EQT - Earnings call transcript Q1 2024

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Operator

Good morning. My name is Briana, and I will be your conference operator today. At this time, I'd like to welcome everyone to the EQT First Quarter 2024 Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Cameron Horwitz, Managing Director, Investor Relations and Strategy. Please go ahead.

Cameron Horwitz

you call. our thank earnings quarter and conference results morning, for first joining XXXX Good today Toby me Jeremy With are Knop, Officer; Chief Chief and Executive Financial Officer. Rice, President and their Toby Jeremy session moment, follow. with a In to will present a prepared and question-and-answer remarks updated today's posted the discussion. portion has Investor will reference been and our website, we presentation certain investor Relations An to of slides during may call beginning you of today's will forward-looking call this that like replay on website be A our remind evening. I'd to today's contain statements. available Actual future forward-looking could earnings differ statements filings presentation, of materially because our subsequent make yesterday's in section the we in results in our with events and and SEC. from Form Risk Factors of these factors release, XX-K investor described the undertake call duty forward-looking measures. any non-GAAP financial any update also certain not statements. Today's to We contains do most GAAP important for to Please earnings refer disclosures the measures. With including call to to financial most the that, measures, regarding our investor release turn over reconciliations and presentation comparable recent such Toby. I'll

Toby Rice

and into good EQT agreement a transform will everyone. announced integrated natural transaction that gas Equitrans our month, to large-scale business. acquire we first Midstream, Cam, vertically America's Thanks, Last morning,

we last deal EQT $X.XX EQT and to to the or of the of to in producers among per the flow average limiting advantage, in is value led simultaneously million production, needs, destruction significant to industry, unmatched the any the hedge power also a best the positioned data chase while month, gas Haynesville. This hedging cost find ensures thus the Mid-Atlantic the cycle exposure defensively conference forced a bit with is below capture create up of drive our drill rare producers value marginal in of is other cycle. Along catapults natural cash commodity commodity long-term curve, center both will end approximately described to is our supply to price amount States. sustainable gap fashion Southeast $X with and anticipated similar material price natural to regions natural are and This the while are which average peer-leading defensive risk-adjusted marginal that breakeven either between the growing and $X.XX the ability cycle EQT unlocking peer is intelligence the which the historical combination through and gas to prices. below shareholders, absolute cash structure this the low create gas that with has what providing well American flow mitigating associated durability value in to watch a North upside cost integrated to As free commodity Equitrans call of investors providing demand in and business across with low by the booms parts free BTU, enable for prices thus of cost and burgeoning solution and will an help advantage, EQT combination artificial to United

as such proliferation view in of markets incremental Bcf day suggests drive XX of the demand per with data gas along other vehicles XXXX. electric Our growth base centers electricity-intensive by to case an natural

natural the While bullish demand this demand XX this decade. of a This for And as there gas growth segment our take structural to Bcf plausible exports this could at power upside doorstep LNG base. per growth up that baseload market exceed is asset number resides means a day. that story in catalyst the case the generation

facilitator to the in LNG even decade. emissions the this data Southeastern in be points. Due to exposure will desirable premium MVP, on facilities and and significant of occurring demand last along day gas of capacity States more South pulling give the expect a natural us will means confluence the center long-term Zones sales this the we on region a X.X we Transco with arrangements than growth key later the X will firm of year, price utilities Southeast, announced low United Coast with Our Bcf investment-grade EQT's Transco become gas build-out and power X Gulf

demand As a natural X of clean reliable to first-mover the record-sized expansion power we X.X well. provide fall, to through have customers. On of significant top downstream tremendous last deals opportunity meet physical day, as intend Southeast, supply gas result, PJM per in Bcf situated we in increase we additional to to customers our additional capacity pursue announced affordable, compression MVP will gas from where with to growth service the EQT advantage an utility our utilities and within already to which Appalachian through ideally is

combination the gas in coal to XXXX. Whether Appalachia, well a it's tailwind thematic center is create this the shop in embark retirements power and suggests integrated the EQT base up our Bcf business of to foundational our on could will incremental journey additional by what that natural and positioned our generate needs data of gas or will through depth in affordable analysis Our of of a day build-outs capture be one-stop will meeting own demand we age doorstep asset at reliable the as to X backyard Southeast transformational inventory clean, be that natural AI. power material model into a provide to and America's

during major lower-than-expected along quarter. operational and investments financial consensus has The results execution, QX. in results. momentum achieved water significant LOE, continuation our The into the efficient carried drilling performance to infrastructure completion facilitated our highly we quarter drove across associated year first teams last first of across which briefly XXXX, to well and Turning with better-than-expected operational outperformance relative metric strong with expectations every

EQT cash value north and $XXX Last upstream the agreement a continue want gas is what of in new implying to their undivided envelope and and of our gears. crew our we possible to excellence. Shifting operational pursuit to billion million week, is I interest than announced innovative XX% for more in total $X.X assets Equinor is worth nonoperated Consideration to find this We an comprised midstream transaction. ways receiving Pennsylvania. assets of with natural push thank $XXX sell million, of entire in Northeast of relentless

For perspective, to as non-op the the generated them value we Northeast assets already cash X of of in acquired acquisition. excess past XXX% attributed assets when $X.X have PA flow our the that And years. in free billion part we Alta of originally amount of approximately

XX,XXX upstream So existing this shareholders include in directly to outcome our acres an core successful County, West Ohio, start we net receiving deleveraging offsetting for Virginia. transaction a are marks assets EQT-operated incredibly approximately and in Monroe acreage strong plan. The

interest along interest with more County, gathering EQT servicing EQT-operated systems in in Seely Pennsylvania, a also in operates and working Lycoming this are receiving wells the than that XX.XX% average an of XX% We XXX currently Warrensville acreage. producing

Seely cubic to Mcf per our with are selling, million the net of identified XXX% to $X,XXX flowing operated with operational Following Monroe production assets value forecasted this transaction, forecasted XXXX synergy the selling also teams which million of cubic operated implies upside our a closing of significant per XXXX well the potential feet approximately nonoperated lowering as are $X.X production cost production assets of feet integration. I'd liquids-rich million multiple. assets aligns County. The and XXX will day, systems day. we feet we Marcellus gathering EQT in across as while have are vertical we XXX Warrensville per the of note, have Comparing structure net strategy receiving own associated the have via cubic roughly per of of day the billion total approximately total XXX production longer-term

attractive the gas cash million to highlights U.S. net believe to While this gas jump assets, that time, buyers the of we additional us and midstream these additional This $XXX assets tremendous to are to interest these sale the laid flowing comparing to performance demonstrate a transaction achieve value out EQT. at $X,XXX forward process. The per peak first our quarter value updating international the nonoperated up, by noncore market. which with multiple. We debt the using no announcement ability in looking plan regulated as market in to the and and sum our and or repayment coveted speak on Equitrans get production front. To natural assets we starting upstream we continuation consideration XX% deleveraging at Mcfd of creating confidence look metrics monetize being at shareholder results transaction option divested are exposure Equitrans to we the roughly progress of natural metrics equates gives increasingly remaining high-quality of wasting the our in production to make looking goals, the this

one power a us opportunity assets that natural world, our goals. I'll once-in-a-lifetime at with shop Equinor of transaction nonoperated vertically gas And integrate will needs doorstep value off data of the natural extremely our and in gas start acquisition to significant in center to the Our asset resource highest the gas deleveraging growing strong turn to provide bases the generation one-stop creating gets embedded over quality of a to natural the achieving towards is our meet our announcement recent Jeremy. call an the base. illuminates hidden now and Equitrans

Jeremy Knop

everyone. morning, sales Bcfe. which our I'll results summarizing by totaled start good volumes, and quarter Toby, with Thanks, first XXX beginning

beat guidance response been curtailments, impact toward through our strong underscoring structure represents the we investments we As curtailments, range, of our curtailed the on XX in contributor would Bcfe gross operational guidance was per LOE curtailments warm high and weather. Along resulting our the This continuation environment at to production performance for guidance end cost our $X.XX during as this tangible total normalized of quarter, which to nonoperated first March in we highlighted unit production the the the range. XX natural came well beginning was during low LOE, A previously came late February in drive still estimate of in from the during low announced, price Thus, our Mcfe. of of the throughout Bcf to gas winter all the outperformance and have outperformance XXXX, end range water midpoint the trend X to below per the infrastructure efficiency quarter. operating quarter. Despite LOE with in continue at costs day quarter strategic of of significant reductions. a per

the retired $XXX which we the of to million sheet. over all Recall, Turning our X outstanding absolute past eliminated notes, of balance quarters. convertible debt

that we liquidated had with also call issuing proceeds for the in cash the notes We conjunction million. purchased convertible of $XX capped

Pennsylvania, the month. will annuity-like and our approximately reduce significant intend development laid minority highlighting million a exited a existing swift maturity announcement. near the County, quarter $XX our billion with which cash our progress the first the and on cash approximately this EQT-operated operatorship the allow used by on the $XXX the to goals expected deal we debt with out deleveraging million end to debt the the of partner months along of of buyout execution term $XXX and Lycoming that with bond the balance, the flow fund $XXX use while June loan due roughly the is we both end free reduction, that attractive a midstream proceeds million to make of total debt Equinor from issued add equity we proceeds net in balance end, extending are to million of cash billion acquisition to upstream cash position million, system. We This $X.X $X.XX to XXXX Additionally, earlier XX quarter $X.X the which billion to systems from EQT's cash assets Equitrans yield to towards of balance and and XXXX. We of quarter, XX-year outlook, million $X.X risk the apply flow previously free remainder down to $XXX announced sheet, approximately closed toward our of to leaving from have billion balance us in at gathering at zero of XXXX. Subsequent of cash an $XXX

We also our half to XXXX XXXX to book and derisk plans. QX further our recently first hedge added deleveraging

and XX% $X.XX XXXX, an the XX% floor of price remainder between for MMBtu. average now per approximately of hedged are We with

we XX% of production anticipate We per acquisition ranging roughly XX% our the MMBtu. Upon our hedged hedging XXXX, achieving $X.XX from QX Equitrans in and floor average a limiting are closing less than debt defensive also in year. to to programmatic with and prices $X.XX approximately given targets, QX of

acquisition forward, dynamic This free business, torque Hub EQT's Going and operating downside cash protection Equitrans leverage to from provides unique out upside our a to financially strips the our prices our the Henry need breakeven peer-leading flow limiting price provides investors gas structural $X hedge. differentiated natural as simultaneously. hedge

we outlook, and price outlook voluntary low our XXXX issued updated to year response Turning to quarter curtailments guidance production production reflect the environment. to the second in natural full current gas

X the continue the expectation unit to quarter production per Bcf embed metrics curtail and that of through Our second operated we production outlook day will gross per end May. of

curtailments year natural prices in embeds assumption remain curtailments production for approach captures fall reduce also this who cut believe to maintaining contrast should fungible near-term new in flow to cash positive. It low. full our and important steady guidance this optionality TILs additional We that to sense activity production this today. little right production off further the CapEx is so market strategy to wells while producers turning updated to to for makes Our it gas of operations EQT, hopes and need remaining simply old between versus is well of is remember defer also free new wells, high-cost

than today. EQT this why to low-cost futures volumes have X strong balance low-cost the impact is XXXX last they today positioned little to we and a in star. on suggests production investments this a refer is prices year, strategic rather XXXX, investments result this drive product and today will of a And our X good to the as be sheet. market And our when volume take north are Our of CapEx a of the as gas structure our higher reminder in years. approach our but is structure

power EQT will for in MVPs MVP condition displace grid We gas closing reliability. this meet precedent milestone our contractual natural of improve in Equitrans FERC This heels a June as provide outlook meaningful finally to is filing and updated Southeast the coal consumers a acquisition the represents service on much-needed and region startup also the service to and embedded growing allow the to to for week. demand, with Equitrans' a in

estimated per As upon will from low expansion growth additional pipe the EBITDA. X to and MVP to we multiple intend acquisition, Toby day of Xx the This a demand addition Bcf profile to regulatory through and laying per mentioned, closing high region. the Bcf meet new existing in build be compression than thus Equitrans achieved returns, of execution an expected to just the pursue steel of expanding X and risk X.X rather day has with Southeast to

to Turning EQT's presentation, granular how our provided expected forma transaction Slide structure. the we X cost pro to details more Equitrans is of investor impact on

framework Mcfe. transaction of through pro will for thinking for still are walk unlevered impacts drive upside summary, accounted we about cost to of of approximately we to exactly statements, the synergies the equate give transaction transaction. In some expect a Base good While of the $X.XX $X.XX be working a structure improvement in a Mcfe pro nuances approximately per the $X.XX further forma this forma financial cost the per our should and synergies provide how investors improvement.

billion. to resulting away the an will So per generation here And less programmatically the of free price downside announcement. prices approximately $X cost from actually deal natural cash underscores durability to close our per we is upside free the and a improvement $X.XX cash most flow they commodity on time, from free arising pro while ranging show drives from free price from operating I staggering XXX EQT price flow hedging ability XXXX peer acquisition much than That cash of wake cumulative as XX prices shown over from and environment, the sharing is cash high is the Slide negative with cash gas given importantly, pro capture unlocking leverage. This MMBtu. upside billion cash could high-priced forma at defensively acquisition upside cumulative we this EQT are Equitrans evident of have EQT cycles approximately to to $X.XX much flow deck, to deck. At EQT's asymmetric protect the leading durability flow shareholders risk of and forma structure peers advantage to at than had observations cash cumulative gas upside of $X.XX in limited $X cost down we've how the versus to free gas likely a free this impact. The hedge peers natural as more time. our at flow flow a and peers flow $XX by same free project pro benefits forma Mcfe financial environments, and Equitrans needs. our where to want for the total in Equitrans investor meetings XXXX the structure few most monumental

have most characteristics high easy-to-own including integrated bullish of look the excitement that, world profile of Equitrans navigate questions. for support from have who this demand natural can like the the we fund by gas grading think already term. are long proposition the natural resonating we several in the the this our encouraged new now coveted as be in we is forward the unanimous experienced of transaction we near of superior increasingly has shareholders managers, extremely a differentiated past our with transaction owning coffee of been While stakes shareholders with EQT. We major model will largest, the Equitrans further investors up gas world's business expressed structurally the for base who call some significant long-term the long-term the we'd shareholder value open to ahead. And accelerated company to volatile thoughtful pairing well. of style to and by demonstrating And as merits over years, have a trend long-term

Operator

line [Operator of Instructions] Neil Your first comes question Goldman Mehta Sachs. the from with

Ati Modak

cash oriented? of the similar deals? it buyers? Should asset the conversations potential is bit the be a curious to you've more portion in is This be on how Or about And with going for what should remaining? you that's we are announced? sales it expect pipeline, How on are I'd going of the in the Ati Neil. to those what terms little nonoperated structure thinking Guys, be

Toby Rice

Yes.

lot think of some swiftly. more is forward continuing even conversations Equinor the move And a So there actually weeks and announcement catalyzing we're ago seeing those of what momentum. with couple have great constructive I the deal to is have a of really we're to really

a bit That's and did, to remaining and consideration we unique because So ongoing. Look, deal dialogue have with a that I to little that's their of they the anticipate ton sale in a more in Equinor of way the deal be strategic U.S. that in cash -- assets think but of done the structured opposed getting had as kind I'd in exit cash. a why from we lot interest of we of onshore. mix confidence that complex great other objectives the was

Ati Modak

it. seeing And that supply/demand response online? -- for we you're natural are response that. production numbers? as there? the about Appreciate the that did the you that right gas required? you the from think latest additional seeing you an Is sufficiency Got you think cadence think now, then bringing of there as extend about how cuts. And the macro of the How in the mention U.S. think is cuts you back element should your there's -- you Do philosophy will

Toby Rice

that Yes. power to are a think the then normal summer, also that what's of I more from you're to could And operators. with But prices going gas low on could discipline focused of bring to the some encourage we going eyeballs up continue and some happen weather demand. have. We a going -- are with other tighten overhang to cuts storage think these see that lot

hit, think in continue a to the you meantime, here. see operators. I those of think catalysts until could So from more I But mean, couple patience we there's

Jeremy Knop

level, the weather, higher another all from that in about into Bcf on you macro a being winter top we production then you about of added high forecasted. than a XXX from outlook, storage the think when Yes. At excess day XXX

that call that Bcf maintain of Toby to the to constructive So -- to It worked look, prices. coal think maintain rebalance see has as LNG through market curtailments get you all that XXX October. will happen you low well. in as through think out you to can't once market But starts increases boost pretty from And that weather market that start about I much. the demand summer get period, you demand rise by, that have certainly supply October And forces pick a gas summer, probably also it, limitations to to can swiftly. through really We to mechanism give an but in inflection But the both up. happen that that overhang said, probably of switching. change

Operator

JPMorgan. Your Arun question next comes from Jayaram with

Arun Jayaram

you that sold opportunity your demand, I the us thoughts to South obviously, wanted leverage I center kind Appalachia the X this in think play of X in and premium Zones Basin you differentials these may on Gentlemen, deck your Transco on, how general how your thoughts and a give data the that's get highlighted lines. wondering could out over specifically you create gas zones? on time could just if X your was highlight to for

Jeremy Knop

Yes, Arun.

those back gas the going So we sales look structured, that announced I'd if tranche look, way you we QX to deals markets. out QX, year. in that start with physical at And those last that was across

sort is guys that us, being were plus keyed ranging up off we for that the utilities you of supply. are tailwinds $X.XX, of the the And the a coming so how lock And to right? from pricing Hub those in the and really plus But gave to impacts reliability that seeing. $X.XX, premium demand all effectively, in are blended paid to MX the lot that company. to way us of the sold Henry So tranches

pipeline the country, way Transco facilities that the that create see gas on LNG that's even of centers deficit so bigger think gaps where Southeast an pull the across for if into a it I just time. proxy adding happening think that data that you market everything, about moves think now And to in and supplies what's And the electrification pipeline, market. about and going in where south you're good between

other retirement of think becomes coal, the time in these growth. data a away, deeper have and pulling of it's premium all in deficit really center country the from whether we market it's LNG market about, most you that a whether gas So combination we're factors because talking

are to think, about they the -- to think the excited reliable reason That's supply. we're I that there's so utilities, up adding big prices we gas And expanding willing and a demand lock capacity sync did being the mean, additional market that MVP and so that's because that's why MVP themes from pay where is. it's of the That's about sits we're confluence both big it to so themes going excited also our that in drive market. where both to demand created those really asset market but of adjacent that why I

Arun Jayaram

And just had somewhat I focused a follow-up. grow a have in within how We was of they with the utilities liaising mentioned Pennsylvania Shapiro demand been Governor and couple on trying to keep state.

wondered, Pennsylvania And and give center on within so electricity your I some as Pennsylvania, about you state on latest well just exports that some because LNG. demand thoughts the the any East views perspective of Toby, of know, as thoughts coming as Coast of gas, data

Toby Rice

Governor to is bad comments LNG potential that on also increasing in pause gas, and this for Biden certainly his President were we encouraged demand, natural advising Shapiro's a pause power hear idea. about about but the Yes, both comments LNG

the power world down, cleanest coal actually that Pennsylvania the think with that understands also only of Pennsylvania to clean engine The for the be can are in poster people of Pennsylvania the which wind this gas can What's there, Shapiro a always powering offshore understands listen, of states. we natural about lot lowest emissions how in a and part natural to and give other electricity country expanding replace understanding natural that natural Pennsylvania, here to much pushing basket, U.S., sure opportunity cost, at to the Governor is knocked gas, I located pulled. to the we natural in decarbonizing, continue offshore being is think the we source what's recognize demand, think to on lowering in generates. Northeast how gas that's get consistently replace look here -- the happening put a have that can I an see we Pennsylvania affordable, with economic own of going gas them and is you not country, thing, of sure the eggs the in the need in Americans people have get exports don't been impactful And that? have our child you gas projects key understand And wind do reliable of thing when grids opportunity that gas make that's how understand energy. really stage. People but we economy to lot the an lot

Operator

with question comes from Company. next Jacob & Your Roberts TPH

Jacob Roberts

the quarter at can and of the help but I the side quantify please? second the on impact I looking guide, Just TIL if production curtailments apologize things deferrals, you of it, missed non-op

Toby Rice

Are you're which sale or talking you specifically? about from talking the about

Jacob Roberts

the the day also curtailments side believe note deferrals TIL some I includes guide and a X Bcf from your and well. non-op then as

that was just non-op side So I things. on of wondering on

Toby Rice

Yes.

direct impact our the is what's non-op we to are net So of it is of rest operated deferrals decisions. in that XX baked interest, there -- about XX to Bs and the

Jacob Roberts

would then the decade. second Southeast outlook progressed the agreeing and the we Okay. question, the on our through Mid-Atlantic with help think And demand growth Great. you as I work us on

that, to over maybe way about how Just MVP send on expansion? should beyond wanted to more get your views on to time? volumes potential related think MVP And third-party and we the gas the that

Jeremy Knop

Yes.

is what's owns is think that -- I So pipe a that today. producer And unique XX% are MVP shipper only where about it's pipe. the a EQT we of capacity it on the

that So through producers actually there's who market access MVP. can no other

other the held by end. other XX% are The utilities on

we season. I will be that FERC open part expansion think a uniquely very The And positioned of sense. so in are

that to supplying in just regulated to the the certainly take wanting out, gas there's But we are the that get be all to pipe. that it's ones have more through on up I expansion. we're mean market. think So happen. sell way, under mean gas capacity to capacity end I not either created of benefit new for if that be added to There's auction, the them are that the we who where positioned in benefit that to Even think we something I producers get process. aligned with we other Appalachia way. not ends to and value sell utilities value from win utilities that collectively gas either end we to the by more

So it, how at net it's think, a -- you to benefit EQT. no matter big I look

Operator

question with Scialla comes Stephens. from Your next Michael

Michael Scialla

I want price to see there your Bcf the on before would curtailments. per of in change a decision your level day detail to you little of bit you more curtailments terms see need on

Toby Rice

about it Yes. sunk We to costs. At high of cost F&D drilling plus well. want recover think do a cost cash the level, we the as

that. why we think So about like it that's

call you basin. area, mean -- it it in I around $X.XX So I mean but on depends the

Michael Scialla

And Jeremy, it sort so of good get expect when up Okay. pretty time frame. to like -- in price the October sounds you say you you a step

were price before that going curtailments persists suggest summer through to summer? you likely the that would that you're see those step the to If through $X.XX up, see extend you

Jeremy Knop

look, mean, value. to do best we'll I create what's always long-term

market. change watching we will that always we're look, So the our the decisions happen always There's if facts events change. that

out So now it is our what depends. mapped we've right expectation. But current

Michael Scialla

Got to And you. on then MVP. just follow up want

potential your structure. Or interested your You in expand How it to marrying interest and on so guess, those plan for pipeline. do your sell you're you divestiture X how I maintain plans that Is there? growth in Southeast just in off, integrated upstream, control I'm the you your lower things? all so focus important to talked about to your and the cost there? thinking a with U.S. lot lay could off the see think demand model about you that pipeline, about the you of midstream

Jeremy Knop

Yes.

all. have optionality, of we of amount first tremendous a So

or it $X the sale, with, X/X it, is side, it, rest target cash billion of that $X.X end the you you of value that back if did if I of about billion that called mean, you $X.XX non-op implies you announced sales a a talked billion with I Equinor, package, right? cash first $X.X level from $X.X already, If we we all, So side, about gross deal. up That's call whole right? out we Equitrans look, about that sale we to billion for up, ago of asset in, the in month the X what the door asset to that when call coming think think -- if the billion

So don't divest lot have really Equitrans want to. we on to if many or a side the we don't assets

a lot So again, gives of optionality. us it

in a of think a the TC market It think deal at something confidence as done I sheet call term optionality as the recently interesting in like EBITDA. getting But maintains MVP. while very could level it. BlackRock MVP Again, very, with space a balance a high not high. with our $X EBITDA. is the done structure could a off regulated a term sell for we to you value. deal did really now. Equitrans, overall the deal way the assets, of rapidly regulated bucket If delever And in other quality that you is done as like a XXx and Portland long And asset Gas XXx There's of quality deals was different we're those, a did of lot in sell also not as right through some of off about just billion it interest, that working recently, control, some about still it's both we Energy near about think ways efficient We pretty operatorship. GIP. assets maintain maintain ensuring in good when something minority

Operator

with from Securities. Bert next Donnes Your question Instructions] comes [Operator Truist

Bertrand Donnes

Just divestitures. had the on a potential question

you sensitive aren't your reduce up highest hey, you? Is walk say, wins? bids just the of to expectations, if this of are is debt, this, you bidder price kind kind away? a As how Or

Toby Rice

Yes.

to we really continue be means have and As focused a Jeremy on ton we're mentioned, of these that to value I optionality mean, going things.

a while this plan. a -- completing certainly lot lot of which So us confidence in there's of gives here, there's interest

the these I for be values some assets. think at Equinor getting to good look pretty we're going transaction, you

Jeremy Knop

Yes.

us the back line, the XX about to step rating think XX time it's, call it, months towards, agency guided you and If post-closing.

We have to be event. guided closing QX probably a

So is gas the so think the deleveraging because through most today, than it we're XXXX, like of right? us the for XXXX expect I we it we lot taking need opportunistic about a to by end think be in more plan an to of approach. get robust as market

sure things let's months, wait momentum values. X if very term maximize -- and have we decide, we no make little at to good something that happens, issue now. we wait patient, We get be X more attractive hey, doing feel done there's good a right I months, very But that if near we value.

Bertrand Donnes

then make I kind you hey, sure sense. makes Coast exposure you fine? wanted some That understood kind that, Are Or And to head your could or just if there I puts is off it through add some strategy LNG you had switching exposure. of that? go to a Gulf something guys you XX% bolt-on you Gulf is understanding to This your announced. number the like call Coast so agreement at XXX% limit? you is or right. Or future in that where the you the of volumes approaching there maybe some to have of or the maybe plan XX% in

Toby Rice

Yes.

think Where XX% our at And to here. about that soft diversification about mind, a nonbinding, objectives. pricing, we've numbers a we are stepping the to the could on do our volumes to of at very now, we to get level, being high number work right our and terms up end But feels perspective, exposed some allow agreements circled XX% sort keep international I or down. there's market buyers, achieve of just we're back depending of these right. got discussions from with around us that in toggle

give level make ability the agreements of we those terms we the that sure to lot we So not got but the us to maybe have it but that get of line, make need. we've all a optionality, will here, finish

Bertrand Donnes

of center just related. forces the LNG? that foot a at? are of call is it's data the demand this push wouldn't That's there I it the then there that you maybe got. take And an there I've shot Or X extra in because any Is balancing kind you. and there would off Is Got of -- you're question. all your there? positive outlooks pedal looking are dark

Toby Rice

putting at is existing capacity certainly demand opportunity, when servicing And to about do great that with back the it's has market of emerging things data Appalachia and that of the the center that. our to LNG, have step dynamic another into look we we consideration. we proximity we're Yes, pipes. But one

more natural gas it to and in our can exposure so we raise comes advocating ships demand demand this more when constructive how when going U.S. about centers, for talk be really long-term And But to of view direct of that is to the tide LNG, is data all we get a for is rising demand.

extremely be Things be so the great, is positioning deals reliable transformative we customers. mover with willingness can to set. to make We're positioned get new deliver fielding to that this showing we And front. doing on gas large company able opportunity on favorably MVP that sure that first energy to like differentiated to access the supply calls clean

front more capture really targeted we're approach operation these in to commercial so and taking us. a leveraging footprint our much and of And opportunities

Jeremy Knop

Yes.

really it's arb at they if agreements. XXXX, think years, But these we it's right? you about a too that for can very XXXX pipeline yourself I very very with right? trouble over are value. much a exporter negative, if very, you look positive lot became And LNG the into to like expect be think important catalyst, long-term if remember, negative sign U.S. the and and add I from of up actually So when back time was just step LNG that. a is get can expensive to an deals. You couple arb that a for contract, the of long-term LNG of LNG you to mean,

in past You the saw happen that decade.

from as -- past. think from about same is similar. pipeline, it you it we it's so not This And but learn is the -- the

we different really it. more arb is demand when sort closed And on what's So to baseload center structural the for time. is we data centers build focus of we it prudent very try long versus in the and compare step to taking LNG in happening will data the back to a subject not create business a And that that contrast think we demand, I our approach term. something arb and stability are like periods of for open, the is lot as

So exposure more And base that So one it, I the is But the surprised doorstep the periods, our think data to other. more really we'll on will us. something right? both, growing have we of that excited get. has in theme study center be better demand we the asset than certain

Operator

comes Roger with question Wells Read Your from Fargo. next

Roger Read

Yes.

Just follow on Is the ETRN? there hurdles to acquisition regulatory of want up. the of related any to any update

Toby Rice

the and operating Yes. with we procedure. course, the Part sustained pulled the FTC refiled and for

also the FCC lower-cost the So updates provider, to we've energy makes about We're customers provide energy work the acquire to about this to energy cleaner sources. helping Champion Americas EQT, a along gas continued really how more and alongside opportunity delivering the way. FTC transaction encouraged and natural reliable talk

lot the a and about we're to talk things process. about So for excited of FTC, us great the with

Roger Read

is Understood. on of recently AI the anything else outreach lines, heard And consumers you've anything the is seen sort EQT? centers, long-term there to those call demand along recently the here or direct side, let's any it, data there or from

Toby Rice

Yes.

And demand of dynamic that's one able the of top do here. play natural going certainly, energy going that are going and X,XXX-acre a of there's that America gas, meet XX-acre other natural are footprint the of think getting track of power that is they at to any at want the gas to at that require matters. going a service there's list. demand that high is are build want -- service existing utilization proven a if They that could at from or in Speed leveraging it a leverage power being they to natural associated center to it affordable. source XX% to And on all if factor. understanding going option which to quickly. compare to this things They increase the natural gas. level, do think understand make proof to energy the the with data how X,XXX-acre speed. any infrastructure, back, to acquired. really gas the And best very only term. And demand. dynamic to They happen, be But most bet need the underutilized you're natural will record that's and natural demand wind. footprint the sort stepping running footprint Number shown couple is allow liability only that and it to capacity, this new gas all there's taking plants And has opportunity new clean. There's challenges reliable. you to near you're it And I the a stage Everybody new is I is at that want people a takes understands centers infrastructure this going even that leveraging and looking average around then can fastest to gas solar be fill permits looking an demand. a short one

Jeremy Knop

about that reaching XX too, it, And like like in biggest like it's utilities first-mover gigawatts on demand in a XX think advantage so So country, is in I all where the a you this, there market, data you for to amount. of tremendous the about day XX-year in X already of We now region, gas, right? of in we terms right? the this right when think centers have the important right? Southeast consumers today, is a already is a demand. Bcf buy X.X if remember wanting out basis in here, to super have to sold

of creative preferred deals the structure part depth team it's work who do utilities preferred buyers And gas. they of to have in credit in reliable we and to a think most have and EQT from this. say, it at with name dwarfs ones deal that of a of is be this like like lot on list. only already So is reach gas the stable a producer out characteristics really to the scale, could to business can people are supplier inventory, it it what done first these a having supplier, utilities done gas I because It's a part is be of is of you we that like That that scale able need when long-term your why the we're ratings. have

in what can look, molecules we So that a done, at what the doing. that really we're look, we've sustainable essence do of already them taking I leverage already well demand process. unlock mean produce we're positioned and we think that. And think anyone to can we've selling premium. we're that's really, like and the accelerate I and done And

Operator

Tuohy Your Noel with from comes next Brothers. question Parks

Noel Parks

I've of just Start same got you've discussing. of curve some a couple been the on questions.

was of maybe them -- broader well, question. One of a sort

of timing. couple any have outage LNG just reward sort thinking of about had wondered a of clearly lot the on done And of and a LNG ago. hindsight thoughts in years you risk You guys I if Freeport

we large. addressed percentage sort possibility going I'm taking are another through Whether to like that have be LNG to that's of As hedging your whether or on little something that's just the seems up events loom that? best potential a wondering greater in a the volatility of consumption, just of market? gas thoughts what it's

Toby Rice

Yes.

outage Freeport positive on who and gas that happening the our just Ukraine of excluded. And think in natural market. I is example not war, created the that any an uncertainties catalyst the the saw market, that exist

these how about deal the take types we One uncertainties approach thinking when business will and we we're a markets. of think that steady uncertainties. I way And is with is to measured part do that exist. handle understand new position accessing these the of

volatile at to defensively our it's cost structure And is business, but you think to it I And at impactful the ones can is business level and are most mitigating thing our that we in see these your only a gas strategic thrive cost we're are we to market, comes be volatility going you our translating a debt, that derisk having that. And to pay do to do the at high to very derisk this pricing to certainly $X think I commodity we our uncertainties, on able you down your exposure going lower business you look to the But we're natural price to in to to when to higher to structure. also think going positioned get that not taking need by action, very increase first can excited. can a we methodical environment. hedge. the steps very hedge,

that's deploying right framework sort and the I general all of the moving here, that we're pieces, pretty track and strategy the on but with good So think here. we're different it's the parts just keeping

Jeremy Knop

LNG that how just just example, built Pass about think export Calcasieu dwarfs capacity as Noel, right? being in much I mean alone. an is Freeport

So the any with there's backs be from like say one shut mean, hurricane up come in I a month, that is even say up for a can volume barge storage of event in that a amount pretty sinks, tremendous. just scenario, or that U.S.

then lot easy have That's bad you to decline it's Because is right? to now. right? So price, if so like production. model LNG, to right? to skewed what where what happens, after cut risk production, the you remain you a business run where harder, pull don't a the think we've expect of production done significant I probably be business, downside, in production price sustainably. right to Increasing that thing a bit amount a quick, I prices to low prices you costs, make that trying think We chasing our simple. high you that we pretty what mean, no to But we're is the right? when cost chasing XX ramp of really So terms as make wind. certainly I It's upside. cash It's positive. months about after we more do that could don't back when it want to have go money what mean, it's XX sure less times happens long, up takes don't to matter But the flow a to right? So there's with be volume hang up,

were in the years, business think to deal. to is and the don't things can stable times where same X loss, hedge we've cash remarkable the COVID they at oil flow. in in the pricing have because a got right? still downside are when case, And even all-time of were The at in right? I as integrated of really more money volume durable than we're huge the didn't lot upside in again had $X the XXXX, we on We that integrated way, we much much generate a look last have because a about the So sitting not we when winners billion businesses. nearly trying higher run We winters more price, They're companies, step back the big and us our They is the market the right? One high-quality, paid big XXXX you That's really sweat windfall hedging cash. and they gas, just low-cost Equitrans. why prices stock cap highs. unhedged, for lost were XXXX

bigger like and like that, of right? very the just reality, you management by more the that psychology frequently, we value events that a that like doing amount again, lot if more you that that, LNG will that's result about to that operating volatile and that protect us cycle time in more that hard from overlay a actually so can go that is perspective low. And that happen puts and think go think tremendous. in ourselves. We leverage deal thing it's to a over again a world Prices where model, a through period, more companies in how else. we put sort unlocked So against It's But top very right? success this the sort be when those looks shareholder risk that's of expect position we of or to out. coming in whether achieved like plays more on positioned there's of emulate something

sudden, it Conversely, all this year. gets of seeing demand You're a pulled.

You have full utilization.

And want in over will term, it U.S. downside to to right? a little able best compound be while will that weather a upside. production storage where the the to You and differentiated very position long we're respond, very rapidly. take drain a And So capture can we in way. that value

Noel Parks

framing retirement. of center totally factors of coal Great. growth, And understand I your the data demand

that kind wondered of company terms whether of just can what are the of if economics of with particular, in of deal market. certificate I thinking good you fragility, Energy capture, think, your I And sort terms a of RSG sort Bloom of back to about grid of And on ago similar investment issue was couple those. sales. you in years opportunities, like saw the microgrid in just I in time, a for deals

would be any thoughts great. that So on

Toby Rice

Yes.

the and Energy, going be there, want demand. Specifically line. to certificates with question and with producing on energy to power-generating this partnering And the get going X transparency about going your set, we to making worlds normal going to companies think, that, prove like clean power be that up to Bloom operating really generation be servicing different there's grid. is backed having forward. One it's and is use you if investments are RSG that, data this But power if procedure on in

much flex our we can think pathway speed and You've you which got market of solutions where get being generation energy grid is could before, with long a work queues ones solutions will their for grid. to some the grid grid the energy to we the need a And world, existing partnerships. behind develop to to But those interconnected I matters. the solutions. little direct bring that mentioned operational bit the of footprint, that assets, the our we're demands. one And I pipelines as through ways customers. meeting to We solutions think behind other is That's can more behind our to partnerships leverage power offer be that this faster

Operator

comes Josh with Silverstein next question Your UBS. from

Joshua Silverstein

good details breakeven So price. a you lot provided lower of on the

had I questions couple a So there. just of

exclude XX-year consistent at that, pro you here. time? revenues, Does these And XXXXs? Or First, this be? then I are us third-party or change XX-, what would pretty that it's $X.XX impacts. should the big just Can you agreements the the around XX-year forma numbers think stay over through under non-divestiture give

Jeremy Knop

Yes.

not to sales. much. So much on first the it's I change They of non-op of needle the I move walk, don't going all from high-quality the are but anticipate a all, guess, cost that assets,

other the projects there's capturing like that we're of think in outsized of in will the that around other variables asset have investing more you I mix in synergies, footprint. impact a terms

as good So -- wouldn't where to to think pretty that we that's end expect a I directional still I up. walk

Toby Rice

came looks the the what and EQT's as with we're set far did sleeves we Listen, assets. as as It's when opportunity here And realize one our of set, potential utilization can increase the using way volumes. ways a -- to look volumes, one our those that we us be same to third-party midstream we rolling reduce can that to playbook where we then that And realize like opportunities assets. there's structure. also of yes, the understanding we the And the third-party there. do of utilization to Like the of ways up what mentality that EQT, is increasing assets. being with opportunity the applied assets those opportunities going at there's for Yes. full being is own our we full in to E-Train but the in potential wanted of cost

The running a that leadership systems. going utilization at EQT, something mapping that's we're these our track has pipe be assets, So the out. of record maximizing that's of to

almost Rice producing at reminder, gross, day Bcf a a Bcf a gathering our X day. X Energy Just team midstream was

So this part it's the is and strategy lowering structure. of a with core of aligned DNA, our our cost

Joshua Silverstein

Was it uncertainty or weakness change to winter of forward? over I the of but half Or looks of prior you in first before months? just demand on the some is. similar into the view that 'XX year, hedges is this what the before would just Got strategy to the it. E-Train be thought pretty you a just view just going hedge, then added a have back now was this to new it maybe That's few the And next the half second a going helpful. call, like guys hedges, potential have outlook rising past

Jeremy Knop

No, talked I it's is one about consistent with what step we deleveraging. before. Josh, mean

time balance hit the and targets to end we by protect our foremost. the of get So we need the By first through XXXX. we that, sheet

plan. to and XX look, post hedge think see differentiated next prices that XXXX see balance months you the is to sheet, the bulletproofing I XXXX very different. look think volatility. in you're all But upside beyond, about us the in But to gas going strategy I XX higher have

Operator

you the no queue. are will in Thank participation. your questions This other conference. today's for There conclude

may You now disconnect.

EQT (EQT) 24 Apr 242024 Q1 Earnings call transcript