EQT Delivers Strong Q1 Results, Announces Transformational Equitrans Midstream Acquisition
Financial and Operational Highlights:
* Robust operational momentum carried over from 2023.
* Exceptional drilling and completions performance.
* Lower LOE than forecast, reflecting the benefits of strategic water infrastructure investments.
* Free cash flow generation exceeded internal expectations.
* Strong financial position with nearly $1 billion of cash on the balance sheet.
Transformational Equitrans Midstream Acquisition:
* Acquisition creates America’s first large-scale integrated natural gas business.
* Uniquely positioned to provide a well-to-watt solution for growing baseload demand.
* Meets the clean, reliable, and affordable energy needs of the data center and AI industries.
Production-Related Operating Costs:
* Gathering expense decreased on a per Mcfe basis due to lower gathering costs from acquired assets.
* Transmission expense declined on a per Mcfe basis due to increased sales volume from acquired assets.
* LOE increased on a per Mcfe basis from acquired assets.
* Production taxes rose on a per Mcfe basis due to property tax expenses and higher volumes from acquired assets.
* SG&A increased on a per Mcfe basis due to higher personnel costs.
Financial Position and Liquidity:
* No borrowings or letters of credit outstanding under the revolving credit facility as of March 31, 2024.
* Total liquidity of $1.6 billion as of March 31, 2024.
* Total debt and net debt were $5.2 billion and $3.4 billion, respectively, as of March 31, 2024.
Guidance:
* 2024 total sales volume expected to be 2,100 – 2,200 Bcfe, assuming 1 Bcf/d of operated production curtailments through May.
* Maintenance capital expenditures of $750 – $850 million in 2024.
* Strategic growth capital expenditures of $100 – $200 million in 2024.
* 28 – 42 net wells planned to be turned-in-line (TIL) in the second quarter of 2024.
* Second quarter 2024 total sales volume expected to be 455 – 505 Bcfe, assuming 1 Bcf/d of operated production curtailments through May.
Conference Call:
* Scheduled for April 24, 2024.
* Webcast available on the Company’s investor relations website.
Non-GAAP Financial Measures:
* Adjusted net income attributable to EQT:
* Excludes non-recurring items, impairment charges, and other adjustments.
* Adjusted EPS:
* Calculated using adjusted net income.
* Adjusted EBITDA:
* Excludes interest expense, income tax expense, depreciation and depletion, and certain other items that management believes do not reflect the company’s core operating performance.
* Adjusted operating cash flow:
* Net cash provided by operating activities less changes in other assets and liabilities.
* Free cash flow:
* Adjusted operating cash flow less accrual-based capital expenditures.
* Adjusted operating revenues:
* Total operating revenues excluding the revenue impact of changes in the fair value of derivative instruments prior to settlement and net marketing services and other revenues.
* Net debt:
* Total debt less cash and cash equivalents.
About EQT Corporation:
* Leading independent natural gas production company with operations focused in the Appalachian Basin.
* Committed to responsible asset development and being the operator of choice for stakeholders.
* Prioritizes operational efficiency, technology, and sustainability.
* Demonstrates a commitment to safety, environmental reduction, and stakeholder engagement.
Forward-Looking Statements:
This news release contains forward-looking statements that involve risks and uncertainties. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. EQT has based these statements on current expectations and assumptions, which are inherently subject to significant risks and uncertainties that could cause actual results to differ materially from projected results.
