01—Abstract
Summary
Summary of the 10-Q filed October 28, 2026. Cited figures are marked; the original filing is the authoritative source.
EQT Corporation reported a decrease in net income attributable to EQT Corporation for the third quarter of 2026, falling to $278.7 milliona ($0.44 per diluted share) from $335.9 million ($0.53 per diluted share) in the same period of 2025.
This decline was primarily driven by lower natural gas sales volumes and reduced derivative gains, partially offset by lower depletion expenses, income tax expenses, and interest expenses. However, for the nine-month period ended September 30, 2026, EQT saw a significant increase in net income to $1.98 billionb ($3.14 per diluted share) compared to $1.36 billion ($2.23 per diluted share) in the prior year. This growth was fueled by higher natural gas sales, driven by an increased average sales price, and lower interest expenses, with a notable offset from a derivative loss in 2026 versus a gain in 2025.
Operationally, EQT has announced a significant development: an agreement to merge with Range Resources Corporation, expected to close in the first quarter of 2027. This combination aims to create a larger, more diversified natural gas producer in the Appalachian Basin.
The company also completed the acquisition of Blackline Midstream's operating subsidiaries in July 2026. EQT continues to focus on managing commodity price volatility through its hedging program, with approximately 1,000 Bcf of natural gas and 4,605 Mbbl of NGLs hedged as of September 30, 2026.
02—Key points
Key Highlights
- Net income attributable to EQT Corporation decreased to $278.7 million in Q3 2026 from $335.9 million in Q3 2025, impacted by lower sales volumes and derivative gains.
- For the nine months ended September 30, 2026, net income increased significantly to $1.98 billion from $1.36 billion in the same period of 2025, driven by higher average sales prices and lower interest expenses.
- EQT Corporation announced a merger agreement with Range Resources Corporation, expected to close in Q1 2027, aiming to enhance its position in the Appalachian Basin.
- The company completed the acquisition of Blackline Midstream's operating subsidiaries in July 2026, expanding its midstream infrastructure.
- Operating cash flow for the nine months ended September 30, 2026, increased to $5.19 billion from $4.00 billion in the prior year, supported by higher sales and favorable working capital changes.
- EQT has hedged a substantial portion of its natural gas and NGL production through derivative instruments, mitigating exposure to commodity price volatility.
- Capital expenditures for the nine months ended September 30, 2026, totaled $1.91 billion, primarily directed towards reserve development in the Upstream segment.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Eqt kept $0.16.
- Revenue$1.77B100.0%
- Cost of revenue−$370.8M20.9%
- Gross profit$1.40B79.1%
- Operating costs−$940.1M53.1%
- Operating income$459.5M26.0%
- Interest, other & tax−$180.8M10.2%
- Net income$278.7M15.7%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 28, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.77B$1.96B | −9.6% |
| Cost of Revenue | $370.79M$377.13M | −1.7% |
| Gross Profit | $1.40B$1.58B | −11.5% |
| SG&A Expenses | $116.08M$98.72M | +17.6% |
| Operating Expenses | $1.31B$1.36B | −3.3% |
| Operating Income | $459.46M$603.21M | −23.8% |
| Net Income | $278.69M$335.86M | −17.0% |
| EPS (Basic) | $0.45$0.54 | −16.7% |
| EPS (Diluted) | $0.44$0.53 | −17.0% |
| Shares Outstanding (Basic) | 625.99M624.53M | +0.2% |
| Shares Outstanding (Diluted) | 629.17M628.32M | +0.1% |
05—Questions
Frequently Asked Questions
What is the primary driver for the decrease in net income for the three months ended September 30, 2026, compared to the same period in 2025?
The primary driver for the decrease in net income for the three months ended September 30, 2026, was lower natural gas sales volumes and reduced derivative gains. This was partially offset by lower production depletion expense, lower income tax expense, and lower interest expense.
What are the key terms of the announced merger with Range Resources Corporation?
EQT Corporation announced an agreement to merge with Range Resources Corporation, with an expected closing in the first quarter of 2027. The transaction is structured as an all-stock deal where Range shareholders will receive 0.987 shares of EQT common stock for each share of Range common stock. This merger aims to create a larger, more diversified natural gas producer in the Appalachian Basin.
How has EQT managed commodity price risk during this period?
EQT utilizes derivative commodity instruments, primarily swap, collar, and option agreements, to hedge its cash flows from sales of produced natural gas and NGLs. As of September 30, 2026, approximately 1,000 Bcf of natural gas and 4,605 Mbbl of NGLs were hedged. The company does not designate these derivatives as cash flow hedges, meaning changes in fair value are recognized in earnings.
What impact did the recent acquisitions have on the company's financial results?
The acquisition of Blackline Midstream's operating subsidiaries in July 2026 contributed to revenue from propane operations. The Olympus Energy Acquisition, completed in July 2025, continues to impact financial results, contributing to increased sales volumes and gathering expenses in the current period. The MVP A and MVP C Interest Acquisitions in March 2026 also added to investment in unconsolidated entities and related income.
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