10-QPeriod: Q1 FY2026

EQT Corp Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 22, 2026For Securities:EQT

Summary

EQT Corporation (EQT) reported a significant increase in its financial performance for the three months ended March 31, 2026, compared to the same period in 2025. Net income attributable to EQT Corporation surged to $1.487 billion, or $2.36 per diluted share, a substantial rise from $242 million, or $0.40 per diluted share, in the prior year. This remarkable improvement was primarily driven by higher average realized natural gas prices and a substantial reduction in derivative losses, indicating a favorable market environment and effective hedging strategies. Total operating revenues more than doubled year-over-year, reaching $3.38 billion from $1.74 billion. This growth was largely fueled by a significant increase in sales of natural gas, natural gas liquids, and oil, which rose by over 53% to $3.44 billion, reflecting both higher commodity prices and increased sales volumes, partly due to acquisitions. The company also saw strong operational performance across its Upstream, Gathering, and Transmission segments, with the Upstream segment's operating income growing by over 800%. Significant investments were made in capital expenditures, particularly in the Upstream and Gathering segments, supporting future growth.

Financial Highlights

47 data points
Beta

Revenue

$3.38B

88.2% Gross Margin

Net Income

$1.49B

44.0% Net Margin

EPS (Diluted)

$2.36

Total Assets

$41.69B

Cash & Equivalents

$326.57M

Free Cash Flow

$2.46B

Financial Statements
Beta
Revenue$3.38B
Cost of Revenue$400.34M
Gross Profit$2.98B
SG&A Expenses$95.75M
Operating Expenses$1.34B
Operating Income$2.04B
Net Income$1.49B
EPS (Basic)$2.38
EPS (Diluted)$2.36
Shares Outstanding (Basic)625.14M
Shares Outstanding (Diluted)629.21M

Key Highlights

  • 1Net income attributable to EQT Corporation dramatically increased to $1.487 billion ($2.36/share) from $242 million ($0.40/share) year-over-year.
  • 2Total operating revenues more than doubled to $3.38 billion from $1.74 billion, driven by higher natural gas prices and increased sales volumes.
  • 3The Upstream segment demonstrated exceptional growth, with operating income surging by over 800% to $1.726 billion.
  • 4Derivative losses significantly decreased from $678.9 million in Q1 2025 to $238.3 million in Q1 2026, positively impacting net income.
  • 5Capital expenditures increased to $608 million, with the majority allocated to the Upstream and Gathering segments, signaling continued investment in operational capacity.
  • 6EQT completed acquisitions of interests in MVP A and MVP C for $213.9 million, enhancing its stake in critical pipeline infrastructure.
  • 7Cash flow from operating activities saw a substantial increase, reaching $3.055 billion, up from $1.741 billion in the prior year.

Frequently Asked Questions

The primary driver was a combination of substantially higher average realized natural gas prices and a significant reduction in losses from derivative instruments. This led to a more than doubled total operating revenue and a dramatic improvement in profitability compared to the same period in the previous year.

EQT experienced a substantial decrease in losses on derivative instruments, falling from $678.9 million in Q1 2025 to $238.3 million in Q1 2026. This reduction in derivative losses significantly contributed to the improved net income. The company utilizes derivative instruments to hedge cash flows from sales, and the results suggest their hedging strategy was more favorable in the current period, likely due to market conditions and the specific contracts in place.

EQT continues to invest heavily in its operations, with capital expenditures increasing to $608 million in Q1 2026, primarily directed towards the Upstream and Gathering segments. The company also completed strategic acquisitions of interests in the Mountain Valley Pipeline (MVP A and MVP C) for $213.9 million, indicating a focus on expanding and securing its midstream infrastructure. These investments are aimed at supporting future growth and operational capacity.

EQT has actively managed its debt, with significant repayments and retirements of senior notes during the quarter. The company reports strong operating cash flows ($3.055 billion) and available borrowing capacity under its revolving credit facility, leading management to believe that liquidity is sufficient to meet its obligations and planned capital expenditures for the foreseeable future. EQT also remains in compliance with its debt covenants.