EQT raises sales volume guidance as operating costs decline
The natural gas producer reported adjusted EBITDA of $1.067 billion for the second quarter.
EQT (EQT), the natural gas producer, reported a rise in sales volume and a reduction in operating costs for the second quarter.
The company offset a decline in realized pricing through increased production and tighter cost controls. Total sales volume rose to 634 Bcfe, up from 568 Bcfe in the same period last year.
Adjusted EBITDA attributable to EQT increased by $34 million to $1.067 billion. This growth occurred despite the average realized price decreasing to $2.65 per Mcfe from $2.81 per Mcfe a year earlier. Free cash flow attributable to the company rose to $330 million from $240 million.
Lower operating expenses supported the bottom line. Total operating costs per Mcfe fell to $1.03 from $1.08. The decrease was driven by lower transmission and processing costs, which fell to $0.40 and $0.12 respectively, though gathering costs rose to $0.09.
EQT raised its full-year 2026 total sales volume guidance to a range of 2,375 to 2,450 Bcfe, an increase of 90 Bcfe. The company lowered its full-year capital expenditure guidance by $25 million, with maintenance capital expenditures now expected to be between $2.04 billion and $2.19 billion.
Net debt decreased to $5.5 billion as of June 30, 2026, compared to $7.7 billion at the end of 2025.
The company closed the $77 million acquisition of Blackline Midstream on July 21, 2026, which is expected to generate average annual free cash flow of approximately $15 million over five years. EQT also signed a five-year offtake agreement for 0.5 million tonnes per annum of LNG starting in 2028, which is expected to increase free cash flow by approximately $45 million in that year.