EQT Corporation Reports $231 Million Net Income for 2024, Down from $1.735 Billion in 2023

EQT Corporation reported net income attributable to the company of $231 million, or $0.45 per diluted share, for the year ended December 31, 2024, a decrease compared to the $1,735 million, or $4.22 per diluted share, reported for 2023. This decrease stemmed primarily from a lower gain on derivatives, increased depreciation, depletion, and amortization, higher other operating expenses, and increased net interest expense. These factors were partially offset by gains on asset divestitures, lower income tax expense, increased pipeline revenues, and decreased transportation and processing expenses. The company generated $2.8 billion in net cash provided by operating activities during 2024.

Significant changes in 2024 included the completion of the Equitrans Midstream merger, resulting in the addition of approximately 1,975 miles of gathering lines and 950 miles of interstate pipelines to the company's infrastructure. The company also completed two NEPA non-operated asset divestitures, generating $1.25 billion in proceeds used to repay debt. Furthermore, EQT retired $4.3 billion in senior notes and term loans and paid $327 million in dividends to shareholders. The company's 2024 total proved reserves decreased by 1,332 Bcfe (4.8%) compared to 2023, primarily due to production, reserve revisions, and divestitures, partially offset by additions and acquisitions.

Strategic developments in 2024 involved the Equitrans Midstream merger and the Midstream Joint Venture transaction, which yielded $3.5 billion in net cash consideration. The company also completed the NEPA Gathering System acquisition, resulting in 100% ownership of the system. EQT's operational strategy focuses on combo-development projects, aiming for maximum operational and capital efficiencies. The company's capital allocation strategy prioritizes responsible asset development, organic growth, debt retirement, dividends, and opportunistic share repurchases.

Key operational developments included natural gas sales volume of 2,228,159 MMcfe in 2024, compared to 2,016,273 MMcfe in 2023. The average sales price per Mcfe, excluding cash-settled derivatives, was $2.21 in 2024 and $2.50 in 2023. As of December 31, 2024, EQT had 1,461 full-time equivalent employees. The company's gathering system had a total contracted firm reservation capacity of approximately 7.5 Bcf per day, with an additional 8.6 Bcf per day including future capacity. The company's transmission and storage system had a total firm capacity subscribed under transmission contracts of approximately 5.4 Bcf per day.

Looking ahead to 2025, EQT anticipates capital expenditures of $2.3 billion to $2.5 billion, with sales volume projected at 2,175 Bcfe to 2,275 Bcfe. The company aims to maintain investment-grade credit metrics and reduce its debt to $7.5 billion by the end of 2025, with a long-term goal of $5 billion. The company's outlook acknowledges the substantial dependence on natural gas, NGLs, and oil prices, highlighting the inherent volatility and potential impact on development plans, revenues, earnings, and liquidity. The company also notes the uncertainties surrounding the implementation and enforcement of various environmental regulations and potential future legislative changes.