EQT Corp 8-K, filed Oct 27, 2026
EQT Corp (EQT)
8-K
2026-10-27
For: 2026-10-27
View Original
Added on
October 27, 2026
About this 8-K
EQT Corp filed this 8-K on October 27, 2026.
EQT Corporation reported third quarter 2026 sales volume of 583 Bcfe, $1,083 million operating cash flow and $283 million free cash flow attributable to EQT; it announced a Range Resources Corporation acquisition and increased its annualized dividend to $0.68 per share. AI summary
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 27, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (412 ) 553-5700
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐
Item 2.02. Results of Operations and Financial Condition.
Today, EQT Corporation ("EQT") issued a news release announcing its third quarter 2026 earnings. A copy of EQT’s news release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The information provided in this Item 2.02, including the accompanying Exhibit 99.1, shall be deemed "furnished" and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of such section, nor shall it be incorporated by reference in any filing made by EQT pursuant to the Securities Act of 1933, as amended, or the Exchange Act, regardless of the general incorporation language of such filing, except as expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
News Release, dated | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| EQT CORPORATION | |||||||||||
| (Registrant) | |||||||||||
| By: | /s/ Jeremy T. Knop | ||||||||||
| Jeremy T. Knop | |||||||||||
Chief Financial Officer | |||||||||||
Date: October 27, 2026
EQT Reports Third Quarter 2026 Results
CANONSBURG, October 27, 2026 -- EQT Corporation (NYSE: EQT) today announced financial and operational results for the third quarter of 2026.
Third Quarter 2026 Results:
•Production: Sales volume of 583 Bcfe, inclusive of 21 Bcfe of strategic curtailments
•Capital Expenditures: $638 million, 10% below the low-end of guidance, driven by lower-than-expected upstream and midstream spending and continued benefit from operational efficiency gains
•Realized Pricing: Differential of $(0.64) favorable to guidance despite widening basis during the quarter due to benefits from marketing optimization and curtailment strategy
•Operating Costs: Total per unit operating costs of $1.09 per Mcfe, at the low end of guidance driven by lower-than-expected LOE and production tax
•Cash Flow: Net cash provided by operating activities of $1,083 million; generated free cash flow attributable to EQT(1) of $283 million
•Balance Sheet: Exited the quarter with $5.6 billion total debt and just under $5.5 billion net debt(1)
Third Quarter 2026 and Recent Highlights:
•Range Acquisition: Announced strategic acquisition of Range Resources Corporation, which will create America's largest and only vertically integrated natural gas producer with leading inventory depth, lowest cost structure, a fortress balance sheet and the largest natural gas marketing platform in the country
•POWER Pipeline: Launched open season for new 42-inch POWER Pipeline project connecting EQT's core Marcellus assets in Pennsylvania to growing demand at the Clarington hub in Ohio
•LNG Sales Contract: Signed 10-year LNG sales agreement with Ignitis Group, the largest supplier of electricity and natural gas in Lithuania
•Gulf Coast Storage: Contracted for 7 Bcf of storage capacity at Leaf River Energy Center's salt dome expansion project along the Gulf Coast; increases EQT's Gulf Coast storage capacity up to 11 Bcf and provides optimization flexibility to support the LNG business
•Dividend Increase: Increased dividend by 3% to $0.68 per share annualized; compounded annual dividend growth rate of ~7% since 2022 with durability underpinned by material cost structure improvements and synergy capture over this period
President and CEO Toby Z. Rice stated, "Third quarter results built on what has been an exceptional year of execution at EQT. Despite downward pressure on natural gas prices during the quarter, our marketing efforts drove stronger realized pricing, operating expenses came in at the low end of guidance and capital spending was well below expectations as efficiencies continue to accrue. This resulted in yet another quarter of greater-than-expected free cash flow generation."
Rice added, "We also announced our strategic combination with Range Resources, pairing two of the highest-quality, longest-duration asset bases in North America and creating a company uniquely positioned for the next era of natural gas. Our expanded resource base solidifies EQT as the operator of choice for premium, long-term supply arrangements and provides unique growth optionality underpinned by contractual demand. We believe this combination creates a must-own energy company capable of generating durable, through-cycle free cash flow while compounding value for shareholders for decades to come."
(1)A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure.
1
Third Quarter 2026 Financial and Operational Performance
| Three Months Ended September 30, | ||||||||||||||||||||
| 2026 | 2025 | Change | ||||||||||||||||||
| (Millions, unless otherwise noted) | ||||||||||||||||||||
| Total sales volume (Bcfe) | 583 | 634 | (51) | |||||||||||||||||
| Average realized price ($/Mcfe) | $ | 2.72 | $ | 2.76 | $ | (0.04) | ||||||||||||||
| Net income attributable to EQT | $ | 279 | $ | 336 | $ | (57) | ||||||||||||||
| Adjusted net income attributable to EQT (a) | $ | 261 | $ | 329 | $ | (68) | ||||||||||||||
| Diluted income per share (EPS) | $ | 0.44 | $ | 0.53 | $ | (0.09) | ||||||||||||||
| Adjusted EPS (a) | $ | 0.42 | $ | 0.52 | $ | (0.10) | ||||||||||||||
| Net income | $ | 345 | $ | 407 | $ | (62) | ||||||||||||||
| Adjusted EBITDA (a) | $ | 1,143 | $ | 1,328 | $ | (185) | ||||||||||||||
| Adjusted EBITDA attributable to EQT (a) | $ | 1,021 | $ | 1,200 | $ | (179) | ||||||||||||||
| Net cash provided by operating activities | $ | 1,083 | $ | 1,018 | $ | 65 | ||||||||||||||
| Adjusted operating cash flow (a) | $ | 1,096 | $ | 1,221 | $ | (125) | ||||||||||||||
| Adjusted operating cash flow attributable to EQT (a) | $ | 975 | $ | 1,094 | $ | (119) | ||||||||||||||
| Capital expenditures | $ | 638 | $ | 618 | $ | 20 | ||||||||||||||
| Capital contributions to equity method investments | $ | 61 | $ | 2 | $ | 59 | ||||||||||||||
| Free cash flow (a) | $ | 398 | $ | 601 | $ | (203) | ||||||||||||||
| Free cash flow attributable to EQT (a) | $ | 283 | $ | 484 | $ | (201) | ||||||||||||||
(a)A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure.
Per Unit Operating Costs
The following table presents certain of the Company's consolidated operating costs on a per unit basis.(a)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (Per Mcfe) | ||||||||||||||||||||||||||
| Gathering | $ | 0.09 | $ | 0.06 | $ | 0.09 | $ | 0.07 | ||||||||||||||||||
| Transmission | 0.43 | 0.40 | 0.42 | 0.43 | ||||||||||||||||||||||
| Processing | 0.12 | 0.13 | 0.12 | 0.14 | ||||||||||||||||||||||
| Lease operating expense (LOE) | 0.10 | 0.09 | 0.10 | 0.09 | ||||||||||||||||||||||
| Production taxes | 0.05 | 0.06 | 0.07 | 0.07 | ||||||||||||||||||||||
| Operating and maintenance (O&M) | 0.10 | 0.10 | 0.10 | 0.09 | ||||||||||||||||||||||
| Selling, general and administrative (SG&A) | 0.20 | 0.16 | 0.17 | 0.15 | ||||||||||||||||||||||
| Operating costs | $ | 1.09 | $ | 1.00 | $ | 1.07 | $ | 1.04 | ||||||||||||||||||
| Production depletion | $ | 0.94 | $ | 0.95 | $ | 0.94 | $ | 0.95 | ||||||||||||||||||
(a)References in this news release to the "Company" refer to EQT Corporation together with its consolidated subsidiaries. As used throughout this news release, per unit operating costs reflect, for each period presented, the consolidated amount of such operating cost for the Company (aggregated irrespective of business segment) divided by total sales volume (Mcfe).
2
Gathering expense per Mcfe increased for the three months ended September 30, 2026 compared to the same period in 2025 due primarily to higher volumes gathered by third parties from wells turned-in-line in the first quarter of 2026.
Transmission expense per Mcfe increased for the three months ended September 30, 2026 compared to the same period in 2025 due primarily to lower sales volume.
Selling, general and administrative expense increased for the three months ended September 30, 2026 compared to the same period in 2025 due primarily to higher long-term incentive compensation costs and higher professional service costs.
Liquidity
As of September 30, 2026, the Company had $63 million of borrowings outstanding under EQT Corporation's $3.5 billion revolving credit facility. Total liquidity, excluding available capacity under Eureka Midstream, LLC's (Eureka) revolving credit facility, as of September 30, 2026 was approximately $3.5 billion.
As of September 30, 2026, total debt and net debt(1) were $5.6 billion and $5.5 billion, respectively, compared to $7.8 billion and $7.7 billion, respectively, as of December 31, 2025.
(1)A non-GAAP financial measure. See the Non-GAAP Disclosures section of this news release for the definition of, and other important information regarding, this non-GAAP financial measure.
Fourth Quarter 2026 Outlook
The Company expects total sales volume of 550 – 600 Bcfe in the fourth quarter of 2026, which includes the impact of 10 – 20 Bcfe of strategic curtailments. The Company expects $540 – $610 million of maintenance capital expenditures in the fourth quarter of 2026. Strategic growth capital expenditures in the fourth quarter of 2026 are expected to total $185 – $225 million. The Company plans to turn-in-line (TIL) 16 – 26 net wells in the fourth quarter of 2026.
3
2026 Guidance
| Production | Q4 2026 | Full Year 2026 | ||||||||||||
| Total sales volume (Bcfe) | 550 – 600 | 2,375 – 2,450 | ||||||||||||
| Liquids sales volume, excluding ethane (Mbbl) | 3,150 – 3,450 | 14,700 – 15,000 | ||||||||||||
| Ethane sales volume (Mbbl) | 1,900 – 2,050 | 8,850 – 9,000 | ||||||||||||
| Total liquids sales volume (Mbbl) | 5,050 – 5,500 | 23,550 – 24,000 | ||||||||||||
| Btu uplift (MMBtu/Mcf) | 1.050 – 1.060 | 1.050 – 1.060 | ||||||||||||
| Average Differential ($/Mcf, including basis hedges) | ($0.65) – ($0.55) | ($0.55) – ($0.35) | ||||||||||||
| Resource Counts | ||||||||||||||
| Top-hole rigs | 2 – 3 | 2 – 3 | ||||||||||||
| Horizontal rigs | 3 – 4 | 3 – 4 | ||||||||||||
| Frac crews | 2 – 3 | 2 – 3 | ||||||||||||
| Third-party Midstream Revenue ($ Millions) | $145 – $170 | $600 – $700 | ||||||||||||
| Per Unit Operating Costs ($/Mcfe) | ||||||||||||||
| Gathering | $0.08 – $0.10 | $0.09 – $0.11 | ||||||||||||
| Transmission | $0.43 – $0.45 | $0.41 – $0.44 | ||||||||||||
| Processing | $0.11 – $0.13 | $0.11 – $0.13 | ||||||||||||
| LOE | $0.11 – $0.13 | $0.10 – $0.12 | ||||||||||||
| Production taxes | $0.06 – $0.08 | $0.07 – $0.09 | ||||||||||||
| O&M | $0.12 – $0.14 | $0.09 – $0.11 | ||||||||||||
| SG&A | $0.23 – $0.25 | $0.18 – $0.20 | ||||||||||||
| Operating costs | $1.14 – $1.28 | $1.05 – $1.20 | ||||||||||||
| Equity Method Investments and Midstream JV Noncontrolling Interest ($ Millions) | ||||||||||||||
| Distributions from equity method investments (a) | $50 – $60 | $240 – $250 | ||||||||||||
| Distributions to PipeBox LLC (the Midstream JV) noncontrolling interest (b) | $100 – $115 | $430 – $470 | ||||||||||||
| Capital Expenditures and Capital Contributions ($ Millions) | ||||||||||||||
| Upstream maintenance | $435 – $485 | $1,590 – $1,640 | ||||||||||||
| Midstream maintenance | $50 – $60 | $210 – $220 | ||||||||||||
| Corporate and capitalized costs | $55 – $65 | $220 – $240 | ||||||||||||
| Total maintenance capital expenditures | $540 – $610 | $2,020 – $2,100 | ||||||||||||
| Growth capital expenditures | $185 – $225 | $580 – $640 | ||||||||||||
| Capital contributions to equity method investments (c) | $30 – $40 | $145 – $155 | ||||||||||||
(a)Includes distributions from Series A of Mountain Valley Pipeline, LLC for MVP Mainline and Laurel Mountain Midstream, LLC (LMM).
(b)Assumes Midstream JV cash distributions of 60% to third-party noncontrolling interest.
(c)Includes capital contributions to Mountain Valley Pipeline, LLC (the MVP Joint Venture), including to Series A of Mountain Valley Pipeline, LLC for MVP Mainline, Series B of Mountain Valley Pipeline, LLC for MVP Southgate and Series C of Mountain Valley Pipeline, LLC for MVP Boost, and LMM.
4
Third Quarter 2026 Earnings Webcast Information
The Company has canceled its third quarter 2026 earnings conference call following the announcement of EQT's acquisition of Range. A presentation accompanying third quarter 2026 results is available on the Company's investor relations website, ir.eqt.com, under "Events & Presentations."
Hedging (as of October 20, 2026)
The following table summarizes the approximate volume and prices of the Company's NYMEX hedge positions. The difference between the fixed price and NYMEX price is included in average differential presented in the Company's price reconciliation.
| Q4 2026 (a) | Q1 2027 | Q2 2027 | Q3 2027 | Q4 2027 | ||||||||||||||||||||||||||||||||||||||||
| Hedged Volume (MMDth) | 108 | 62 | 156 | 174 | 70 | |||||||||||||||||||||||||||||||||||||||
| Hedged Volume (MMDth/d) | 1.2 | 0.7 | 1.7 | 1.9 | 0.8 | |||||||||||||||||||||||||||||||||||||||
| Swaps – Short | ||||||||||||||||||||||||||||||||||||||||||||
| Volume (MMDth) | — | — | 83 | 100 | 45 | |||||||||||||||||||||||||||||||||||||||
| Avg. Price ($/Dth) | $ | — | $ | — | $ | 3.13 | $ | 3.14 | $ | 3.16 | ||||||||||||||||||||||||||||||||||
| Calls – Short | ||||||||||||||||||||||||||||||||||||||||||||
| Volume (MMDth) | 108 | 62 | 73 | 74 | 25 | |||||||||||||||||||||||||||||||||||||||
| Avg. Strike ($/Dth) | $ | 5.13 | $ | 5.77 | $ | 4.51 | $ | 4.51 | $ | 4.51 | ||||||||||||||||||||||||||||||||||
| Puts – Long | ||||||||||||||||||||||||||||||||||||||||||||
| Volume (MMDth) | 108 | 62 | 73 | 74 | 25 | |||||||||||||||||||||||||||||||||||||||
| Avg. Strike ($/Dth) | $ | 3.72 | $ | 3.65 | $ | 3.00 | $ | 3.00 | $ | 3.00 | ||||||||||||||||||||||||||||||||||
| Puts – Short | ||||||||||||||||||||||||||||||||||||||||||||
| Volume (MMDth) | — | 25 | 73 | 74 | 25 | |||||||||||||||||||||||||||||||||||||||
| Avg. Strike ($/Dth) | $ | — | $ | 2.50 | $ | 2.50 | $ | 2.50 | $ | 2.50 | ||||||||||||||||||||||||||||||||||
(a)October 1 through December 31.
The Company also entered into derivative instruments to hedge basis. The Company may use other contractual agreements to implement its commodity hedging strategy from time to time.
Non-GAAP Disclosures
This news release includes the non-GAAP financial measures described below. These non-GAAP measures are defined and reconciled to the most directly comparable GAAP measure. These non-GAAP measures are intended to provide additional information only and should not be considered as alternatives to, or more meaningful than, net income attributable to EQT Corporation, diluted EPS, net income, net cash provided by operating activities, total Upstream operating revenues, total debt or any other measure calculated in accordance with GAAP. Certain items excluded from these non-GAAP measures are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital, tax structure and historic costs of depreciable assets.
5
Adjusted Net Income Attributable to EQT and Adjusted EPS
Adjusted net income attributable to EQT is defined as net income attributable to EQT Corporation, excluding (gain) loss on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fair value of derivative instruments prior to settlement and certain other items that the Company's management believes do not reflect the Company's core operating performance. Adjusted EPS is defined as adjusted net income attributable to EQT divided by diluted weighted average common shares outstanding.
The Company's management believes that adjusted net income attributable to EQT and adjusted EPS provide useful information to investors regarding the Company’s financial condition and results of operations because it helps facilitate comparisons of operating performance and earnings trends across periods by excluding the impact of items that, in their opinion, do not reflect the Company’s core operating performance. For example, adjusted net income attributable to EQT and adjusted EPS reflect only the impact of settled derivative contracts; thus, the measures exclude the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement.
The table below reconciles adjusted net income attributable to EQT and adjusted EPS with net income attributable to EQT Corporation and diluted EPS, respectively, the most comparable financial measures calculated in accordance with GAAP, each as derived from the Statements of Condensed Consolidated Operations to be included in EQT Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (Thousands, except per share amounts) | ||||||||||||||||||||||||||
| Net income attributable to EQT Corporation | $ | 278,691 | $ | 335,862 | $ | 1,977,345 | $ | 1,362,148 | ||||||||||||||||||
| (Deduct) add: | ||||||||||||||||||||||||||
| (Gain) loss on sale/exchange of long-lived assets | (2,893) | (5,623) | 659 | (2,402) | ||||||||||||||||||||||
| Impairment and expiration of leases | 6,007 | 3,476 | 16,062 | 9,391 | ||||||||||||||||||||||
| (Gain) loss on derivatives | (100,287) | (135,784) | 93,342 | (176,829) | ||||||||||||||||||||||
| Net cash settlements received (paid) on derivatives | 70,521 | 74,960 | (160,527) | (118,390) | ||||||||||||||||||||||
| Other expenses (a) | 3,802 | 28,962 | 10,422 | 182,693 | ||||||||||||||||||||||
| Loss on debt extinguishment | 18 | 1,909 | 29,887 | 19,478 | ||||||||||||||||||||||
| Tax impact of non-GAAP items (b) | 5,557 | 24,818 | 2,570 | 38,774 | ||||||||||||||||||||||
| Adjusted net income attributable to EQT | $ | 261,416 | $ | 328,580 | $ | 1,969,760 | $ | 1,314,863 | ||||||||||||||||||
| Diluted weighted average common shares outstanding | 629,172 | 628,324 | 628,992 | 611,427 | ||||||||||||||||||||||
| Diluted EPS | $ | 0.44 | $ | 0.53 | $ | 3.14 | $ | 2.23 | ||||||||||||||||||
| Adjusted EPS | $ | 0.42 | $ | 0.52 | $ | 3.13 | $ | 2.15 | ||||||||||||||||||
(a)Consists primarily of transaction costs associated with acquisitions and other strategic transactions as well as costs related to exploring new venture opportunities. Other expenses for the three and nine months ended September 30, 2025 included the impact of $21.0 million and $24.5 million, respectively, of cash transaction costs related to the Company's acquisition of Olympus Energy (the Olympus Energy Acquisition), and, for the nine months ended September 30, 2025 included the impact of $133.7 million of net expense related to a securities class action settlement.
(b)The tax impact of non-GAAP items represents the incremental tax expense/benefit that would have been incurred by the Company had these items been excluded from net income attributable to EQT Corporation. This approach resulted in a blended tax rate of 24.3% and 24.7% for the three months ended September 30, 2026 and 2025, respectively, and 25.3% and 25.1% for the nine months ended September 30, 2026 and 2025, respectively. The blended tax rates differ from the Company's statutory tax rate due primarily to state taxes, including valuation allowances limiting certain state tax benefits.
6
Adjusted EBITDA, Adjusted EBITDA Attributable to Noncontrolling Interests and Adjusted EBITDA Attributable to EQT
Adjusted EBITDA is defined as net income excluding net interest expense, income tax expense, depreciation, depletion and amortization, (gain) loss on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fair value of derivative instruments prior to settlement and certain other items that the Company's management believes do not reflect the Company's core operating performance. Adjusted EBITDA attributable to EQT is defined as adjusted EBITDA less adjusted EBITDA attributable to noncontrolling interests. Adjusted EBITDA attributable to noncontrolling interests is defined as the proportionate share of adjusted EBITDA attributable to the third-party ownership interests in the Non-Wholly Owned Consolidated Subsidiaries (defined below).
The Company's management believes that these measures provide useful information to investors regarding the Company’s financial condition and results of operations because they help facilitate comparisons of operating performance and earnings trends across periods by excluding the impact of items that, in their opinion, do not reflect the Company’s core operating performance. For example, adjusted EBITDA reflects only the impact of settled derivative instruments and excludes the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement. In addition, adjusted EBITDA includes the impact of distributions received from equity method investments, which excludes the impact of depreciation included within equity earnings from equity method investments and helps facilitate comparisons of the core operating performance of the Company's equity method investments.
The table below reconciles adjusted EBITDA and adjusted EBITDA attributable to EQT with net income, the most comparable financial measure as calculated in accordance with GAAP, as reported in the Statements of Condensed Consolidated Operations to be included in EQT Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (Thousands) | ||||||||||||||||||||||||||
| Net income | $ | 345,077 | $ | 407,216 | $ | 2,180,455 | $ | 1,579,290 | ||||||||||||||||||
| Add (deduct): | ||||||||||||||||||||||||||
| Interest expense, net | 72,152 | 109,929 | 244,381 | 333,166 | ||||||||||||||||||||||
| Income tax expense | 86,682 | 129,266 | 604,967 | 443,549 | ||||||||||||||||||||||
| Depreciation, depletion and amortization | 639,783 | 688,382 | 1,984,167 | 1,932,628 | ||||||||||||||||||||||
| (Gain) loss on sale/exchange of long-lived assets | (2,893) | (5,623) | 659 | (2,402) | ||||||||||||||||||||||
| Impairment and expiration of leases | 6,007 | 3,476 | 16,062 | 9,391 | ||||||||||||||||||||||
| (Gain) loss on derivatives | (100,287) | (135,784) | 93,342 | (176,829) | ||||||||||||||||||||||
| Net cash settlements received (paid) on derivatives | 70,521 | 74,960 | (160,527) | (118,390) | ||||||||||||||||||||||
| Other expenses (a) | 3,802 | 28,962 | 10,422 | 182,693 | ||||||||||||||||||||||
| Income from investments | (43,688) | (44,638) | (165,929) | (138,274) | ||||||||||||||||||||||
| Distributions from equity method investments | 65,760 | 69,679 | 187,083 | 202,560 | ||||||||||||||||||||||
| Loss on debt extinguishment | 18 | 1,909 | 29,887 | 19,478 | ||||||||||||||||||||||
| Adjusted EBITDA | 1,142,934 | 1,327,734 | 5,024,969 | 4,266,860 | ||||||||||||||||||||||
| Deduct: Adjusted EBITDA attributable to noncontrolling interests (b) | (121,851) | (128,230) | (389,892) | (390,194) | ||||||||||||||||||||||
| Adjusted EBITDA attributable to EQT | $ | 1,021,083 | $ | 1,199,504 | $ | 4,635,077 | $ | 3,876,666 | ||||||||||||||||||
(a)Consists primarily of transaction costs associated with acquisitions and other strategic transactions as well as costs related to exploring new venture opportunities. Other expenses for the three and nine months ended September 30, 2025 included the impact of $21.0 million and $24.5 million, respectively, of cash transaction costs related to the Olympus Energy Acquisition, and, for the nine months ended September 30, 2025 included the impact of $133.7 million of net expense related to a securities class action settlement.
7
(b)A non-GAAP financial measure. See below for a reconciliation of this non-GAAP financial measure to the most comparable financial measure as calculated in accordance with GAAP.
The Company consolidates its controlling equity interests in the Midstream JV and Eureka Midstream Holdings, LLC (Eureka Holdings and, together with the Midstream JV, the Non-Wholly Owned Consolidated Subsidiaries). The table below reconciles adjusted EBITDA of the Non-Wholly Owned Consolidated Subsidiaries and adjusted EBITDA attributable to noncontrolling interests with net income of the Non-Wholly Owned Consolidated Subsidiaries, the most comparable financial measure as calculated in accordance with GAAP. The Company's management believes that adjusted EBITDA attributable to noncontrolling interests provides useful information to investors regarding the impact of the third-party ownership interest in the Non-Wholly Owned Consolidated Subsidiaries on the Company's financial condition and results of operations.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (Thousands) | ||||||||||||||||||||||||||
| Non-Wholly Owned Consolidated Subsidiaries: | ||||||||||||||||||||||||||
| Net income | $ | 146,630 | $ | 158,088 | $ | 516,420 | $ | 500,966 | ||||||||||||||||||
| Add (deduct): | ||||||||||||||||||||||||||
| Interest expense, net | 3,575 | 3,742 | 10,356 | 11,014 | ||||||||||||||||||||||
| Depreciation and amortization | 34,420 | 34,879 | 99,495 | 96,723 | ||||||||||||||||||||||
| Loss on sale/exchange of long-lived assets | — | — | 724 | 349 | ||||||||||||||||||||||
| Income from investments | (41,824) | (42,078) | (139,810) | (125,652) | ||||||||||||||||||||||
| Distributions from equity method investments | 64,984 | 66,579 | 179,171 | 191,090 | ||||||||||||||||||||||
| Adjusted EBITDA | 207,785 | 221,210 | 666,356 | 674,490 | ||||||||||||||||||||||
| Deduct: Adjusted EBITDA of the Non-Wholly Owned Consolidated Subsidiaries attributable to EQT (a) | (85,934) | (92,980) | (276,464) | (284,296) | ||||||||||||||||||||||
| Adjusted EBITDA attributable to noncontrolling interests | $ | 121,851 | $ | 128,230 | $ | 389,892 | $ | 390,194 | ||||||||||||||||||
(a)Adjusted EBITDA of the Non-Wholly Owned Consolidated Subsidiaries attributable to EQT is calculated based on EQT Corporation's current 40% Class A Unitholder share of available cash flow distributions from the Midstream JV and 60% ownership interest in Eureka Holdings. The Company believes that using its distribution share from the Midstream JV in the calculation of adjusted EBITDA of the Non-Wholly Owned Consolidated Subsidiaries attributable to EQT best reflects the economic impact of the Company's investment in the Midstream JV on adjusted EBITDA and earnings trends.
Adjusted Operating Cash Flow, Adjusted Operating Cash Flow Attributable to EQT, Free Cash Flow and Free Cash Flow Attributable to EQT
Adjusted operating cash flow is defined as net cash provided by operating activities less changes in other assets and liabilities. Adjusted operating cash flow attributable to EQT is defined as adjusted operating cash flow less adjusted EBITDA attributable to noncontrolling interests excluding net interest expense attributable to noncontrolling interests. Free cash flow is defined as adjusted operating cash flow less accrual-based capital expenditures and capital contributions to equity method investments. Free cash flow attributable to EQT is defined as adjusted operating cash flow attributable to EQT less accrual-based capital expenditures and capital contributions to equity method investments excluding the proportionate share of accrual-based capital expenditures and capital contributions to equity method investments attributable to the third-party ownership interests in the Non-Wholly Owned Consolidated Subsidiaries.
The Company's management believes that these measures provide useful information to investors regarding the Company's liquidity, including the Company's ability to generate cash flow in excess of its capital requirements and return cash to shareholders.
8
The tables below reconcile adjusted operating cash flow, adjusted operating cash flow attributable to EQT, free cash flow and free cash flow attributable to EQT with net cash provided by operating activities, the most comparable financial measure calculated in accordance with GAAP, as derived from the Statements of Condensed Consolidated Cash Flows to be included in EQT Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (Thousands) | ||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 1,083,273 | $ | 1,017,699 | $ | 5,186,332 | $ | 4,000,565 | ||||||||||||||||||
| Decrease (increase) in changes in other assets and liabilities | 12,984 | 203,441 | (360,667) | (194,779) | ||||||||||||||||||||||
| Adjusted operating cash flow (a) | 1,096,257 | 1,221,140 | 4,825,665 | 3,805,786 | ||||||||||||||||||||||
| Deduct: | ||||||||||||||||||||||||||
| Capital expenditures | (637,764) | (617,893) | (1,911,858) | (1,668,896) | ||||||||||||||||||||||
| Capital contributions to equity method investments | (60,918) | (2,359) | (117,438) | (44,406) | ||||||||||||||||||||||
| Free cash flow (a) | $ | 397,575 | $ | 600,888 | $ | 2,796,369 | $ | 2,092,484 | ||||||||||||||||||
(a)Adjusted operating cash flow and free cash flow for the three and nine months ended September 30, 2025 included the impact of $21.0 million and $24.5 million, respectively, of cash transaction costs related to the Olympus Energy Acquisition, and, for the nine months ended September 30, 2025 included the impact of $133.7 million of net expense related to a securities class action settlement.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (Thousands) | ||||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 1,083,273 | $ | 1,017,699 | $ | 5,186,332 | $ | 4,000,565 | ||||||||||||||||||
| Decrease (increase) in changes in other assets and liabilities | 12,984 | 203,441 | (360,667) | (194,779) | ||||||||||||||||||||||
| Adjusted operating cash flow (a) | 1,096,257 | 1,221,140 | 4,825,665 | 3,805,786 | ||||||||||||||||||||||
| (Deduct) add: | ||||||||||||||||||||||||||
| Adjusted EBITDA attributable to noncontrolling interests (b) | (121,851) | (128,230) | (389,892) | (390,194) | ||||||||||||||||||||||
| Net interest expense and other attributable to noncontrolling interests | 352 | 1,190 | 2,557 | 3,470 | ||||||||||||||||||||||
| Adjusted operating cash flow attributable to EQT (a) (c) | 974,758 | 1,094,100 | 4,438,330 | 3,419,062 | ||||||||||||||||||||||
| (Deduct) add: | ||||||||||||||||||||||||||
| Capital expenditures | (637,764) | (617,893) | (1,911,858) | (1,668,896) | ||||||||||||||||||||||
| Capital contributions to equity method investments | (60,918) | (2,359) | (117,438) | (44,406) | ||||||||||||||||||||||
| Capital expenditures attributable to noncontrolling interests | 6,477 | 9,962 | 30,414 | 30,051 | ||||||||||||||||||||||
| Capital contributions to equity method investments attributable to noncontrolling interests | — | — | 4,272 | 23,123 | ||||||||||||||||||||||
| Free cash flow attributable to EQT (a) (c) | $ | 282,553 | $ | 483,810 | $ | 2,443,720 | $ | 1,758,934 | ||||||||||||||||||
(a)Adjusted operating cash flow, adjusted operating cash flow attributable to EQT and free cash flow attributable to EQT for the three and nine months ended September 30, 2025 included the impact of $21.0 million and $24.5 million, respectively, of cash transaction costs related to the Olympus Energy Acquisition, and, for the nine months ended September 30, 2025 included the impact of $133.7 million of net expense related to a securities class action settlement.
9
(b)A non-GAAP financial measure. See above for a reconciliation of this non-GAAP financial measure to the most comparable financial measure as calculated in accordance with GAAP.
(c)Adjusted operating cash flow attributable to EQT and free cash flow attributable to EQT are calculated based on EQT Corporation's current 40% Class A Unitholder share of available cash flow distributions from the Midstream JV and 60% ownership interest in Eureka Holdings. The Company believes that using its distribution share from the Midstream JV in the calculation of these measures best reflects the economic impact of the Company's investment in the Midstream JV on adjusted operating cash flow, free cash flow and earnings trends.
Upstream Adjusted Operating Revenues
Upstream adjusted operating revenues (also referred to as total natural gas and liquids sales, including cash settled derivatives and previously referred to as Production adjusted operating revenues) is defined as total Upstream operating revenues, less the revenue impact of changes in the fair value of Upstream derivative instruments prior to settlement and Upstream other revenues. The Company’s management believes that this measure provides useful information to investors regarding the Company's financial condition and results of operations because it helps facilitate comparisons of operating performance and earnings trends across periods. Upstream adjusted operating revenues reflects only the impact of settled Upstream derivative contracts; thus, the measure excludes the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement. The measure also excludes Upstream other revenues because it is unrelated to the revenue from the Company's natural gas and liquids production.
The table below reconciles Upstream adjusted operating revenues with total Upstream operating revenues, the most comparable financial measure calculated in accordance with GAAP, as reported in the Statements of Condensed Consolidated Operations to be included in EQT Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (Thousands, unless otherwise noted) | ||||||||||||||||||||||||||
| Total Upstream operating revenues | $ | 1,630,178 | $ | 1,815,766 | $ | 6,500,250 | $ | 5,805,591 | ||||||||||||||||||
| (Deduct) add: | ||||||||||||||||||||||||||
| Upstream (gain) loss on derivatives | (104,913) | (135,784) | 88,716 | (176,829) | ||||||||||||||||||||||
| Upstream net cash settlements received (paid) on derivatives | 70,119 | 74,960 | (160,929) | (118,390) | ||||||||||||||||||||||
| Upstream other revenues | (8,998) | (2,365) | (22,750) | (5,919) | ||||||||||||||||||||||
| Upstream adjusted operating revenues | $ | 1,586,386 | $ | 1,752,577 | $ | 6,405,287 | $ | 5,504,453 | ||||||||||||||||||
| Total sales volume (MMcfe) | 582,802 | 634,395 | 1,834,975 | 1,773,373 | ||||||||||||||||||||||
| Average sales price ($/Mcfe) | $ | 2.60 | $ | 2.64 | $ | 3.58 | $ | 3.17 | ||||||||||||||||||
| Average realized price ($/Mcfe) | $ | 2.72 | $ | 2.76 | $ | 3.49 | $ | 3.10 | ||||||||||||||||||
10
Net Debt
Net debt is defined as total debt less cash and cash equivalents. Total debt includes the Company's current portion of debt, revolving credit facility borrowings and senior notes. The Company's management believes that net debt provides useful information to investors regarding the Company's financial condition and assists them in evaluating the Company's leverage since the Company could choose to use its cash and cash equivalents to retire debt.
The table below reconciles net debt with total debt, the most comparable financial measure calculated in accordance with GAAP, as derived from the Condensed Consolidated Balance Sheets to be included in EQT Corporation's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
| September 30, 2026 | December 31, 2025 | ||||||||||||||||
| (Thousands) | |||||||||||||||||
| Current portion of debt (a) | $ | — | $ | 507,119 | |||||||||||||
| Revolving credit facility borrowings (b) | 333,000 | 360,000 | |||||||||||||||
| Senior notes | 5,219,552 | 6,933,209 | |||||||||||||||
| Total debt | 5,552,552 | 7,800,328 | |||||||||||||||
| Deduct: Cash and cash equivalents | (78,715) | (110,795) | |||||||||||||||
| Net debt | $ | 5,473,837 | $ | 7,689,533 | |||||||||||||
(a)As of December 31, 2025, the current portion of debt included EQT Corporation's 3.125% senior notes and 7.75% debentures.
(b)As of September 30, 2026 and December 31, 2025, revolving credit facility borrowings included $270 million and $285 million, respectively, of borrowings outstanding under Eureka’s revolving credit facility.
Investor Contact
Cameron Horwitz
Managing Director, Investor Relations & Strategy
412.445.8454
Cameron.Horwitz@eqt.com
About EQT Corporation
EQT Corporation is a premier, vertically integrated American natural gas company with upstream and midstream operations focused in the Appalachian Basin. We are dedicated to responsibly developing our world-class asset base and being the operator of choice for our stakeholders. By leveraging a culture that prioritizes operational efficiency, technology and sustainability, we seek to continuously improve the way we produce environmentally responsible, reliable and low-cost energy. We have a longstanding commitment to the safety of our employees, contractors, and communities, and to the reduction of our overall environmental footprint. Our values are evident in the way we operate and in how we interact each day – trust, teamwork, heart, and evolution are at the center of all we do.
EQT management speaks to investors from time to time and the analyst presentation for these discussions, which is updated periodically, is available via EQT’s investor relations website at ir.eqt.com.
11
Cautionary Statements Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Statements that do not relate strictly to historical or current facts are forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this news release or made during the above referenced conference call specifically include the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of EQT Corporation (EQT) and its consolidated subsidiaries (collectively, the Company), including guidance regarding the Company's strategy to develop its reserves; drilling plans and programs (including the number and type of drilling rigs and the number of frac crews to be utilized by the Company, the projected amount of wells to be turned-in-line and the timing thereof); projected natural gas prices, basis and average differential; the impact of commodity prices on the Company's business; total resource potential; projected production and sales volumes, including projected strategic curtailments and the timing, duration and volume thereof; projected capital expenditures and per unit operating costs; the amount and timing of distributions to and from the Company's joint venture arrangements; the Company's ability to successfully implement and execute its operational and organizational initiatives, the timing thereof and the Company's ability to achieve the anticipated results of such initiatives; the Company's plans, objectives, expectations, goals and projections relating to the Company's LNG offtake and tolling agreements and growth projects, including statements relating to the anticipated in-service dates, volume, duration, cost, anticipated impacts to free cash flow and investment returns thereof; the Company's ability to achieve the intended operational, financial and strategic benefits from any proposed and recently completed strategic transactions, including the proposed transaction (the proposed transaction) between EQT and Range Resources Corporation (Range), and the timing thereof; other statements regarding the proposed transaction, including the expected closing and the timing thereof, and the pro forma combined company and its operations, strategies and plans, integration, debt levels and leverage ratio, capital expenditures, enterprise value, cash flows and anticipated uses thereof, synergies, opportunities and anticipated future performance, expected accretion to earnings and free cash flow and anticipated dividends; the amount and timing of any redemptions, repayments or repurchases of EQT's common stock, the Company's outstanding debt securities or other debt instruments; the Company's ability to reduce its debt and the timing of such reductions, if any; projected free cash flow; liquidity and financing requirements, including funding sources and availability; the Company's hedging strategy and projected margin posting obligations; the Company’s tax position and projected effective tax rate; and the expected impact of changes in laws.
The forward-looking statements included in this news release or made during the above referenced conference call involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The Company has based these forward-looking statements on current expectations and assumptions about future events, taking into account all information currently known by the Company. While the Company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond the Company’s control. These risks and uncertainties include, but are not limited to, volatility of commodity prices; the costs and results of drilling and operations; uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future; the assumptions underlying production forecasts; the quality of technical data; the Company's ability to appropriately allocate capital and other resources among its strategic opportunities; access to and cost of capital; the Company's hedging and other financial contracts; inherent hazards and risks normally incidental to drilling for, producing, transporting, storing and processing natural gas, natural gas liquids (NGLs) and oil; operational risks and hazards incidental to the gathering, transmission and storage of natural gas as well as unforeseen interruptions; cyber security risks and acts of sabotage; availability and cost of drilling rigs, completion services, equipment, supplies, personnel, oilfield services and pipe, sand and water required to execute the Company's exploration and development plans, including as a result of inflationary pressures or tariffs; risks associated with operating primarily in the Appalachian Basin; the ability to obtain environmental and other permits and the timing thereof; construction, business, economic, competitive, regulatory, judicial, environmental, political and legal uncertainties related to the development and construction by the Company or its joint ventures of pipeline and storage facilities and transmission assets and the optimization of such assets; the Company's ability to renew or replace expiring gathering, transmission or storage contracts at favorable rates, on a long-term basis or at all; risks relating to the Company's joint venture arrangements; government regulation or action, including regulations pertaining to methane and other greenhouse gas emissions; negative public perception of the fossil fuels industry; increased consumer demand for alternatives to natural gas; environmental and weather risks, including the possible impacts of climate change; and disruptions to the Company's business due to recently completed or pending divestitures, acquisitions and other significant strategic transactions, including the proposed transaction between EQT and Range; and other risks related to the proposed transaction between EQT and Range, including potential delays in consummation,
12
including as a result of regulatory proceedings, the risk that EQT's shareholders or Range’s shareholders do not approve the transaction, the risk that regulatory approvals are not obtained or are obtained subject to conditions that are not anticipated, EQT's ability to integrate the acquired operations and assets in a successful manner and in the expected time period and the possibility that any of the anticipated benefits and projected synergies of such transaction will not be realized or will not be realized within the expected time period. These and other risks and uncertainties are described under the "Risk Factors" section and elsewhere in EQT's Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q and other documents EQT subsequently files from time to time with the Securities and Exchange Commission. In addition, the Company may be subject to currently unforeseen risks that may have a materially adverse impact on it.
Any forward-looking statement speaks only as of the date on which such statement is made, and, except as required by law, EQT does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.
Important Information for Investors and Shareholders; Additional Information and Where to Find It
In connection with the proposed transaction, EQT intends to file with the U.S. Securities and Exchange Commission (the SEC) a registration statement on Form S-4 (the registration statement) that will include a joint proxy statement of EQT and Range and that will also constitute a prospectus of EQT (the joint proxy statement/prospectus). EQT and Range also intend to file other relevant documents regarding the proposed transaction with the SEC. This new release is not a substitute for the joint proxy statement/prospectus or the registration statement. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS OF EQT AND RANGE ARE URGED TO READ THE REGISTRATION STATEMENT, THE JOINT PROXY STATEMENT/PROSPECTUS AND ALL OTHER RELEVANT DOCUMENTS FILED OR THAT MAY BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT EQT, RANGE, THE PROPOSED TRANSACTION, THE RISKS THERETO AND RELATED MATTERS. After the registration statement has been declared effective, a definitive joint proxy statement/prospectus will be mailed to the shareholders of EQT and the shareholders of Range. Investors and security holders will be able to obtain free copies of the registration statement and joint proxy statement/prospectus and other relevant documents filed or that will be filed with the SEC by EQT or Range through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with the SEC by EQT may be obtained free of charge on EQT’s website at ir.eqt.com. Copies of the documents filed with the SEC by Range may be obtained free of charge on Range’s website at ir.rangeresources.com. The information included on, or accessible through, EQT’s or Range’s website is not incorporated by reference into this news release.
Participants in the Solicitation
EQT and Range and their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction contemplated by the joint proxy statement/prospectus. Information regarding EQT’s directors and executive officers and their ownership of EQT’s securities is set forth in EQT’s filings with the SEC, including EQT’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 that was filed with the SEC on February 18, 2026 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000033213/000003321326000018/eqt-20251231.htm) and its Definitive Proxy Statement on Schedule 14A that was filed with the SEC on February 26, 2026 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000033213/000110465926020027/tm2613831_def14a.htm). To the extent such person’s ownership of EQT’s securities has changed since the filing of such proxy statement, such changes have been or will be reflected on Statements of Changes in Beneficial Ownership on Form 4 filed with the SEC. Information regarding Range’s directors and executive officers and their ownership of Range’s securities is set forth in Range’s filings with the SEC, including Range’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 that was filed with the SEC on February 24, 2026 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000315852/000119312526067292/rrc-20251231.htm) and its Definitive Proxy Statement on Schedule 14A that was filed with the SEC on March 31, 2026 (and which is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000033213/000110465926020027/tm261383-1_def14a.htm). To the extent such person’s ownership of Range’s securities has changed since the filing of such proxy statement, such changes have been or will be reflected on Statements of Changes in Beneficial Ownership on Form 4 filed with the SEC. Additional information regarding the interests of those persons and other persons who may be deemed participants in the proposed transaction may be obtained by reading the joint proxy statement/prospectus and other relevant materials that will be filed with the SEC
13
regarding the proposed transaction when such documents become available. You may obtain free copies of these documents as described in the preceding paragraph.
No Offer or Solicitation
This news release relates to the proposed transaction. This news release is for informational purposes only and is not intended to and shall not constitute an offer to buy, sell or exchange, or the solicitation of an offer to buy, sell or exchange, any securities or a solicitation of any vote or approval, in any jurisdiction, pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance, exchange or transfer of the securities referred to in this news release in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
14
| EQT CORPORATION AND SUBSIDIARIES | |||||
| STATEMENTS OF CONDENSED CONSOLIDATED OPERATIONS (UNAUDITED) | |||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||||||||||||
| (Thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||
| Operating revenues: | |||||||||||||||||||||||||||||||||||
| Sales of natural gas, natural gas liquids and oil | $ | 1,507,808 | $ | 1,677,617 | $ | 6,557,757 | $ | 5,622,843 | |||||||||||||||||||||||||||
| Gain (loss) on derivatives | 100,287 | 135,784 | (93,342) | 176,829 | |||||||||||||||||||||||||||||||
| Pipeline and other | 162,299 | 145,170 | 494,655 | 456,468 | |||||||||||||||||||||||||||||||
| Total operating revenues | 1,770,394 | 1,958,571 | 6,959,070 | 6,256,140 | |||||||||||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||||||||||
| Transportation and processing | 370,791 | 377,133 | 1,156,147 | 1,144,458 | |||||||||||||||||||||||||||||||
| Production | 92,079 | 98,302 | 307,573 | 278,258 | |||||||||||||||||||||||||||||||
| Operating and maintenance | 60,376 | 60,302 | 175,464 | 161,582 | |||||||||||||||||||||||||||||||
| Purchased commodities | 8,183 | — | 8,183 | — | |||||||||||||||||||||||||||||||
| Selling, general and administrative | 116,083 | 98,720 | 318,272 | 271,770 | |||||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 639,783 | 688,382 | 1,984,167 | 1,932,628 | |||||||||||||||||||||||||||||||
| (Gain) loss on sale/exchange of long-lived assets | (2,893) | (5,623) | 659 | (2,402) | |||||||||||||||||||||||||||||||
| Impairment and expiration of leases | 6,007 | 3,476 | 16,062 | 9,391 | |||||||||||||||||||||||||||||||
| Other operating expenses | 20,524 | 34,669 | 103,084 | 226,957 | |||||||||||||||||||||||||||||||
| Total operating expenses | 1,310,933 | 1,355,361 | 4,069,611 | 4,022,642 | |||||||||||||||||||||||||||||||
| Operating income | 459,461 | 603,210 | 2,889,459 | 2,233,498 | |||||||||||||||||||||||||||||||
| Income from investments | (43,688) | (44,638) | (165,929) | (138,274) | |||||||||||||||||||||||||||||||
| Other income | (780) | (472) | (4,302) | (3,711) | |||||||||||||||||||||||||||||||
| Loss on debt extinguishment | 18 | 1,909 | 29,887 | 19,478 | |||||||||||||||||||||||||||||||
| Interest expense, net | 72,152 | 109,929 | 244,381 | 333,166 | |||||||||||||||||||||||||||||||
| Income before income taxes | 431,759 | 536,482 | 2,785,422 | 2,022,839 | |||||||||||||||||||||||||||||||
| Income tax expense | 86,682 | 129,266 | 604,967 | 443,549 | |||||||||||||||||||||||||||||||
| Net income | 345,077 | 407,216 | 2,180,455 | 1,579,290 | |||||||||||||||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | 66,386 | 71,354 | 203,110 | 217,142 | |||||||||||||||||||||||||||||||
| Net income attributable to EQT Corporation | $ | 278,691 | $ | 335,862 | $ | 1,977,345 | $ | 1,362,148 | |||||||||||||||||||||||||||
| Income per share of common stock attributable to EQT Corporation: | |||||||||||||||||||||||||||||||||||
| Basic: | |||||||||||||||||||||||||||||||||||
| Weighted average common stock outstanding | 625,991 | 624,532 | 625,696 | 607,245 | |||||||||||||||||||||||||||||||
| Net income attributable to EQT Corporation | $ | 0.45 | $ | 0.54 | $ | 3.16 | $ | 2.24 | |||||||||||||||||||||||||||
| Diluted: | |||||||||||||||||||||||||||||||||||
| Weighted average common stock outstanding | 629,172 | 628,324 | 628,992 | 611,427 | |||||||||||||||||||||||||||||||
| Net income attributable to EQT Corporation | $ | 0.44 | $ | 0.53 | $ | 3.14 | $ | 2.23 | |||||||||||||||||||||||||||
15
| EQT CORPORATION AND SUBSIDIARIES | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||
| September 30, 2026 | December 31, 2025 | |||||||||||||
| (Thousands) | ||||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 78,715 | $ | 110,795 | ||||||||||
| Accounts receivable (less allowance for credit losses: $5,830 and $3,088) | 725,938 | 1,457,959 | ||||||||||||
| Derivative instruments, at fair value | 185,211 | 202,390 | ||||||||||||
| Prepaid expenses and other | 120,636 | 124,007 | ||||||||||||
| Total current assets | 1,110,500 | 1,895,151 | ||||||||||||
| Property, plant and equipment | 50,113,651 | 48,472,497 | ||||||||||||
| Less: Accumulated depreciation and depletion | 16,446,632 | 14,914,689 | ||||||||||||
| Net property, plant and equipment | 33,667,019 | 33,557,808 | ||||||||||||
| Investments in unconsolidated entities | 3,960,861 | 3,630,577 | ||||||||||||
| Net intangible assets | 189,407 | 200,486 | ||||||||||||
| Goodwill | 2,062,462 | 2,062,462 | ||||||||||||
| Other assets | 451,610 | 446,390 | ||||||||||||
| Total assets | $ | 41,441,859 | $ | 41,792,874 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Current portion of debt | $ | — | $ | 507,119 | ||||||||||
| Accounts payable | 1,138,859 | 1,367,431 | ||||||||||||
| Derivative instruments, at fair value | 62,860 | 137,299 | ||||||||||||
| Accrued interest | 82,657 | 137,505 | ||||||||||||
| Other current liabilities | 285,515 | 335,487 | ||||||||||||
| Total current liabilities | 1,569,891 | 2,484,841 | ||||||||||||
| Revolving credit facility borrowings | 333,000 | 360,000 | ||||||||||||
| Senior notes | 5,219,552 | 6,933,209 | ||||||||||||
| Deferred income taxes | 4,048,587 | 3,472,010 | ||||||||||||
| Asset retirement obligations and other liabilities | 1,251,527 | 1,182,666 | ||||||||||||
| Total liabilities | 12,422,557 | 14,432,726 | ||||||||||||
| Equity: | ||||||||||||||
| Common stock, no par value, shares authorized: 1,280,000, shares issued: 625,547 and 624,076 | 19,560,596 | 19,517,761 | ||||||||||||
| Retained earnings | 5,906,699 | 4,237,089 | ||||||||||||
| Accumulated other comprehensive loss | (1,789) | (2,173) | ||||||||||||
| Total common shareholders' equity | 25,465,506 | 23,752,677 | ||||||||||||
| Noncontrolling interests in consolidated subsidiaries | 3,553,796 | 3,607,471 | ||||||||||||
| Total equity | 29,019,302 | 27,360,148 | ||||||||||||
| Total liabilities and equity | $ | 41,441,859 | $ | 41,792,874 | ||||||||||
16
| EQT CORPORATION AND SUBSIDIARIES | |||||
| STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS (UNAUDITED) | |||||
| Nine Months Ended September 30, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||||||
| Net income | $ | 2,180,455 | $ | 1,579,290 | |||||||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
| Deferred income tax expense | 576,339 | 446,674 | |||||||||||||||||||||
| Depreciation, depletion and amortization | 1,984,167 | 1,932,628 | |||||||||||||||||||||
| Loss (gain) on sale/exchange of long-lived assets | 659 | (2,402) | |||||||||||||||||||||
| Impairment and expiration of leases | 16,062 | 9,391 | |||||||||||||||||||||
| Income from investments | (165,929) | (138,274) | |||||||||||||||||||||
| Loss on debt extinguishment | 29,887 | 19,478 | |||||||||||||||||||||
| Share-based compensation expense | 67,659 | 43,824 | |||||||||||||||||||||
| Distributions from equity method investments | 187,083 | 202,560 | |||||||||||||||||||||
| Other | 16,468 | 7,836 | |||||||||||||||||||||
| Loss (gain) on derivatives | 93,342 | (176,829) | |||||||||||||||||||||
| Net cash settlements paid on derivatives | (160,527) | (118,390) | |||||||||||||||||||||
| Changes in other assets and liabilities: | |||||||||||||||||||||||
| Accounts receivable | 732,853 | 296,345 | |||||||||||||||||||||
| Accounts payable | (238,941) | (4,487) | |||||||||||||||||||||
| Income tax receivable and payable | 16,050 | 97,378 | |||||||||||||||||||||
| Other current assets | 6,534 | 42,697 | |||||||||||||||||||||
| Other items, net | (155,829) | (237,154) | |||||||||||||||||||||
| Net cash provided by operating activities | 5,186,332 | 4,000,565 | |||||||||||||||||||||
| Cash flows from investing activities: | |||||||||||||||||||||||
| Capital expenditures | (1,896,087) | (1,675,691) | |||||||||||||||||||||
| Cash paid for acquisitions, net of cash acquired | (79,560) | (484,807) | |||||||||||||||||||||
| Net cash received (paid) for sale/exchange of assets | 450 | (8,603) | |||||||||||||||||||||
| Cash paid for acquisitions of additional interests in equity method investments | (216,209) | — | |||||||||||||||||||||
| Capital contributions to equity method investments | (117,438) | (44,406) | |||||||||||||||||||||
| Other investing activities | (2,221) | (10,388) | |||||||||||||||||||||
| Net cash used in investing activities | (2,311,065) | (2,223,895) | |||||||||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||||||
| Proceeds from revolving credit facility borrowings | 4,518,500 | 3,018,000 | |||||||||||||||||||||
| Repayment of revolving credit facility borrowings | (4,545,500) | (3,210,800) | |||||||||||||||||||||
| Debt issuance costs | — | (9,623) | |||||||||||||||||||||
| Repayment and retirement of debt | (2,237,944) | (905,698) | |||||||||||||||||||||
| Net premiums paid on debt extinguishment | (22,649) | (29,507) | |||||||||||||||||||||
| Dividends paid | (309,490) | (286,662) | |||||||||||||||||||||
| Contribution from noncontrolling interests | 98,357 | — | |||||||||||||||||||||
| Distributions to noncontrolling interests | (355,142) | (259,217) | |||||||||||||||||||||
| Cash paid for taxes to net settle share-based incentive awards | (47,398) | (53,830) | |||||||||||||||||||||
| Other financing activities | (6,081) | (5,690) | |||||||||||||||||||||
| Net cash used in financing activities | (2,907,347) | (1,743,027) | |||||||||||||||||||||
| Net change in cash and cash equivalents | (32,080) | 33,643 | |||||||||||||||||||||
| Cash and cash equivalents at beginning of period | 110,795 | 202,093 | |||||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 78,715 | $ | 235,736 | |||||||||||||||||||
17
| EQT CORPORATION AND SUBSIDIARIES | ||
| PRICE RECONCILIATION | ||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||||||||
| (Thousands, unless otherwise noted) | ||||||||||||||||||||||||||||||||
| NATURAL GAS | ||||||||||||||||||||||||||||||||
| Sales volume (MMcf) | 544,536 | 595,642 | 1,722,847 | 1,666,421 | ||||||||||||||||||||||||||||
| NYMEX price ($/MMBtu) | $ | 2.96 | $ | 3.07 | $ | 3.60 | $ | 3.37 | ||||||||||||||||||||||||
| Btu uplift | 0.16 | 0.17 | 0.20 | 0.19 | ||||||||||||||||||||||||||||
| Natural gas price ($/Mcf) | $ | 3.12 | $ | 3.24 | $ | 3.80 | $ | 3.56 | ||||||||||||||||||||||||
| Basis ($/Mcf) (a) | $ | (0.65) | $ | (0.70) | $ | (0.31) | $ | (0.50) | ||||||||||||||||||||||||
| Cash settled basis swaps ($/Mcf) | 0.01 | 0.02 | (0.11) | (0.02) | ||||||||||||||||||||||||||||
| Average differential, including cash settled basis swaps ($/Mcf) | (0.64) | (0.68) | (0.42) | (0.52) | ||||||||||||||||||||||||||||
| Average adjusted price ($/Mcf) | 2.48 | 2.56 | 3.38 | 3.04 | ||||||||||||||||||||||||||||
| Cash settled derivatives ($/Mcf) | 0.12 | 0.10 | 0.02 | (0.05) | ||||||||||||||||||||||||||||
| Average natural gas price, including cash settled derivatives ($/Mcf) | $ | 2.60 | $ | 2.66 | $ | 3.40 | $ | 2.99 | ||||||||||||||||||||||||
| Natural gas sales, including cash settled derivatives | $ | 1,417,219 | $ | 1,586,374 | $ | 5,865,609 | $ | 4,987,247 | ||||||||||||||||||||||||
| LIQUIDS | ||||||||||||||||||||||||||||||||
| NGLs, excluding ethane: | ||||||||||||||||||||||||||||||||
| Sales volume (MMcfe) (b) | 21,025 | 23,650 | 62,334 | 66,997 | ||||||||||||||||||||||||||||
| Sales volume (Mbbl) | 3,504 | 3,942 | 10,389 | 11,166 | ||||||||||||||||||||||||||||
| NGL price ($/Bbl) | $ | 36.73 | $ | 31.82 | $ | 38.08 | $ | 37.12 | ||||||||||||||||||||||||
| Cash settled derivatives ($/Bbl) | (0.31) | 0.70 | (0.18) | (0.21) | ||||||||||||||||||||||||||||
| Average NGL price, including cash settled derivatives ($/Bbl) | $ | 36.42 | $ | 32.52 | $ | 37.90 | $ | 36.91 | ||||||||||||||||||||||||
| NGL sales, including cash settled derivatives | $ | 127,636 | $ | 128,183 | $ | 393,789 | $ | 412,206 | ||||||||||||||||||||||||
| Ethane: | ||||||||||||||||||||||||||||||||
| Sales volume (MMcfe) (b) | 14,923 | 12,157 | 41,561 | 32,759 | ||||||||||||||||||||||||||||
| Sales volume (Mbbl) | 2,488 | 2,026 | 6,927 | 5,460 | ||||||||||||||||||||||||||||
| Ethane price ($/Bbl) | $ | 6.52 | $ | 6.86 | $ | 8.56 | $ | 8.01 | ||||||||||||||||||||||||
| Ethane sales | $ | 16,223 | $ | 13,901 | $ | 59,312 | $ | 43,730 | ||||||||||||||||||||||||
| Oil: | ||||||||||||||||||||||||||||||||
| Sales volume (MMcfe) (b) | 2,318 | 2,946 | 8,233 | 7,196 | ||||||||||||||||||||||||||||
| Sales volume (Mbbl) | 386 | 491 | 1,372 | 1,199 | ||||||||||||||||||||||||||||
| Oil price ($/Bbl) | $ | 65.51 | $ | 49.12 | $ | 63.09 | $ | 51.09 | ||||||||||||||||||||||||
| Oil sales | $ | 25,308 | $ | 24,119 | $ | 86,577 | $ | 61,270 | ||||||||||||||||||||||||
| Total liquids sales volume (MMcfe) (b) | 38,266 | 38,753 | 112,128 | 106,952 | ||||||||||||||||||||||||||||
| Total liquids sales volume (Mbbl) | 6,378 | 6,459 | 18,688 | 17,825 | ||||||||||||||||||||||||||||
| Total liquids sales | $ | 169,167 | $ | 166,203 | $ | 539,678 | $ | 517,206 | ||||||||||||||||||||||||
| TOTAL | ||||||||||||||||||||||||||||||||
| Total natural gas and liquids sales, including cash settled derivatives (c) | $ | 1,586,386 | $ | 1,752,577 | $ | 6,405,287 | $ | 5,504,453 | ||||||||||||||||||||||||
| Total sales volume (MMcfe) | 582,802 | 634,395 | 1,834,975 | 1,773,373 | ||||||||||||||||||||||||||||
| Average realized price ($/Mcfe) | $ | 2.72 | $ | 2.76 | $ | 3.49 | $ | 3.10 | ||||||||||||||||||||||||
(a)Basis represents the difference between the ultimate sales price for natural gas, including the effects of delivered price benefit or deficit associated with the Company's firm transportation agreements, and the NYMEX natural gas price.
(b)NGLs, ethane and oil were converted to Mcfe at a rate of six Mcfe per barrel.
(c)Also referred to herein as Upstream adjusted operating revenues, a non-GAAP supplemental financial measure.
18