EQT Corp (EQT)

EQT Corporation is a natural gas production company operating primarily in the Appalachian Basin, and based on average daily sales volume, it is the largest natural gas producer in the United States. As of December 31, 2023, the company held 27.6 Tcfe of proved natural gas, NGLs and oil reserves across approximately 2.1 million gross acres (1.99 million net acres), with the Marcellus Shale comprising 93% of total proved reserves, primarily located in Pennsylvania, West Virginia and Ohio. The company operates as a single reportable segment and emphasizes a "combo-development" strategy—developing multiple multi-well pads in tandem—to maximize capital and operational efficiency, reduce environmental impact, and lower well costs.

Its business model integrates an ESG program focused on technology investment, data reporting, and stakeholder engagement, supporting a strategy of generating sustainable free cash flow while maintaining investment-grade credit metrics. In 2023, the company generated $3.2 billion in net cash from operating activities, retired $1.1 billion in debt, paid $228 million in dividends, repurchased $200 million in stock, and completed the Tug Hill and XcL Midstream Acquisition, which contributed to a 10.4% increase in total proved reserves to 27,597 Bcfe. The company achieved investment-grade ratings from all three major credit agencies during the year.

For 2024, it plans capital expenditures of $2.15–$2.35 billion, targeting sales volumes of 2,200–2,300 Bcfe, with continued focus on debt reduction (goal of $3.5 billion absolute debt), shareholder returns via dividends and a $2 billion share repurchase program, and strategic investments in midstream infrastructure and land acquisitions. The company reported average net revenue interests of 63.6% on proved developed reserves and maintains an estimated 4,000 gross undeveloped drilling locations, representing over 30 years of inventory at its current drilling pace. Its revenues remain highly sensitive to natural gas, NGL, and oil price volatility, which directly affects development plans, reserve valuations, and potential asset impairments.

The company sells natural gas primarily at market-based prices tied to NYMEX with regional basis differentials, and processes NGLs through midstream partners including MarkWest Energy Partners, Williams Ohio Valley Midstream, and Blue Racer Midstream, while using derivative instruments to hedge commodity price and basis risk.