EQT Q2 2024 Earnings Report
Key Takeaways
EQT Corporation reported its second quarter 2024 results, highlighting the closure of the Equitrans Midstream Corporation acquisition ahead of schedule, which is expected to result in approximately $150 million in savings. The company experienced operational outperformance, with sales volume above guidance and a decrease in total debt. However, the company reported a net income attributable to EQT of $9 million and a free cash flow of $(171) million.
Closed the acquisition of Equitrans Midstream Corporation ahead of plan, expecting $150 million in savings.
Sales volume of 508 Bcfe, exceeded guidance due to operational efficiency and strong well performance.
Capital expenditures of $576 million, were below guidance despite faster activity.
Total per unit operating costs of $1.40 per Mcfe, were below guidance due to lower LOE and SG&A expense.
EQT
EQT
EQT Revenue by Segment
Forward Guidance
EQT reaffirms its 2024 total sales volume expectation of 2,100 – 2,200 Bcfe, which embeds approximately 180 Bcfe of net production curtailments. The company maintains its 2024 EQT maintenance capital expenditures guidance of $1,950 – $2,050 million and strategic growth capital expenditures guidance of $200 – $300 million. Following the close of the Equitrans acquisition, the Company expects to spend $180 – $230 million in the balance of 2024 for Equitrans capital expenditures.
Positive Outlook
- Reaffirms 2024 total sales volume of 2,100 – 2,200 Bcfe.
- Maintains 2024 EQT maintenance capital expenditures guidance of $1,950 – $2,050 million.
- Maintains 2024 strategic growth capital expenditures guidance of $200 – $300 million.
- Expects to spend $180 – $230 million for Equitrans capital expenditures in the balance of 2024.
- Plans to turn-in-line (TIL) 40 – 60 net wells during the third quarter of 2024.
Challenges Ahead
- Embeds approximately 180 Bcfe of net production curtailments in 2024.
- Total sales volume in Q3 2024 is expected to include planned curtailments.
- Average differential ($/Mcf) is expected to be ($0.80) – ($0.70) in Q3 2024.
- Capital contributions to MVP are projected at $150 – $175 million in Q3 2024.
- EQT maintenance capital expenditures are projected at $460 – $510 million in Q3 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income