With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

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This year’s Fortune 500 marks the 67th running of the list.

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This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

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EQT is headquartered in Pittsburgh. Its business centers on finding, developing, and producing natural gas, with a growing midstream component that supports transportation and gathering across core acreage. The company’s roots go back to the late 19th century utility era, but its current identity was built through the modernization of its upstream operations and major acquisitions that expanded scale and infrastructure control.

Q2 2026

Q1 2026

EQT (EQT): Company Profile, Stock Price, News, Rankings

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Hello, and thank you for standing by. My name is Bella, and I will be your conference operator today. At this time, I would like to welcome everyone to EQT Q1 2026 quarterly results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. We request for today's session that you please limit to one question only and one follow-up. If you would like to ask a question during this time, simply press star and the number one on your telephone keypad. To withdraw your question, press star one again. I would now like to turn the conference over to Cameron Horwitz, Managing Director, Investor Relations and Strategy. You may begin.

Good morning, and thank you for joining our first quarter 2026 earnings results conference call. With me today are Toby Rice, President and Chief Executive Officer, and Jeremy Knop, Chief Financial Officer. In a moment, Toby and Jeremy will present their prepared remarks with a question and answer session to follow. An updated investor presentation has been posted to the investor relations portion of our website, and we will reference certain slides during today's discussion. A replay of today's call will be available on our website beginning this evening. I'd like to remind you that today's call may contain forward-looking statements. Actual results and future events could materially differ from these forward-looking statements because of factors described in yesterday's earnings release in our investor presentation, the Risk Factors section of our most recent Form 10-K, and in subsequent filings we make with the SEC.

We do not undertake any duty to update any forward-looking statements. Today's call also contains certain non-GAAP financial measures. Please refer to our most recent earnings release and investor presentation for important disclosures regarding such measures, including reconciliations to the most comparable GAAP financial measures. With that, I'll turn the call over to Toby.

Thanks, Cam, and good morning, everyone. Our historic first quarter results are tangible proof of the differentiated value of EQT's platform. We generated more than $1.8 billion of free cash flow in the first quarter, another record high for EQT. To put this into perspective, in just 90 days, we generated roughly as much free cash flow as we did during the entirety of 2022, a year when gas prices were over $6. This is a powerful illustration of how we've strategically transformed EQT over the past several years. Our vertical integration through the Equitrans acquisition and our low-cost operating model have fundamentally enhanced the earnings power of this company. That transformation has enabled us to enter this high-price environment largely unhedged, capturing the full upside of market volatility and accelerating our deleveraging plans.

With leverage now below 1x net debt to EBITDA and our long-term $5 billion net debt target within reach by year-end, EQT has entered a new chapter, one defined by financial strength, durable free cash flow generation, and sustainable growth. Our operational performance remains the bedrock of our financial results. Despite the challenging weather conditions presented by Winter Storm Fern, our teams coordinated seamlessly to achieve production uptime that outperformed our peers by a factor of more than 2x. Even with some minor volume impacts from the storm, production for the quarter came in above the high end of our guidance range. This is a testament to the strong underlying productivity of our asset base, the durability of our infrastructure, and the outstanding coordination across our upstream, midstream, and marketing teams to ensure our customers had access to reliable energy when they needed it most.

Shifting to the macro environment, recent geopolitical developments once again highlight the strategic importance of U.S. natural gas and energy independence. Recent events in the Middle East have triggered the second global energy shock of this decade. Supply disruptions across the region have pushed global natural gas prices sharply higher. In fact, European natural gas prices nearly doubled following the disruption of Qatari LNG supply and the closure of the Strait of Hormuz. These developments underscore a clear reality. Global energy markets remain highly vulnerable to geopolitical risk. While these challenges are significant, they also reinforce the critical role of American energy and position producers like EQT to help meet the world's growing need for reliable supply. Despite this global volatility, U.S. natural gas prices have remained stable, continuing to provide affordable energy for American consumers.

This divergence highlights one of the most important advantages of U.S. natural gas, energy security, and affordability. While global markets are experiencing sharp price increases, American citizens and businesses continue to benefit from low-cost domestic supply, thanks to the shale revolution. In fact, in energy equivalent terms, the price of U.S. natural gas today is equal to $16 per barrel of oil, even with record U.S. LNG exports and data center-driven domestic power demand growth. Recent events also reinforce another key takeaway. Energy reliability matters. Global buyers are increasingly prioritizing secure and dependable sources of supply, and the United States has emerged as the most reliable LNG supplier in the world. This reliability is becoming increasingly valuable to global customers, and EQT is positioned to benefit from this dynamic.

Our LNG contracts position us to be a supplier of choice internationally, providing secure supply to global buyers who increasingly value reliability and energy security, while at the same time providing attractive international market exposure for our investors. In fact, if our LNG portfolio was fully online today with current TTF and JKM spreads to Henry Hub, our projected 2026 free cash flow would be approximately $6 billion. Positioning the company to materially enhance our free cash flow generation with only 15% of our volumes is a powerful illustration of the value our LNG portfolio could unlock. As global markets continue to prioritize dependable supply, we believe EQT is well-positioned to capture demand growth, improve our price realizations, and further enhance the durability of our free cash flow generation. This geopolitical landscape reinforces what we've believed for a long time.

Low-cost, reliable U.S. natural gas is essential for both American consumers and global energy security, and EQT is uniquely positioned at the center of that opportunity. I'll now turn the call over to Jeremy.

Thanks, Toby. As Toby mentioned, the company delivered a record first quarter with outperformance across the board. We delivered sales volumes above the high end of guidance into peak winter pricing, while our cash operating expenses and capital costs came in below the low end of guidance due to improved efficiencies. All told, we generated more than $1.8 billion of free cash flow before the effects of $475 million of working capital inflows. As promised, we allocated post-dividend free cash flow to strengthening our balance sheet and retired more than $1.7 billion of senior notes during the quarter. We exited the quarter with net debt of just under $5.7 billion. This accelerated de-leveraging has already been recognized by the credit rating agencies, with Fitch upgrading EQT to BBB during the quarter. This milestone further strengthens our brand while mitigating financial risk as we expand our gas sales portfolio.

This rapid de-leveraging also enhances our capital allocation flexibility. We are well-positioned to continue investing in high return growth projects, build on our track record of base dividend growth, and accumulate cash to aggressively repurchase our shares during times of market weakness. Turning to hedging, the benefits of our opportunistic strategy were on display as we captured nearly 100% of the surge in natural gas prices in the first quarter due to the attractive ceilings on the collars we put in place during periods of price strength in December. As prices have moderated into the spring, we are realizing the benefits with our balance of year hedge book in the money by $180 million. Turning to fundamentals, the global market has tightened meaningfully due to the conflict in the Middle East. Lasting damage to key LNG infrastructure has reduced near-term supply and delayed the timing of Qatar's large-scale expansions.

At the same time, Europe is exiting winter with natural gas storage levels at the lowest level since 2022. U.S. LNG exports should be a primary beneficiary in this environment. In the near term, we expect LNG operators will defer maintenance to capture favorable margins, boosting export demand. In the medium term, the risk of an LNG glut and volumes backing up into the U.S. market is effectively gone. This environment also serves as a good case study for our thesis of the asymmetric upside exposure to global natural gas prices that EQT will have through our LNG portfolio. While our LNG contracts are forecasted to generate $500 million in annual free cash flow uplift when they begin in 2030 at the current strip, a repeat of the 2026 level volatility could drive that figure to $2.5 billion.

This underscores the significant upside optionality for producers that can access the global markets. Shifting to the U.S., momentum in natural gas-fired power growth is accelerating beyond prior expectations. Recent announcements and our own discussions suggest upside to our base case power demand growth forecast of 6 Bcf per day, with our initial bull case of 10 Bcf per day looking more like the new base case. This view is informed by the swelling opportunity set in Appalachia, with a notable pickup in large-scale power, midstream, and data center projects where EQT is positioned as the preferred partner. This backdrop is increasing our confidence in the view that demand-pull projects will further improve Appalachia's fundamentals through the end of the decade and create substantial high return upstream and midstream growth optionality for EQT. Turning to the second quarter guidance.

After surging production volumes into peak winter pricing in Q1, we began tactically curtailing volumes this month to optimize price realizations during shoulder season and have embedded 10 Bcf to 15 Bcf of curtailments into our second quarter production guidance. Our strategic curtailments act as a form of storage, keeping gas in the ground during seasonally low periods of demand and surging volumes above baseline when demand rebounds. This approach allows us to leverage the flexibility of our integrated asset base to maximize value in both peak and trough demand seasons. From a CapEx standpoint, the second quarter represents our peak capital investment period of the year, driven by the timing of growth investments. We expect to see meaningful declines in capital spending into the third and fourth quarters, which should further support free cash flow generation in the back half of the year.

In closing, this quarter is a tangible demonstration of the value creation possible through EQT's platform. With an integrated operating model, a peer-leading cost structure, and a fortress balance sheet, the transformation of EQT is now complete. Our teams are now busy positioning the business to capture robust and sustainable growth opportunities, which should lock in the next leg of differentiated value creation for shareholders. With that, we will now open the line for questions.

At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. We do request for today's session that you please limit to one question only and one follow-up. We will pause for just a moment to compile the Q&A roster.

Your first question comes from the line of Doug Leggate with Wolfe Research. Please go ahead.

Good morning, guys. Thanks for having me on. I got one macro and one EQT transformation question just to pick up on Jeremy's comments there. Toby, I'm always interested in your macro view. Sadly, it seems that with LNG full, the U.S. is back to an incremental cost of supply market, AKA, the Permian. The punchline is it seems that gas really hasn't benefited from all the resets that we've seen in terms of domestic demand. My question is, what can you do to improve your realizations? More specifically, can you accelerate your access to LNG on international markets given your current plan is post-2030? That was my first one. My second one is specifically for Jeremy. With the balance sheet you've talked about often, Jeremy, you've talked about the transformation is complete.

Given your inventory depth, why are buybacks the right answer for opportunistic cash flow versus offering EQT as a competitive dividend stock?

Yeah. Doug, appreciate the questions. I'll tackle the first set. When it comes to getting better realized pricing, I think there's a couple things we think about. One, attracting demand to our backyard, I think is going to be really important. That will have the impact of strengthening basis, which will benefit our business. We're really excited about the progress that we're seeing. I think you look at the slide we put out on data center demand. There's a lot of activity happening in our backyard. As it relates to LNG, I think this quarter and what's happening right now around the world just really shows why the strategy that we took to position the company to get exposure to LNG, why it matters, because we see the same dynamic that you're seeing.

We see prices around the world rising, and we're not seeing that benefit in the U.S. The only way to solve that is to get exposure to international pricing. For us, we're proud of the decisions we've made. We're excited to start trading with LNG in the 2030 timeframe. As far as accelerating that today, we were actually talking about that this morning, but I think getting more exposure to that sooner, you're already taking into account the spreads and you're paying for that. It's not much of an opportunity in the short term, but we're excited about how we've positioned the company in the long term.

Doug, on the second part of your question. Look, our base dividend has been and will continue to be a key part of our capital allocation strategy. That is something we intend to grow annually for the foreseeable future. When we step back and think about what creates the most value in the long term for shareholders and what compounds capital, it's not necessarily the dividends. We see the most value upside, certainly on an after-tax basis for shareholders, being more so in buybacks, but also bringing back top-line growth to the business. In a capital-intensive business, we need capital to be able to invest and do that. What you're seeing us do this year through our midstream growth projects, I think, we continue to search for opportunities, and I think we're really finding some phenomenal ones right now.

We plan to lean into those in the years ahead. Then I think, at some point too, there will be an element of upstream growth that I think we bring back as the low-cost producer, some sort of mid- to low single-digit level of production growth. We need to see that sustainable structural demand show up first, and that's what we are working through our midstream strategy to help enable and create and tie into. I think when you have a growing top line in a business, both hopefully with price structurally over time, but also with production growth, that creates an ideal situation to be buying back the stock along the way and creating outsized returns over the long run.

That's it so far, guys. Well, thanks very much for taking my questions.

Next question. Your next question comes from the line of Kalei Akamine with Bank of America. Please go ahead.

Good morning, guys. Thanks for taking my question. My first question is on data centers. More and more projects are getting shovel-ready. They need gas. You are having supply conversations. How would you guys frame up the near-term opportunity set in terms of scale? Also curious if terms are evolving beyond the next plus deals that we've seen so far.

Yeah. Lot of opportunities in our backyard, as we mentioned on the call, on the prepared remarks. When we look high level, just what's happening in basin, there's been some big announcements. In Pennsylvania, Ohio, West Virginia. In Pennsylvania, NextEra has come out and said that they're going to look at putting 10 GW. We've got that big facility in Ohio that just got announced at Portsmouth. That's over 9 GW. West Virginia has come out recently with their 50 by 50 plans, installing 50 GW by 2050 in West Virginia. These are big plans that are being put out in this area. We're really excited about how Appalachia has positioned to be the home for a lot of these projects. For us, what that translates to EQT specifically, we've got a robust pipeline of these opportunities that are currently being negotiated.

I mean, we're looking at multiple Bcf a day of supply opportunities. Other opportunities range from gathering to gas supply. The gas supply opportunity that I think it's important for people to know, we are focusing these opportunities around our asset base. That should set the table for some pretty good returns, while also being able to offer low cost of service to these customers because we're leveraging our existing asset base. I think a lot of opportunities in the air right now. I think that they're going to start landing in the second half of this year. It's a really great setup, and we're excited about how we're positioned.

Yeah, Kalei, I think to put some more numbers to that too, if you look at the projects we've announced so far between our midstream projects and the other data center projects, you're, depending on utilization levels, call it 2 Bcf-3 Bcf per day of demand growth that we've already partnered with other parties to help underwrite. If we look at the other midstream projects that we are in discussions with people about that we think have a reasonable chance to come into fruition, that number could increase to 8 Bcf-10 BCF a day, potentially, of additional egress and pull out of Appalachia for gas. Some of that goes more short haul and into Ohio, as we talked about, but some of it also more down to the south and Southeast markets.

I think the opportunity for producers specifically in southwest Appalachia, what we think of as like the gateway to the basin, is really tremendous. Going back to Doug's question, as we think about capital allocation, seeing that opportunity potentially coming around the corner and seeing that demand show up in the next two to three years is a phenomenal opportunity for us to reinvest and potentially grow structurally, sustainably, and create a lot of value through that.

Good stuff, guys. I appreciate that. My second question is on LNG. You guys have gone beyond pure financial exposure here. As you wrap your head around the physical business, are you seeing margin opportunities that maybe have both been overlooked by others? Through your conversations, what kind of contract terms are you seeing be favored by buyers at this point?

Yeah, we think of our LNG business and that book being built out similar to how we have the book on our just base domestic gas business, where we have some deals under longer term and some under shorter term tenors, and then a little bit in the spot market too. I would expect most of that to be index based, and then there's potential for structure around that. Look, you can also financially hedge that with structure just like we do domestically in the financial market. I think it'll be a combination of all the above. We really envision that portfolio, I think geographically being split pretty equally between Asia and Europe. It's something that we will build out over the coming years, just like we do with our domestic gas book.

Yeah, I just follow up with just one point here. I don't think these opportunities are being overlooked by our peers. I just think they're out of reach. I think you need to have a large scale, high quality business like EQT to be able to play in this market and do it in a balanced way. For us to be able to reach a level of scale to be effective in this market, but still not be betting the farm on LNG, this is still a nice part of a diversified gas portfolio. Only companies of our scale, I think can achieve that.

Your next question comes from the line of Arun Jayaram. Please go ahead.

Yeah. Good morning, gentlemen. Jeremy, maybe for you, I was wondering if you could update us on the progress on some of your large scale supply deals. I'm thinking Homer City, Shippingport, and the Duke Energy and Southern Company deals. I think it's 2.6 Bcf a day of supply in total. I think we're seeing early construction at Homer City, but would love to get an update on both of those key projects.

Yeah. Actually, a lot of really great progress on both. The guys at Homer City are putting a lot of steel up and really moving that project forward. We're pretty optimistic about the timing there. There's been a lot of good progress lately on Shippingport too, with the offtake. We're very positive on that both in terms of timing and also just the gas supply. Again, those aren't our projects, so we're going to hold off giving specific updates. I would look towards the developers on both of those for more specifics. Look, we remain a committed partner to anyone trying to develop anything in the region, both to midstream companies, to data center developers or power developers. I think that's why you're seeing us lay in so many demand projects.

As it relates to the in-market, like power plants being built down in the Southeast, our understanding is a lot of that will probably come online in between 2029 and 2031. I think there will be a ramp post that Southeast Supply Enhancement Project on Transco coming online. It won't immediately be consumed, but it will de-bottleneck the Appalachian markets and bring MVP up to full capacity. Like any of these projects, it takes multiple years to get it built, so it can't happen overnight. Unfortunately, some of this has to happen sequentially given the uncertainty of timing for completion of these projects. Everything's moving ahead. We remain opportunistic, and I think the opportunity set for more of these projects to get built is today as big as ever and I think continuing to accelerate. We're feeling that in our day-to-day conversations.

I'd say the other thing too, that's really changing. It's less so I think developers and these sort of upstart outfits trying to put these projects together, but it's increasingly really well capitalized names who you would recognize who are sort of playing catch up, but I think can put real dollars to work, and give us a lot more confidence that a lot of this demand ends up showing up. We're increasingly excited by it.

Yeah. GEV had some really strong orders, so I know they raised their expectations on inbound to 110 GW from 100 GW. Obviously some good things happening in power. My follow-up, Jeremy and Toby, is just to talk a little bit about your discussions around LNG offtake. You have 6 million tons of capacity post 2030. How would you characterize the nature of those discussions post the war in Iran. And would it be your expectation that you could sign some offtake in this calendar year?

Yeah. The reaction with Iran, I think, reinforces the reliability of U.S. supply. It was valued before. I think it's even more valued now. We think that the interest in U.S. LNG is only going to continue to grow. We do hope to see that the international community steps up and signs up for what we view as 6 Bcf a day of available offtake from these facilities out on the Gulf Coast area. There still is opportunity for the market to get more exposure to U.S. LNG. For us, with the international community, we're going to be building a portfolio. I think you're going to see some of those agreements probably be timed closer to when that offtake will become available. I expect those agreements to be more of a focus sort of in that 2028-2029 timeframe.

Yeah. I'd just remind you too, Arun, and I think anyone who's just in the market looking for offtake, the international customers who have signed up for this capacity, whether it's out of Europe or out of Asia, while you see chaos in the global markets, uncertainty over security of physical volumes, but also just price uncertainty, those off-takers are buying gas at Henry Hub plus 115% today. By buying U.S. gas, they are effectively insulated from what's going on in the world.

I think the relative attractiveness, both for existing off-takers, but also those still looking for offtake, I think the attractiveness of shifting to the U.S. just because you do have that inherent price security, being able to buy effectively at the same price that U.S. consumers are able to buy at, is really unique, and you're not going to find that anywhere else in the world.

Your next question comes from the line of Neil Mehta with Goldman Sachs. Please go ahead.

Yes. Thank you. We spent a lot of time on the last call just talking about Winter Storm Fern. Now with the clarity of the numbers, how robust the trading and marketing effort was in Q1, maybe Toby and Jeremy, you could just talk about lessons learned and confidence about the ability to replicate this in another period of high volatility.

Yes. This is something that we do believe we are going to replicate because this was very well orchestrated. This all starts with operations. The entire team across the board on the commercial team did a fantastic job, but it starts with operations. The playbooks that we put in place that really the planning on this started in the summertime are things that we're going to be able to put out there, and repeat that. It's hard to see that performance is going to get even better because just look at how our performance varied versus our peers. We had basically half the downtime than peers did. There will be some opportunities, but the big part for us is really just continuing to keep the teams in great collaboration and coordinating across.

This is something where our technology platforms really bring that type of sustainability as we continue to scale this business. We'll continue to look for ways to streamline communications, and that's a normal part of our business in this large scale organization.

Yeah. I think what's also unique this time in seeing the stress on the system is that now that we have the integration with midstream complete, and we have effectively control and visibility of the molecule from the wellhead through our own systems for 90% of our volumes down to the end markets, it allows us to have a lot more accountability and visibility into if something goes down. We can figure out what's happening really quickly. Historically, a lot of our traders would find themselves in situations where all of a sudden volume is lost, and volume maybe they pre-sold, and they're trying to figure out where the volume is balanced. They're not able to trade and capture arbitrage when they're trying to just minimize imbalances on the system, avoid OFO penalties.

The amount of collaboration this time, the ability to identify issues in the field and get them resolved within hours, and allow the traders to do what they're there to do, and that's trade and create value, I think was on full display this time. Again, it's not just because the traders are doing well or just because ops are doing well. It's the collective effort of the whole team working really well together, and that's what's important.

Thank you. Very clear. Look, you guys got a ton of inventory at this point, and I know that the A&D market, it felt like the bid ask was pretty wide, and it got overheated there for a period of time. Are there opportunities to continue to opportunistically bolt on stuff, or is this really just an organic story given all the stuff you guys talked about earlier?

Yeah. Look, we were intentionally a first mover in M&A. We thought there would be a snowball effect to that and the best assets would go first. I think what's left is of much lower quality. Look, we're always opportunistic, but we see when we look at the opportunity set and where to invest capital right now, it's organically. Compared to where the A&D market is, I think our stock is much better value, candidly. I think the organic reinvestment opportunity set is a significantly higher return on capital than putting cash into an acquisition of I think what would be an inferior asset. We're going to remain opportunistic and look around as we always have. I think the odds of something happening in the A&D space are significantly lower.

Your next question comes from the line of James West with Melius Research. Please go ahead.

Thanks. Good morning, guys. Toby, I wanted to quickly ask about if you're looking at any opportunities outside of Appalachia at this point. There's certainly international shales where you have tons of expertise you could provide. I'm thinking Vaca Muerta, which is probably 10 years behind the permit or so, or maybe seven. Any expansion opportunities outside of your current market that you're at least considering at this point? I know you guys have a ton employed and there's a ton of growth in the domestic market, but just curious how you're thinking about that.

Yeah. Our view is pretty simple. We've got a massive asset base here in Appalachia that we believe will give us the ability to connect our gas to premium markets domestically around the world. The key for us to unlocking that asset base is going to be to capturing that demand. I'm more focused on looking for demand capture opportunities as opposed to supply opportunities. We're staying focused on what we have right now, and it's just because all the great work we've done over the last five years bolting on and beefing up this asset base is where our focus is right now.

Okay. That's very clear. Maybe a quick follow-up on the LNG strategy. I think you addressed some of this earlier, but we clearly have a tightening of the market and changing dynamics there. Pricing has moved. Anything you think you would move on earlier than the time period you've already committed to getting into LNG?

I think as Toby said earlier, if you're going to take out capacity sooner, you're effectively buying it at the current strip and spread. It's not like you're able to buy it at the same terms.

If we have the opportunity, we'd obviously take advantage of it. It would be free money. I think the odds of that are pretty low.

Your next question comes from the line of Bob Brackett with Bernstein Research. Please go ahead.

Good morning. I'm curious around your comments of attracting demand to your backyard. One way to do that is simply commercially, you're a low-cost operator, you're well-plumbed up there. The other is with some judicious midstream capital. Can you talk about what might be in bounds and out of bounds for the sorts of capital projects you'd put to work to attract that demand?

Yeah. I would say what's in bounds right now is our goal is to make sure that we're giving customers the best energy, that's the lowest cost energy, most reliable. The key for us doing that is leveraging our existing asset base, the over 3,000 mi of pipeline infrastructure we have, and building off of that and extending that to be able to service these new demand hubs that we're talking about. I'd say that's really our big focus. I'd say we'd stay in that zone until we've exhausted all the opportunities, and then we could look out more broadly. Right now, just given the opportunity set we have in front of us, the cup is full, and now we're just looking to land some of these big opportunities.

Your next question comes from the line of Sam Margolin with Wells Fargo. Please go ahead.

Good morning. Thanks for taking the question. First one is on the shape of the CapEx that you referenced. We're at a peak in 2Q for the growth side. Are there going to be any immediate returns with the startup of those projects, whether it's in sales mix and realizations or costs that we can expect?

No, I wouldn't say it necessarily correlates with that. I think it comes down to the lumpiness of large scale operations and just the timing of some of our growth capital.

Okay. Got it. Nothing in second half to point to. Just on the operational side, within liquids, we got this in bounds. There was a little bit of a mix shift from C3 to ethane away from guidance. Was that just market driven, natural gas price contracts, or was there anything else to call out that's worth noting? Thank you.

Yeah, just slight tweaks based on GPM assumptions we're making, but I wouldn't say there's anything material to read into on that one.

Your next question comes from the line of Lloyd Byrne with Jefferies. Please go ahead.

Hey, good morning, guys. Toby, I just wanted to know if you give me an update on the regulatory standpoint with U.S. infrastructure and whether electricity pricing is finally going to get us over the hump there with respect to probably the Northeast?

I hope that permit reform happens, and I think it needs to happen in the near term, so the next few months. I do think that there's a lot of focus on this, and I think the pressure is only ratcheting up on our leaders to take action and create a win for themselves going into midterms, that they're actually doing something to lower Americans' energy bills that have been up over 40% since 2020. I think we saw just a couple of days ago, Trump put out executive determinations that just continue to reinforce the critical need to get energy infrastructure built. All the signals are there, and I think the issues going on around the world, our energy independence, the value of that is on full display with international prices being up $10 and the natural gas prices here in the U.S., not moving.

We've insulated Americans, but we can't take that for granted. We need more infrastructure to make sure we can preserve this really valuable opportunity we create for Americans. The American energy advantage is sort of at the end of its rope unless we get more infrastructure built. I think people are recognizing this, but I hope they act.

Yeah, it feels like we're finally making some progress there. All right. Thank you, guys. Take care.

Your next question comes from the line of Phillip Jungwirth with BMO Capital Markets. Please go ahead.

Yeah, thanks. Good morning. Last quarter you guys talked about industry having limited Ohio Utica dry gas inventory left, and then last month, we saw a 9 GW gas plant announced to power data centers in Southern Ohio. Just as you see projects like this or others in the Midwest announced, how do you see these projects securing gas? Is there an appetite to either expand existing pipelines, or how much momentum do you think there is around proposed new builds right now?

We think we do see that as a big source of some of the gas supply opportunities we're looking at. Yeah, while our view is that the dry gas portion of the Utica play in Ohio may be light, all it takes to get back to deep, high-quality inventory in the Marcellus region in Pennsylvania and West Virginia is a 20 mi pipeline. That is a very short bridge to build, and these are going to be some opportunities for us to be able to connect to those opportunities.

Yeah, we see that Ohio market and that Clarington market as one of the greatest opportunities for us. I think there's a lot of low-risk pipe builds of significant size, both backfilling those Utica dry gas declines, but also I think a lot of the demand, maybe that gets built in Ohio or some of the egress that gets built out of that market through both brownfield or also greenfield expansion. Again, I think if you're sitting in Southwest Appalachia with a lot of inventory like EQT is, and you're first-row beachfront real estate, get ready for that theme to really pick up. That's something where, as we said last quarter, we're super excited about based on the conversations we're having.

Okay, great. One of the things you haven't talked about in the past is distributed power. It's smaller scale than what you've announced to-date, but just wondering how you view this demand opportunity and is it something that EQT could look to partner with as just adding another tool to the toolkit?

Yeah, look, I think there are so many companies and there's so much capital chasing that right now. I'd say it kind of falls in the same vein as LNG and some of the other things that are tangential to our business. We've looked at it all, we've studied it, and it ultimately comes back to do we as EQT have an edge? Is the need capital? Is it expertise? Is it equipment? I think where we come back to is there's plenty of money to finance it. It returns inferior, I think, to what we can generate just being a partner to those projects in our base business, and we can create a lot of value by doing what we do best.

Look, we see our position in the market as a partner both to midstream companies, to power companies, to some of these developers of distributed power, to the data center developers. We're really an ally and partner to everybody. We're not really a competitor with anybody. We're just trying to help enable and facilitate all that gas demand to get built. I think that's really one of the key reasons we're seeing so much opportunity right now.

Your next question comes from the line of Josh Silverstein with UBS. Please go ahead.

Yeah, thanks. Good morning, guys. For the 2Q guide, you said you have about 10 Bcf-15 Bcf of strategic curtailments and it kind of acts like storage. I was curious what kind of price point drove this decision, maybe how much more you could curtail, and then potentially if prices go back the other way, how much more could you potentially, say, bring out of your synthetic storage? Thanks.

Yeah, good question. It changes depending on the season and the shape of the forward curve. We make those decisions really through the lens of a marketer and trader rather than necessarily operations in today's world. It's informed by a lot of different factors. We can curtail a lot, a whole lot more than what we are planning to curtail based on the guidance we gave. We just don't see the need for that, at least at this juncture. There's a chance that later this year in the fall, we could choose to shut in a lot more.

Economically, it's a lot easier to shut in large quantities right ahead of winter because you have so much contango in the curve, and the value in effectively storing gas in September, October is a whole lot higher versus storing it going into summer where the forward curve for the next six to nine months is pretty flat. Look, we adapt and evolve with the market, but that's kind of the framework through which we think about it.

Got it. Okay. Well, yeah, and that kind of goes to the next question I had, because I was curious if you had strategic curtailments in plan for the back half of this year, because the number of rigs is kind of even, in kind of the mid-30s number throughout the course of this year, but the production guide is much higher for the first half versus the back half of the year. Are you planning more of these curtailments? This is kind of the game plan going forward where first half volumes might be higher than second half volumes. Thanks.

I wouldn't say it really comes down to planning for curtailments. Our ops plan, we map that out regardless of things like curtailments. Curtailments are what we consider to be an optimization action. Even if we were in growth mode. From a base ops standpoint, we would still choose to curtail based on the factors I mentioned previously. They're related, but also not dependent on each other.

Thank you for that question. Your next question comes from the line of Jacob Roberts with TPH. Please go ahead.

Hey, Jeremy. We spent some time on data centers, but I'm just curious. When I look at slide 16, can you talk about how internally you guys de-risk some of those numbers as to what might actually happen? Then you spent quite a bit of time talking about the partnership ability of EQT. I'm just curious if you could remind us where the guardrails are on that in terms of the type of counterparty risk you're willing to take or size or scale of the potential project.

Yeah. I guess slide 16 first, and this is data that we bought recently as we're analyzing where these projects are and trying to understand what markets are seeing the most pull. Look, we don't really see it as our role to de-risk this. I think the best thing we can do to help enable these projects to go forward is be a reputable, highly creditworthy, reliable supplier of gas. The best thing we can do is provide a simple, comprehensive solution, which we, from our platform, see as being one where we can provide midstream if it's needed, we can provide the gas supply, we can manage daily gas volumes and balancing. We can participate in owning a midstream project. We can let someone else build the midstream and just manage the gas and capacity. It doesn't really matter that much to us.

I think for us, it's really about helping enable creating that demand and then tying that back to our operational and production base so that it effectively stimulates growth for our base business in the years ahead. Again, I think taking that approach and being a flexible partner is really, like I said before, what's driving a lot of the inbounds we have right now.

I appreciate that. Toby, I think you briefly mentioned you see the potential for long-haul egress needed out of the Northeast, maybe down to the Gulf Coast. I think we generally agree as we look across the other basins and their staying power in terms of volume growth. I'm curious if those conversations are happening now, and potentially if you could opine on whether or not you think that the cost of those pipes would be borne by the end user or we see something similar to what's gone in the past where you guys might have to pay for that.

EQT (EQT) Q1 2026 Earnings Call Transcript

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