EQT Corporation (NYSE:EQT ) Q1 2025 Results Conference Call April 23, 2025 10:00 AM ET Company Participants Cameron Horwitz - Managing Director, Investor Relations and Strategy Toby Rice - President and Chief Executive Officer Jeremy Knop - Chief Financial Officer Conference Call Participants Doug Leggate - Wolfe Research Devin McDermott - Morgan Stanley Arun Jayaram - J.P. Morgan Neil Mehta - Goldman Sachs Kalei Akamine - Bank of America Roger Read - Wells Fargo Jacob Roberts - TPH Scott Gruber - Citi Group Kevin MacCurdy - Pickering Energy John Ennis - Texas Capital David Deckelbaum - TD Cowen Noel Parks - Tuohy Brothers Operator Hello and welcome to the EQT Q1 2025 Quarterly Results Conference Call.
EQT's Q1 earnings and revenues beat estimates, fueled by increased sales volumes and higher average realized prices.
EQT Corporation's Q1 2025 results showed strong production, reduced costs, and high realized pricing, leading to over $1 billion in free cash flow. The Olympus Energy acquisition, despite geological and pricing risks, was struck at a favorable valuation, enhancing EQT's regional dominance and vertical integration. The deal's structure, with a higher equity component, aims to address balance sheet concerns amid recessionary fears and potential low natural gas prices.
EQT Corporation (EQT) came out with quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of $0.82 per share a year ago.
EQT (EQT) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Here is how EQT Corporation (EQT) and TC Energy (TRP) have performed compared to their sector so far this year.
I recommend EQT Corporation shares with a Strong Buy rating and a price target of $107/share due to the positive domestic gas demand outlook. EQT has a large opportunity to service the growing power demand in support of new data center capacity as an integrated gas producer and midstream operator. The acquisition of Equitrans has integrated midstream operations, capturing $200mm in annualized synergies and lowering operating costs.
Healthier natural gas prices are likely to have aided EQT's earnings in Q1.
EQT (EQT) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
EQT stands out as the largest U.S. natural gas producer, uniquely positioned to benefit from tariff exclusions and reshoring-driven demand. It's $2/MMBtu breakeven and the 78% EBITDA margin shows a level of efficiency that peers like Antero and Range can't match. With regulatory tailwinds and domestic supply chain incentives, EQT's scale and capital discipline are now strategic advantages.
EQT (EQT) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might help the stock continue moving higher in the near term.
EQT (EQT) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.