SerpApi.Org
EQT Corp. raised its 2026 production forecast and lowered its capital spending outlook after stronger well performance and operational efficiencies lifted second-quarter output, while the company expanded its long-term natural gas marketing strategy through new power supply and LNG agreements.
The U.S. natural gas producer increased its full-year production forecast by approximately 90 Bcfe to 2,375–2,450 Bcfe, citing sustained gains from compression investments that improved production from both existing and new wells while slowing decline rates. At the same time, it reduced its full-year maintenance capital expenditure forecast by $25 million to $2.04 billion–$2.19 billion.
Second-quarter sales volume reached 634 Bcfe, exceeding the company's own forecast, while capital expenditures totaled $666 million, 9% below the low end of guidance as operational efficiency gains and lower-than-expected infrastructure spending reduced costs. Free cash flow attributable to EQT totaled $330 million, and adjusted EBITDA attributable to the company reached $1.07 billion.
Beyond its operating performance, EQT continued to strengthen its commercial portfolio. The company signed a 10-year agreement with Competitive Power Ventures to supply 325,000 Dth/d of natural gas to the CPV Shay Energy Center in West Virginia, with pricing linked to PJM electricity markets. It also secured a five-year LNG offtake agreement with a large Asian integrated energy company beginning in 2028, which EQT expects will increase annual free cash flow by approximately $45 million at current strip prices.
EQT also completed its $77 million acquisition of Blackline Midstream, adding two propane storage and distribution terminals in New England. The company said the assets will strengthen its vertical integration strategy by improving propane logistics, pricing flexibility and market access.
Net income attributable to EQT fell to $211 million from $784 million a year earlier, while adjusted net income declined to $244 million from $273 million, reflecting lower realized commodity prices and the impact of derivative valuations.
The results highlight EQT's strategy of pairing operational improvements with growing exposure to premium end markets, as rising electricity demand from power generation and data centers increases opportunities for Appalachian natural gas producers to secure long-term, higher-value sales agreements.
By Charles Kennedy for Oilprice.com
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