EQT Corporation: Winning on All Fronts

Research evidence excerpt

EQT Corporation: Winning on All Fronts

our estimate despite higher G&A which

included ~$45MM of one-off expense related to a settlement item that was not adjusted in

results. This more than offsets weaker liquids realizations. Combined with lower capex, 2Q

FCF of $330MM was well above our esitmate of $166MM.

The remaining announcements are more for operational de-risking with some

diversification benefits:

• 0.5 MMTPA of LNG bridging offtake. This is a fairly modest 5-year agreement beginning

January 2028 which is expected to provide a ~$45MM FY FCF uplift at recent strip. The

rationale is more for operational readiness, with the aim of getting trading, shipping, and risk

systems running on smaller volumes ahead of the larger contracted offtake ramp in the early

2030s. Management also sees an attractive window for international exposure in the back

half of the decade.

• MVP Southgate pulling forward construction timing. EQT raised its equity affiliate capex

contribution by $85MM to complete construction by YE26, well ahead of 2028 in-service.

Management sees this as a move to reduce construction risk and not necessarily a

commercial pull-forward as majority of the downstream contracts are still expected to

commence in 2028. We raised 2026 affiliate capex but lowered 2027-2028 capex by the same

amount in aggregate.

• Blackline propane storage provides flow assurance. EQT paid $77MM for the largest

propane storage and distribution facility in New England which they estimate will generate

~$15MM of FCF on average over 2027-2031, or ~20% FCF yield. EQT already supplies ~60% of

volumes to the facility. The assets are expected to provide optionality for EQT's propane

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