EQT Corporation Reports Significant Financial Decline, Net Loss of $300.8 Million in Q3 2024

EQT Corporation reported significant financial changes in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a notable decline in profitability, with a net loss of $300.8 million, or $0.54 per diluted share, for the third quarter, compared to a net income of $81.3 million, or $0.21 per diluted share, in the same period of 2023. For the nine months ended September 30, 2024, the net loss attributable to EQT was $187.8 million, a stark contrast to a net income of $1.2 billion for the same period in 2023.

Operating revenues for the third quarter of 2024 reached $1.3 billion, up from $1.2 billion in the prior year, driven by increased sales of natural gas, natural gas liquids (NGLs), and oil, which totaled $1.1 billion, a 9.8% increase from $1.0 billion in Q3 2023. However, total operating revenues for the nine months ended September 30, 2024, decreased to $3.6 billion from $4.9 billion in 2023, primarily due to lower gains on derivatives and increased operating expenses.

Total operating expenses surged to $1.6 billion in Q3 2024, up from $1.2 billion in Q3 2023, reflecting a 21.7% increase. This rise was attributed to higher production costs, increased depreciation, and amortization expenses. The company reported an operating loss of $281.8 million for the third quarter, compared to an operating income of $15.8 million in the same period last year.

Strategically, EQT completed the Equitrans Midstream Merger on July 22, 2024, acquiring a controlling interest in Eureka Midstream Holdings and an equity investment in the Mountain Valley Pipeline (MVP). This merger has positioned EQT as a leading integrated natural gas producer in the U.S. The merger resulted in significant transaction costs, amounting to $274.6 million for Q3 2024 and $298.7 million for the nine months ended September 30, 2024.

EQT's total assets increased to approximately $39.9 billion as of September 30, 2024, up from $25.3 billion at the end of 2023, while total debt rose to $13.9 billion, reflecting the financial impact of the merger. The company also reported a significant increase in senior notes, which rose to $10.6 billion from $4.2 billion at the end of 2023.

The company’s operational adjustments included a strategic curtailment of 1.0 Bcf per day of gross production due to low natural gas prices, which negatively impacted sales volumes. For Q4 2024, EQT anticipates further curtailments of 10 to 15 Bcfe. Despite these challenges, EQT's capital expenditures for the nine months ended September 30, 2024, totaled $1.7 billion, an increase from $1.4 billion in the same period of 2023, indicating ongoing investment in growth and infrastructure.