EQT beats profit estimates on higher natgas prices, sales volumes
The company also raised its full-year production forecast to reflect the $1.8 billion acquisition of Olympus Energy.
"We are seeing tremendous momentum for in-basin natural gas power and data center demand and EQT is uniquely positioned to capitalize on this set-up," said CEO Toby Rice.
The energy sector has been riding a rise in demand for natural gas, fueled by LNG exports and increasing power consumption due to hotter temperatures and data center operations.
Higher natural gas prices through 2025 compared with last year have also supported production levels, according to the U.S. Energy Information Administration (EIA).
During the quarter, EQT's average realized price for natural gas jumped 20.6% year-over-year to $2.81 per thousand cubic feet equivalent (Mcfe).
In April, EQT announced plans to reduce capital spending but produce more energy in 2025, attributing the decision to strong well performance, efficiency gains and synergies from the company's purchase of Equitrans Midstream, opens new tab in 2024.
The Pittsburgh, Pennsylvania-based company now expects annual production of between 2,300 and 2,400 billion cubic feet equivalent (Bcfe), from 2,200 to 2,300 Bcfe previously.
Total sales volume in the second quarter was 568,227 million cubic feet equivalent (MMcfe), compared with 507,512 MMcfe a year earlier.
It expects total sales volume in the July-September quarter to be between 590 and 640 Bcfe.
EQT is predominantly engaged in the exploration and production of natural gas, primarily in the Appalachian Basin, spanning Ohio, Pennsylvania and West Virginia.
The company reported adjusted profit of 45 cents per share for the quarter ended June 30, above analysts' average estimate of 41 cents per share, according to data compiled by LSEG.
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