EQT Posts $283 Million Q3 Free Cash Flow

EQT Corporation (NYSE: EQT) generated $283 million of free cash flow attributable to the company in the third quarter of 2026 while holding operating costs to the low end of guidance and spending less than planned. The natural gas producer also increased its quarterly base dividend to $0.17 per share and continued building its LNG, storage and pipeline portfolio.

For the three months ended September 30, GAAP net income was $345.1 million, down from $407.2 million a year earlier. Adjusted EBITDA attributable to EQT, a non-GAAP measure, declined to $1.02 billion from $1.20 billion, while free cash flow attributable to EQT fell to $282.6 million from $483.8 million.

Year-to-date results were stronger than in the comparable 2025 period. Nine-month net income rose to $2.18 billion from $1.58 billion, adjusted EBITDA attributable to EQT increased to $4.64 billion from $3.88 billion, and free cash flow attributable to EQT reached $2.44 billion, compared with $1.76 billion.

Production and cost performance

Third-quarter sales volumes totaled 583 billion cubic feet equivalent, within EQT’s guidance range of 570 Bcfe to 620 Bcfe. The total included 21 Bcfe of strategic curtailments. Liquids sales reached 6.38 million barrels, exceeding the company’s guidance range of 5.15 million to 5.60 million barrels.

The average differential, including basis hedges, was negative $0.64 per thousand cubic feet, slightly better than the guided range of negative $0.75 to negative $0.65. Third-party midstream revenue was $146 million, also within guidance.

Per-unit operating costs were $1.09 per Mcfe, the low end of the projected $1.09-to-$1.23 range. Lease operating expense and production taxes were each below their respective guidance ranges, while gathering, transmission, processing, operations and maintenance, and selling, general and administrative costs were within expectations.

EQT reported $497 million of maintenance capital expenditures and $169 million of growth capital expenditures. The company said total capital spending was 10% below the low end of its guidance.

Debt reduction and shareholder returns

EQT repaid $115 million of debt during the quarter. Net debt stood at $5.47 billion at September 30, down from $5.54 billion at the end of June, as the company moved toward its $5 billion long-term debt target. S&P revised its rating outlook to positive, joining Moody’s in assigning a positive outlook, while Fitch maintained a stable outlook.

The quarterly base dividend was increased to $0.17 per share, equivalent to an annualized dividend of $0.68 per share.

LNG, storage and pipeline projects

EQT signed a 10-year agreement with Lithuania’s Ignitis Group to supply one LNG cargo annually beginning in 2027. The transaction is the company’s first long-term sales agreement with an international end user.

The company has contracted 6 million tonnes per annum of long-term LNG capacity across four Gulf Coast facilities expected to enter service in 2030 and 2031. It also has 0.5 MTPA of bridging volumes scheduled to begin in 2028. EQT now estimates that the bridging volumes will add about $175 million to 2028 free cash flow, up from a $45 million estimate in July 2026. Management said discussions are continuing with more than two dozen potential international customers.

EQT also contracted 11 Bcf of Gulf Coast salt-cavern storage capacity, comprising 7 Bcf at the Leaf River facility from 2029 and 4 Bcf at the Egan Gas Hub from 2030. The company said the contracts require no capital investment and are intended to provide optimization capacity for its LNG business.

In Appalachia, EQT opened a customer solicitation for the proposed POWER Pipeline, a 42-inch line that would run from Greene County, Pennsylvania, to Clarington, Ohio. The project is designed for more than 1 Bcf per day of initial capacity, with potential to expand depending on customer demand. No in-service date or project cost was provided.

2026 outlook

For the fourth quarter, EQT expects sales volumes of 550 Bcfe to 600 Bcfe, including 10 Bcfe to 20 Bcfe of strategic curtailments. Full-year sales volumes are projected at 2,375 Bcfe to 2,450 Bcfe.

The company expects 2026 operating costs of $1.05 to $1.20 per Mcfe, maintenance capital expenditures of $2.02 billion to $2.10 billion, and growth capital expenditures of $580 million to $640 million. Capital contributions to equity-method investments are projected at $145 million to $155 million.

EQT’s outlook remains exposed to commodity-price volatility, drilling and service costs, production assumptions, infrastructure and permitting delays, and execution risks related to LNG, pipeline, storage and joint-venture projects. The company also identified regulatory, environmental, cybersecurity and weather-related risks, as well as the possibility that expected benefits from strategic transactions and infrastructure investments may not materialize on schedule.