EQT Corp Q1 FY2026 earnings call

• Historic first quarter results show the value of EQT's platform, with over $1.8 billion free cash flow, a record high. - Vertical integration and low-cost model have enhanced earnings power. - Despite winter storm Fern, production uptime outperformed peers. - Global geopolitical developments highlight strategic importance of U.S. natural gas. - U.S. natural gas prices stable, contrasting with global increases. - LNG contracts position EQT as a reliable supplier. - Accelerated deleveraging with net debt under $5.7 billion, Fitch upgraded to BBB. - Second quarter guidance includes 10 - 15 BCF strategic curtailments as storage, peak CapEx in Q2 with decline in later quarters.

In the first quarter, EQT generated over $1.8 billion of free cash flow. Sales volumes were above the high end of guidance. Cash operating expenses and capital costs were below the low end of guidance. Leverage is below one times net debt to EBITDA. LNG portfolio could potentially unlock significant free cash flow, with projected 2026 free cash flow at approximately $6 billion if fully online.

• Second quarter has 10 - 15 BCF strategic curtailments. - Q2 is peak CapEx period, with decline in third and fourth quarters. - Plan to continue deleveraging and capital allocation flexibility for high return projects, buybacks, etc.

• Geopolitical risks in Middle East and elsewhere affecting global energy markets. - Uncertainty in timing and completion of LNG and other infrastructure projects. - Market volatility and potential changes in natural gas prices.

• Q: What can EQT do to improve realizations and accelerate LNG access?

A: Attract demand to backyard to strengthen basis, and wait for LNG exposure post 2030. - Q: Why buybacks over dividends?

A: Buybacks offer more upside for shareholders as seen in long-term value creation with growing top line. - Q: Near-term data center opportunity scale and terms?

A: Big plans in Appalachia with multiple BCF per day supply opportunities, focusing on asset base for good returns. - Q: LNG offtake discussions post Iran war?

A: Interest in U.S. energy continues, expect offtake agreements in 28 - 29 timeframe. - Q: Lessons from Winter Storm Fern and replicability?

A: Well-orchestrated, due to collaboration across teams and technology platforms, can be replicated. - Q: Opportunities outside Appalachia?

A: Focus on demand capture in current asset base rather than expanding outside. - Q: CapEx and returns?

A: CapEx peak in Q2, no immediate correlation with returns. - Q: Regulatory and infrastructure impact?

A: Signals for energy infrastructure build, but need progress for energy independence. - Q: 2Q guide curtailments and future?

A: Curtailments based on market factors, can curtail more, but not dependent on ops plan. - Q: Data centers and midstream growth?

A: Midstream growth in progress, visibility through 27 - 30, creating upstream optionality. - Q: Borealis project and egress?

A: In discussions, play role as partner, helping enable gas demand.