EQT Corporation (NYSE:EQT) delivered fourth-quarter results that surpassed Wall Street forecasts, supported by higher production, improved pricing differentials and disciplined cost control.
The U.S. energy producer reported adjusted earnings of $0.90 per share, ahead of analyst expectations of $0.72. Revenue came in at $2.39 billion, exceeding the $2.1 billion consensus estimate.
Despite the earnings beat, EQT shares edged slightly lower in premarket trading on Wednesday.
Total sales volumes reached 609 billion cubic feet equivalent (Bcfe), above the top end of the company’s guidance range. Output benefited from strong well productivity, system pressure optimization and fewer price-driven curtailments than anticipated. Rising electricity demand from data centers supporting artificial intelligence applications has boosted natural gas consumption, prompting producers such as EQT to expand output.
Capital expenditures totaled $655 million, roughly 4% below the midpoint of guidance, reflecting operational efficiencies and reduced infrastructure spending.
Net cash provided by operating activities amounted to $1.13 billion, while free cash flow attributable to EQT was $744 million for the quarter. Total debt stood at $7.8 billion, with net debt just under $7.7 billion, including $425 million tied to working capital usage.
EQT expects net debt to drop below $6 billion by the end of the first quarter of 2026. Analysts at Wolfe Research said this outlook “highlight[s] the benefit of midstream ownership that enables light hedging allowing [EQT] to take advantage of higher pricing.”
Proved reserves increased 7% year over year to 28.0 trillion cubic feet equivalent (Tcfe).
Looking ahead to 2026, the company projects production between 2,275 and 2,375 Bcfe, with maintenance capital spending estimated at $2.07 billion to $2.21 billion. EQT plans to allocate $580 million to $640 million of post-dividend free cash flow toward infrastructure-focused growth investments.
Based on recent strip pricing, the company anticipates generating approximately $3.5 billion in free cash flow in 2026 and expects to end the year with around $4.7 billion in net debt.
Chief Executive Officer Toby Rice said EQT outperformed its production targets, achieved record-low operating costs and underspent its capital budget in 2025, with positive momentum carrying into 2026.