EQT US S&P 500Russell 1000 Earnings call · transcribed from the recording
EQT Corporation (EQT) · Q2 2026 results and valuation
Share price: $52.69 · 2026-11-11
EQT Corporation is a vertically integrated natural gas company with upstream, gathering, and transmission operations in the Appalachian Basin. The company produces natural gas, natural gas liquids, and oil for domestic and global markets, including power generation and industrial use. Source: 10-K annual report (2026-02-18)
Results Q2 2026 vs Q1 2026 · previous quarter · published 22 Jul 2026 and 22 Apr 2026
Net income down 85.8% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
−85.8%
Net income vs Q1 2026
Outlook given
Net income 211.4M vs 1.49B
Revenue −46.4%
Against the same quarter last year (Q2 2025) it is −73.0%, so it is not just seasonal.
2 · How management spoke
Typical
More upbeat than 56% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
EQT raised its 2026 production guidance by 90 Bcfe and lowered full year CapEx by $25 million due to operational execution leading to sustained production outperformance.
Valuation
Is EQT Corporation undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 4.9% growth a year (3-year revenue growth), the model's fair value is $64.18 a share — the stock trades 18% below it. Today's price assumes 2.5% growth a year.
Current price
$52.69
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+2.5% for 10 yrs
Fair value / share
$64.18
Buy below
$48.13
Price vs fair value
Undervalued 18%
Price vs buy-below price
Overvalued 9%
Read between the lines
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Guidance
EQT raised 2026 production guidance by 90 Bcfe and lowered full year CapEx by $25 million due to operational execution leading to sustained production outperformance.
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Guidance
The contract is expected to increase EQT's 2028 free cash flow by roughly $45 million at recent strip pricing.
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Figure
EQT signed a 10-year agreement with Competitive Power Ventures to supply 325 million cubic feet per day of natural gas to a new 2 gigawatt power generation facility.
Source quote
“We recently signed a 10-year definitive agreement with Competitive Power Ventures to provide 325 million cubic feet per day of natural gas to a new 2 gigawatt power generation facility planned in Doddridge County, in the heart of West Virginia.”
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Figure
EQT projects a 20% free cash flow yield under its base case underwriting.
Source quote
“From a financial perspective, we project a 20% free cash flow yield under our base case underwriting.”
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Key theme
Projects expected to come online in early 2028 despite timing slippage are expected to contribute to an uplift in realized pricing.
Source quote
“So I would expect those to come online in early 28. Contractually, it is January, but there is slippage in project timing. It could be a little bit delayed, but we have high confidence in that, coming online, during that year and contributing to uplift in, realized pricing.”
3 more
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Guidance
Quarter volumes came in well above the high end of guidance due to operational execution and well performance.
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Figure
The initiative would improve free cash flow by about $100 million a year and improve corporate overall differentials by 5¢.
Source quote
“It would improve our free cash flow by about $100 million a year improve corporate overall differentials by, like, 5¢.”
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Guidance
EQT is approaching its long-term net debt target of $5 billion as part of its capital allocation strategy.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“This strong operational execution along with robust well performance is leading to significant production outperformance, which is evident in our second quarter volumes coming in well above the high end...”
“Our success this quarter underscores how EQT is uniquely positioned to capture a substantial amount of Appalachia demand growth and continue to improve realized pricing.”
“While future upstream growth is supported by both announced supply agreements and a growing number of new demand opportunities.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.81B | 3.38B | −46.4% | 2.56B | −29.2% |
| Gross profit | 1.42B | 2.98B | −52.2% | 2.17B | −34.3% |
| Operating income | 394.0M | 2.04B | −80.6% | 1.13B | −65.3% |
| Net income | 211.4M | 1.49B | −85.8% | 784.1M | −73.0% |
| EPS | 0.34 | 2.36 | −85.6% | 1.30 | −73.8% |
| P/E today 11.7 | 12.3 | 12.1 | +0.2 | 30.7 | −18.4 |
Topics
Most discussed now
- New You do see a bit of a it almost looks like a hockey stick ramp around the end of this...
- New When EQT goes with the data it has, data and understanding inventory depth of peers, When you look at the...
- An updated investor presentation has been posted to the Investor Relations portion of its website and EQT will reference certain...
- This strong operational execution along with robust well performance is leading to significant production outperformance, which is evident…
- They reflect the culture EQT has created, the direct result of years of relentless operational focus and evolution aimed at...
Faded since Q1 2026
- Fading An updated investor presentation has been posted to the Investor Relations portion of its website, and EQT will reference certain...
- Fading With leverage now below 1x net debt to EBITDA and EQT's long-term $5 billion net debt target within reach by...
- Fading This milestone further strengthens its brand while mitigating financial risk as EQT expands its gas sales portfolio.
- Fading There's been a lot of good progress lately on shipping ports too with the offtake.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
EQT Corporation reported a sales volume of 583 Bcfe and net cash from operating activities of $1,083 million for the third quarter of 2026, compared to 634 Bcfe and $1,018 million in the same period of 2025.
- Material agreement; Regulation FD disclosure · SEC 8-K
EQT Corporation entered into a definitive agreement to acquire Range Resources in an all-stock transaction, creating a combined entity with a pro forma enterprise value of more than $50 billion.
- Results of operations · SEC 8-K
EQT Corporation expects to report a total gain on derivatives of $100 million and net cash settlements of $70 million for the three months ended September 30, 2026.
- Material agreement; New financial obligation · SEC 8-K
EQT Corporation established a commercial paper program on October 7, 2026, allowing for the issuance of short-term notes with a maximum aggregate principal amount of $3.5 billion.
- Results of operations · SEC 8-K
EQT Corporation reported a sales volume of 634 Bcfe in the second quarter of 2026, which was 66 Bcfe higher than the 568 Bcfe reported in the same period of 2025.
- Results of operations · SEC 8-K
EQT Corporation expects to report a total gain on derivatives of $45 million for the three months ended June 30, 2026.
- Results of operations · SEC 8-K
EQT Corporation reported a net income of $1,487 million for the first quarter of 2026, up from $242 million in the first quarter of 2025.
- Director or officer change; Shareholder vote results · SEC 8-K
Shareholders approved the Third Amendment to the 2020 Long-Term Incentive Plan, increasing the authorized share count by 34,000,000 shares and extending the plan's term to 2036.
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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throughout the year
strong performance
Source quote
“We expect strong performance to continue throughout the year, and as such, we are raising our 2026 production guidance by roughly 90 Bcfe at the midpoint.”
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2026
accelerated construction timing of MVP Southgate
Source quote
“With all key regulatory approvals now in hand, we have elected to pull forward capital spending and accelerate construction timing of MVP Southgate into 2026 to derisk project execution.”
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early 2031
facility expected to enter service
Source quote
“This facility is expected to enter service in early 2031.”
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beginning in 2028
LNG sourced from various Gulf Coast LNG facilities
Source quote
“This deal allows us to accelerate our LNG exposure and develop capabilities while reducing execution risk ahead of the planned commencement of our larger portfolio in 2030.”
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2028
expected increase in free cash flow
Source quote
“At recent strip pricing, we expect the contract will increase EQT's 2028 free cash flow by roughly $45 million”