filings.toolsItem 1. Financial Statements
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Item 1. Financial Statements
EQT CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONDENSED CONSOLIDATED OPERATIONS (UNAUDITED)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Thousands, except per share amounts) | |||||||||||||||||||||||
| Operating revenues: | |||||||||||||||||||||||
| Sales of natural gas, natural gas liquids and oil | $ | 1,610,014 | $ | 1,700,499 | $ | 5,049,949 | $ | 3,945,226 | |||||||||||||||
| Gain (loss) on derivatives | 44,640 | 719,964 | (193,629) | 41,045 | |||||||||||||||||||
| Pipeline and other | 155,286 | 137,256 | 332,356 | 311,298 | |||||||||||||||||||
| Total operating revenues | 1,809,940 | 2,557,719 | 5,188,676 | 4,297,569 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Transportation and processing | 385,017 | 389,116 | 785,356 | 767,325 | |||||||||||||||||||
| Production | 100,316 | 91,518 | 215,494 | 179,956 | |||||||||||||||||||
| Operating and maintenance | 60,220 | 53,983 | 115,088 | 101,280 | |||||||||||||||||||
| Selling, general and administrative | 106,438 | 81,586 | 202,189 | 173,050 | |||||||||||||||||||
| Depreciation, depletion and amortization | 689,592 | 623,471 | 1,344,384 | 1,244,246 | |||||||||||||||||||
| Loss on sale/exchange of long-lived assets | 3,577 | 2,990 | 3,552 | 3,221 | |||||||||||||||||||
| Impairment and expiration of leases | 6,232 | 3,254 | 10,055 | 5,915 | |||||||||||||||||||
| Other operating expenses | 64,510 | 177,763 | 82,560 | 192,288 | |||||||||||||||||||
| Total operating expenses | 1,415,902 | 1,423,681 | 2,758,678 | 2,667,281 | |||||||||||||||||||
| Operating income | 394,038 | 1,134,038 | 2,429,998 | 1,630,288 | |||||||||||||||||||
| Income from investments | (44,732) | (67,174) | (122,241) | (93,636) | |||||||||||||||||||
| Other income | (3,404) | (2,616) | (3,522) | (3,239) | |||||||||||||||||||
| Loss on debt extinguishment | 341 | 5,889 | 29,869 | 17,569 | |||||||||||||||||||
| Interest expense, net | 75,452 | 105,668 | 172,229 | 223,237 | |||||||||||||||||||
| Income before income taxes | 366,381 | 1,092,271 | 2,353,663 | 1,486,357 | |||||||||||||||||||
| Income tax expense | 84,933 | 235,615 | 518,285 | 314,283 | |||||||||||||||||||
| Net income | 281,448 | 856,656 | 1,835,378 | 1,172,074 | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interests | 70,023 | 72,509 | 136,724 | 145,788 | |||||||||||||||||||
| Net income attributable to EQT Corporation | $ | 211,425 | $ | 784,147 | $ | 1,698,654 | $ | 1,026,286 | |||||||||||||||
| Income per share of common stock attributable to EQT Corporation: | |||||||||||||||||||||||
| Basic: | |||||||||||||||||||||||
| Weighted average common stock outstanding | 625,962 | 599,221 | 625,549 | 598,574 | |||||||||||||||||||
| Net income attributable to EQT Corporation | $ | 0.34 | $ | 1.31 | $ | 2.72 | $ | 1.71 | |||||||||||||||
| Diluted (Note 10): | |||||||||||||||||||||||
| Weighted average common stock outstanding | 629,049 | 602,924 | 629,070 | 602,896 | |||||||||||||||||||
| Net income attributable to EQT Corporation | $ | 0.34 | $ | 1.30 | $ | 2.70 | $ | 1.70 |
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
EQT CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (UNAUDITED)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||
| Net income | $ | 281,448 | $ | 856,656 | $ | 1,835,378 | $ | 1,172,074 | |||||||||||||||
| Other comprehensive income, net of tax: | |||||||||||||||||||||||
| Other postretirement benefits liability adjustment, net of tax benefit (expense) of $38, $53, $(140) and $82 | 106 | 54 | 400 | 91 | |||||||||||||||||||
| Comprehensive income | 281,554 | 856,710 | 1,835,778 | 1,172,165 | |||||||||||||||||||
| Less: Comprehensive income attributable to noncontrolling interests | 70,023 | 72,509 | 136,724 | 145,788 | |||||||||||||||||||
| Comprehensive income attributable to EQT Corporation | $ | 211,531 | $ | 784,201 | $ | 1,699,054 | $ | 1,026,377 |
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
EQT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
| June 30, 2026 | December 31, 2025 | ||||||||||
| (Thousands) | |||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 112,863 | $ | 110,795 | |||||||
| Accounts receivable (less allowance for credit losses: $3,844 and $3,088) | 835,140 | 1,457,959 | |||||||||
| Derivative instruments, at fair value | 138,943 | 202,390 | |||||||||
| Prepaid expenses and other | 90,881 | 124,007 | |||||||||
| Total current assets | 1,177,827 | 1,895,151 | |||||||||
| Property, plant and equipment | 49,741,567 | 48,472,497 | |||||||||
| Less: Accumulated depreciation and depletion | 16,188,972 | 14,914,689 | |||||||||
| Net property, plant and equipment | 33,552,595 | 33,557,808 | |||||||||
| Investments in unconsolidated entities | 3,946,497 | 3,630,577 | |||||||||
| Net intangible assets | 193,100 | 200,486 | |||||||||
| Goodwill | 2,062,462 | 2,062,462 | |||||||||
| Other assets | 388,359 | 446,390 | |||||||||
| Total assets | $ | 41,320,840 | $ | 41,792,874 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current portion of debt | $ | 114,959 | $ | 507,119 | |||||||
| Accounts payable | 1,166,963 | 1,367,431 | |||||||||
| Derivative instruments, at fair value | 50,106 | 137,299 | |||||||||
| Accrued interest | 103,785 | 137,505 | |||||||||
| Other current liabilities | 314,466 | 335,487 | |||||||||
| Total current liabilities | 1,750,279 | 2,484,841 | |||||||||
| Revolving credit facility borrowings | 324,000 | 360,000 | |||||||||
| Senior notes | 5,216,755 | 6,933,209 | |||||||||
| Deferred income taxes | 3,963,965 | 3,472,010 | |||||||||
| Asset retirement obligations and other liabilities | 1,202,444 | 1,182,666 | |||||||||
| Total liabilities | 12,457,443 | 14,432,726 | |||||||||
| Equity: | |||||||||||
| Common stock, no par value, shares authorized: 1,280,000, shares issued: 625,513 and 624,076 | 19,529,362 | 19,517,761 | |||||||||
| Retained earnings | 5,731,287 | 4,237,089 | |||||||||
| Accumulated other comprehensive loss | (1,773) | (2,173) | |||||||||
| Total common shareholders' equity | 25,258,876 | 23,752,677 | |||||||||
| Noncontrolling interests in consolidated subsidiaries | 3,604,521 | 3,607,471 | |||||||||
| Total equity | 28,863,397 | 27,360,148 | |||||||||
| Total liabilities and equity | $ | 41,320,840 | $ | 41,792,874 |
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
EQT CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS (UNAUDITED)
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (Thousands) | |||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 1,835,378 | $ | 1,172,074 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Deferred income tax expense | 491,617 | 304,878 | |||||||||
| Depreciation, depletion and amortization | 1,344,384 | 1,244,246 | |||||||||
| Loss on sale/exchange of long-lived assets | 3,552 | 3,221 | |||||||||
| Impairment and expiration of leases | 10,055 | 5,915 | |||||||||
| Income from investments | (122,241) | (93,636) | |||||||||
| Loss on debt extinguishment | 29,869 | 17,569 | |||||||||
| Share-based compensation expense | 42,381 | 28,535 | |||||||||
| Distributions from equity method investments | 121,323 | 132,881 | |||||||||
| Other | 10,509 | 3,358 | |||||||||
| Loss (gain) on derivatives | 193,629 | (41,045) | |||||||||
| Net cash settlements paid on derivatives | (231,048) | (193,350) | |||||||||
| Changes in other assets and liabilities: | |||||||||||
| Accounts receivable | 629,685 | 295,699 | |||||||||
| Accounts payable | (209,653) | 10,253 | |||||||||
| Income tax receivable and payable | 25,320 | 97,378 | |||||||||
| Other current assets | 8,611 | (1,459) | |||||||||
| Other items, net | (80,312) | (3,651) | |||||||||
| Net cash provided by operating activities | 4,103,059 | 2,982,866 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (1,248,676) | (1,049,289) | |||||||||
| Cash paid for acquisitions | — | (100,167) | |||||||||
| Net cash received (paid) for sale/exchange of assets | 91 | (6,284) | |||||||||
| Cash paid for acquisitions of additional interests in equity method investments | (216,209) | — | |||||||||
| Capital contributions to equity method investments | (56,520) | (42,047) | |||||||||
| Other investing activities | (2,221) | (245) | |||||||||
| Net cash used in investing activities | (1,523,535) | (1,198,032) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from revolving credit facility borrowings | 2,461,000 | 2,234,000 | |||||||||
| Repayment of revolving credit facility borrowings | (2,497,000) | (2,422,800) | |||||||||
| Debt issuance costs | — | (7,238) | |||||||||
| Repayment and retirement of debt | (2,122,944) | (813,017) | |||||||||
| Net premiums paid on debt extinguishment | (22,631) | (24,802) | |||||||||
| Dividends paid | (206,278) | (188,372) | |||||||||
| Contribution from noncontrolling interests | 98,357 | — | |||||||||
| Distributions to noncontrolling interests | (238,031) | (151,954) | |||||||||
| Cash paid for taxes to net settle share-based incentive awards | (46,135) | (53,253) | |||||||||
| Other financing activities | (3,794) | (3,999) | |||||||||
| Net cash used in financing activities | (2,577,456) | (1,431,435) | |||||||||
| Net change in cash and cash equivalents | 2,068 | 353,399 | |||||||||
| Cash and cash equivalents at beginning of period | 110,795 | 202,093 | |||||||||
| Cash and cash equivalents at end of period | $ | 112,863 | $ | 555,492 |
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
See Note 1 for supplemental cash flow information.
EQT CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONDENSED CONSOLIDATED EQUITY (UNAUDITED)
| Common Stock | |||||||||||||||||||||||||||||||||||
| Shares | Amount | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests in Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||
| (Thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||
| Balance at April 1, 2025 | 598,586 | $ | 17,984,118 | $ | 2,736,046 | $ | (2,284) | $ | 3,685,389 | $ | 24,403,269 | ||||||||||||||||||||||||
| Comprehensive income, net of tax: | |||||||||||||||||||||||||||||||||||
| Net income | 784,147 | 72,509 | 856,656 | ||||||||||||||||||||||||||||||||
| Other postretirement benefits liability adjustment, net of tax benefit of $53 | 54 | 54 | |||||||||||||||||||||||||||||||||
| Dividends ($0.1575 per share) | (94,461) | (94,461) | |||||||||||||||||||||||||||||||||
| Share-based compensation plans | 226 | 15,640 | 15,640 | ||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | (83,308) | (83,308) | |||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | 598,812 | $ | 17,999,758 | $ | 3,425,732 | $ | (2,230) | $ | 3,674,590 | $ | 25,097,850 | ||||||||||||||||||||||||
| Balance at April 1, 2026 | 625,475 | $ | 19,497,503 | $ | 5,623,137 | $ | (1,879) | $ | 3,668,288 | $ | 28,787,049 | ||||||||||||||||||||||||
| Comprehensive income, net of tax: | |||||||||||||||||||||||||||||||||||
| Net income | 211,425 | 70,023 | 281,448 | ||||||||||||||||||||||||||||||||
| Other postretirement benefits liability adjustment, net of tax benefit of $38 | 106 | 106 | |||||||||||||||||||||||||||||||||
| Dividends ($0.165 per share) | (103,275) | (103,275) | |||||||||||||||||||||||||||||||||
| Share-based compensation plans | 38 | 31,859 | 31,859 | ||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | (133,790) | (133,790) | |||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | 625,513 | $ | 19,529,362 | $ | 5,731,287 | $ | (1,773) | $ | 3,604,521 | $ | 28,863,397 |
For all periods presented, there were 3 million preferred shares authorized and no preferred shares issued or outstanding.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
EQT CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONDENSED CONSOLIDATED EQUITY (UNAUDITED)
| Common Stock | |||||||||||||||||||||||||||||||||||
| Shares | Amount | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests in Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||
| (Thousands, except per share amounts) | |||||||||||||||||||||||||||||||||||
| Balance at January 1, 2025 | 596,870 | $ | 18,014,711 | $ | 2,585,238 | $ | (2,321) | $ | 3,680,508 | $ | 24,278,136 | ||||||||||||||||||||||||
| Comprehensive income, net of tax: | |||||||||||||||||||||||||||||||||||
| Net income | 1,026,286 | 145,788 | 1,172,074 | ||||||||||||||||||||||||||||||||
| Other postretirement benefits liability adjustment, net of tax benefit of $82 | 91 | 91 | |||||||||||||||||||||||||||||||||
| Dividends ($0.315 per share) | (185,792) | (185,792) | |||||||||||||||||||||||||||||||||
| Share-based compensation plans | 1,942 | (15,328) | (15,328) | ||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | (151,954) | (151,954) | |||||||||||||||||||||||||||||||||
| Other | 375 | 248 | 623 | ||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | 598,812 | $ | 17,999,758 | $ | 3,425,732 | $ | (2,230) | $ | 3,674,590 | $ | 25,097,850 | ||||||||||||||||||||||||
| Balance at January 1, 2026 | 624,076 | $ | 19,517,761 | $ | 4,237,089 | $ | (2,173) | $ | 3,607,471 | $ | 27,360,148 | ||||||||||||||||||||||||
| Comprehensive income, net of tax: | |||||||||||||||||||||||||||||||||||
| Net income | 1,698,654 | 136,724 | 1,835,378 | ||||||||||||||||||||||||||||||||
| Other postretirement benefits liability adjustment, net of tax expense of $(140) | 400 | 400 | |||||||||||||||||||||||||||||||||
| Dividends ($0.33 per share) | (204,456) | (204,456) | |||||||||||||||||||||||||||||||||
| Share-based compensation plans | 1,437 | 11,601 | 11,601 | ||||||||||||||||||||||||||||||||
| Contribution from noncontrolling interests | 98,357 | 98,357 | |||||||||||||||||||||||||||||||||
| Distributions to noncontrolling interests | (238,031) | (238,031) | |||||||||||||||||||||||||||||||||
| Balance at June 30, 2026 | 625,513 | $ | 19,529,362 | $ | 5,731,287 | $ | (1,773) | $ | 3,604,521 | $ | 28,863,397 |
For all periods presented, there were 3 million preferred shares authorized and no preferred shares issued or outstanding.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. Financial Statements
Nature of Operations. EQT Corporation is an integrated natural gas company with upstream, gathering and transmission operations focused in the Appalachian Basin.
In this Quarterly Report on Form 10-Q, references to "EQT" refer to EQT Corporation and references to the "Company" refer to EQT Corporation and its consolidated subsidiaries, collectively, in each case unless otherwise noted or indicated.
Basis of Presentation. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with United States generally accepted accounting principles (GAAP) for interim financial information and with the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes required by GAAP for complete financial statements. In the opinion of management, these statements include all adjustments (consisting of only normal recurring accruals unless otherwise disclosed in this Quarterly Report on Form 10-Q) necessary for a fair presentation of the Company's financial position as of June 30, 2026 and December 31, 2025, results of operations and changes in equity for the three and six months ended June 30, 2026 and 2025 and cash flows for the six months ended June 30, 2026 and 2025.
The Condensed Consolidated Balance Sheet at December 31, 2025 has been derived from the audited financial statements at that date. For further information, refer to the Consolidated Financial Statements and accompanying notes in EQT's Annual Report on Form 10-K for the year ended December 31, 2025.
Principles of Consolidation and Noncontrolling Interests. The Condensed Consolidated Financial Statements include the accounts of EQT and all subsidiaries, ventures and partnerships in which EQT directly or indirectly owns a controlling interest and variable interest entities for which EQT is the primary beneficiary. Intercompany accounts and transactions have been eliminated in consolidation. The Company records noncontrolling interests in its Condensed Consolidated Financial Statements for any non-wholly owned consolidated subsidiary. See Note 9 for additional information on the Company's consolidation of the Midstream Joint Venture (defined in Note 9) and the allocation of the Midstream Joint Venture's income.
Reclassification. Certain previously reported amounts have been reclassified to conform to the current period's presentation. In addition, as discussed further in Note 2, effective December 31, 2025, the Company renamed its previously reported "Production" segment as the "Upstream" segment.
Supplemental Cash Flow Information. The following table summarizes net cash paid for interest and income taxes and non-cash activity included in the Statements of Condensed Consolidated Cash Flows.
| Six Months Ended June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (Thousands) | |||||||||||
| Cash paid (received) during the period for: | |||||||||||
| Interest, net of amount capitalized | $ | 196,470 | $ | 241,824 | |||||||
| Income taxes, net | (280) | (78,931) | |||||||||
| Non-cash activity during the period for: | |||||||||||
| Increase in asset retirement costs and obligations | $ | 25,103 | $ | 15,185 | |||||||
| Capitalization of non-cash equity share-based compensation | 15,355 | 9,389 | |||||||||
| Right-of-use assets obtained in exchange for lease liabilities | 8,782 | 5,095 | |||||||||
| Investments in unconsolidated entities | — | 17,981 | |||||||||
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Recently Issued Accounting Standards
In May 2026, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818), to establish a new accounting model for environmental credits and related obligations, including guidance on their recognition, measurement, presentation and disclosure. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, including interim reporting periods within those annual periods. Early adoption is permitted. The Company is evaluating the impact ASU 2026-02 will have on its financial statements and related disclosures.
In December 2025, the FASB issued ASU 2025-12, Codification Improvements, to clarify guidance, correct technical errors, remove outdated language and improve consistency across various topics in the Accounting Standards Codification. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2026, including interim reporting periods within those annual periods. Early adoption is permitted. The Company is evaluating the impact ASU 2025-12 will have on its financial statements and related disclosures and does not expect its adoption to be material.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, to clarify the scope and presentation requirements for interim GAAP financial statements and to consolidate interim disclosure requirements. Under this ASU, entities must disclose material events or changes occurring after year end that affect interim periods. The amendments in this ASU are effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments may be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements. The Company is evaluating the impact ASU 2025-11 will have on its financial statements and related disclosures.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, to improve the disclosures about a public business entity's expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization and depletion) in commonly presented expense captions (such as cost of sales; selling, general and administrative expense; and research and development). This ASU is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The requirements should be applied prospectively with the option for retrospective application. The Company is evaluating the impact ASU 2024-03 will have on its financial statements and related disclosures.
2. Financial Information by Business Segment
The Company has three reportable segments consisting of Upstream, Gathering and Transmission.
Effective December 31, 2025, the Company renamed its previously reported "Production" segment as the "Upstream" segment to better align with the nature of the Company's operations and the Company's internal reporting framework. This change had no impact on the structure of the Company's internal organization, including the composition of its reportable segments.
The Company's Upstream segment comprises the Company's natural gas, natural gas liquids (NGLs) and oil extraction, development and production business and supporting operations. The Company's Gathering segment owns and operates the Company's gathering system, which has extensive overlap with the Company's Upstream segment operations, and processing facility. The Company's Transmission segment operates the Company's Federal Energy Regulatory Commission (FERC) regulated interstate transmission and storage system, which has multiple interconnect points to other interstate pipelines and local distribution companies. In addition, the Company's investment in the MVP Joint Venture (defined in Note 8) is reported in its Transmission segment.
The accounting policies of the Company's segments are the same as those described in Note 1 to the Consolidated Financial Statements in EQT's Annual Report on Form 10-K for the year ended December 31, 2025.
Items that are managed on a consolidated basis, including cash and cash equivalents, debt, income taxes and amounts related to the Company's corporate function, and items related to the Company's energy transition initiatives have not been allocated to the Company's reportable segments. These items are presented as "Other."
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The Company's chief operating decision maker (the CODM), Toby Z. Rice, President and Chief Executive Officer, evaluates performance of, and allocates resources to, the Company's reportable segments using a profitability metric of operating income. The CODM compares each segment's operating income and return on assets when evaluating performance of the Company's reportable segments and considers actual-to-forecast variances in operating income when allocating capital and personnel to the Company's reportable segments. For the Company's Transmission segment, the CODM also reviews equity earnings recognized from, and the carrying value of, the Company's investment in the MVP Joint Venture.
Substantially all of the Company's operating revenues and assets are generated and located in the United States.
Total segment operating income. The following tables present information about segment revenue, segment profit or loss and significant segment expenses and include a reconciliation of total segment amounts to the Company's consolidated totals.
| Three Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||||||
| Upstream | Gathering | Transmission | Total Segment | Intersegment Eliminations and Other | EQT Corporation | ||||||||||||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||||||||||||||
| Operating revenues: | |||||||||||||||||||||||||||||||||||
| Sales of natural gas, natural gas liquids and oil | $ | 1,610,014 | $ | — | $ | — | $ | 1,610,014 | $ | — | $ | 1,610,014 | |||||||||||||||||||||||
| Gain on derivatives | 44,640 | — | — | 44,640 | — | 44,640 | |||||||||||||||||||||||||||||
| Pipeline and other | 8,979 | 341,328 | 141,165 | 491,472 | (336,186) | 155,286 | |||||||||||||||||||||||||||||
| Total operating revenues | 1,663,633 | 341,328 | 141,165 | 2,146,126 | (336,186) | 1,809,940 | |||||||||||||||||||||||||||||
| Operating expenses (a): | |||||||||||||||||||||||||||||||||||
| Transportation and processing | 721,207 | — | — | 721,207 | (336,190) | 385,017 | |||||||||||||||||||||||||||||
| Production | 100,316 | — | — | 100,316 | — | 100,316 | |||||||||||||||||||||||||||||
| Operating and maintenance | — | 47,102 | 13,118 | 60,220 | — | 60,220 | |||||||||||||||||||||||||||||
| Selling, general and administrative | 62,028 | 21,352 | 8,361 | 91,741 | 14,697 | 106,438 | |||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 603,465 | 56,134 | 23,708 | 683,307 | 6,285 | 689,592 | |||||||||||||||||||||||||||||
| Loss (gain) on sale/exchange of long-lived assets | 2,860 | — | 725 | 3,585 | (8) | 3,577 | |||||||||||||||||||||||||||||
| Impairment and expiration of leases | 6,232 | — | — | 6,232 | — | 6,232 | |||||||||||||||||||||||||||||
| Other operating expenses | 58,142 | — | 2,250 | 60,392 | 4,118 | 64,510 | |||||||||||||||||||||||||||||
| Total operating expenses | 1,554,250 | 124,588 | 48,162 | 1,727,000 | (311,098) | 1,415,902 | |||||||||||||||||||||||||||||
| Operating income (loss) | $ | 109,383 | $ | 216,740 | $ | 93,003 | $ | 419,126 | $ | (25,088) | $ | 394,038 |
(a)The significant expense categories and amounts presented align with information that is regularly provided to the CODM.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||
| Upstream | Gathering | Transmission | Total Segment | Intersegment Eliminations and Other | EQT Corporation | ||||||||||||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||||||||||||||
| Operating revenues: | |||||||||||||||||||||||||||||||||||
| Sales of natural gas, natural gas liquids and oil | $ | 1,700,499 | $ | — | $ | — | $ | 1,700,499 | $ | — | $ | 1,700,499 | |||||||||||||||||||||||
| Gain on derivatives | 719,964 | — | — | 719,964 | — | 719,964 | |||||||||||||||||||||||||||||
| Pipeline and other | 79 | 320,269 | 134,583 | 454,931 | (317,675) | 137,256 | |||||||||||||||||||||||||||||
| Total operating revenues | 2,420,542 | 320,269 | 134,583 | 2,875,394 | (317,675) | 2,557,719 | |||||||||||||||||||||||||||||
| Operating expenses (a): | |||||||||||||||||||||||||||||||||||
| Transportation and processing | 706,139 | — | — | 706,139 | (317,023) | 389,116 | |||||||||||||||||||||||||||||
| Production | 91,518 | — | — | 91,518 | — | 91,518 | |||||||||||||||||||||||||||||
| Operating and maintenance | — | 40,597 | 13,386 | 53,983 | — | 53,983 | |||||||||||||||||||||||||||||
| Selling, general and administrative | 46,708 | 12,921 | 8,107 | 67,736 | 13,850 | 81,586 | |||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 540,918 | 54,032 | 22,732 | 617,682 | 5,789 | 623,471 | |||||||||||||||||||||||||||||
| Loss on sale/exchange of long-lived assets | 2,688 | — | 302 | 2,990 | — | 2,990 | |||||||||||||||||||||||||||||
| Impairment and expiration of leases | 3,254 | — | — | 3,254 | — | 3,254 | |||||||||||||||||||||||||||||
| Other operating expenses (b) | 22,207 | 7,314 | — | 29,521 | 148,242 | 177,763 | |||||||||||||||||||||||||||||
| Total operating expenses | 1,413,432 | 114,864 | 44,527 | 1,572,823 | (149,142) | 1,423,681 | |||||||||||||||||||||||||||||
| Operating income (loss) | $ | 1,007,110 | $ | 205,405 | $ | 90,056 | $ | 1,302,571 | $ | (168,533) | $ | 1,134,038 |
(a)The significant expense categories and amounts presented align with information that is regularly provided to the CODM.
(b)Corporate other operating expenses consisted primarily of a legal reserve related to a securities class action settlement.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| Six Months Ended June 30, 2026 | |||||||||||||||||||||||||||||||||||
| Upstream | Gathering | Transmission | Total Segment | Intersegment Eliminations and Other | EQT Corporation | ||||||||||||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||||||||||||||
| Operating revenues: | |||||||||||||||||||||||||||||||||||
| Sales of natural gas, natural gas liquids and oil | $ | 5,049,949 | $ | — | $ | — | $ | 5,049,949 | $ | — | $ | 5,049,949 | |||||||||||||||||||||||
| Loss on derivatives | (193,629) | — | — | (193,629) | — | (193,629) | |||||||||||||||||||||||||||||
| Pipeline and other | 13,752 | 676,303 | 302,617 | 992,672 | (660,316) | 332,356 | |||||||||||||||||||||||||||||
| Total operating revenues | 4,870,072 | 676,303 | 302,617 | 5,848,992 | (660,316) | 5,188,676 | |||||||||||||||||||||||||||||
| Operating expenses (a): | |||||||||||||||||||||||||||||||||||
| Transportation and processing | 1,445,686 | — | — | 1,445,686 | (660,330) | 785,356 | |||||||||||||||||||||||||||||
| Production | 215,494 | — | — | 215,494 | — | 215,494 | |||||||||||||||||||||||||||||
| Operating and maintenance | — | 89,213 | 25,875 | 115,088 | — | 115,088 | |||||||||||||||||||||||||||||
| Selling, general and administrative | 117,076 | 40,098 | 16,039 | 173,213 | 28,976 | 202,189 | |||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 1,171,171 | 111,949 | 48,703 | 1,331,823 | 12,561 | 1,344,384 | |||||||||||||||||||||||||||||
| Loss (gain) on sale/exchange of long-lived assets | 2,835 | — | 725 | 3,560 | (8) | 3,552 | |||||||||||||||||||||||||||||
| Impairment and expiration of leases | 10,055 | — | — | 10,055 | — | 10,055 | |||||||||||||||||||||||||||||
| Other operating expenses | 72,096 | 35 | 2,250 | 74,381 | 8,179 | 82,560 | |||||||||||||||||||||||||||||
| Total operating expenses | 3,034,413 | 241,295 | 93,592 | 3,369,300 | (610,622) | 2,758,678 | |||||||||||||||||||||||||||||
| Operating income (loss) | $ | 1,835,659 | $ | 435,008 | $ | 209,025 | $ | 2,479,692 | $ | (49,694) | $ | 2,429,998 |
(a)The significant expense categories and amounts presented align with information that is regularly provided to the CODM.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||
| Upstream | Gathering | Transmission | Total Segment | Intersegment Eliminations and Other | EQT Corporation | ||||||||||||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||||||||||||||
| Operating revenues: | |||||||||||||||||||||||||||||||||||
| Sales of natural gas, natural gas liquids and oil | $ | 3,945,226 | $ | — | $ | — | $ | 3,945,226 | $ | — | $ | 3,945,226 | |||||||||||||||||||||||
| Gain on derivatives | 41,045 | — | — | 41,045 | — | 41,045 | |||||||||||||||||||||||||||||
| Pipeline and other | 3,554 | 655,582 | 280,854 | 939,990 | (628,692) | 311,298 | |||||||||||||||||||||||||||||
| Total operating revenues | 3,989,825 | 655,582 | 280,854 | 4,926,261 | (628,692) | 4,297,569 | |||||||||||||||||||||||||||||
| Operating expenses (a): | |||||||||||||||||||||||||||||||||||
| Transportation and processing | 1,394,739 | — | — | 1,394,739 | (627,414) | 767,325 | |||||||||||||||||||||||||||||
| Production | 179,956 | — | — | 179,956 | — | 179,956 | |||||||||||||||||||||||||||||
| Operating and maintenance | — | 76,906 | 24,374 | 101,280 | — | 101,280 | |||||||||||||||||||||||||||||
| Selling, general and administrative | 95,378 | 28,318 | 17,526 | 141,222 | 31,828 | 173,050 | |||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 1,084,412 | 103,456 | 45,935 | 1,233,803 | 10,443 | 1,244,246 | |||||||||||||||||||||||||||||
| Loss on sale/exchange of long-lived assets | 2,872 | — | 349 | 3,221 | — | 3,221 | |||||||||||||||||||||||||||||
| Impairment and expiration of leases | 5,915 | — | — | 5,915 | — | 5,915 | |||||||||||||||||||||||||||||
| Other operating expenses (b) | 27,657 | 10,296 | (536) | 37,417 | 154,871 | 192,288 | |||||||||||||||||||||||||||||
| Total operating expenses | 2,790,929 | 218,976 | 87,648 | 3,097,553 | (430,272) | 2,667,281 | |||||||||||||||||||||||||||||
| Operating income (loss) | $ | 1,198,896 | $ | 436,606 | $ | 193,206 | $ | 1,828,708 | $ | (198,420) | $ | 1,630,288 |
(a)The significant expense categories and amounts presented align with information that is regularly provided to the CODM.
(b)Corporate other operating expenses consisted primarily of a legal reserve related to a securities class action settlement.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Reconciliation of total segment operating income to consolidated income before income taxes.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||
| Total segment operating income | $ | 419,126 | $ | 1,302,571 | $ | 2,479,692 | $ | 1,828,708 | |||||||||||||||
| Less: | |||||||||||||||||||||||
| Intersegment eliminations | — | 687 | — | 1,389 | |||||||||||||||||||
| Unallocated amounts: | |||||||||||||||||||||||
| Other revenues | (4) | (35) | (14) | (111) | |||||||||||||||||||
| Corporate selling, general and administrative | 14,697 | 13,850 | 28,976 | 31,828 | |||||||||||||||||||
| Corporate depreciation and amortization | 6,285 | 5,789 | 12,561 | 10,443 | |||||||||||||||||||
| Corporate other operating expenses (a) | 4,118 | 148,242 | 8,179 | 154,871 | |||||||||||||||||||
| Income from investments (b) | (44,732) | (67,174) | (122,241) | (93,636) | |||||||||||||||||||
| Other income | (3,404) | (2,616) | (3,522) | (3,239) | |||||||||||||||||||
| Loss on debt extinguishment | 341 | 5,889 | 29,869 | 17,569 | |||||||||||||||||||
| Interest expense, net | 75,452 | 105,668 | 172,229 | 223,237 | |||||||||||||||||||
| Income before income taxes | $ | 366,381 | $ | 1,092,271 | $ | 2,353,663 | $ | 1,486,357 |
(a)For the three and six months ended June 30, 2025, corporate other operating expenses consisted primarily of a legal reserve related to a securities class action settlement.
(b)Income from investments included equity earnings from the Company's investment in the MVP Joint Venture of $45.0 million and $41.6 million for the three months ended June 30, 2026 and 2025, respectively, and $101.2 million and $66.0 million for the six months ended June 30, 2026 and 2025, respectively.
Total segment assets. The following table presents information about segment assets. The Company's investment in the MVP Joint Venture is presented in investments in unconsolidated entities in the Condensed Consolidated Balance Sheets.
| Upstream | Gathering | Transmission | Total Segment | ||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||
| June 30, 2026 | |||||||||||||||||||||||
| Investment in the MVP Joint Venture | $ | — | $ | — | $ | 3,802,793 | $ | 3,802,793 | |||||||||||||||
| Goodwill | — | — | 1,231,783 | 1,231,783 | |||||||||||||||||||
| Other segment assets | 23,398,395 | 8,837,023 | 2,841,484 | 35,076,902 | |||||||||||||||||||
| Total assets | $ | 23,398,395 | $ | 8,837,023 | $ | 7,876,060 | $ | 40,111,478 | |||||||||||||||
| June 30, 2025 | |||||||||||||||||||||||
| Investment in the MVP Joint Venture | $ | — | $ | — | $ | 3,503,025 | $ | 3,503,025 | |||||||||||||||
| Goodwill | — | — | 1,231,783 | 1,231,783 | |||||||||||||||||||
| Other segment assets | 22,027,485 | 8,276,505 | 2,900,334 | 33,204,324 | |||||||||||||||||||
| Total assets | $ | 22,027,485 | $ | 8,276,505 | $ | 7,635,142 | $ | 37,939,132 |
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Reconciliation of total segment assets to consolidated total assets.
| June 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (Thousands) | |||||||||||
| Total segment assets | $ | 40,111,478 | $ | 37,939,132 | |||||||
| Intersegment eliminations | (222,688) | (256,941) | |||||||||
| Unallocated amounts: | |||||||||||
| Cash and cash equivalents | 112,863 | 555,492 | |||||||||
| Other property, plant and equipment, at cost less accumulated depreciation | 120,168 | 103,687 | |||||||||
| Goodwill | 830,679 | 830,679 | |||||||||
| Other | 368,340 | 494,699 | |||||||||
| Total assets | $ | 41,320,840 | $ | 39,666,748 |
Total segment capital expenditures. The following table presents information about segment capital expenditures.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||
| Upstream | $ | 472,423 | $ | 449,440 | $ | 971,681 | $ | 858,195 | |||||||||||||||
| Gathering | 171,586 | 86,083 | 263,040 | 158,187 | |||||||||||||||||||
| Transmission | 7,822 | 10,291 | 18,933 | 22,918 | |||||||||||||||||||
| Total segment capital expenditures | 651,831 | 545,814 | 1,253,654 | 1,039,300 | |||||||||||||||||||
| Other corporate items | 14,427 | 7,745 | 20,440 | 11,703 | |||||||||||||||||||
| Total capital expenditures | $ | 666,258 | $ | 553,559 | $ | 1,274,094 | $ | 1,051,003 |
3. Revenue from Contracts with Customers
Sales of natural gas, NGLs and oil. Under the Company's natural gas, NGLs and oil sales contracts, the Company generally considers the delivery of each unit (million British thermal units (MMBtu) or barrel (Bbl)) to be a separate performance obligation. These performance obligations are satisfied at a point in time upon delivery to the designated sales point, at which time control transfers to the customer. Sales of natural gas, NGLs and oil presented in the Statements of Condensed Consolidated Operations represent the Company's share of revenues net of royalties and exclude revenue interests owned by others. When selling natural gas, NGLs and oil on behalf of royalty or working interest owners, the Company acts as an agent and reports the revenue on a net basis.
Pipeline revenue. The Company provides gathering, transmission and storage services under firm and interruptible service contracts. Firm service contracts generally require the customer to pay a firm reservation fee, which is a fixed, monthly fee to reserve an agreed-upon amount of pipeline or storage capacity regardless of whether the customer uses the capacity. The Company recognizes firm reservation fee revenue evenly over the contract period as it satisfies its stand-ready obligation to provide capacity. Revenue from volumetric-based fees is recognized as services are performed based on volumes gathered, transported or stored, and the amount invoiced generally corresponds to the value of the Company's performance. Interruptible service contracts require the customer to pay volumetric-based fees and generally do not guarantee access to the pipeline or storage facility. Certain gathering agreements include minimum volume commitments (MVCs), for which revenue is recognized when the performance obligation is satisfied.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Disaggregated revenue information. The table below provides disaggregated information on the Company's revenues. Certain other revenue contracts are outside the scope of ASU 2014-09, Revenue from Contracts with Customers. These contracts are reported in pipeline and other revenues in the Statements of Condensed Consolidated Operations. Derivative contracts are also outside the scope of ASU 2014-09.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||
| Revenues from contracts with customers: | |||||||||||||||||||||||
| Upstream sales | |||||||||||||||||||||||
| Natural gas | $ | 1,424,315 | $ | 1,539,205 | $ | 4,678,665 | $ | 3,589,155 | |||||||||||||||
| NGLs | 152,906 | 145,104 | 310,015 | 318,920 | |||||||||||||||||||
| Oil | 32,793 | 16,190 | 61,269 | 37,151 | |||||||||||||||||||
| Sales of natural gas, NGLs and oil | 1,610,014 | 1,700,499 | 5,049,949 | 3,945,226 | |||||||||||||||||||
| Gathering pipeline revenue | |||||||||||||||||||||||
| Firm reservation fees | 171,030 | 169,597 | 334,112 | 336,288 | |||||||||||||||||||
| Volumetric-based fees | 170,298 | 150,672 | 342,191 | 319,294 | |||||||||||||||||||
| Total Gathering pipeline revenue | 341,328 | 320,269 | 676,303 | 655,582 | |||||||||||||||||||
| Transmission pipeline revenue | |||||||||||||||||||||||
| Firm reservation fees | 106,220 | 96,535 | 232,847 | 214,387 | |||||||||||||||||||
| Volumetric-based fees | 34,945 | 38,048 | 69,770 | 66,467 | |||||||||||||||||||
| Total Transmission pipeline revenue | 141,165 | 134,583 | 302,617 | 280,854 | |||||||||||||||||||
| Intersegment eliminations and other | (336,186) | (317,675) | (660,316) | (628,692) | |||||||||||||||||||
| Total revenues from contracts with customers (a) | 1,756,321 | 1,837,676 | 5,368,553 | 4,252,970 | |||||||||||||||||||
| Other sources of revenue: | |||||||||||||||||||||||
| Gain (loss) on derivatives | 44,640 | 719,964 | (193,629) | 41,045 | |||||||||||||||||||
| Other revenues | 8,979 | 79 | 13,752 | 3,554 | |||||||||||||||||||
| Total other sources of revenue | 53,619 | 720,043 | (179,877) | 44,599 | |||||||||||||||||||
| Total operating revenues | $ | 1,809,940 | $ | 2,557,719 | $ | 5,188,676 | $ | 4,297,569 |
(a)For revenue from contracts with customers for which the Company had satisfied its performance obligations and held an unconditional right to consideration, the Company recorded accounts receivable of $673.4 million and $1,159.0 million as of June 30, 2026 and December 31, 2025, respectively.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Summary of remaining performance obligations. The following table summarizes the transaction price allocated to the Company's remaining obligations on all contracts with fixed consideration as of June 30, 2026.
| 2026 (a) | 2027 | 2028 | 2029 | 2030 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||||||||||||||||||||
| Upstream natural gas sales | $ | 6,863 | $ | 7,540 | $ | — | $ | — | $ | — | $ | — | $ | 14,403 | |||||||||||||||||||||||||||
| Gathering firm reservation fee revenue: | |||||||||||||||||||||||||||||||||||||||||
| Third-party | 47,078 | 86,260 | 86,260 | 86,260 | 86,260 | 288,112 | 680,230 | ||||||||||||||||||||||||||||||||||
| Affiliate | 50,927 | 101,508 | 97,701 | 97,701 | 103,978 | 1,403,698 | 1,855,513 | ||||||||||||||||||||||||||||||||||
| Total | 98,005 | 187,768 | 183,961 | 183,961 | 190,238 | 1,691,810 | 2,535,743 | ||||||||||||||||||||||||||||||||||
| Gathering revenues from MVCs: | |||||||||||||||||||||||||||||||||||||||||
| Third-party | 51,765 | 96,926 | 87,901 | 74,032 | 63,236 | 140,649 | 514,509 | ||||||||||||||||||||||||||||||||||
| Affiliate | 206,989 | 410,621 | 411,740 | 410,622 | 408,323 | 1,634,129 | 3,482,424 | ||||||||||||||||||||||||||||||||||
| Total | 258,754 | 507,547 | 499,641 | 484,654 | 471,559 | 1,774,778 | 3,996,933 | ||||||||||||||||||||||||||||||||||
| Transmission firm reservation fee revenue: | |||||||||||||||||||||||||||||||||||||||||
| Third-party | 90,284 | 178,467 | 172,539 | 169,923 | 166,411 | 662,365 | 1,439,989 | ||||||||||||||||||||||||||||||||||
| Affiliate | 132,082 | 262,637 | 260,776 | 260,445 | 260,445 | 1,704,604 | 2,880,989 | ||||||||||||||||||||||||||||||||||
| Total | 222,366 | 441,104 | 433,315 | 430,368 | 426,856 | 2,366,969 | 4,320,978 | ||||||||||||||||||||||||||||||||||
| Total remaining performance obligations | $ | 585,988 | $ | 1,143,959 | $ | 1,116,917 | $ | 1,098,983 | $ | 1,088,653 | $ | 5,833,557 | $ | 10,868,057 |
(a)July 1 through December 31.
As of June 30, 2026, based on total projected contractual revenues, the Company's firm gathering contracts had weighted average remaining terms of approximately 10 years for third-party contracts and 12 years for affiliate contracts.
As of June 30, 2026, based on total projected contractual revenues, the Company's firm transmission and storage contracts had weighted average remaining terms of approximately 10 years for third-party contracts and 12 years for affiliate contracts.
4. Derivative Instruments
The Company's primary market risk exposure is the volatility of future prices for natural gas and NGLs, which can affect the Company's operating results. The Company uses derivative commodity instruments to hedge its cash flows from sales of produced natural gas and NGLs. The overall objective of the Company's hedging program is to protect cash flows from undue exposure to the risk of changing commodity prices.
The derivative commodity instruments used by the Company are primarily swap, collar and option agreements. These agreements may result in payments to, or receipt of payments from, counterparties based on the differential between two prices for the commodity. The Company uses these agreements to hedge its New York Mercantile Exchange (NYMEX) and basis exposure. The Company may also use other contractual agreements when executing its commodity hedging strategy. The Company typically enters into over-the-counter (OTC) derivative commodity instruments with financial institutions, and the creditworthiness of all counterparties is regularly monitored.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The Company does not designate any of its derivative instruments as cash flow hedges; therefore, all changes in fair value of the Company's derivative instruments are recognized in operating revenues in gain (loss) on derivatives in the Statements of Condensed Consolidated Operations. The Company recognizes all derivative instruments as either assets or liabilities at fair value on a gross basis. These derivative instruments are reported as either current assets or current liabilities due to their highly liquid nature. The Company can net settle its derivative instruments at any time. See Note 5 for a description of the fair value hierarchy and the valuation techniques and significant inputs used to estimate the fair value of the Company's derivative instruments.
Contracts that result in physical delivery of a commodity expected to be sold by the Company in the normal course of business are generally designated as normal sales and are exempt from derivative accounting. Contracts that result in the physical receipt or delivery of a commodity but are not designated or do not meet all of the criteria to qualify for the normal purchase and normal sale scope exception are subject to derivative accounting.
The Company's OTC derivative instruments generally require settlement in cash. The Company also enters into exchange traded derivative commodity instruments that are generally settled with offsetting positions. Settlements of derivative commodity instruments are reported as a component of cash flows from operating activities in the Statements of Condensed Consolidated Cash Flows.
With respect to the derivative commodity instruments held by the Company, the Company hedged portions of its expected sales of production and portions of its basis exposure covering approximately 900 billion cubic feet (Bcf) of natural gas and 4,615 thousand barrels (Mbbl) of NGLs as of June 30, 2026 and approximately 945 Bcf of natural gas and 4,022 Mbbl of NGLs as of December 31, 2025. The open positions at both June 30, 2026 and December 31, 2025 had maturities extending through December 2030.
Certain of the Company's OTC derivative instrument contracts provide that, if EQT's credit rating assigned by Moody's Investors Service, Inc. (Moody's), S&P Global Ratings (S&P) or Fitch Ratings Service (Fitch) is below the agreed-upon credit rating threshold (typically, below investment grade) and if the associated derivative liability exceeds the agreed-upon dollar threshold for such credit rating, the counterparty to such contract can require the Company to deposit collateral. Similarly, if such counterparty's credit rating assigned by Moody's, S&P or Fitch is below the agreed-upon credit rating threshold and if the associated derivative liability exceeds the agreed-upon dollar threshold for such credit rating, the Company can require the counterparty to deposit collateral with the Company. Such collateral can be up to 100% of the derivative liability. Investment grade refers to the quality of a company's credit as assessed by one or more credit rating agencies. To be considered investment grade, a company must be rated "Baa3" or higher by Moody's, "BBB–" or higher by S&P and "BBB–" or higher by Fitch. Anything below these ratings is considered non-investment grade. As of June 30, 2026, EQT's senior notes were rated "Baa3" by Moody's, "BBB–" by S&P and "BBB" by Fitch.
When the net fair value of any of the Company's OTC derivative instrument contracts represents a liability to the Company that is in excess of the agreed-upon dollar threshold for the Company's then-applicable credit rating, the counterparty has the right to require the Company to remit funds as a margin deposit in an amount equal to the portion of the derivative liability that is in excess of the dollar threshold amount. The Company records these deposits as a current asset in the Condensed Consolidated Balance Sheets. As of June 30, 2026 and December 31, 2025, the aggregate fair value of the Company's OTC derivative instruments with credit rating risk-related contingent features in a net liability position was $2.4 million and $4.4 million, respectively, for which no deposits were required or recorded in the Condensed Consolidated Balance Sheets.
When the net fair value of any of the Company's OTC derivative instrument contracts represents an asset to the Company that is in excess of the agreed-upon dollar threshold for the counterparty's then-applicable credit rating, the Company has the right to require the counterparty to remit funds as a margin deposit in an amount equal to the portion of the derivative asset that is in excess of the dollar threshold amount. The Company records these deposits as a current liability in the Condensed Consolidated Balance Sheets. As of both June 30, 2026 and December 31, 2025, there were no such deposits recorded in the Condensed Consolidated Balance Sheets.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
When the Company enters into exchange traded natural gas contracts, exchanges may require the Company to remit funds to the corresponding broker as good-faith deposits to guard against the risks associated with changing market conditions. The Company is required to make such deposits based on an established initial margin requirement and the net liability position, if any, of the fair value of the associated contracts. The Company records these deposits as a current asset in the Condensed Consolidated Balance Sheets. When the fair value of such contracts is in a net asset position, the broker may remit funds to the Company. The Company records these deposits as a current liability in the Condensed Consolidated Balance Sheets. The initial margin requirements are established by the exchanges based on the price, volatility and the time to expiration of the contract. The margin requirements are subject to change at the exchanges' discretion. As of June 30, 2026 and December 31, 2025, there was $22.9 million and $36.8 million, respectively, of such deposits recorded as a current asset in the Condensed Consolidated Balance Sheets.
The Company has netting agreements with financial institutions and its brokers that permit net settlement of gross commodity derivative assets against gross commodity derivative liabilities. The table below summarizes the impact of netting agreements and margin deposits on gross derivative assets and liabilities.
| Gross derivative instruments recorded in the Condensed Consolidated Balance Sheets | Derivative instruments subject to master netting agreements | Margin requirements with counterparties | Net derivative instruments | ||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||
| June 30, 2026 | |||||||||||||||||||||||
| Asset derivative instruments, at fair value | $ | 138,943 | $ | (27,447) | $ | — | $ | 111,496 | |||||||||||||||
| Liability derivative instruments, at fair value | 50,106 | (27,447) | (22,931) | (272) | |||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| Asset derivative instruments, at fair value | $ | 202,390 | $ | (79,250) | $ | — | $ | 123,140 | |||||||||||||||
| Liability derivative instruments, at fair value | 137,299 | (79,250) | (36,810) | 21,239 |
5. Fair Value Measurements
The Company records its financial instruments, which are principally derivative instruments, at fair value in the Condensed Consolidated Balance Sheets. The Company estimates the fair value of its financial instruments using quoted market prices when available and, when not available, valuation models that incorporate market-based inputs, including forward price curves, discount rates, volatilities and counterparty non-performance risk. Nonperformance risk considers the effect of the Company's credit standing on the fair value of liabilities and the effect of the counterparty's credit standing on the fair value of assets. The Company estimates nonperformance risk by analyzing publicly available market information, including a comparison of the yield on debt instruments with credit ratings similar to EQT's or the counterparty's credit rating and the yield on a risk-free instrument.
The Company has categorized its assets and liabilities recorded at fair value into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Assets and liabilities that use Level 2 inputs primarily include the Company's swap, collar and option agreements.
Exchange traded commodity swaps have Level 1 inputs. The fair value of the commodity swaps with Level 2 inputs is based on standard industry income approach models that use significant observable inputs, including, but not limited to, NYMEX natural gas forward curves, SOFR-based discount rates, basis forward curves and NGLs forward curves. The Company's collars and options are valued using standard industry income approach option models. The significant observable inputs used by the option pricing models include NYMEX forward curves, natural gas volatilities and SOFR-based discount rates.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
The table below summarizes assets and liabilities measured at fair value on a recurring basis.
| Fair value measurements at reporting date using: | |||||||||||||||||||||||
| Gross derivative instruments recorded in the Condensed Consolidated Balance Sheets | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | ||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||
| June 30, 2026 | |||||||||||||||||||||||
| Asset derivative instruments, at fair value | $ | 138,943 | $ | 6,141 | $ | 132,802 | $ | — | |||||||||||||||
| Liability derivative instruments, at fair value | 50,106 | 8,450 | 41,656 | — | |||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||
| Asset derivative instruments, at fair value | $ | 202,390 | $ | 43,200 | $ | 159,190 | $ | — | |||||||||||||||
| Liability derivative instruments, at fair value | 137,299 | 39,164 | 98,135 | — |
The carrying value of cash equivalents, accounts receivable and accounts payable approximates fair value due to their short-term maturities. The carrying value of borrowings under EQT's and Eureka Midstream, LLC's (Eureka) revolving credit facilities approximates fair value as each facility's interest rate is based on prevailing market rates. The Company considers all of these fair values to be Level 1 fair value measurements.
The Company estimates the fair value of its senior notes using established fair value methodology. Because not all of the Company's senior notes are actively traded, their fair value is a Level 2 fair value measurement. As of June 30, 2026 and December 31, 2025, the Company's senior notes had a fair value of approximately $5.4 billion and $7.7 billion, respectively, and a carrying value of approximately $5.3 billion and $7.4 billion, respectively, inclusive of any current portion. See Note 7 for further discussion of the Company's debt.
The Company recognizes transfers between Levels as of the actual date of the event or change in circumstances that caused the transfer. There were no transfers between Levels 1, 2 and 3 during the periods presented.
See Note 8 for a discussion of the fair value measurement of the Company's investment in the Investment Fund (defined in Note 8). See Note 1 to the Consolidated Financial Statements in EQT's Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of the fair value measurement and impairment assessments of the Company's property, plant and equipment, investments in unconsolidated entities, net intangible assets, goodwill and asset retirement obligations.
6. Income Taxes
For the six months ended June 30, 2026 and 2025, the Company calculated its provision for income taxes by applying an estimate of the annual effective tax rate for the full fiscal year to "ordinary" income or loss (pre-tax income or loss excluding unusual or infrequently occurring items) for the period. Any refinements to prior period taxes made in the current period due to new information are reflected as adjustments in the current period. There were no material changes to the Company's methodology for determining unrecognized tax benefits during the six months ended June 30, 2026.
The Midstream Joint Venture and Eureka Midstream Holdings, LLC (Eureka Holdings) are treated as partnerships for tax purposes. As a result, income attributable to noncontrolling interests is included in pre-tax income but not subject to income tax expense, which impacts the Company's effective tax rate.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
For the six months ended June 30, 2026 and 2025, the Company recorded income tax expense at an effective tax rate of 22.0% and 21.1%, respectively. The Company's effective tax rate for the six months ended June 30, 2026 was higher compared to the U.S. federal statutory rate primarily as a result of state taxes net of valuation allowances, partly offset by income attributable to noncontrolling interests. The Company's effective tax rate for the six months ended June 30, 2025 was higher compared to the U.S. federal statutory rate primarily as a result of state taxes, partly offset by income attributable to noncontrolling interests and excess tax benefits from share-based payments.
7. Debt
The table below summarizes the Company's outstanding debt.
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Principal Value | Carrying Value (a) | Principal Value | Carrying Value (a) | ||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||
| EQT's revolving credit facility maturing July 23, 2030 | $ | 52,000 | $ | 52,000 | $ | 75,000 | $ | 75,000 | |||||||||||||||
| Eureka's revolving credit facility maturing November 13, 2027 | 272,000 | 272,000 | 285,000 | 285,000 | |||||||||||||||||||
| EQT's senior notes and debentures: | |||||||||||||||||||||||
| 3.125% notes due May 15, 2026 | — | — | 392,915 | 392,409 | |||||||||||||||||||
| 7.75% debentures due July 15, 2026 | 115,000 | 114,959 | 115,000 | 114,710 | |||||||||||||||||||
| 6.500% notes due July 1, 2027 | — | — | 344,921 | 346,255 | |||||||||||||||||||
| 3.900% notes due October 1, 2027 | 533,809 | 533,191 | 936,158 | 934,640 | |||||||||||||||||||
| 5.700% notes due April 1, 2028 | 500,000 | 496,037 | 500,000 | 494,905 | |||||||||||||||||||
| 5.500% notes due July 15, 2028 | 45,225 | 45,120 | 45,225 | 45,060 | |||||||||||||||||||
| 5.00% notes due January 15, 2029 | 318,494 | 316,780 | 318,494 | 316,448 | |||||||||||||||||||
| 4.50% notes due January 15, 2029 | 299,560 | 291,457 | 734,583 | 710,802 | |||||||||||||||||||
| 6.375% notes due April 1, 2029 | 48,989 | 49,447 | 596,725 | 602,840 | |||||||||||||||||||
| 7.000% notes due February 1, 2030 (b) | 674,800 | 672,573 | 674,800 | 672,263 | |||||||||||||||||||
| 7.500% notes due June 1, 2030 | 494,086 | 519,593 | 494,086 | 522,749 | |||||||||||||||||||
| 4.75% notes due January 15, 2031 | 1,090,218 | 1,048,674 | 1,090,218 | 1,044,098 | |||||||||||||||||||
| 3.625% notes due May 15, 2031 | 435,165 | 431,834 | 435,165 | 431,496 | |||||||||||||||||||
| 5.750% notes due February 1, 2034 | 750,000 | 743,986 | 750,000 | 743,589 | |||||||||||||||||||
| 6.500% notes due July 15, 2048 | 67,196 | 68,063 | 67,196 | 68,064 | |||||||||||||||||||
| Total debt | 5,696,542 | 5,655,714 | 7,855,486 | 7,800,328 | |||||||||||||||||||
| Less: Current portion of debt (c) | 115,000 | 114,959 | 507,915 | 507,119 | |||||||||||||||||||
| Long-term debt | $ | 5,581,542 | $ | 5,540,755 | $ | 7,347,571 | $ | 7,293,209 |
(a)For EQT's and Eureka's revolving credit facilities, the principal value represents carrying value. For all other debt, the principal value less any applicable unamortized debt issuance costs, debt discounts and fair value adjustments represents carrying value.
(b)Interest rates for EQT's 7.000% senior notes fluctuate based on changes to the credit ratings assigned to EQT's senior notes by Moody's, S&P and Fitch. For all other senior notes, interest rates do not fluctuate.
(c)As of June 30, 2026, the current portion of debt included EQT's 7.75% debentures. As of December 31, 2025, the current portion of debt included EQT's 3.125% senior notes and 7.75% debentures.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Debt Repayments. The Company repaid, redeemed or repurchased the following debt during the six months ended June 30, 2026.
| Debt Tranche | Principal | Premiums Paid (Discounts Received) | Accrued but Unpaid Interest | Total Cost | ||||||||||||||||||||||
| (Thousands) | ||||||||||||||||||||||||||
| 6.500% notes due July 1, 2027 (a) | $ | 344,921 | $ | 5,695 | $ | 5,293 | $ | 355,909 | ||||||||||||||||||
| 3.900% notes due October 1, 2027 (b) | 402,349 | (2,350) | 7,628 | 407,627 | ||||||||||||||||||||||
| 4.50% notes due January 15, 2029 (b) | 435,023 | (309) | 3,861 | 438,575 | ||||||||||||||||||||||
| 6.375% notes due April 1, 2029 (b) | 547,736 | 17,550 | 16,974 | 582,260 | ||||||||||||||||||||||
| 3.125% notes due May 15, 2026 (c) | 392,915 | — | 6,139 | 399,054 | ||||||||||||||||||||||
| Total | $ | 2,122,944 | $ | 20,586 | $ | 39,895 | $ | 2,183,425 |
(a)On March 10, 2026, the Company issued a notice of full redemption to holders of EQT's outstanding 6.500% senior notes due July 1, 2027, and, on March 26, 2026, the Company redeemed such notes in full.
(b)On March 10, 2026, the Company announced the commencement of a tender offer to purchase for cash (the Tender Offer) certain of its outstanding senior notes. On March 26, 2026, the Company settled the Tender Offer, repurchasing approximately $1.4 billion aggregate principal amount of EQT's senior notes.
(c)Repaid at maturity.
On July 15, 2026, the Company repaid 115 million aggregate principal amount of EQT's 7.75% debentures at maturity.
EQT's Revolving Credit Facility. EQT has a $3.5 billion revolving credit facility.
As of both June 30, 2026 and December 31, 2025, the Company had approximately $2 million of letters of credit outstanding under EQT's revolving credit facility.
During the three months ended June 30, 2026 and 2025, under EQT's revolving credit facility, the maximum amount of outstanding borrowings was $462 million and $512 million, respectively, the average daily balance was approximately $155 million and $64 million, respectively, and interest was incurred at a weighted average annual interest rate of 5.2% and 5.9%, respectively. During the six months ended June 30, 2026 and 2025, under EQT's revolving credit facility, the maximum amount of outstanding borrowings was $530 million and $566 million, respectively, the average daily balance was approximately $128 million and $136 million, respectively, and interest was incurred at a weighted average annual interest rate of 5.2% and 5.9%, respectively. For all periods presented, EQT incurred commitment fees of 20 basis points on the undrawn portion of its revolving credit facility.
As of June 30, 2026, EQT was in compliance with all provisions and covenants of the credit agreement governing EQT's revolving credit facility.
Eureka's Revolving Credit Facility. Through its controlling interest in Eureka Holdings, the Company consolidates Eureka's $400 million senior secured revolving credit facility.
As of both June 30, 2026 and December 31, 2025, Eureka had no letters of credit outstanding under its revolving credit facility.
During the three months ended June 30, 2026 and 2025, under Eureka's revolving credit facility, the maximum amount of outstanding borrowings was $272 million and $285 million, respectively, the average daily balance was approximately $270 million and $284 million, respectively, and interest was incurred at a weighted average annual interest rate of 6.4% and 7.1%, respectively. During the six months ended June 30, 2026 and 2025, under Eureka's revolving credit facility, the maximum amount of outstanding borrowings was $285 million and $321 million, respectively, the average daily balance was approximately $276 million and $297 million, respectively, and interest was incurred at a weighted average annual interest rate of 6.4% and 7.1%, respectively.
As of June 30, 2026, Eureka was in compliance with all provisions and covenants of the credit agreement governing Eureka's revolving credit facility.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
8. Investments in Unconsolidated Entities
Equity Method Investments
The table below summarizes the Company's equity method investments.
| June 30, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Ownership Interest | Carrying Value | Ownership Interest | Carrying Value | ||||||||||||||||||||
| (Thousands) | (Thousands) | ||||||||||||||||||||||
| MVP Joint Venture (a): | |||||||||||||||||||||||
| MVP A | 53.2 | % | $ | 3,289,264 | 49.3 | % | $ | 3,097,754 | |||||||||||||||
| MVP B | 47.2 | % | 114,086 | 47.2 | % | 42,420 | |||||||||||||||||
| MVP C | 53.2 | % | 399,443 | 49.3 | % | 374,629 | |||||||||||||||||
| Total MVP Joint Venture | 3,802,793 | 3,514,803 | |||||||||||||||||||||
| Laurel Mountain Midstream, LLC (b) | 31.0 | % | 46,932 | 31.0 | % | 47,037 | |||||||||||||||||
| Other | 48,389 | 35,724 | |||||||||||||||||||||
| Total | $ | 3,898,114 | $ | 3,597,564 |
(a)Mountain Valley Pipeline, LLC (the MVP Joint Venture) is a Delaware series limited liability company formed as a joint venture for the purpose of constructing and owning natural gas assets. The MVP Joint Venture has three series, as follows (with each term defined below): MVP A, which owns MVP Mainline; MVP B, which owns MVP Southgate; and MVP C, which owns certain assets associated with MVP Boost. A wholly owned subsidiary of the Company serves as the operator for each series of the MVP Joint Venture.
(b)Laurel Mountain Midstream, LLC is a midstream company formed as a joint venture among the Company, The Williams Companies, Inc. and certain other energy companies for the purpose of owning and operating gathering and processing assets.
MVP A. Series A of the MVP Joint Venture (MVP A) was formed for the purpose of constructing and owning the Mountain Valley Pipeline (MVP Mainline). As of June 30, 2026, MVP A's members consisted of the Midstream Joint Venture and affiliates of each of NextEra Energy, Inc. (NextEra), AltaGas Ltd. (AltaGas), RGC Resources, Inc. (RGC) and VED NPI IV, LLC (Vega). See "MVP A and MVP C Interest Acquisitions" below for a discussion of changes in ownership interests that occurred during the first quarter of 2026.
MVP Mainline is a 303-mile long, 42-inch diameter natural gas interstate pipeline with a total capacity of 2.0 Bcf per day that spans from the Company's transmission and storage system in Wetzel County, West Virginia to Pittsylvania County, Virginia. MVP Mainline is in service and regulated by the FERC.
MVP B. Series B of the MVP Joint Venture (MVP B) was formed for the purpose of constructing and owning the MVP Southgate project (MVP Southgate). As of June 30, 2026, MVP B's members consisted of the Company and affiliates of NextEra, AltaGas and RGC.
MVP Southgate is an interstate pipeline project that is expected to extend approximately 31 miles from the terminus of MVP Mainline in Pittsylvania County, Virginia to planned new delivery points in Rockingham County, North Carolina using 30-inch diameter pipe, with a projected capacity of 0.55 Bcf per day.
The FERC authorized the MVP Joint Venture to proceed with construction of the MVP Southgate facilities in Virginia on March 23, 2026 and in North Carolina on June 18, 2026. MVP Southgate is expected to be placed into service by mid-2028. MVP Southgate is estimated to have a total cost of approximately $370 million to $430 million, excluding allowance for funds used during construction (AFUDC) and certain costs incurred for the originally certificated project. The Company will fund its proportionate share through capital contributions to MVP B.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Under the MVP Joint Venture's limited liability company agreement (the MVP LLC Agreement), the Company is required to provide performance assurance to fund its proportionate share of the construction budget for MVP Southgate. Under the MVP LLC Agreement, acceptable forms of performance assurance include a guarantee from the Company, a letter of credit or cash collateral. In July 2025, the Company issued a performance guarantee in favor of MVP B in the amount of $14.2 million. As a result of the FERC's March 23, 2026 authorization to proceed with construction of the MVP Southgate facilities in Virginia, the Company's existing performance guarantee was terminated and replaced with a new performance assurance equal to 33% of the Company's proportionate share of the remaining capital commitments under the most recently approved construction budget. Accordingly, in April 2026, the Company issued a new performance guarantee in favor of MVP B in the amount of $38.2 million.
MVP C. Series C of the MVP Joint Venture (MVP C) was formed on November 1, 2025 for the purpose of constructing and owning certain assets associated with the MVP Boost project (MVP Boost). As of June 30, 2026, MVP C's members consisted of the Company and affiliates of NextEra, AltaGas, RGC and Vega. See "MVP A and MVP C Interest Acquisitions" below for a discussion of changes in ownership interests that occurred during the first quarter of 2026.
MVP Boost is a contemplated project to add compression to MVP Mainline. MVP Boost is projected to increase the capacity on MVP Mainline by 0.6 Bcf per day. As designed, MVP Boost would add compression at three existing compressor stations in West Virginia and construct a new compressor station in Montgomery County, Virginia.
On October 23, 2025, the MVP Joint Venture filed an application with the FERC for authorization to construct MVP Boost. Pending receipt of regulatory approvals, MVP Boost is expected to be placed into service by mid-2028. MVP Boost is estimated to have a total cost of approximately $400 million to $540 million, excluding AFUDC. The Company will fund its proportionate share through capital contributions to MVP C.
Under the MVP LLC Agreement, the Company is required to provide performance assurance to fund its proportionate share of the construction budget for MVP Boost. Under the MVP LLC Agreement, acceptable forms of performance assurance include a guarantee from the Company, a letter of credit or cash collateral. In November 2025, the Company issued a performance guarantee in favor of MVP C in the amount of $14.8 million. In April 2026, as a result of the MVP C Interest Acquisition (defined below), the Company amended its existing performance guarantee, increasing the amount to $16.0 million. Following the FERC's initial authorization to proceed with construction of MVP Boost, the Company's existing performance guarantee will be terminated and the Company will be required to provide a new performance assurance equal to 33% of the Company's proportionate share of the remaining capital commitments under the most recently approved construction budget.
MVP A and MVP C Interest Acquisitions. On March 30, 2026, the Company completed its acquisition of an approximately 3.94% interest in MVP A (the MVP A Interest Acquisition) and an approximately 3.94% interest in MVP C (the MVP C Interest Acquisition and, together with the MVP A Interest Acquisition, the MVP A and MVP C Interest Acquisitions) from an affiliate of Con Edison Gas Pipeline and Storage, LLC (ConEd) pursuant to a preferential buy-out right under the MVP LLC Agreement. Total consideration, excluding transaction costs, was $213.9 million, consisting of $198.3 million for the MVP A Interest Acquisition, of which $98.4 million was funded by the BXCI Affiliate (defined in Note 9), and $15.6 million for the MVP C Interest Acquisition. The Company funded its share of the consideration for the MVP A and MVP C Interest Acquisitions with cash on hand. The MVP A and MVP C Interest Acquisitions increased the Company's unamortized basis differences, a portion of which is amortized in the Statements of Condensed Consolidated Operations.
In January 2026, NextEra completed its acquisition of an approximately 2.66% interest in each of MVP A and MVP C from ConEd pursuant to a similar preferential buy-out right under the MVP LLC Agreement. Following these acquisitions, ConEd is no longer a member of MVP A or MVP C.
Investments in Equity Securities
The Investment Fund. The Company holds an investment in a fund (the Investment Fund) that invests in companies that develop technology and operating solutions for exploration and production companies. As of June 30, 2026 and December 31, 2025, the fair value of the Company's investment in the Investment Fund was approximately $48 million and $33 million, respectively, and is presented in investments in unconsolidated entities in the Condensed Consolidated Balance Sheets. The Company computes the fair value of the Company's investment in the Investment Fund using, as a practical expedient, the net asset value provided in the financial statements received from fund managers.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
9. Midstream Joint Venture
PipeBox LLC (the Midstream Joint Venture) is a consolidated subsidiary of the Company in which Blackstone Credit & Insurance (the BXCI Affiliate) holds a noncontrolling interest. As of June 30, 2026, the Midstream Joint Venture's assets included approximately 950 miles of FERC-regulated interstate pipelines, the Hammerhead Pipeline System (a gathering header pipeline that connects production in Pennsylvania and West Virginia to MVP Mainline and other interstate pipelines) and a 53.2% ownership interest in MVP A.
Pursuant to the amended and restated limited liability company agreement of the Midstream Joint Venture (the JV Agreement), the Midstream Joint Venture is required to distribute available cash flow to its members at least quarterly. Under the JV Agreement, available cash flow is distributed 60% to the BXCI Affiliate (as the holder of the Class B units in the Midstream Joint Venture) and 40% to the Company (as the holder of Class A units in the Midstream Joint Venture) until the BXCI Affiliate achieves the Base Return (as defined in the JV Agreement).
During the six months ended June 30, 2026, the Midstream Joint Venture paid distributions of $238.0 million to the BXCI Affiliate. Distributions from the Midstream Joint Venture to the Company are eliminated in consolidation. As of June 30, 2026, the remaining amount required to achieve the Base Return was approximately $3.4 billion.
Based on the provisions of the JV Agreement, the Company allocates the Midstream Joint Venture's net income between the Company and the BXCI Affiliate based on changes in each member's claim on the Midstream Joint Venture's book value. The Company recognizes net income attributable to the noncontrolling interest based on the amounts that each member would hypothetically receive at the balance sheet date under the JV Agreement's liquidation provisions, assuming that the net assets of the Midstream Joint Venture were liquidated at their recorded amounts and after taking into account any capital transactions between the Company and the BXCI Affiliate.
MVP A Interest Acquisition. As discussed in Note 8, the Company completed the MVP A Interest Acquisition for total consideration of $198.3 million, excluding transaction costs, which was funded by the Midstream Joint Venture's members in proportion to each member's existing ownership interests in the Midstream Joint Venture through capital contributions. The BXCI Affiliate's capital contribution of $98.4 million is presented in contribution from noncontrolling interests in the Condensed Consolidated Financial Statements. In connection with such funding, the Midstream Joint Venture issued additional Class A units to the Company, as the Class A unitholder, and Class B units to the BXCI Affiliate, as the Class B unitholder, to maintain the members' relative ownership percentages. The capital contributions increased the BXCI Affiliate's claim on the Midstream Joint Venture's book value and, as a result, increased the remaining amount required to achieve the Base Return.
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
10. Income Per Share
The table below provides the computation for basic and diluted income per share.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (Thousands, except per share amounts) | |||||||||||||||||||||||
| Net income attributable to EQT Corporation – Basic and diluted income available to shareholders | $ | 211,425 | $ | 784,147 | $ | 1,698,654 | $ | 1,026,286 | |||||||||||||||
| Weighted average common stock outstanding – Basic | 625,962 | 599,221 | 625,549 | 598,574 | |||||||||||||||||||
| Stock options, restricted stock and performance awards (a) | 3,087 | 3,703 | 3,521 | 4,322 | |||||||||||||||||||
| Weighted average common stock outstanding – Diluted | 629,049 | 602,924 | 629,070 | 602,896 | |||||||||||||||||||
| Income per share of common stock attributable to EQT Corporation: | |||||||||||||||||||||||
| Basic | $ | 0.34 | $ | 1.31 | $ | 2.72 | $ | 1.71 | |||||||||||||||
| Diluted | $ | 0.34 | $ | 1.30 | $ | 2.70 | $ | 1.70 |
(a)Excludes securities that would have had an antidilutive effect on diluted income per share, which had a weighted average, in thousands, of 2,611 and 744 for the three months ended June 30, 2026 and 2025, respectively, and 1,311 and 570 for the six months ended June 30, 2026 and 2025, respectively. Such antidilutive securities included the stock options described in Note 11, which have exercise prices exceeding the average stock price of EQT common stock.
11. Share-Based Compensation Plans
Effective April 27, 2026, the Management Development and Compensation Committee of the Company's Board of Directors granted an aggregate total of 3,650,000 non-qualified stock options to EQT's executive officers under the EQT Corporation 2020 Long-Term Incentive Plan. The grant of stock options to each executive officer was allocated equally to three separate tranches, with each tranche having a strike price (i.e., an exercise price) set at a significant premium to the then-current market value of EQT common stock (specifically, the exercise price for these tranches was set at $90, $95 and $100 per share). Subject to the conditions set forth in the option award agreement, the three tranches vest and become exercisable on the third, fourth and fifth anniversary of the grant date, with the option award agreement expiring on April 27, 2033. Consistent with the objectives of the Company's executive compensation program, these stock options were designed to further align executive long-term incentive compensation opportunity with the long-term interests of the Company's shareholders and to support the retention of the Company's executive officers.
The fair value of the Company's stock option grants was estimated at the grant date using a lattice option-pricing model. The key assumptions used in the valuation are summarized in the table below.
| Option Tranche 1 | Option Tranche 2 | Option Tranche 3 | ||||||||||||||||||
| Shares granted | 1,216,667 | 1,216,667 | 1,216,666 | |||||||||||||||||
| Years to vesting | 3 | 4 | 5 | |||||||||||||||||
| Stock price at grant date | $ | 58.64 | $ | 58.64 | $ | 58.64 | ||||||||||||||
| Strike price | $ | 90.00 | $ | 95.00 | $ | 100.00 | ||||||||||||||
| Expected term in years | 6.46 | 6.65 | 6.81 | |||||||||||||||||
| Grant date fair value per share | $ | 20.51 | $ | 20.20 | $ | 19.80 |
EQT CORPORATION AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Across all three tranches, the valuation used the same blended volatility (45.86%), risk-free rate (4.09%) and dividend yield (1.09%). Expected volatility was based on an equal blend of the Company's historical and implied volatility. The risk-free rate was based on the U.S. Treasury yield curve in effect at the grant date. The dividend yield was based on the Company's three-month average expected dividend rate.
The aggregate grant-date fair value of the awards was $73.6 million. The Company recognized $3.4 million of compensation cost related to this grant during the three and six months ended June 30, 2026 and expects to recognize $70.2 million of unrecognized compensation cost over a weighted average remaining period of 3.8 years.
12. Blackline Midstream Acquisition
On July 21, 2026, the Company completed its acquisition (the Blackline Midstream Acquisition) of all of the operating subsidiaries of Blackline Midstream, LLC, an owner and operator of liquefied propane gas storage, distribution and marine terminal facilities and associated assets on the Piscataqua River in Newington, New Hampshire and Providence, Rhode Island. The purchase price for the Blackline Midstream Acquisition was approximately $77 million, subject to customary post-closing purchase price adjustments. The Company funded the consideration with borrowings under EQT's revolving credit facility.
EQT CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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