EQT Corporation (NYSE:EQT) announced an upward revision to its 2026 production guidance following a strong second quarter, highlighting the company's ability to boost output while managing capital expenditures. The midpoint for full-year sales volume increased by 3.8%, while total planned capital climbed by 2.1% at the midpoint, driven largely by increased contributions to the MVP Southgate project.
The stock closed at $49.80 on Tuesday, gaining 1.5% ahead of the earnings release after the market closed. The positive momentum comes as the company reported second-quarter sales volume of 634 Bcfe, exceeding the top end of its guidance by 14 Bcfe. Capital expenditure for the quarter totaled $666 million, coming in approximately 9% below the guided minimum.
The updated 2026 guidance reflects a significant gap: spending on compression is boosting output at a rate surpassing overall investment growth. At the realized price in the second quarter, the additional 87.5 Bcfe represents an estimated $232 million in potential gross sales, though this does not account for basis differentials, operating expenses, or hedges.
CEO Toby Rice emphasized the company's efficiency gains, stating, “We are increasing our 2026 production guidance by 90 Bcfe, and at the same time reducing our CapEx guidance for the year by $25 million.” The headline capital reduction is partial, as increased contributions to Southgate more than offset the $25 million cut in maintenance capital. EQT brought forward $85 million in contributions to complete MVP Southgate before year-end, while keeping its growth-capital range steady.
A 10-year agreement with Competitive Power Ventures introduces a further pricing mechanism. EQT is set to deliver 325,000 dekatherms per day for a proposed two-gigawatt facility in West Virginia, with rates tied to PJM power market prices. This exposes the company to fluctuations in power prices and risks related to contract execution.
Average realized prices declined 5.7% to $2.65 per Mcfe. Adjusted earnings came in at $0.39 per share, down from $0.45. Adjusted EBITDA attributable to EQT increased 3.3% to $1.07 billion. Net debt stood at $5.54 billion at the end of June, representing a decrease of roughly 28% compared to December. EQT paid down a further $115 million subsequent to the quarter’s close. On Tuesday, the company finalized its $77 million acquisition of Blackline Midstream.
U.S. natural gas for August delivery closed at $2.865 per million British thermal units on Tuesday, gaining 0.2%. Inventories stayed 181 Bcf higher than the five-year average following the most recent data. The stock showed little movement during the past five sessions, trailing behind peers Range Resources (NYSE:RRC), which rose 2.9%, and Antero Resources (NYSE:AR), which increased 1.9%.
Analysts will meet with management on Wednesday at 10 a.m. EDT. The federal storage report is scheduled for release Thursday at 10:30 a.m. Key risks include lower gas prices, broader Appalachian basis discounts, and delays to Southgate.
