EQT's Completion Efficiency Drove Outperformance In 2Q

Record Completion Efficiency Drives Capital Outperformance

Perhaps the biggest headline from the quarter was EQT’s record-setting completion efficiency, which helped the company outperform on capital. EQT spent just $554 million in capital expenditures, coming in 15% below the midpoint of guidance — a feat attributed directly to faster and more efficient frac operations.

“Capital spending came in well below guidance, driven by another record-setting quarter for completion efficiency and lower well costs,” said President and CEO Toby Rice.

The company deployed 3–4 horizontal rigs and 2–3 frac crews during the quarter, executing flawlessly despite weather-related delays in June. This consistent pace led to 24–36 net wells expected to be turned-in-line (TIL) in Q3, with the full-year TIL count projected at 95–120 wells.

The completion cycle was further enhanced by outperformance in compression projects, driving higher-than-expected throughput and allowing the company to hit the high end of its 568 Bcfe production guidance.

Olympus Acquisition: A Catalyst Already Delivering

On July 1, EQT closed its acquisition of Olympus Energy. The impact was immediate. The company revised full-year production guidance higher by 100 Bcfe, while lowering full-year per-unit operating costs by 6 cents — without adjusting full-year CapEx. That speaks to the scale and efficiency synergies from Olympus.

The integration also enhanced EQT’s already dominant footprint in the Appalachian Basin, adding premium inventory and enabling tighter field development that further enhances frac logistics and cost savings.

Strategic Midstream & Demand Anchoring

EQT’s infrastructure strategy is now central to its growth. Key updates this quarter:

• Signed agreements to supply gas to the 800 MMcf/d Shippingport Power Station and the 665 MMcf/d Homer City redevelopment.

• Secured role as exclusive midstream provider to West Virginia’s first major gas-fired power plant.

• Announced MVP Boost — a capacity expansion to 500 MMcf/d on Mountain Valley Pipeline.

These moves enhance market connectivity, de-risk basis, and anchor in-basin demand growth tied to power and data center development — a high-margin, long-life use case.

Hedging, Cash Flow & Shareholder Returns

EQT maintained a disciplined approach to gas price volatility:

• 3Q 2025 hedged volume: 3.5 MMDth/d at ~$3.26/Dth via swaps.

• 4Q 2025 hedged: 3.6 MMDth/d at ~$3.28/Dth.

• Continued use of puts and collars for 2026.

Free cash flow flipped from -$171 million in 2Q 2024 to +$340 million in 2Q 2025, enabling continued shareholder returns and further balance sheet improvements.