EQT Reports Record $1.8B Q1 Free Cash Flow and BBB Rating Upgrade
EQT generated a record $1.8 billion in free cash flow in Q1 2026 while reducing net debt to under $5.7 billion and achieving sub-1x net debt/EBITDA leverage. The company retired $1.7 billion in senior notes, secured a BBB credit upgrade, and forecasted approximately $6 billion in free cash flow if LNG assets go online.
1. Q1 Financial Highlights
EQT generated a record $1.8 billion in free cash flow while reducing net debt to just below $5.7 billion, bringing leverage to under 1x net debt/EBITDA. Operational performance exceeded guidance despite challenging weather conditions.
2. Debt Retirement and Credit Upgrade
The company retired over $1.7 billion of senior notes during the quarter and achieved a Fitch credit rating upgrade to BBB, strengthening its balance sheet and lowering future funding costs.
3. Hedge Gains and Cash Flow Outlook
EQT’s hedge book is $180 million in the money for the remainder of 2026, and management forecasts approximately $6 billion in full-year free cash flow if the LNG portfolio is fully online.
4. Operational Guidance and Capex
Second-quarter production guidance factors in 10 to 15 Bcf of strategic curtailments, and capital expenditure is expected to peak in Q2 before declining in the second half.