EQT Reports Record $1.83B Free Cash Flow, Cuts Net Debt to $5.7B
EQT Corporation generated record first-quarter free cash flow of $1.83 billion and net income of $1.49 billion, driven by realized prices just over $5/Mcfe and disciplined $608 million of capital spending. Production of 618 Bcfe exceeded guidance, while net debt fell to $5.7 billion and Fitch upgraded credit to BBB.
1. Cash Flow and Profit Growth
EQT Corporation reported a first-quarter free cash flow of $1.83 billion and net income of $1.49 billion, up from $242 million a year earlier. Realized natural gas prices averaged just over $5/Mcfe, while capital expenditures were disciplined at $608 million and unit operating costs fell slightly below guidance.
2. Production Performance
Production reached 618 Bcfe, surpassing the high end of guidance, driven by strong well performance and operational execution despite winter weather disruptions.
3. Balance Sheet and Credit Upgrade
Adjusted EBITDA rose to $2.68 billion and operating cash flow climbed to $3.06 billion. Net debt decreased to $5.7 billion from $7.7 billion, edging closer to the $5 billion target and prompting a Fitch credit rating upgrade to BBB.
4. Guidance and Market Position
EQT forecasts second-quarter production of 570 to 620 Bcfe with peak capital spending before a year-end decline. Management cited growing U.S. power demand, global energy security concerns and long-term LNG contracts as structural tailwinds for future growth.