Here's our initial take on EQT's (EQT 4.14%) financial report.
Key Metrics
| Metric | Q2 2024 | Q2 2025 | Change | vs. Expectations |
|---|---|---|---|---|
| Production-adjusted revenue | $1.18 billion | $1.60 billion | +36% | n/a |
| Earnings per share (adjusted) | ($0.08) | $0.45 | n/a | Beat |
| Sales volume | 508 Bcfe | 568 Bcfe | +12% | n/a |
| Average realized price per Mcfe | $2.33 | $2.81 | 21% | n/a |
Strong Production and Lower Costs
EQT beat expectations for adjusted profit in the second quarter of 2025, with high levels of production coupled with lower capital spending. EQT reported sales volume of 568 Bcfe, up 12% year over year, thanks to solid well performance and compression projects. Capital spending was $554 million in the quarter, 15% below the midpoint of the company's guidance. Efficiency gains and midstream project optimizations drove the unexpectedly low capital spending total.
EQT closed its acquisition of Olympus Energy's upstream and midstream assets on July 1. While there was no contribution from Olympus in EQT's second-quarter results, the company boosted its full-year production guidance by 100 Bcfe to account for the acquisition. EQT also recently signed a deal to be the exclusive provider of midstream infrastructure for a large-scale natural gas power plant in West Virginia.
Average realized price shot up 21% to $2.81 per Mcfe in the second quarter, while production-adjusted revenue rose 36% to $1.6 billion. "We are seeing tremendous momentum for in-basin natural gas power and data center demand and EQT is uniquely positioned to capitalize on this set up due to our production scale, inventory duration, world-class integrated infrastructure, investment grade credit ratings, and low emissions credentials," said CEO Toby Rice.
Immediate Market Reaction
Shares of EQT were up around 1% in after-hours trading on Tuesday. While the company beat analyst estimates for adjusted earnings and reported strong production-adjusted revenue growth, it wasn't enough to push the stock meaningfully higher. Going into the report, EQT stock was up about 18% year to date.
What to Watch
EQT boosted its full-year sales volume outlook to a range of 2,300 Bcfe to 2,400 Bcfe to reflect the Olympus acquisition. The company also lowered its per-unit operating costs outlook by $0.06 per Mcfe to a range of $1.03 to $1.17 per Mcfe to account for the benefits of the Olympus deal.
EQT plans to turn-in-line between 95 and 120 net wells for the full year. The company's capital-spending plans were kept unchanged, with efficiency gains being offset by spending associated with Olympus. EQT expects capital spending between $2.3 billion and $2.45 billion in 2025.
With demand for electricity for data centers rising thanks to AI, EQT is in a great position to capitalize on that trend and grow production as the AI boom continues.
