EQT Q2 Earnings Beat Estimates on Higher Production

EQT Corporation EQT reported second-quarter 2025 adjusted earnings from continuing operations of 45 cents per share, which beat the Zacks Consensus Estimate of 44 cents. The bottom line increased from the year-ago reported loss of 8 cents.

Adjusted operating revenues increased to $1,599 million from $1,183 million in the prior-year quarter. However, the top line missed the Zacks Consensus Estimate of $1,793 million.

The strong quarterly earnings were driven by higher sales volume and increased average realized prices.

EQT Corporation Price, Consensus and EPS Surprise

EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation Quote

Production

Sales volume increased to 568 billion cubic feet equivalent (Bcfe) from the year-ago level of 508 Bcfe. The reported figure missed our estimate of 569 Bcfe.

Natural gas sales volume was 534.4 Bcf, up from 474.1 Bcf in the year-ago quarter. The figure missed our estimate of 535.3 Bcf.

The total liquid sales volume was 5,631 thousand barrels (MBbls), up from the year-ago level of 5,573 MBbls. The figure was below our projection of 5,660.6 MBbls.

Commodity Price Realizations

The average realized price was $2.81 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago figure of $2.33.

The average natural gas price, including cash-settled derivatives, was $2.69 per Mcf, which increased year over year from $2.16.

The natural gas sales price was $3.63 per Mcf, higher than $2.02 recorded a year ago.

However, the oil price was $51.70 per barrel compared with the year-ago figure of $61.96, and our estimate for the same was pinned at $47.19.

Expenses

Total operating expenses were $1.42 billion, higher than $949.5 million reported in the prior-year quarter.

Gathering expenses totaled 8 cents per Mcfe, down from the year-ago level of 59 cents. Transmission expenses totaled 45 cents per Mcfe, up from 35 cents recorded a year ago. Lease operating expenses amounted to 9 cents, flat year over year.

Cash Flows

EQT’s adjusted operating cash flow totaled $918 million in the reported quarter, up from $405 million a year ago. The free cash flow totaled $340 million, up from a negative free cash flow of $171 million in the year-ago period.

Capex & Balance Sheet

Total capital expenditure was $554 million, down from $576 million reported a year ago.

As of June 30, 2025, the company had cash and cash equivalents of $555 million and net debt worth $7.76 billion.

Guidance

For the third quarter of 2025, EQT anticipates total sales volume to be in the band of 590-640 Bcfe. For 2025, the company has raised its total sales volume forecast to 2,300-2,400 Bcfe, suggesting an increase of 100 Bcfe from its earlier projection.

Capital expenditures are projected to be in the band of $2,300-$2,450 million for the full year.

Zacks Rank and Key Picks

Currently, EQT carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Antero Midstream Corporation AM, Eni S.p.A. E and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in one of the trailing four quarters, met once and missed on the other two, delivering an average negative surprise of 5.50%.

Eni’s strategic growth in upstream production, focused portfolio optimization and expansion into renewables highlight its resilience amid changing macroeconomic conditions. Successful ramp-up of exploration projects and efficient asset management reinforce its long-term potential and enhance its position in the global energy market.

E’s earnings missed estimates in three of the trailing four quarters and beat once, delivering an average negative surprise of 11.43%.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts, which protect it against big oil price swings or changes in shipment. 

ENB’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 0.28%.

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This article originally published on Zacks Investment Research (zacks.com).

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