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EQT Q3 Earnings Beat Estimates on Lower Operating Costs, Revenues Miss
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Key Takeaways
EQT's Q3 EPS fell 19.2% to 42 cents but beat estimates by 10.5%, while revenues rose 1% to $1.77 billion.
EQT's Range Resources deal targets $325M in baseline synergies and more than $300M in strategic upside.
EQT's free cash flow fell 41.6% to $283 million, while net debt declined to $5.47 billion year over year.
EQT Corporation (EQT - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of 42 cents, down 19.2% year over year. The bottom line surpassed the Zacks Consensus Estimate of 38 cents by 10.5%.
Revenues improved 1% year over year to $1.77 billion. The top line missed the Zacks Consensus Estimate of $1.79 billion by 1.1%.
Lower natural gas sales volumes and weaker realized pricing weighed on revenues.
Total sales volume declined 8.1% year over year to 583 billion cubic feet equivalent (Bcfe). The figure is inclusive of the impact of 21 Bcfe of strategic curtailments.
The company announced a strategic all-stock combination with Range Resources Corporation, expected to close in the first quarter of 2027, subject to shareholder and regulatory approvals. The transaction is expected to create the largest U.S. natural gas producer, with combined production exceeding 9 Bcfe per day.
The combined entity is projected to have approximately 2.8 million net acres of assets and more than 30 years of drilling inventory. Management anticipates $325 million in baseline operational synergies and more than $300 million in additional strategic upside from infrastructure and marketing optimization.
EQT's Production Volumes Decline
Natural gas sales volume declined to 544.5 billion cubic feet (Bcf) from 595.6 Bcf in the year-ago quarter. Total liquids sales volume decreased to 6,378 thousand barrels (MBbls) from 6,459 MBbls a year earlier.
The company's production included 21 Bcfe of strategic curtailments, reflecting efforts to optimize sales during unfavorable market conditions. Lower production volumes also contributed to higher per-unit transmission expenses.
EQT's Realized Pricing Weighs on Revenues
The average realized price declined 1.4% year over year to $2.72 per thousand cubic feet equivalent (Mcfe). The average natural gas price, including cash-settled derivatives, decreased to $2.60 per Mcf from $2.66 in the corresponding period of 2025.
The average natural gas differential, including cash-settled basis swaps, narrowed to negative 64 cents per Mcf from negative 68 cents a year ago. The differential was favorable to management's guidance despite widening regional pricing spreads, supported by marketing optimization and strategic curtailments.
Sales of natural gas, natural gas liquids and oil decreased 10.1% year over year to $1.51 billion. However, pipeline and other revenues increased 11.8% to $162.30 million from $145.17 million in the prior-year quarter.
EQT's Per-Unit Operating Costs Rise
Total operating costs increased to $1.09 per Mcfe from $1 a year earlier, although the figure remained at the low end of management's guidance. Higher gathering, transmission and selling, general and administrative expenses contributed to the increase.
Gathering expenses rose to 9 cents per Mcfe from 6 cents, while transmission expenses increased to 43 cents from 40 cents per Mcfe. Lease operating expenses reached 10 cents per Mcfe, up from 9 cents. Selling, general and administrative expenses increased to 20 cents per Mcfe from 16 cents, primarily due to higher incentive compensation and professional service costs.
EQT's Cash Flow Declines, Capital Spending Stays Low
Adjusted EBITDA attributable to EQT declined 14.9% year over year to $1.02 billion. Adjusted operating cash flow attributable to the company decreased to $974.76 million from $1.09 billion in the year-ago quarter.
Free cash flow attributable to EQT fell 41.6% to $282.55 million from $483.81 million a year earlier. Capital expenditures totaled $637.76 million compared with $617.89 million in the prior-year period. However, spending remained 10% below the low end of guidance, reflecting operational efficiencies and lower-than-anticipated upstream and midstream expenditures.
EQT Strengthens Its Balance Sheet
As of Sept. 30, 2026, EQT had total debt of $5.55 billion and net debt of $5.47 billion.
The company had approximately $3.5 billion in liquidity and $63 million outstanding under its $3.5 billion revolving credit facility as of Sept. 30, 2026.
EQT Provides Q4 & Full-Year 2026 Outlook
Management expects fourth-quarter 2026 sales volume between 550 Bcfe and 600 Bcfe, including 10-20 Bcfe of strategic curtailments. The company plans to turn in line 16-26 net wells during the quarter.
Fourth-quarter maintenance capital expenditures are projected between $540 million and $610 million, while strategic growth spending is expected between $185 million and $225 million.
For full-year 2026, EQT anticipates sales volume to be in the range of 2,375-2,450 Bcfe. Maintenance capital expenditures are forecasted between $2.02 billion and $2.10 billion, while growth capital expenditures are expected between $580 million and $640 million.
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EQT Q3 Earnings Beat Estimates on Lower Operating Costs, Revenues Miss
Key Takeaways
EQT Corporation (EQT - Free Report) reported third-quarter 2026 adjusted earnings per share (EPS) of 42 cents, down 19.2% year over year. The bottom line surpassed the Zacks Consensus Estimate of 38 cents by 10.5%.
Revenues improved 1% year over year to $1.77 billion. The top line missed the Zacks Consensus Estimate of $1.79 billion by 1.1%.
Lower natural gas sales volumes and weaker realized pricing weighed on revenues.
Total sales volume declined 8.1% year over year to 583 billion cubic feet equivalent (Bcfe). The figure is inclusive of the impact of 21 Bcfe of strategic curtailments.
EQT Corporation Price, Consensus and EPS Surprise
EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation Quote
EQT Expands Its Natural Gas Platform
The company announced a strategic all-stock combination with Range Resources Corporation, expected to close in the first quarter of 2027, subject to shareholder and regulatory approvals. The transaction is expected to create the largest U.S. natural gas producer, with combined production exceeding 9 Bcfe per day.
The combined entity is projected to have approximately 2.8 million net acres of assets and more than 30 years of drilling inventory. Management anticipates $325 million in baseline operational synergies and more than $300 million in additional strategic upside from infrastructure and marketing optimization.
EQT's Production Volumes Decline
Natural gas sales volume declined to 544.5 billion cubic feet (Bcf) from 595.6 Bcf in the year-ago quarter. Total liquids sales volume decreased to 6,378 thousand barrels (MBbls) from 6,459 MBbls a year earlier.
The company's production included 21 Bcfe of strategic curtailments, reflecting efforts to optimize sales during unfavorable market conditions. Lower production volumes also contributed to higher per-unit transmission expenses.
EQT's Realized Pricing Weighs on Revenues
The average realized price declined 1.4% year over year to $2.72 per thousand cubic feet equivalent (Mcfe). The average natural gas price, including cash-settled derivatives, decreased to $2.60 per Mcf from $2.66 in the corresponding period of 2025.
The average natural gas differential, including cash-settled basis swaps, narrowed to negative 64 cents per Mcf from negative 68 cents a year ago. The differential was favorable to management's guidance despite widening regional pricing spreads, supported by marketing optimization and strategic curtailments.
Sales of natural gas, natural gas liquids and oil decreased 10.1% year over year to $1.51 billion. However, pipeline and other revenues increased 11.8% to $162.30 million from $145.17 million in the prior-year quarter.
EQT's Per-Unit Operating Costs Rise
Total operating costs increased to $1.09 per Mcfe from $1 a year earlier, although the figure remained at the low end of management's guidance. Higher gathering, transmission and selling, general and administrative expenses contributed to the increase.
Gathering expenses rose to 9 cents per Mcfe from 6 cents, while transmission expenses increased to 43 cents from 40 cents per Mcfe. Lease operating expenses reached 10 cents per Mcfe, up from 9 cents. Selling, general and administrative expenses increased to 20 cents per Mcfe from 16 cents, primarily due to higher incentive compensation and professional service costs.
EQT's Cash Flow Declines, Capital Spending Stays Low
Adjusted EBITDA attributable to EQT declined 14.9% year over year to $1.02 billion. Adjusted operating cash flow attributable to the company decreased to $974.76 million from $1.09 billion in the year-ago quarter.
Free cash flow attributable to EQT fell 41.6% to $282.55 million from $483.81 million a year earlier. Capital expenditures totaled $637.76 million compared with $617.89 million in the prior-year period. However, spending remained 10% below the low end of guidance, reflecting operational efficiencies and lower-than-anticipated upstream and midstream expenditures.
EQT Strengthens Its Balance Sheet
As of Sept. 30, 2026, EQT had total debt of $5.55 billion and net debt of $5.47 billion.
The company had approximately $3.5 billion in liquidity and $63 million outstanding under its $3.5 billion revolving credit facility as of Sept. 30, 2026.
EQT Provides Q4 & Full-Year 2026 Outlook
Management expects fourth-quarter 2026 sales volume between 550 Bcfe and 600 Bcfe, including 10-20 Bcfe of strategic curtailments. The company plans to turn in line 16-26 net wells during the quarter.
Fourth-quarter maintenance capital expenditures are projected between $540 million and $610 million, while strategic growth spending is expected between $185 million and $225 million.
For full-year 2026, EQT anticipates sales volume to be in the range of 2,375-2,450 Bcfe. Maintenance capital expenditures are forecasted between $2.02 billion and $2.10 billion, while growth capital expenditures are expected between $580 million and $640 million.
EQT’s Zacks Rank & Key Picks
EQT currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Range Resources Corporation (RRC - Free Report) , Kinder Morgan, Inc. (KMI - Free Report) and Eni S.p.A. (E - Free Report) . E sports a Zacks Rank #1 (Strong Buy), while KMI and RRC carry a Zacks Rank #2 (Buy) each, at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
Range Resources reported third-quarter 2026 adjusted earnings of 81 cents per share, surpassing the Zacks Consensus Estimate of 70 cents.
As of Sept. 30, 2026, RRC had total debt of $980.92 million and cash and cash equivalents of $12,000.
Kinder Morgan reported third-quarter 2026 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate of 33 cents.
As of Sept. 30, 2026, KMI had net debt of $32.23 billion and cash and cash equivalents of $918 million.
Eni reported third-quarter 2026 adjusted earnings of $2.13 per share, surpassing the Zacks Consensus Estimate of $1.92.
As of Sept. 30, 2026, E had total debt of $34.39 billion and cash and cash equivalents of $11.77 billion.