EQT - Earnings call transcript Q4 2024

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Operator

Thank you for standing by. My name is JL, and I will be your conference operator today. At this time, I would like to welcome everyone to the EQT Q4 2024 Quarterly Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Cameron Horwitz, Manager Director, Investor Relations and Strategy.

You may begin.

Cameron Horwitz

you results our conference thank year-end quarter and earnings XXXX call. morning, for fourth joining and Good With me today Executive Officer; are Toby Rice, Jeremy Chief President Knop, Financial Officer. and and Chief 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 call beginning of today's will this replay on website be A our evening. available

the Actual call like because future results remind yesterday's statements. in that not duty our to presentation, Form contain and subsequent recent filings I'd from of most update any statements we in investor in undertake and today's could forward-looking any forward-looking the may differ of to Factors do described Risk statements. materially make earnings our We events release, forward-looking XX-Q, XX-K and you Form with section these factors SEC.

measures. earnings turn important to such comparable contains over call refer to the I'll measures. our non-GAAP GAAP for Toby. to presentation call Please investor most financial recent financial With most disclosures including and reconciliations that, Today's certain the measures, also regarding release

Toby Rice

company. strategic both gas our synergies efficient our of months, on X XXXX operational Cam, marked integrated Equitrans M&A the record integration now only good which expectations, large-scale date to by captured with EQT, value-enhancing transformational accomplishments After July, The created exceeding by of unprecedented XX% at track successful is only complete, natural Thanks, year base was and integration. and for a America's growing followed building process case was closing of speed. everyone. morning, bold highlight positioning year record-setting the acquisition in

annualized $XXX or the more than base of forecasted has capture Our our rapid million speed driven plan. synergies execution XX% of of

midstream compression Our faster-than-expected also from a much investments. reflects our impact XXXX budget

ahead. annually expected maintaining we more the evidence, years in to XX production savings reductions expect to in while levels, current tangible fewer XX in now turn line wells with As

shattered relative teams resulting increase we into our frac as X into last day In multiple planned gains XX% upstream production company XXXX. to allowing XXXX, It instead completed frac the run the to are crew from over in drop to a efficiency of year, operations, note growth. recently, in a important is cost prioritize crews per until records to of to savings that X in end These are our footage us efficiency to of highlighting lateral most for April momentum continued choosing we year. third XXXX, the carrying

XXXX well As by a result our average of fall compared XXXX. costs to approximately expect $XX to per these we foot efficiency gains,

Additionally, well conditions, productivity response continues original drove by to exceeded we the not production curtailed in would market XX outperformance X%. Bcf of production Had XXXX. our guidance have volumes improve, high end which of our in to

volume carry into activity performance more increase of this We in will a expect the capital. or higher without XXXX in price environment form to having

the low the quarter, X% the guidance. resulted fourth end in end at CapEx delivered of high We outperformance of below and During EQT's board. momentum guidance the production operational across

kept and operating power activities at These cash even durability free operating low-cost fourth just teams the BTU. in free cash to the platform guidance. million and Henry showcase curtailment of low per integrated flow cash gas pricing. expenses the underscore prices. results of of during million the than million more end quarter unrivaled And our of provided nearly strategy generated once driving realized Our check, EQT's despite $XXX Hub tactical earnings by $XXX averaging again, net improves cost $X.XX alone, low unparalleled EQT flow

premier at underscoring were proved dropping approximately year-end price despite low-cost our EQT's strip to BTU, from reserves pricing, totals of per approximately base. of essentially year-over-year reserves. Appalachian nonoperated Turning PV-XX our $XX for XXXX reserve deck billion. $X.XX unchanged $X.XX our the forma the million to reserves Pro Tcfe sales, XX At asset proved the SEC resiliency

X years Hammerhead Bcf our and than of utilities the premium that value more in midstream and per only MVP However, of XX sales with third-party this X.X our pipelines excludes includes revenue day our the major Southeast value the and years deals future of firm associated with inventory market.

depth value today total That value roughly proposition own core is these at for underscoring get still and of The enterprise equates an for can essentially proved reserves value. plus our strip what peer-leading EQT investors to current our assets means other pricing inventory investors. unrivaled free, our

to Shifting our XXXX outlook.

midpoint last X,XXX quarter. volume by a that We of investments. outlook to This is benefits earlier-than-expected X,XXX compression a above are from Bcfe completion range preliminary efficiency robust Bcfe is performance, gains, strong well production XXX with the XXXX and initiating guidance referenced outlook driven

This our world-class We against to will activity X continue into of a and our day our our X just elected X crews to and gross in of underscores drop April prevent to rigs juxtaposed minimal gains X X-plus beginning level mode. momentum running assets. to recently production frac from business tipping from growth Bcf the operational efficiency

we it $X.XX billion. $X.X maintenance established our investments, XXXX to relates have a billion As to of capital budget

allocated including $XXX have beyond also million projects $XXX million to to maintenance, $XXX million We Equitrans compression in growth value-creating investments.

nearly XX% billion and of XXXX $X.XX normalized when approximately $X.XX of unit compared budget below capital development XXXX per levels. billion production down to XX% reserve to curtailments for Our is

gains further and We even our the compression years. efficiency over investments continued will drive this down coming expect number

company the highest XXXX, within in the took board. the to material to With across in I'll we is wrap billion robust free expect now and $X.X billion The continue cash turn to next we drive level at since years. Jeremy. in continued integration call approximately outperformance strip and efficiency cumulatively well flow pricing, Equitrans momentum approximately the to $XX At XXXX, $X.X over gains, the XXXX, of and XXXX excited EQT power its billion platform over performance, we in our To and are generate momentum of that, over beyond. up, EQT X showcasing

Jeremy Knop

of with our Thanks, Toby. I'll results. quarter highlights fourth start the

volumes production in come high delivered by per Bcfe demonstration Normalized at momentum at a Bcfe the approximately momentum. guidance, driven our XXX sales operational Bcfe have First, for of that would day, of XXX or tangible of discussed. X.X Toby end we operational curtailments,

in topic polar While during and midstream production, on Bcf of events it Elliott freeze-offs last alignment step month new drove Winter that vortex improvement in the the X experienced worth with is our Bcf than we noting Storm colleagues XXXX. change of less Greater the during collaboration performance. with compared XX

pricing. to Turning

tighter material pricing weakest strengthened. during back periods of we as local guidance curtailed differential of the in early in a the of Our due to impairing This tactical came shareholder market. consecutive $X.XX realized curtailment pricing quarter disrupting the capacity quarter pricing in creates our than our volumes when without outperformance underscoring midpoint the curtailments, productive surging volatile range volumes or before second value operations how is strategy

while production. demand local exposing XXXX, revenue winter local opened winter To in further million to and production Year-to-date January, we've amid of of record many strategy strategy, strong chokes of pricing $XX simultaneously demonstrate pricing. high to uplift levels in providing we cold weather company realized of volume more while this the on our wells, up meet value delivering this customers additional from

efficiency worth was production low to our the due operating end and expenses quarter LOE that Mcfe, of came below expectations. to spending. due the the range guidance the second CapEx aggregate of midpoint outperformance G&A noting in CapEx $XXX and during costs XXXX gains lower in efficiency of again million momentum. and It's of our capital highlighting midstream X% low nearly expectations, at came Fourth guidance below our $XXX half gathering, end per $X.XX at million range of below our tangibly

On free $XXX $XXX guidance, the pipeline and operating million of end just in MMBtu, midstream were all model flow cycle. were was of MVP with despite million revenue the provided and third-party guidance. the our of $XXX below million underscoring quarter unparalleled averaging net fourth during the of Henry XX% parts by business EQT of the activities Hub per during capital distributions contributions nature cash commodity of $X.XX of of line expectations. low-cost cash high the million, X% generated side, above million end low MVP $XX $XX

to the balance sheet. Turning

the billion $X.X of $X.X the credit and billion, hedge total our of compared and schedule down to $X.X we from end and repayment fund exited balance ahead In joint During the quarter, rising venture. environment. on price delivered year totaled we to fully our the at of and a used which Pennsylvania repay Northeast term billion Proceeds the our our a debt derisk these remaining closed pay sheet senior our net third and nonoperated billion, with sale of fourth for asset we promises sales $XX.X $XX.X book XXXX respectively, of We Midstream December, debt position quarter. transactions on to assets of billion facility. loan, notes our

$XXX medium $X during our that to reduce which should net million of of worth our the balance in plan at It's usage debt play down defense. when so year-end XXXX to we bulk the can reflects debt billion. approximately with to the our of we of cycle capital working below the billion during credit exit sheet next noting In balance billion, pricing, debt play term, $X are that strip to $X.X target offense net quarter, impact the our comfortably we of At towards absolute bulletproof and others expect XXXX. forced reverse ratings

price, Xx balance is cash free neutral and debt negative. price which many $X.XX our point approximately For Hub a to of free reference, peers this flow equates where Henry to flow cash are at

Turning to hedging.

incremental execution tactically rapid have later XXXX we positioned to no add improving conditions year. pricing quarter. macro asset upside and this hedges us our hedge XXXX and sale to during this book for to Our Recall, in material sculpted bullish outlook

with in for remain per becoming increasingly falls bullish ceilings exposure $X.XX percentage providing in to We XX% XXXX unhedged to wide and hedge colors of an approximately setup November. our beyond, XXX% with hedges of QX investors in MMBtu full prices. Our

to at a hedge. hedge, the cost our in curve position unmatched need financially the facilitates end Our structural exposure turn of scenarios to as high price limiting by which acts low

plan the hedging asymmetric approach to monetize through As positions and order to cycle. higher-than-average opportunistically the this to capture us options In market. realize gas in patiently future and approach volatility essence, in prices previously we communicated, skew

has gas quarter. macro commodity unusually cold backdrop, Turning winter, in LNG natural an and demand prices an underinvestment. supplied combined power robust inflection X the landscape, low in to the with years This prices past upstream over of exports catalyzed ramping resulted

While gas and we disconnect as room between surged, equity wide and there today. commodity observing have a is prices to cannot we recall run are of as the already still markets think

step the believe meet Appalachia is put, increase The during no of believe may Simply markets Haynesville and XXXX will or pipeline-constrained pipelines to than the commodity be time. suffering inventories change XXXX. of it underinvestment the of are increasingly largely too gas out long have And to to we pricing. respond new increase and will late prices much Permian scarce short and the the we inventory depth in is from years slower hands destruction and a there in XXXX. through take demand market higher balance demand production such in to until

further X on nearly day pipelines we eyes Bcf are for LNG that Permian X ahead, completion new per in before open market. gas brings XXXX wide per Qatar slated of Looking the just global are Bcf of day late

in the these and headwinds gas to prices additional theme coming little this have not amplified capital year the of spending of the in the at With mid-XXXX, demand, inventory view supply fact a medium-term we by and and higher production timing phenomenon until mismatch capacity. do cold invest production and a of storage that too as not result winter would plans imbalance growth

levels a near the themes. base to day Bcf tightening underappreciated maximum with Robust one in this natural continue MVP of as capacity X-year most for X in of flows gas, from Southeast per Eastern fall underlying contributing to X-year near last storage Appalachia fundamentals lows broader backdrop region today. highs bullish to driven has strengthen Alongside winter, demand the the to moving

XXX As received local sold our volumes a and robust pricing. market the production sold MX have result, Station into at our MVP

load embedded periods the tremendous demand. spell, rose see during more XXX of inventory $XX producers cold option per to Appalachia see Appalachian to our by the X tightening local per value MMBtu, and driven high pipeline Station January of term, expansions. degradation many time, coal At day Appalachian XXXX believe productivity retirement or further Bcf capacity X MVP in we upside the underscoring than of incremental points will price by run out in fundamentals. Longer spreads continue entirely, During demand same we to to growth,

we to $X.XX power emissions uniquely MX basin go-to setup credit for ratings to and have positioned basis past this are position with low company infrastructure. characteristics, credentials the reality, capitalize longest-duration EQT futures inventory XXXX sustainable in by is EQT investment-grade and growth. over and paired beginning our for reflect X highest and the new tightening production future years. between replicable the approximately as on the world-class make a XXXX business the These the projects quality

$X.X fearful. to derisked, XXXX, capital generate sustainably recent sheet we pricing, over approximately shares At toward free the to which to position and we our With billion allocation. ahead plan grow dividend in Turning steadily repurchase to repayment. of years and expect the to cash strip flow when plan market is balance our allocate base we opportunistically debt

integrated situated industry organic support low-risk shareholders, from growth for provide sustainable, to growth, key Appalachian the today. our is positioning ideally XXXX, EQT missing Beyond business attribute a demand to

unlock to support decades turn demand modest production in of high-quality the generating are which our from process in low-risk, a inventory. upstream investments We backlog growth midstream would this growth, of high-return of

energy positioned Toby risk-adjusted allow compound to have to And that, opportunities over growth not but concluding us only exposure it best to create remarks. will I EQT back We offering over uniquely and natural among also the long with term. that landscape, differentiated turn gas investors value the capital idiosyncratic the for should

Toby Rice

into The incredible producer, company. an have gas the we years In gas EQT journey. time, natural integrated must-own this been past have only Jeremy. Thanks, becoming large-scale transformed X America's

operational continue still we've pursuit Costs of becoming synergy of got inventory and plans Capital schedule. expectations, going continue, is stakeholders, shining, of intensity the front staying improving. us. ahead our forward, our choice in of deep. gains great and asset Deleveraging setup we amongst are will integration the both a E-Train quality Looking is operator of are all capture efficiency down, ahead

year. strengthening program for and Durable surging. our our midstream banner fundamentals in Appalachia XXXX deliver growth are a to projects entering across poised are is product is this demand country

we benefits free investors bullish in discounted a earnings cash our and And are to premium We that, now the ahead. at excitement. own have valuation power years the to like story natural compared the open still flow differentiated questions. to the business demonstrate excited our and call in when our to supercharges at of assets XXXX beyond, opportunity the With and peers. fundamentals inflection The I'd gas to look

Operator

[Operator question first Instructions] Research. from Leggate Doug Your of of line comes Wolfe the

John Abbott

is This Abbott on John for Doug Leggate.

XXXX. you've we appreciate start breakout risked CapEx how off the I off with coming of like your how Just Maybe start just years. sort on Toby, to that maybe maintenance want just the of -- you and for see you can in discussing sort that evolving

Toby Rice

Yes.

CapEx, quality. So you maintenance when about asset think we start with the the

along it put I gives good read the comes a picking cost. the well And efficiencies think we looking drive then volumes us to out of to we're type on operational there on just that the replace. down numbers that with performance. That

we So bake fully backed We're these historical performance. plans. by

rolling the and We forward are are operational that 'XX proved taking 'XX. account into in in we efficiencies

efficiencies the the But a business, are has That in we assets, of those in E-Train being giving operational and efficiency there. the them I water things are teams fixes been always confidence infrastructure. are structural us. one think that the challenge that a for gains of the lot have us now locking the to

Going time. forward, think efficiency. development on we that this over out looks what put come slide to you'll the continue like, that see down will And reserve that, I there capital

long-term play at in the to of intensity with a but dynamic there the us down. going a maintenance bit be So is trends, is coming term adding compression little still upstream near

Jeremy Knop

assumption capital been XXXX. I'd spend for compression our to happen when our able XXXX that. wouldn't talked probably peak John, Yes, million to Initially, of plan, we've ballpark, the expect about to spend. We've $XXX add until of numbers was investments also that the forward, we XXXX peak and you and XXXX thereafter. in is Kind that see decline for pull in spend so then about

$XX like So XXXX ballpark number is today million.

So time. that's and the been same forward forward that's pulled at really pulled production

still It's which accelerating terms So to I exact I impact know think still yet. want of bit just to so there's projects. I those but in then is do of ourselves of want of the we think we're terms the We ahead get that. great. And in of these baked a conservatism into from it's early this It's here, downhill we really think don't model we lot how net about from the it, how a modeling value talked past, market. in into I investments,

boil But really really being if we and you quarters, last seen couple coming in also that. CapEx or robust low both from coming it down, have beats with the in production that the of

time patient more I So outperformance, results we little but by until we're see this and being see time we think bit come go hopeful that in. continued we're a at

John Abbott

good second a that's question. our And segue into

you from have into of What XXXX production point far as added as compression? that are of guidance. at in compression your And you benefits compression, your You is understanding time? now benefits where the the right thinking So this about how of baked plan? raised

Toby Rice

identifying But our now. of right some at -- is part the projects -- We base installing lines put to maintenance plans can be have gathering they're The really sure compression make Sure. the into that The pressures. to timing. just to compression there going on more be that that future? now are the teams keep that will in our that they question plans we're

on get mentioned, was to I focus from in the done than they've put work I the be getting to able board. closing these think team these biggest for to for schedule commend the mean, less possible, deal the quickly this as months Jeremy compression As us on X projects as projects and

We've history moving our about that but piece got projects we compression we'll But higher that's going we've right we're nature. uplift projects. about, to be small using forward, little change now guide forecast. the biggest got could should it compression probably I these that are very lower. what That assuming X watching it's an think on be or So bit in a

Operator

from Your line next question of JPMorgan. comes Jayaram of the Arun

Arun Jayaram

wanted and thoughts could it, billion E-Train potential the on if this kind of about at low year for maintenance, CapEx is I Toby, the to in before strategic under, growth. trajectory just discuss capturing your of for just CapEx under you of million call million kind be was quarter, $X all-in potential highlighted Xs, we call $X.X it, for billion, the see EQT. EQT's The $XXX to longer-term budget synergies. for $XXX Last that

think how kind evolving So I some of budget in you midstream maintenance was wondering that type time, CapEx of projects. includes of kind compression CapEx including strategic your over about of some those

Toby Rice

I Arun, Yes, think that on maintenance this actual spending important $X billion being year. have it's the spotlight we're number putting why around that the we

to midstream Looking dev If natural going more for on at We'll look the coming capital CapEx The a question spending going the res growth business the the of front? see business. opportunities could trending forward, have you show our of be, we what should over But coming X to showing side down for which is maintenance we're on res look cost option on the that like? deck, down Slide intensity. is we are maintenance years. the upstream our dev,

Jeremy Knop

our that it's had guidance the again, that out. reason we you if we midpoint broke number, of Arun, already trending from the at put capital below separate out growth maintenance look prior

are think that in beyond, a and why even to before we in out chance more projects compression, has thinking years that things But that just X put already I of results modeling any think anchor you about that's think lower. moving other to nature. about kind the suspect move direction. be the think that so I'd that number out you with bespoke that's I successful would of on So I sort as to need

Arun Jayaram

already you for bit. it. expect terms compression in Got of and that a X second XXX,XXX horsepower like had Maybe you, Jeremy. to over the grow It little sounds

was X, side kind potential evolve power seeing to highlighted you're of to for the in-basin equation grow I You've the obviously things of which to demand demand the locally. is key by on EQT how X story. kind of the wondering

the a plant now relationship a that, And recently you they gas Center large have Alley. in deal power in buy strategic Data also, Blackstone, Virginia a I announced to with know it, call and

wondering front that the marketplace gas of earnings could being this are you today? So how announcing for see I on that the deals. that power capture is going if Anything highly EQT for was where in like the things in terms really part you ways valued beneficial could could stream, of in power which be

Jeremy Knop

a Yes, question. great it's

And exploring now just There's rapidly. in that. last So seems or directly seeing happened we the producers. discussions you're up think Momentum something hopeful, a negotiations specific were I'd hyperscalers, We're have or so. say I ago, tangible X fronts, having power picked with other several has on X other active think quarter discussions to intermediaries, months those while going opportunities. signs on, I different of in

why think is, and and you these there's be in sort when to discussions. And at even of gating about a key I of the step back that relevant think, items, couple table

all, have peers. -- at of landscape, And X point, really across First our natural of them gas all you really doesn't look are the to investment-grade pervasive agencies. that at be theme especially this of many when with rated. any a There that's fully you not

net depth I group scale, think peer differentiated, that have tech Production where we Our crowd credentials, inventory only really is unmatched. of especially a peer. the in the in we're are zero

plant for a build years the those utilities to months supply in dynamic you XX, of going there's you're if same deals. you the really anyone not so deals a else file were index Southeast saw power We go the data which to. XX XX gas reliably, or big center we can and did And ago, plus need with

think then with this to for have business provide with really solution guys. reintegration us allows I Equitrans And these the a holistic sculpted we

power a to whole downstream, dogs anyone or together. together go different with tech a directly the to perspective supply. it can't is about you put think deals to Williams to plants if they all piece of what this they you've further deal and others And talk gas provide some have want Energy don't and So but try cats seen company about Transfer from to

all EQT we working plant. of like can of power The care take is upstream of beauty that of someone the with

pretty big already. that seen be theme, with business especially And we've an so a FERC-regulated powerful existing

we're from of through where So some But of that. look, can pretty it year, this together, how today. at a I lot timing, we're there's provide. think optimistic exact point The structure we think working we structures hopefully, still different comes stand I that

you not think to many comes it, And who about of there's provide it really, peers can a of credit those counterparty many when risk. down and probably lot

So to billion if you're, say, you power invest probably chips of for gigawatt it in plant, that. every in costs $XX

If counterparty, tech company compromise risk. you're with the that just take non-investment-grade building that, you're not don't going a you like to period,

And deal a so a margin posting. EQT, of for did to at creates deal if counterparty that even we fixed-price sort or index, premium some

going to counterparty. do You're non-investment-grade with that not a

in really rest think of I and kind who of just anybody partly more we're of those attributes negotiating these discussions, really so don't realizing is provide can have EQT it's we deals. because the more really And these one

optimistic we where today. So we're sit pretty for

Operator

Akamine of question comes of America of Kalei Lynch. Merrill Your the Bank line from next

Kaleinoheaokealaula Akamine

to question follow-up future related my a to demand. Toby, is pricing in-basin the question

a Just say talking you Hub Henry than local index? When about here. clarification you index, are rather a premium to

Toby Rice

Yes.

Kaleinoheaokealaula Akamine

follow-up is question South NBG next My Awesome. on Gate. a

couple miles with on of that maybe than project? would water simply be a update rather the So give an XX a us saw crossings. ago, weeks suggesting filing that Can you miles shorter, fewer route XX we

Jeremy Knop

in counted example too cool a been like that -- talked to the That's really synergy to. I think, synergy a numbers I able it's that we of, not we've capture Yes. mean, without

market. shorten PS&C able North help a provide reliably and solution really Carolina still to really that we -- same the were was into ensure them project cost holistic of that that have the upstream/midstream to letting they that volume, gas keep it while the going, delivering So

now, that's So say a tangible things of I we're that on right just would making. think progress example I track are and

Operator

the Your question from of Goldman Mehta comes next line Neil of Sachs.

Neil Mehta

on questions Slide XX. starting So

the open? guys towards that think you free perspective And together. plan ultimately your tie this strategy a lot on XXXX getting be point. good how billion your progress you going Can into towards like getting talk the leave I down cash really on hedging have to $X then at organic your that flow made targets. It about how X more sounds number? that's net and debt how you on of in ties So

Jeremy Knop

mean, objectives, billion $X I we've where we on that billion range asset our above to from $X again, today, sales. Yes. knocked out sit the

right it's So cash go being just flow. patient free now. We're forward, pretty

midyear, expects get we rig think just that midyear. even the you get When I don't you market ramp rapidly. count XX-ish think pretty up We probably need take does as 'XX, what into happening. to to about rigs by think to to see balance I Haynesville it

be I'd personally. get if XXs, out of the we surprised

going think, think now tight I and we're, pretty I between So mid-summer, we're to sit be and patient.

I I handle see this cal cal pricing. be you full bit in 'XX, 'XX surprised wouldn't look, I if wouldn't a surprised X XXXX. year be think see a on if summer, you the same

the of agencies, free right think our patient. with where I patient rating with being perfect balance we trajectory sheet, I continue think flow, pretty we're be cash with the now. are to a spot to going we're And So in just

Neil Mehta

view long-term how perspective high online constraint gas your And go. then, the on a Jeremy, on supply and associated Permian that just was put Qatar coming could we interesting,

about you that's So do it -- post like a in some sounds how but ways. think dynamic 'XX

that to you global bullish with about And for over think to do curve? up how -- 'XX there potentially in locking So while 'XX right view intermediate reading that gas? the the term headwinds reasons am term, some I the long the plus are there's the on that your extent comes there firms be

Jeremy Knop

of as team of commodity XXXX, Look, think I I I some think, everybody term. outlining medium see. impacts job, 'XX that phenomenal a mean, that this your done has we Yes. more specifically, none in can the

what X next Ukraine. factor with pretty the over happens beyond to supply is go U.S. really Russia, and I high a you what think I years. what happens Look, think happens of that

around I this now year, a what deal don't think tangible do TF of to if that does there's about right to peace a is going that. see We a impact noise lot there pricing? really

fears overblown are personally. those think I

that see I for transit there's bullish So pretty Ukraine I think a -- still European case gas. might you don't reinstated. I deal mean,

see have service, out pipeline already back through the real and that through Stream TurkStream. X service. chance don't gas Yamal of into I Poland X comes pipes are of going You a Nord

litigation where owes That's to billion, that utilities. billion $XX all settle behalf too. bunch $XX of Europe. Gazprom a some be can't U.S. to something also negotiators That on have There's these would settled, of European

we near risk that So term. don't just see

of run. even think next think there X if is I a the might goes see pricing to pricing sentiment-driven moves. over terms years, in So But you has and where some balances fundamentally, deal, ways I a like

Operator

of the comes Josh next line from Silverstein of Your question UBS.

Joshua Silverstein

buybacks discussion sticking Maybe stock Why as way. outlook? view the to year? how billion but hedged of the that on about balance the talk the commodity your you you XX% and this what the and know versus advantage year there going flow sheet, that disconnected kind you're of take to taking to you introduce all just your different given a cash price is $X.X not now Can be this in

Jeremy Knop

of closed Yes. days billion balance countercyclical or having having XX away I enables sheet $X mean, liquidity. coming look, from what transactions. buybacks $X almost really a We're billion is strong off

I years, over even debt. have down we to over $XX stock get closer want still the there's back buy where between stock of the So you X billion our $XX. the sheet has mean, and times if to cheap. last ping-ponged think and I about to we $X balance over again mean,

me, years. ways something you next where pullbacks. wouldn't you though. the with the think It a in go to come I has mean, have see big up always stock surprise Look, I X

example we going weeks saw that to to continue of think is ago I DeepSeek patient. with couple scare we're a What a of perfect be that.

back of it on can buy some those days. You

going So to look, opportunistic. we're be

the right now. the we're think open about value situation, eyes wide relative I

But highs every we're stock I and to you're XX-year when aggressively don't us see out setting buy think rush going new our day.

you our at XXXX in we're be geared -- to to I I embedded in 'XX. think relative X look earlier gas in the $X my those view our at comments equities and strip least remarks, the more where see at internal mean, think you need the years. I price is in probably gas to needs gas when

that? TBD. need Does it forever be at $X after to

a But to stock stuff. AI of a lot depends I rather to look, it. new this our patient, buyers we're opportunistic XX-year I on chasing than think going always think buy it of high be

Joshua Silverstein

Got it. bit. maybe a that around flipping Well, little

could of you and compression success in that you're into to And there out as performance, equity your performance you well? the pockets an the are uplift then put that can use projects advantage well offsetting in of get seeing performance, like there compression acquisitions? your you to maybe the well program an well kind guys Given old

Toby Rice

we're will upstream still in is I'd at approach M&A we the sort look things. platform be the things of that our midstream now creating Josh, the But But edges approach disciplined real at and of opportunities. look say a and say Yes. operational one is I'd towards be our and power a and with showcasing look of for Those to place framework will there. offset how operators still disciplined still edge. used in

Operator

comes line of from Roger Wells of next question Read Your the Fargo.

Roger Read

other maybe to of some for Toby, gas. come at ideas macro the

going be a in while, it north. of should thought which haven't We

in signs Some their is New the that shortcomings York gas market. recognizing

President And and magnitude on like obviously have thoughts you that? any How more the would to potentially We into timing that? the move look gas Northeast. at pushing

Toby Rice

Yes, administration. I of the the impact new think you're seeing

country. If pipeline this those even subtraction, or Constitution life administration bit let you characterize lifting this energy forces energy going the with into these breathing all clear past we're about going be the work market signs as they're little a to addition. about And pause, to that LNG the has being projects, are administration it made in in new seeing

is across put country, center taking proximity fragility I well, changed reason the given the the those key -- about those these hasn't allow a there's largely letting our come why to in out put us to natural a a opportunities of place we're energy the data natural an Also, grid. take seeing -- going especially but form this also just dynamics And the to national more needs. gas in power as we'll affordable, other cleanest in backyard those the to order called reshuffle state And place. most what meet gas emergency our to of significant. backyard. We'll mean, plants top has PJM some grids. that's see That's national administration be queue. largely the see allowed of demand reliable, of the that's the

Roger Read

the about on opening for just extent your as question of sound understand can forward plus we terms doesn't you chokes, CapEx Appreciate you of in does wanted then up, basis? that. giving the think the, $X an what the the that But insight, an open call maybe and and or like full expectations pressure comments management, a weather provide going issue. guidance it, and annual do a just And chokes opportunity follow-up billion management to minus everything, about to year little the more the it reservoir there's on to opening understand

Toby Rice

Yes.

our So characteristics I ability to the respond is the think of environment. to the of great current business one

our to prices low. see -- curtail are when ability volumes what see You

you're fact we respond open line. us when that play choke that managed the is instill prices a turn Now our gives flexibility The to at ability wells we dynamic program the to high. when chokes in seeing the are here back

of to hundred day mean, have we million few capacity So a the a that's production. I have sizable.

we commercial our can that market see at when volumes. and that and those that will signals -- So to for they team call respond look

of far managed simple just that it -- to doesn't that increase it's wells really, as for cost as program. chokes anything up perspective, volumes. We're a newly hardly are the as cost opening some the those drilled on As us choke

the higher pure it's putting volumes into higher that pricing So and just market. we're upside the really from really

Jeremy Knop

about the about it's pricing, Into a the program. choke a result today little of a the of just relates EGTS provide million I XXX today, mean, this to extra we total it that, open on market too, Yes, as clarity year, gas $X.XX. week Appalachia, more to have in as day in

directly significant those why market selling when do So open a we're we we into premium. at That's chokes, that and flowing that.

So it's adding like material real value.

I you Now is. opened of is have you moment high volume back the mean, volume go the production, we're then high that in now, when the decline. think because think due trajectory like I much now of right at time, probably back year. about don't year and We back the down that of said, versus December up where we point look right pricing that for production of and this when point so I pull it's course how at the that just production on -- to in managed

advantage opportunities. taking like end see So ramping mean, exactly it. times game year. in of price of we're the volume a the productivity we're we're when But again, I the so towards we we're maximizing not

pricing just high of taking think I it. we're we see when advantage

Operator

the Texas question John of from next of comes Your Capital. Ennis line

Unknown Analyst

strong update. Congrats on a

average. my quarter's to I last the question, touch regarding historical per more For footage is level commentary half first XX% what of on versus achieved wanted 'XX XX% day was about opportunity from that think provided the on above How should call levels 'XX complete to historical second upside? is in potential in what versus guidance improvement we of in that the improvement embedded

Toby Rice

Yes.

operationally I to think continuing really here We're on efficiencies. be theme the to pace be push the is for to that. in going operational these us going conservative

reduce impact that's allowing to The the other maintain our driving probably the I production. just amount cost us compression more needed think, that's and horizontal on footage is of to of focused impact, down

Jeremy Knop

expanding driven network thing, things Chevron of the integrating by Equitrans is some that say legacy the so and Tug with our too, of lot systems. is I'd and logistics, water fully like Hill Yes, that and improvement and a other

can sort we're of we happen add that. connections so there don't water throughput more the on more the still side, the Those complete So through we and frac. working faster we overnight

of from to off could get maybe a In probably even we terms still. that year throughput, peak where we're

So I'm we I And of continue to improvements in momentum the to think seen terms carry still hoping we've improvements. just quarter-over-quarter make. on there's

some build in today, based that. we're I try push it baked have we're how to and continuing to we on So on performing but of think always the envelope

Unknown Analyst

my the of you the a the back price price a just more seems that contemplate to there mentioned management help that commentary team remarks, sector presentation? mode, than frame how consider, you sooner, strip potentially if to sustainable the prepared to natural in Knowing largely the your you not that in yet it's as decision on follow-up, need as year, for just end just be for the And the that building macro just highlights growth gas in shift in signal Perfect. this could is growth

Toby Rice

And what growth. see on in that simple. very that need to said past be other production the but got to side respond it's the with sustainable, to reiterate Yes, we means it's growth EQT is demand and will of we've

and a want commodity strip, has We want than I that. days materialized. of more we sure to we bit will just on other into grow make then good see think demand a see demand volumes see us growing the to we side, the to the market that because little

connect for that The give something I we're platform those team to and going And to capturing and our to to leaning it's opportunities is present in dynamic EQT type opportunities. connect think integrated And now an sure EQT. Jeremy think that make advantage we I have the that opportunities. that of to we create right will And going commercial the those is demand. create opportunity

Jeremy Knop

mean, really a care doesn't anymore either. It even yet the to in hear don't talking anyone I anything. operators -- with about we're I Haynesville, look, private many also they think just cares have single you I that And anymore well mean privates to that producers, seeing if return. -- other in conversations about think from I

to that what think I buyback? a focus board across actual through return, I is measured back what able the to more through not the is well cash So EBITDA, my but a flow? in investors my single return generally, actually free deliver corporate dividend, am Not a

scale easier. and about need making at but $X, think if drive thinking a if well I a EQT I get It's operations larger I cost of can efficient. especially like what I you're growth start gosh, and can at so down well, cadence lot saying, have a getting And looking this plans, maybe I in producers, it starts Haynesville, lot I lot into interesting it's more you're where a does.

times of efficiencies. it's development end like look, volume I a saying, driving keep the combo with at think the we game. And price day,

of it, of have on We'd the about would XXXX on today. of had over added we we'd that back QX, the half quickly the about probably If in we of $XXX not position, another, XX% be as as year, deal, XX% had million those we've done put be call if transactions hedges gotten not towards in have if the hedged end hedge now. Equitrans last would we 'XX. that That done probably right underwater course we

gain see When in be so value much there -- you reality, chasing put by being being when to don't signal. today, a just next production to having is rig you more out relative to pricing leverage, a flexible, until available is production there price able low So year. have

I winter LNG everybody then pricing facility down, that. go tried do they an got you to think 'XX apart. had fell warm when and And a snakebit XXXX, in

everybody So of their I lesson. has learned think kind

for run everybody think good, we're just to just seems have stepped us, a back. And I trying low-cost consistent to business.

XX If and there we're That's capture it, sense. bit game you a the little can days not in make it a rig out could that put really playing. of

the hard -- So them see point. But getting out I I before, to know don't motivated think look, XXs I the who's really commented think to add can at rigs come you back. just do this terms see some it's count. of by of we tell best in Haynesville even rig I the

Operator

from of of RBC. the line comes question next Scott Your Hanold

Scott Hanold

like Yes, how the you us question like number just talked compression just two well with productivity. performances. compared about -- can basket a of you then to that kind X inventory give you're I'll all it confidence on performance. your far what into level And duration, is X core at out your and it's I've questions upside seeing well my ask seeing? I'll sense, well on kind better But look of in as goes you X, so and got helping around Obviously, others

pardon in a the and Has change of way for any that had this, the seen time? EURs or over off, have and but on As chokes well you positive saying you manage negative a benefit? guys me

Toby Rice

as with the wells the of EQT chart us that you I'd the our say XXXX. the Scott, what's confidence put very confidence, a happening online and think picture got giving in I of illustrative look Slide sort at inventory. great Yes, left, with middle taking we've for both decades and walls inventory with on point And performance you X see of the to to quality place, allows question. decades our of peers what's dynamic that's of can us in When pack you outside

years well fast concern degradation be later, inventory And look few when if should I a investors for forward But the peers' see pretty you this you at a is picture, evaluating significant. think as companies performance you shining the are inventory see that's those actually that's numbers here But our is with looking because EQT still of at down. peers, quality saying X thing is coming increasing.

And deep. all what from we're economic so when Equitrans, from perspective, of in inventory and inventory. that we just these high-quality reservoir economics from reservoirs, looking a deep you have And quality pulled our an then costs a not fact layer we perspective, in the high-quality for ultimate, midstream is the just is

our is thing compression at closely recovery be, we going the looking EURs? on that do now, I'd are or when anticipate X on size this pretty but the wells impacts we flow to are we just increasing removing And keep -- an the we'll that. actually we're of the back. is enhanced right an initially say of just acceleration acceleration question, on reserve On on seeing I think eye EURs seeing any not we chokes we're degradation of

Jeremy Knop

others and internal On -- analysis put had deep on done just pre-Equitrans the estimates. you inventory could we specifically, Enverus we this a life so see out

quality, about working had XX% was that internally in. we that view a high XX interest Our than years more considered we of we had locations

XX% really I one numbers the locations owns it lot you of working of as where count someone a their a have interest. They else someone because it's and not are other numbers might see think the XX%. publicly

land to about So X to then when If transformed land, though because we wants that to replacing single lease. our why do because cost that in can basis. it, That's every pipelines to $XXX what was or integrated was ourselves. we still totally of what plenty still think year. an our infill million then a we're Equitrans really on a our flow Appalachia, there's Tier the we call else still lease that that in least of leasing become X lot someone land year have go And they adding can threshold. and inventory leasing inventory spend, at through Tier budget because you on

point, least but estimate I the updated look, candidly So would at added it. at think that this to haven't years we I XX then, since analysis

a level that's into it's where before So leasing.

the replace So every year, that we program. with XX% probably we with -- develop inventory of our

well out, only EQT, So least And in the as actually level improvements. of we to but I is it. continues think operational have improve kind really maintained, to At a due not don't pointed that of have to think Toby we inventory. about productivity

Toby Rice

spent place on dynamic The and would the small add cumulatively just Yes. land maintenance point years, I is land budget last taking infill. past portion few the only was on majority our replenishment. the The over a in that's

that's flipped to our And infill adding and slide, that our on is which on majority the you dollars Now our spent leasing, versus adding budget of the spent dollar new of are interest, increasing inventory. infill working on see sort land. can

dynamic I'd we're creation out promote that that of land more the So we're that value say, spending now to Jeremy discussed. just getting, right

Operator

Jacob question TPH. the line next comes of Roberts Your of from

Jacob Roberts

some XXXX Maybe of function the of the sounds budget, is on clarifying a like It maintenance of capital. a compression. question specifically growth strategic budget the somewhat

concerns and given perhaps compression number like to stronger lead than that help So or other coming direction, that. on some could was to projects risk I wondering if around time, things delivery, you relative expected those the

Toby Rice

compression plans we those Yes. follows line. normal place project our have turn say would management, for I type for in risking schedule, that when in operation what the

and is -- the I of those not pilots impact good portion have we handful that that compression. in baked do. well. think against here of looked There's budget level a teams broke a why at one upside, done don't as already of we we've comfort of And as what pressure of of I lot be into Like on reduction flex reasons that going of have will to a we in So out see CapEx broke downside said, -- and our on pretty a the our our plans. anticipate

Jacob Roberts

it is spend on frame midstream of up you based you've if seen some maybe like from the could question, what eliminated was portion second my then wondering -- And perfect. permanently QX. fell assets? I that in Okay, out or XXXX showing looks some was

Jeremy Knop

a little of bit say I'd short answer. the both,

Operator

from of the Michael comes Stephens. question of line next Scialla Your

Michael Scialla

XXXX about get those you Were Utica want intended plan your Wanted in Marcellus this Utica? the Just the to or to your any it plans, they be in of point. Southwest like ask to net looks TILs PA, at with the of compete to the returns, XX. Marcellus the specifically all in on those how XX thoughts deep

Toby Rice

have we a X. of than PA, a think core going deep In part handful, the I no West That not is finishing program to Utica. less forward. we're going Virginia, Yes. be up

investment us. the the to some in opportunity of we've up that Hill. that and the was loaded So some from finishing going with had time that West feel assess best wells the for this time those Virginia we work Tug Marcellus of projects still type is good those our We've was And forward. of had progress a competitiveness at programs in

Jeremy Knop

actually, interesting inventory depth. the inventory, to an about talk we just talked point, It's back Marcellus. about we questions on going though, prior When

infrastructure areas peers have I mean, about. testing to That's lot are of too. a in deep what talked of out You do some have already. the good all there. upside place, mean, really we inventory that already our We some I results. have

need So certainly the drill not upside as Marcellus, said, to good us. for that It's we today. as but don't as it's Toby

Michael Scialla

about And with ask I Slide to it. XX MVP. Got wanted

of capacity what you about Can incremental guess And MVP flow yet running the curious, capacity constraints capacity talk for my talked source wasn't that? forward Just Was I reason about And that at summer. from full the demand going function the that moving you impression was out Appalachia, that you of forward? do anticipate a to here? was of just demand? that last

Toby Rice

be think off about pipe more the point maybe the just to step that Mountain But And early with expansion seasonal the see I think get dynamic to need time, up mean, is a slated 'XX. at call people pipeline what needed in Pipeline you in can takes back based pretty going that on I should for, that's it, pricing out built. past and play Transco, of and volumes questions it's there. in MVP this. Yes. I remarkable that that Until we've Valley place this in area. There that were until to MVP, 'XX, of be the look mentioned

thing X a this this Bcf pricing in million touched the And in and $XX per other dozens area a to fact they there's get would was of pipeline the is almost that this day, similar a over fact that type story is needed flowing produce BTU signal that over if this built. country pipelines were that allowed

Operator

from question Truist comes of Bert Securities. of Your the next line Donnes

Bertrand Donnes

I'll well. bundle time as my for questions

the Just demand wanted center to hit on again. data

You mentioned zero the value status. and of inventory rating, your your as well as IG net

Or consortium it get not -- even items premium and hey, maybe that E&Ps, those less? maybe they the paying and we matter do of share in a deal Just if around hyperscalers maybe EQT mix? curious trying are taking to a the each a can maybe for assets with of thinking, then up is company

leaning premium the the is towards be, leaning leaning And are to index price? that then Or you -- more are the an referenced? just second you out towards more question deals would fixed there it

Toby Rice

this, this me, a the you event, I a with mean, you option. sentiment need But Stargate I molecule out. that's gas there that think months. doubt, we EQT was if every was over to tell differentiated great I mean provide I'll ask gets question. Jeremy And competes the and produced every operator, as in of couple shift Yes. mentioned, coming a no last

are at and meeting lot questions, where a and power looked got tech think announcement I that? of you companies with your at demand that

think And critical progress speed market are a of I to people lot a component. and the in frustrated is

service ourselves will dealing that XX, one-stop that, that that EQT for data chain faster, XX, for with the conversations cleanest, those multiple a our parts gas dealing X? most how together is the X, centers. great Dealing are And with going on dealing what's those with be to market. or most differentiate so of And our We putting X? to think reliable, going is value affordable simple, solution providers with -- the shop, be best, or

Bertrand Donnes

fixed price? part, Perfect. it premium a And to is maybe towards an index just then leaning the a second or

Jeremy Knop

both. the we situation think I is for of can beauty EQT the offer

have at an We that indifference have point. you offered you when stuff, to it both. Generally, structure price

already utilities deals different and with. So a done there's of lot end with flavors we the customers of kind that, our of all through we've of that work

are to early little table. the but a I it's on say think think I So both

Operator

Thank call. We of out with session. you. you conference our This today's concludes concludes that that, And Q&A We've thank run your time. for participation.

You may now disconnect.

EQT (EQT) 19 Feb 252024 Q4 Earnings call transcript