

8. **Expansion of MVP Pipeline**  
   **Q:** When will you expand MVP?  
   **A:** We aim to pursue the MVP expansion as soon as possible, aligning with market demand and necessary regulatory steps. The net cost to EQT would be around **$200 to $250 million**.

9. **Cash Flow Profile Post E-Train Sale**  
   **Q:** Will midstream cash flow percentage change?  
   **A:** Selling down interests may reduce the midstream cash flow percentage slightly, but it's already factored into our leverage outlook. Gas prices will also influence this percentage.

10. **CapEx Guidance and Operational Efficiencies**  
    **Q:** Are completion efficiencies reflected in CapEx?  
    **A:** We've included some efficiency gains in our 2025 plan, but many benefits are not fully baked in yet. As we see more results, we expect capital costs to potentially decrease further.

11. **Ownership of Regulated Assets**  
    **Q:** Why retain regulated assets ownership?  
    **A:** Owning regulated assets like transmission and storage systems is integral to managing our gathering systems and maintaining operational control, which enhances our ability to capture value.

12. **Risks of Future Curtailments**  
    **Q:** Could shut-ins return next year?  
    **A:** We don't plan for shut-ins proactively; it's a response to market conditions. If prices fall, we may curtail production to optimize value.

13. **Industrial Demand Outlook**  
    **Q:** What's the outlook for industrial gas demand?  
    **A:** Reshoring of manufacturing should continue, supporting steady industrial demand growth. However, we don't see major catalysts that would dramatically increase demand forecasts.

14. **Political Risks**  
    **Q:** What election issues concern you?  
    **A:** Energy policies that threaten operations, like banning hydraulic fracturing, are concerning. Such policies could reduce U.S. production by **35%**, leading to negative impacts on consumers and the economy.

15. **Impact of Ownership Change on Curtailments**  
    **Q:** Does owning midstream change curtailments?  
    **A:** Owning the midstream gives us more flexibility to curtail when market pricing doesn't meet our thresholds, without concerns over midstream obligations.

df9d7f5ba071418ef3e7dbcd0749d230e11840f45dbeffef40ed055b308c8adc

| Metric [Unit: Thousand USD] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-----------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Total Operating Revenues** | N/A     | N/A     | N/A     | N/A     | N/A     | **1,412,268**  **[0000033213-24-000018_ex9913312024earningsrelease.htm:13]**  | **952,500**  **[0000033213-24-000030_ex9916302024earningsrelease.htm:12]**  | **1,283,802**  **[0000033213-24-000047_eqt-20240930.htm:9]**  |
| **Sales of Natural Gas, NGLs, and Oil** | N/A     | N/A     | N/A     | N/A     | N/A     | **1,303,905**  **[0000033213-24-000018_ex9913312024earningsrelease.htm:13]**  | **889,500**  **[0000033213-24-000032_eqt-20240630.htm:8]**  | **1,099,752**  **[0000033213-24-000047_eqt-20240930.htm:9]**  |
| **Gain on Derivatives**      | N/A     | N/A     | N/A     | N/A     | N/A     | **106,511**  **[0000033213-24-000018_ex9913312024earningsrelease.htm:13]**  | **61,300**  **[0000033213-24-000032_eqt-20240630.htm:8]**  | **66,816**  **[0000033213-24-000047_eqt-20240930.htm:9]**  |
| **Net Marketing Services and Other** | N/A     | N/A     | N/A     | N/A     | N/A     | **1,852**  **[0000033213-24-000018_ex9913312024earningsrelease.htm:13]**  | **1,700**  **[0000033213-24-000032_eqt-20240630.htm:8]**  | **117,234**  **[0000033213-24-000047_eqt-20240930.htm:9]**  |
| **Production Segment**       | N/A     | N/A     | N/A     | N/A     | N/A     | N/A     | N/A     | **1,178,067**  **[0000033213-24-000047_eqt-20240930.htm:9]**  |
| **Gathering Segment**        | N/A     | N/A     | N/A     | N/A     | N/A     | N/A     | N/A     | **271,156**  **[0000033213-24-000047_eqt-20240930.htm:9]**  |
| **Transmission Segment**     | N/A     | N/A     | N/A     | N/A     | N/A     | N/A     | N/A     | **87,384**  **[0000033213-24-000047_eqt-20240930.htm:9]**  |

e24b856c0fe0e80329bd6287bdb9acf44399c1ca6afd0c8e30b04be714b69e0e

| Metric [Unit] | Q4 2022 | Q1 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|---------------|---------|---------|---------|---------|---------|---------|---------|
| Firm Capacity [Bcf/day] | **1.29**  **[0000033213-23-000008_eqt-20221231.htm:20]**  | **1.29**  **[0000033213-23-000008_eqt-20221231.htm:20]**  | **1.2**  **[0000033213-23-000038_ex9919302023earningsrelease.htm:0]** **[EQT_3362356_2]**  | **1.29**  **[0000033213-24-000008_eqt-20231231.htm:20]**  | **1.2**  **[EQT_3380619_1]** **[0001213900-24-035837_ea0204602-425_eqtcorp.htm:1]**  | **1.29**  **[0000033213-24-000032_eqt-20240630.htm:30]**  | **1.29**  **[0000033213-24-000047_eqt-20240930.htm:47]**  |

be5a12f494397cd8fabcf94287eef648b55a7f96274b5f90ed289e5d0e0aff1c

5bc1757bd10aca5a64052ba99dcab31e1634a7f87d5ae6054dda515d3298290d

0189506f4243906ef4d896814451ad4c46a22977cf898a4f2f6b8e54d9d54b74

EQT Corporation is a leading natural gas production company in the United States, primarily operating in the Appalachian Basin with a focus on the Marcellus and Utica Shales. As the largest producer of natural gas in the country, EQT holds approximately 27.6 Tcfe of proved natural gas, NGLs, and crude oil reserves as of December 31, 2023 **[0001104659-24-004320_tm243319d1_ex99-1.htm:0]**. The company generates revenue through the sale of natural gas, NGLs, and oil, and operates through three main segments: Production, Gathering, and Transmission **[0000033213-24-000047_eqt-20240930.htm:16]**. EQT's operational strategy emphasizes combo-development projects to enhance operational and capital efficiencies **[0001104659-24-004320_tm243319d1_ex99-1.htm:0]**.

1. **Production** - Involves the sale of natural gas, NGLs, and oil, contributing significantly to the company's revenue.
2. **Gathering** - Includes pipeline revenues and volumetric-based fee revenues, supporting the transportation of natural gas.
3. **Transmission** - Facilitates the movement of natural gas through transmission pipelines, adding to the company's service offerings.

84f7a7be1ce78a3399c1b8c5b5edc14316f4aac960d54fc110b326bd50e1c898

1. With the Equitrans acquisition increasing your pro forma gross debt to approximately $13.5 billion, how do you plan to manage and reduce this significant debt level while balancing operational investments and shareholder returns?

2. You mentioned plans to curtail approximately 90 Bcf of production in the second half of the year, primarily in September and October; how will these curtailments impact your cost structure and long-term production strategy, and what factors might lead you to adjust your curtailment plans?

3. Given your projection of an unlevered free cash flow breakeven price at $2 per MMBtu post-acquisition, can you elaborate on the assumptions underlying this projection and how sensitive it is to potential increases in operational costs or changes in natural gas prices?

4. You've stated that beyond 2025, you do not anticipate the need to hedge due to the structural hedge provided by the Equitrans acquisition; can you explain how this structural hedge effectively mitigates your exposure to natural gas price volatility, and what risks might still exist?

5. As you integrate Equitrans' regulated assets and plan to maintain operational control while pursuing a minority equity sale, what challenges do you anticipate in operating these regulated midstream assets, and how will you address potential regulatory and operational risks to ensure synergies are fully realized?

2895224d594ecd2669ec7d65fa03d8607f1a4fdaf506c98efebb05f24460be2e

Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Capital Expenditures (CapEx) [USD, Thousands]

Proceeds from / Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

c20eb50a798a60a45fac7f39aaf3338bf7c1c6581c7f4e854d11b6fb93055bc1

Sales of Natural Gas, NGLs, and Oil

- Natural Gas Sales

- NGLs Sales

- Oil Sales

Gain on Derivatives

Net Marketing Services and Other

- Pipeline and Net Marketing Services

EQT Production

EQT Midstream

Intersegment Revenues

Total Revenue

8b853b7cf8dd9fd856442bf6d41323dc95cfc5aa3aad5cf3acda75e4f1a7aaa8

Firm Capacity [Bcf/day]

01aa0526afd4c285bbbe91f292e2a377439391ca57abccef4febee7a23e9e214

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Second half of 2024 (Q3 2024 and Q4 2024)
- **Guidance**:
  1. **Capital Expenditure**:
     - 2025 capital budget: **$2.3 billion to $2.6 billion**.
     - Long-term capital spending: **$2.1 billion to $2.4 billion** per annum  **[EQT_3394543_6]** .
  2. **Production Guidance**:
     - Second half of 2024 production assumes **90 Bcfe of curtailments**  **[EQT_3394543_5]** .
  3. **Operating Expenses**:
     - Cash operating expenses: **$1.10 to $1.25 per Mcfe**  **[EQT_3394543_5]** .
  4. **Debt and Deleveraging**:
     - Long-term debt target: **$5 billion to $7 billion**  **[EQT_3394543_5]** .
  5. **Free Cash Flow**:
     - Cumulative free cash flow (2025-2029): **$16.5 billion**  **[EQT_3394543_6]** .
  6. **Hedging**:
     - Approximately **60% hedged** in the second half of 2024  **[EQT_3394543_5]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  1. **Production Guidance**:
     - Curtailment of 1 Bcf per day through May 2024  **[EQT_3380619_5]** .
  2. **Hedging**:
     - 40% to 50% hedged for 2024, floor price: **$3.40 per MMBtu**  **[EQT_3380619_4]** .
  3. **Cost Structure**:
     - Cost structure improvement: **$0.50 per Mcfe**  **[EQT_3380619_5]** .
  4. **Free Cash Flow Breakeven Price**:
     - Breakeven price: **$2 per MMBtu**  **[EQT_3380619_1]** .
  5. **Debt Reduction**:
     - Use cash balance and Equinor deal proceeds for debt reduction  **[EQT_3380619_4]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Production Guidance**:
     - Annual production: **2,200 to 2,300 Bcfe**  **[EQT_3373374_4]** .
  2. **Maintenance Capital Budget**:
     - Budget: **$1.95 billion to $2.05 billion**  **[EQT_3373374_2]** .
  3. **Strategic Growth Projects Investment**:
     - Investment: **$200 million to $300 million**  **[EQT_3373374_2]** .
  4. **Transmission Expense**:
     - Expense: **$0.42 to $0.44 per Mcfe**  **[EQT_3373374_6]** .
  5. **Gathering Rates**:
     - Rates: **$0.52 to $0.54**  **[EQT_3373374_6]** .
  6. **Corporate Differential Guidance**:
     - Differential: **$0.50 to $0.70**  **[EQT_3373374_6]** .
  7. **Hedging**:
     - Hedged production with floor prices ranging from **$3.39 to $3.87 per MMBtu**  **[EQT_3373374_7]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not contain information from the Q3 2024 earnings call for EQT, so the guidance metrics and period are unavailable.

ed04be6b5f57789176e52f1fe1f3601814b2bc93dca617ead0781daf9befecd7

- No financial metrics are available for Q4 2024 in the provided data, as each line item is listed as “N/A.”  **[0000033213-23-000041_eqt-20230930.htm:8]** 

863004c43557ab43f5c6769cf6663535978b7f81ccf9013f67c9683d9dc99b01

**Quarterly guidance for Q4 2024:**
- **Capital Expenditures**: Increased by $50 million  **[EQT_3404674_5]** **[EQT_3404674_21]**  (raised from prior guidance  **[EQT_3394543_6]** )

**Annual guidance for FY 2025:**
- **Capital Expenditures**: $2.3 billion to $2.6 billion  **[EQT_3404674_5]** **[EQT_3404674_21]**  (no change from $2.3 billion to $2.6 billion  **[EQT_3394543_6]** )  
- **Free Cash Flow (2025–2029)**: $14.5 billion at $3.50 per MMBtu  **[EQT_3404674_5]**  (lowered from $16.5 billion  **[EQT_3394543_6]** )

efa55ba237f44803608446fec0439601c1bddb3285ed31fa67f8dbddc4951ec3

| Name              | Position                                           | Start Date         | Short Bio                                                                                                                                                                                                 |
|-------------------|----------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Toby Z. Rice      | President and Chief Executive Officer              | July 10, 2019      | Toby Z. Rice has been serving as the President and CEO of EQT Corporation since July 10, 2019. He was previously a Partner at the Rice Investment Group and held executive roles at Rice Energy Inc.  **[0000033213-24-000008_eqt-20231231.htm:80]** **[0001104659-24-029592_tm2329632d3_def14a.htm:26]** .                                    |
| Jeremy T. Knop    | Chief Financial Officer                            | July 2023          | Jeremy T. Knop was appointed as CFO of EQT Corporation in July 2023. He previously led EQT's mergers and acquisitions strategy and worked at The Blackstone Group in various roles on the energy credit team  **[0000033213-24-000008_eqt-20231231.htm:80]** .                               |
| Todd M. James     | Chief Accounting Officer                           | November 2019      | Todd M. James became the Chief Accounting Officer of EQT Corporation in November 2019. He was previously the Corporate Controller and Chief Accounting Officer at L.B. Foster Company and held roles at Rice Energy Inc.  **[0000033213-24-000008_eqt-20231231.htm:80]** .                  |
| Tony Duran        | Chief Information Officer                          | July 2019          | Tony Duran has been the CIO of EQT Corporation since July 2019. He founded PH6 Labs and was the CIO at Rice Energy Inc. before joining EQT  **[0000033213-24-000008_eqt-20231231.htm:80]** .                                                                                                 |
| Lesley Evancho    | Chief Human Resources Officer                      | July 2019          | Lesley Evancho has served as the Chief Human Resources Officer at EQT Corporation since July 2019. She previously held roles at Westinghouse Electric Company and Thermo Fisher Scientific  **[0000033213-24-000008_eqt-20231231.htm:80]** **[0000033213-23-000008_eqt-20221231.htm:76]** .                                             |
| William E. Jordan | Executive Vice President, General Counsel, and Corporate Secretary | July 2019 (General Counsel), November 2020 (Corporate Secretary) | William E. Jordan was appointed as EVP and General Counsel in July 2019 and became Corporate Secretary in November 2020. He was an advisor to the Rice Investment Group and held roles at Rice Energy Inc.  **[0000033213-24-000008_eqt-20231231.htm:80]** .                                |
| Vicky A. Bailey   | Board Member                                       | July 22, 2024      | Vicky A. Bailey is a director on the board of EQT Corporation, appointed as one of the Equitrans Designees following the merger between EQT and Equitrans  **[0001104659-24-081540_tm2419870d1_s8.htm:4]** **[0001104659-24-067169_tm2413659-4_s4a.htm:24]** .                                                                                |
| Thomas F. Karam   | Board Member                                       | July 22, 2024      | Thomas F. Karam is a director at EQT Corporation, appointed as one of the Equitrans Designees following the merger between EQT and Equitrans Midstream Corporation  **[0001104659-24-081540_tm2419870d1_s8.htm:4]** **[0001104659-24-067169_tm2413659-4_s4a.htm:220]** **[0001104659-24-067169_tm2413659-4_s4a.htm:38]** .                                                                  |
| Robert F. Vagt    | Board Member                                       | July 22, 2024      | Robert F. Vagt was appointed to the EQT Board of Directors as part of the merger agreement between EQT Corporation and Equitrans Midstream Corporation  **[0001104659-24-081501_tm2419871d1_8k.htm:7]** **[0001104659-24-081501_tm2419871d1_ex99-1.htm:0]** .                                                                                  |

a8c02ec3dd4185ccc25eff9e54bc17ea2b887c9fed403677b944541981eb22ea

d906601303f7b48da93ea08733a10c05dcfa5c4cbb7bc676197b7b31458f9bdd

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | December 13, 2021  **[0000033213-24-000047_eqt-20240930.htm:94]**  |
| End Date/Duration        | December 31, 2024  **[0000033213-24-000047_eqt-20240930.htm:94]**  |
| Total additional amount  | $2 billion  **[0000033213-24-000047_eqt-20240930.htm:94]**   |
| Remaining authorization  | $1.4 billion  **[0000033213-24-000047_eqt-20240930.htm:94]**  |
| Details                  | Opportunistic approach to shareholder returns, aiming to generate returns well in excess of the weighted average cost of capital.  **[0000033213-24-000021_eqt-20240331.htm:46]** **[EQT_3362356_6]**  |

68ad6bdcbb9a41bf3366c2d263143ba6233d10055460a44f3ef6fdcadbf0ff64

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1950  **[0000033213-24-000008_eqt-20231231.htm:104]**    | Present  | Current auditor   |
```

22ca2ad3592270af6d236441e5c7bc63adbddffb48687f970639dea788035cef

050b2b3cf82cb73fb65cee64b8606ce9c0de9d0b8debe42cd5fecd2a8f80c0fe

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $1,283.8M (+8% YoY vs. $1,186.1M)  **[0000033213-23-000041_eqt-20230930.htm:8]** **[0000033213-24-000047_eqt-20240930.htm:1]**   
- Sales of Natural Gas, NGLs, and Oil: $1,099.8M (+10% YoY vs. $1,001.9M)  **[0000033213-23-000041_eqt-20230930.htm:8]** **[0000033213-24-000047_eqt-20240930.htm:1]**   
  • Natural Gas Sales: $938.9M (+9% YoY vs. $859.5M)  **[0000033213-23-000041_eqt-20230930.htm:8]** **[0000033213-24-000047_eqt-20240930.htm:16]**   
  • NGL Sales: $139.7M (+29% YoY vs. $108.2M)  **[0000033213-23-000041_eqt-20230930.htm:8]** **[0000033213-24-000047_eqt-20240930.htm:16]**   
  • Oil Sales: $21.1M (−38% YoY vs. $34.2M)  **[0000033213-23-000041_eqt-20230930.htm:8]** **[0000033213-24-000047_eqt-20240930.htm:16]**   
- Gain on Derivatives: $66.8M (−62% YoY vs. $177.9M)  **[0000033213-23-000041_eqt-20230930.htm:8]** **[0000033213-24-000047_eqt-20240930.htm:1]**   
- **Net Marketing Services and Other: $117.2M (+1,760% YoY vs. $6.3M)**  **[0000033213-23-000041_eqt-20230930.htm:8]** **[0000033213-24-000047_eqt-20240930.htm:1]**   
- Interest Expense: $158.3M (+162% YoY vs. $60.4M)  **[0000033213-23-000041_eqt-20230930.htm:1]** **[0000033213-24-000047_eqt-20240930.htm:1]** **[0000033213-24-000047_eqt-20240930.htm:11]**   
- Operating Income (EBIT): −$281.8M (down sharply from $15.8M)  **[0000033213-23-000041_eqt-20230930.htm:1]** **[0000033213-24-000047_eqt-20240930.htm:1]** **[0000033213-24-000047_eqt-20240930.htm:11]**   
- Net Income: −$300.8M (vs. $81.3M prior year)  **[0000033213-23-000041_eqt-20230930.htm:1]** **[0000033213-24-000047_eqt-20240930.htm:1]** **[0000033213-24-000047_eqt-20240930.htm:11]**   
- EPS (Diluted): −$0.64 (vs. $0.16 prior year)  **[0000033213-23-000041_eqt-20230930.htm:1]** **[0000033213-24-000047_eqt-20240930.htm:1]** **[0000033213-24-000047_eqt-20240930.htm:11]**   

4e72af55025b5ce6dc2f9067603747182edbbfd0f938b4c883c8453bfa34f13f

1270de9afa66999506d3922b4796f8757c48f092c425da2a528ef84bc86e4059

c138d489a4a6da81b42d1a876d40ffbc7a834d99d28e016d5e5ddbfb48059518

- **EQT expects significant upside from higher natural gas prices in mid-2025 to 2026**, driven by **their bullish outlook on the gas macro environment**. The company believes that **gas prices could be significantly higher than the current strip**, providing substantial upside for shareholders who are exposed to rising gas prices.  **[EQT_3373374_19]**
- **EQT maintains a strong financial position with expected cumulative free cash flow of $9 billion over the next five years**, despite lower commodity prices, demonstrating financial resilience and effective cost control with **no significant changes in their cost structure assumptions**.  **[EQT_3373374_13]**
- **EQT has achieved significant cost savings through operational efficiencies**, such as **reaching a 95% water recycling rate**, leading to lower lease operating expenses (LOE) and improved margins, which provides them a **competitive advantage in the industry**.  **[EQT_3373374_26]**

1ba07131bd54a33fc13ff39e31ec4fbc4d915f2c64059e3c8db0abf6a256ffb4

- **EQT's projected 5-year cumulative free cash flow has decreased to $9 billion**, down from the previous outlook, **primarily due to lower commodity prices**. This reduction indicates potential challenges in generating the expected cash flow.  **[EQT_3373374_13]**
- **The company may not reduce production or capital expenditures even if natural gas prices remain low**, as management stated that reducing CapEx activity is "**not how we run the business**." This approach could lead to **negative free cash flow** if prices remain below their breakeven price of **$2.50 to $2.60 per MMBtu**.  **[EQT_3373374_21]**
- **Deleveraging plans may be delayed due to lower commodity prices**, as potential asset sales, such as the non-operated position in Northeast Pennsylvania, may not materialize or be postponed. This delay could affect the company's ability to reach its **$3.5 billion gross debt target** in a timely manner.  **[EQT_3373374_10]**

3db67474e4ebee98e36edcb7c0e82b4e2a4e6a9db3a6765f66a23b23fe43e587

- **EQT is experiencing significantly higher pricing at Station 165, averaging $0.50 to $0.70 above M2 pricing**, compared to the $0.20 premium they had modeled, indicating strong demand and positive market dynamics.  **[EQT_3394543_15]**
- **EQT's Estimated Ultimate Recoveries (EURs) are improving**, while peers' EURs are declining due to core inventory depletion, giving EQT a competitive advantage with high-quality inventory depth.  **[EQT_3394543_15]**
- **Reshoring of manufacturing and energy security concerns are expected to drive industrial demand growth**, particularly for in-basin natural gas products, benefiting EQT's long-term demand outlook.  **[EQT_3394543_30]**

8924b83651f07ed50bc322ab4b2a79e323e5e6473c6765d1a080978e2da7b6c4

- **EQT is strategically positioning to capture growing data center demand for natural gas in the Appalachia region**, leveraging their **first-mover advantage** with long-term supply deals and their proximity to data centers, which provides **stable, long-term baseload demand** and enhances their competitive position.  **[EQT_3380619_19]** **[EQT_3380619_20]**
- **EQT's acquisition of Equitrans Midstream will transform it into a vertically integrated natural gas business**, lowering their cost structure to **$2 per Mcfe**, which de-risks the business and **increases free cash flow durability**, allowing EQT to thrive in volatile markets and capture upside in higher price environments.  **[EQT_3380619_24]** **[EQT_3380619_19]** **[EQT_3380619_15]** **[EQT_3380619_21]**
- **EQT is progressing on planned divestitures of non-operated assets**, with confidence in completing additional asset sales in cash, which will **contribute to deleveraging**, strengthen the balance sheet, and enhance financial flexibility.  **[EQT_3380619_7]** **[EQT_3380619_20]**

8293a09f94b897c8613816bd792391cb5e8a86909d6f109a029bad5852102148

1. **Production Curtailment Strategy**  
   **Q:** At what price will you change curtailments?  
   **A:** We consider cash cost plus F&D costs and aim to recover the sunk cost of drilling. Prices around **$1.50 in-basin** would prompt us to adjust our **1 Bcf/d** curtailments.  **[EQT_3380619_13]** 

2. **Divestiture Plans and Debt Reduction**  
   **Q:** How price-sensitive are you on asset sales?  
   **A:** We have **a ton of optionality** and remain value-focused. With strong interest and the Equinor transaction setting good valuations, we're confident in completing our plan. We can be patient to maximize value if bids don't meet expectations.  **[EQT_3380619_16]** **[EQT_3380619_17]** 

3. **LNG Exposure Strategy**  
   **Q:** Are you approaching your limit on Gulf Coast LNG exposure?  
   **A:** We're targeting about **10% of our volumes** exposed to international pricing, which feels about right. Currently, we're at that level, but agreements are nonbinding, and we have optionality to adjust based on terms and discussions with end buyers.  **[EQT_3380619_17]** 

4. **Data Center Demand Opportunity**  
   **Q:** Will data center demand reduce your focus on LNG?  
   **A:** Data center demand is a new dynamic. While we have capacity for LNG, proximity to data centers offers direct access to rising demand. We're positioning ourselves to capture this opportunity, leveraging our assets and operations. We'll have exposure to both LNG and data centers.  **[EQT_3380619_18]** **[EQT_3380619_20]** 

5. **Hedging Strategy**  
   **Q:** Why add hedges into next year if E-Train is the new hedge?  
   **A:** Consistent with our prior discussions, our first step is **deleveraging** to protect the balance sheet. By end of **2025**, after hitting targets, our hedge strategy will change. The next **12–18 months** focus on bulletproofing the balance sheet; beyond that, we'll have upside to higher gas prices.  **[EQT_3380619_24]** 

6. **Pipeline Asset Plans**  
   **Q:** How does the divestiture plan affect pipeline control?  
   **A:** We have tremendous optionality. We don't need to divest much on the Equitrans side unless we choose to. We can sell some assets or a minority interest while maintaining control and operatorship. We're working on structuring options that maintain optionality and efficiently deleverage the balance sheet.  **[EQT_3380619_15]** 

7. **Regulatory Update on ETRN Acquisition**  
   **Q:** Any update on regulatory hurdles for ETRN acquisition?  
   **A:** We've pulled and refiled with the FTC per standard procedure. We're working closely with them, providing updates, and are encouraged to discuss how this transaction enhances our ability to deliver lower-cost, reliable, and clean energy.  **[EQT_3380619_19]** 

8. **Risk Management Amid Volatility**  
   **Q:** Thoughts on risks like Freeport LNG outage?  
   **A:** The Freeport outage shows market uncertainties. We handle these by taking a measured approach and focusing on lowering our cost structure to thrive amid volatility. With a low-cost base, we can generate durable cash flow in both low and high price environments, capturing upside without excessive downside risk.  **[EQT_3380619_21]** 

9. **Third-Party Volumes on MVP**  
   **Q:** Potential to send more gas beyond MVP and expansion?  
   **A:** MVP is unique, with us owning **60%** of capacity and being the only producer shipper. We benefit from expansion, even without taking new capacity. We're exploring ways to increase utilization of our midstream assets, including third-party volumes, to reduce our cost structure.  **[EQT_3380619_12]** **[EQT_3380619_23]** 

10. **Natural Gas Market Outlook**  
    **Q:** What's your outlook on natural gas supply/demand?  
    **A:** We foresee continued cuts and discipline from operators. There's an overhang of about **600 Bcf** to be worked out by October, likely keeping prices low through summer. After October, LNG demand picks up, and we expect the market to change swiftly.  **[EQT_3380619_8]** 

7706c992b1467d701f0b3ce9657649b7c45983c38c27695e573dab920092ae10

1. **Capital Allocation Priorities**  
   **Q:** How does macro view affect debt paydown vs. buybacks?  
   **A:** EQT focuses on debt reduction over share buybacks due to their bullish outlook on natural gas prices in 2025 and beyond. They prefer to use cash to derisk the balance sheet now, which allows investors greater exposure to potential price increases. Allocating capital to buybacks would necessitate more hedging, which might limit upside if prices rise as expected.  **[EQT_3373374_19]** 

2. **Response to Low Gas Prices**  
   **Q:** Will you cut activity if gas prices stay low?  
   **A:** The company monitors market conditions and is prepared to reduce activity to avoid losses and deliver gas into higher-priced markets in the future. However, given their low-cost structure and financial position, they prefer to maintain consistent operations rather than reactively cutting activity, as reducing CapEx now could adversely affect next year's production.  **[EQT_3373374_21]** **[EQT_3373374_22]** 

3. **Hedging Strategy for 2025**  
   **Q:** Why not hedge more for 2025 now?  
   **A:** EQT is being patient with hedging for 2025, believing current prices are below where they should be due to bearish market narratives. They prefer to wait for better pricing opportunities, aiming to capture upside from expected higher gas prices rather than locking in current lower rates through hedging.  **[EQT_3373374_25]** 

4. **Maintenance CapEx Reductions**  
   **Q:** What's driving lower maintenance CapEx beyond 2025?  
   **A:** The reduction in maintenance CapEx is due to multiple factors, including synergies from the Tug Hill assets, lower base declines, cost savings, and less infrastructure spend. Teams are examining all aspects of the business to reduce expenses.  **[EQT_3373374_9]** **[EQT_3373374_15]** 

5. **Potential Asset Sales**  
   **Q:** Are you considering asset sales to reduce debt?  
   **A:** EQT remains open to selling assets at the right price to accelerate deleveraging. They've received interest in their non-operated Northeast PA assets, especially from international players less sensitive to price. Any sales would be opportunistic moves aimed at creating shareholder value.  **[EQT_3373374_10]** 

6. **Free Cash Flow Outlook**  
   **Q:** Has anything besides pricing changed in cash flow outlook?  
   **A:** The decrease in the 5-year cumulative free cash flow outlook to **$9 billion** is solely due to lower commodity prices. There have been no material changes in cost assumptions or other factors affecting this projection.  **[EQT_3373374_13]** 

7. **Cost Structure Improvements**  
   **Q:** How will you drive costs lower in coming years?  
   **A:** EQT expects their breakeven cost structure to decrease to **$2.30** by 2028, down about **$0.30** from current levels, primarily due to contractual reductions in gathering rates as the Mountain Valley Pipeline comes online and improved realizations from supply deals. Paying down debt also reduces interest expenses, contributing to a lower cost structure.  **[EQT_3373374_20]** 

8. **Production Curtailments**  
   **Q:** Under what conditions will you reduce production?  
   **A:** EQT is ready to respond to low price signals by reducing activity and production if necessary. Their production guidance already includes flexibility for reductions. However, they believe the market is closer to balance than it appears, and significant cuts may not be required.  **[EQT_3373374_12]** 

9. **In-Basin Demand and Differentials**  
   **Q:** How will in-basin demand affect differentials?  
   **A:** In-basin demand growth, potentially adding up to **2 Bcf/day**, along with pipeline expansions like the Mountain Valley Pipeline, is expected to improve differentials by **$0.10** by 2028. EQT anticipates a realized differential of about **$0.50**, down from **$0.60** currently, as demand increases from data center growth and power generation in the Southeast.  **[EQT_3373374_14]** 

10. **Operational Flexibility**  
    **Q:** How do you manage production in volatile prices?  
    **A:** EQT maintains a low-cost structure and operational flexibility to adapt to price volatility. They can adjust production through choke management, delaying turn-in-lines, or building drilled but uncompleted wells (DUCs), allowing them to respond to higher prices without being heavily impacted by downturns.  **[EQT_3373374_24]** 

11. **LOE Savings from Water Handling**  
    **Q:** Can you reduce LOE further via water handling?  
    **A:** Having achieved significant savings by reaching over **95%** water recycling rates, EQT aims to maintain these levels. Additional benefits will come from more efficient logistics servicing completions, contributing to operational efficiencies and potentially lowering lease operating expenses further.  **[EQT_3373374_16]** **[EQT_3373374_26]** 

12. **Liquids Production Fluctuations**  
    **Q:** What's causing changes in liquids volumes?  
    **A:** Variations in liquids production are due to the lumpy nature of their development program, alternating between liquids-rich pads acquired from Tug Hill and drier Marcellus and Utica wells. These fluctuations are normal and not indicative of any long-term trend.  **[EQT_3373374_18]** 

13. **Political Risks Impacting Gas Demand**  
    **Q:** What political challenges affect gas demand?  
    **A:** EQT faces misconceptions about natural gas's role in providing cleaner energy. The company works to highlight natural gas as a critical component in reducing emissions and meeting energy needs. They emphasize that political forces can only override market forces temporarily and believe in the long-term necessity of natural gas.  **[EQT_3373374_22]** **[EQT_3373374_23]** 

14. **Ethane Production and Pricing**  
    **Q:** Why was ethane production below guidance?  
    **A:** Lower ethane production resulted from delays in the Shell cracker plant becoming fully operational. EQT's forecast assumes the plant won't be fully online for another year, impacting ethane volumes and guidance.  **[EQT_3373374_17]** 

15. **Activity Levels and Market Conditions**  
    **Q:** Will you adjust activity levels based on prices?  
    **A:** EQT's operational cadence is expected to remain steady throughout the year despite price volatility. They believe cuts in Haynesville activity will balance the market more quickly, and their large-scale operations are not easily adjusted in the short term.  **[EQT_3373374_27]** 

45f49ecaff26ded543d924a0b08248633fc0c9791ad316546824f4004f7063be

- **EQT is curtailing 1 Bcf/d of production due to low natural gas prices**, which may negatively impact revenues and cash flows if low prices persist. They may extend these curtailments if prices remain around **$1.50 per Mcf in-basin**.  **[EQT_3380619_14]** **[EQT_3380619_15]** **[EQT_3380619_8]**
- The company's deleveraging plan relies on **asset sales** and future **higher gas prices**. If market conditions don't improve or if asset sales are delayed, EQT may struggle to meet its debt reduction goals.  **[EQT_3380619_17]**
- **LNG market uncertainties** and potential **disruptions** pose risks to EQT's future demand and pricing. Dependence on LNG exports could lead to significant volatility in domestic gas prices, affecting EQT's profitability.  **[EQT_3380619_21]**

8214de1fabb010dab68a23a44a1f855f784555f1c250f1f18bab3ff9e5aa5bf3

| Year | Amount Due (in millions) | Debt Type                     | Interest Rate (%) | % of Total Debt |
|----------|------------------------------|------------------------------------|-----------------------|----------------------|
| 2025     | $400                         | EQM's 6.000% Notes                | 6.000                | 2.9% = (400 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2026     | $500                         | Term Loan Facility                | Variable             | 3.6% = (500 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2026     | $392.915                     | EQT's 3.125% Notes                | 3.125                | 2.8% = (392.915 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2026     | $115                         | EQT's 7.75% Debentures            | 7.75                 | 0.8% = (115 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2026     | $500                         | EQM's 4.125% Notes                | 4.125                | 3.6% = (500 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2027     | $500                         | EQM's 7.500% Notes                | 7.500                | 3.6% = (500 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2027     | $900                         | EQM's 6.500% Notes                | 6.500                | 6.5% = (900 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2027     | $1,169.503                   | EQT's 3.90% Notes                 | 3.90                 | 8.4% = (1,169.503 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2028     | $500                         | EQT's 5.700% Notes                | 5.700                | 3.6% = (500 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2028     | $850                         | EQM's 5.500% Notes                | 5.500                | 6.1% = (850 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2029     | $318.494                     | EQT's 5.00% Notes                 | 5.00                 | 2.3% = (318.494 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2029     | $800                         | EQM's 4.50% Notes                 | 4.50                 | 5.8% = (800 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2029     | $600                         | EQM's 6.375% Notes                | 6.375                | 4.3% = (600 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2030     | $674.8                       | EQT's 7.000% Notes                | 7.000                | 4.9% = (674.8 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2030     | $500                         | EQM's 7.500% Notes                | 7.500                | 3.6% = (500 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2031     | $1,100                       | EQM's 4.75% Notes                 | 4.75                 | 7.9% = (1,100 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2031     | $435.165                     | EQT's 3.625% Notes                | 3.625                | 3.1% = (435.165 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2034     | $750                         | EQT's 5.750% Notes                | 5.750                | 5.4% = (750 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |
| 2048     | $550                         | EQM's 6.500% Notes                | 6.500                | 4.0% = (550 / 13,852.877) * 100 **[0000033213-24-000047_eqt-20240930.htm:24]** **[0000033213-24-000047_eqt-20240930.htm:29]** |

05970ec8fc0d7f9a5312595e2767c9a3638490f55bdfba926f486c53b24d58f8

- **Current natural gas prices are below the level needed to generate returns that investors demand**, which may lead EQT to be more cautious in activity levels and could limit profitability.  **[EQT_3362356_29]**
- **Volatility in gas prices creates planning challenges**, making it difficult for EQT to commit to additional investments and potentially impacting future production and returns.  **[EQT_3362356_29]**
- EQT anticipates **significant basis differentials of $0.55 to $0.60** in 2024, which could **negatively impact realized gas prices and profitability**.  **[EQT_3362356_16]**

11de67916f8867d60aeb6bf498c4fade867a997ff885d9b5f0d828746fade651

- **EQT's strategic acquisitions**, such as Tug Hill and XcL Midstream, have **lowered the company's cost structure by about $0.15 per Mcfe pre-synergies**, with further operational efficiencies enhancing shareholder value.  **[EQT_3362356_13]**
- **Secured significant long-term firm sales agreements covering 1.2 Bcf per day of capacity starting in 2027**, which derisks margins and presents potential growth opportunities not yet included in the free cash flow outlook.  **[EQT_3362356_24]**
- **Integration of the XcL Midstream system offers substantial value creation opportunities**, including internal efficiencies and potential third-party services, with investments in infrastructure like water systems leading to cost savings and operational efficiency gains.  **[EQT_3362356_15]**

810129b9cdef3d15bdd073ffeef38bd788a73cc40e55812329bcb55af0d4f681

- **EQT's decision to significantly reduce hedging beyond 2025 exposes the company to heightened commodity price volatility risk, which could negatively impact cash flows if natural gas prices decline.**  **[EQT_3394543_13]**
- **Political discussions around banning hydraulic fracturing present a significant regulatory risk, as 98% of wells in the U.S., including EQT's operations, rely on this technique; a ban could lead to substantial production declines.**  **[EQT_3394543_16]**
- **Ownership of regulated assets like MVP may present challenges, and EQT acknowledges that they may reevaluate the ownership of such assets in 5 to 10 years, indicating potential uncertainty in long-term strategic asset management.**  **[EQT_3394543_12]**

004661f0c0c9dfe056077e68601d738b569e02bb8e4258f958ae499c78216275

1. **Asset Sales and Balance Sheet**  
   **Q:** How will asset sales impact your balance sheet?  
   **A:** We have a plan to eliminate our debt efficiently and smoothly, without any inefficiencies.  **[EQT_3404674_11]**  There's been robust interest in our regulated assets, exceeding our expectations. We now expect to complete a deal before the end of this year.  **[EQT_3404674_19]**  In our recent non-op asset sale, we received **$1.25 billion** now for assets that would have generated **$750 million** over the next five years, so we're pleased with the valuation.  **[EQT_3404674_24]** 

2. **Curtailment Strategy Flexibility**  
   **Q:** How flexible is your curtailment strategy to gas prices?  
   **A:** We can quickly adjust production in response to pricing. In Q3, we were turning on and off up to **1 Bcf/day** almost daily, which improved our basis differential by **$0.10** this quarter.  **[EQT_3404674_8]**  We've already brought back previously curtailed volumes, so we won't be adding an additional **1 Bcf/day** into the market.  **[EQT_3404674_18]**  When local prices exceed **$1.50 at M2**, we operate at full capacity.  **[EQT_3404674_22]** 

3. **Equitrans Synergy Progress**  
   **Q:** Are you exceeding synergy targets from Equitrans acquisition?  
   **A:** Yes, we're ahead of schedule and realizing greater synergies than anticipated.  **[EQT_3404674_7]**  Specifically, our compression pilots are showing nearly **2x** the uplift we initially assumed, which will benefit our 2025 plan.  **[EQT_3404674_10]** 

4. **2025 Production Outlook**  
   **Q:** Should we expect production declines in 2025?  
   **A:** Overall, we expect relatively flat production year-over-year on assets we retain post-divestiture.  **[EQT_3404674_14]**  The non-op sale removes about **$75 million** from 2025 capital spending, and efficiency gains add **$50 million** in savings, so our spending will likely be at the lower end of our previous guidance.  **[EQT_3404674_21]** 

5. **AI-Driven Gas Demand**  
   **Q:** How will AI and data centers affect gas demand?  
   **A:** We project that power demand growth due to AI could add between **10 and 18 Bcf/day** of natural gas demand.  **[EQT_3404674_12]**  Orders for gas turbines are up significantly—Mitsubishi by **50%**, GE by **90%**—indicating natural gas will meet much of this new demand.  **[EQT_3404674_12]** 

6. **Additional Cost Savings**  
   **Q:** Are there cost savings beyond synergy targets?  
   **A:** Yes, by optimizing water logistics and reducing non-productive time, we can drop one frac crew, translating to savings of about **$50 per foot** or roughly **$50 million** per year, which is separate from our synergy targets.  **[EQT_3404674_16]** **[EQT_3404674_17]** 

7. **Competition from Renewables and Nuclear**  
   **Q:** How does competition from renewables and nuclear affect you?  
   **A:** Alternatives like reviving nuclear plants could add about **3 gigawatts** of power demand, but that's minimal compared to what's needed. Natural gas remains the primary solution for reliable, affordable energy.  **[EQT_3404674_13]** 

8. **Future M&A and Capital Allocation**  
   **Q:** Will you pursue more acquisitions or return capital?  
   **A:** We're less focused on M&A now, having transformed EQT into the lowest-cost producer with substantial inventory. Excess cash will likely be used for share buybacks rather than acquisitions.  **[EQT_3404674_25]** 

9. **Gas Price Outlook and Storage**  
   **Q:** Is market volatility reflected in gas prices?  
   **A:** The market will be short on storage capacity, and to incentivize more storage, seasonal spreads need to widen. This will likely be expressed in the options market as volatility increases.  **[EQT_3404674_26]** 

10. **MVP Full Flow Impact**  
    **Q:** What is the impact of MVP flowing at full capacity in winter?  
    **A:** We assume that between December and February, MVP will flow at or near full capacity, which is reflected in our guidance.  **[EQT_3404674_18]** 

4d087d9414cf7c96dd1b0b3ff3aa0d2309331f9eda75f05f0b2a40830c8cf358

EQT Corp (EQT)

Financials