Key Highlights

  • Adjusted EPS was $0.42, against $0.52 a year earlier, while diluted EPS was $0.44.
  • Free cash flow was $398 million, with capital expenditures of $638 million, 10% below the low end of guidance.
  • Sales volume was 583 Bcfe at an average realized price of $2.72 per Mcfe.
  • Total debt fell to $5.55 billion from $7.80 billion at year-end 2025.
  • The all-stock Range Resources deal uses an exchange ratio of 0.987 EQT shares per Range share.

EQT Earnings: Did Cost Control and a Merger Overshadow a Lower Profit?

EQT (NYSE:EQT) reported third-quarter results on Tuesday, October 27, with adjusted EPS of $0.42, down from $0.52 a year earlier. Diluted EPS was $0.44 against $0.53, and net income was $345 million against $407 million. As screened, the adjusted result compares with an estimate of $0.36.

Management attributed the outcome to stronger realized pricing through marketing, operating costs at the low end of guidance and capital spending well below plan. The earnings call was canceled because of the pending acquisition of Range Resources (NYSE:RRC).

Adjusted EBITDA was $1,143 million against $1,328 million, and adjusted operating cash flow was $1,096 million against $1,221 million.

Cash Flow and Volumes: How Strong Was the Quarter Beneath the Headline?

Sales volume was 583 Bcfe, compared with 634 Bcfe a year earlier, and included 21 Bcfe of strategic curtailments. The average realized price was $2.72 per Mcfe against $2.76. The natural gas differential was a negative $0.64 per Mcf, which management described as favorable to guidance despite wider basis.

Operating costs were $1.09 per Mcfe against $1.00. Capital expenditures were $638 million, 10% below the low end of guidance, and free cash flow was $398 million against $601 million.

Over nine months, adjusted EPS was $3.13, free cash flow attributable to EQT was $2,444 million and adjusted EBITDA was $5,025 million. Total debt was $5.55 billion at September 30, compared with $7.80 billion at year-end 2025. Net debt was $5.47 billion and liquidity was about $3.5 billion.

Range Resources Deal: What Are the Terms and Rationales?

The all-stock merger, announced on Monday, October 26, converts each Range share into 0.987 EQT shares, leaving EQT holders with about 73% of the combined company. Management expects $325 million of base annual synergies within two years and sees a path to more than $600 million over the long term. Closing is expected in the first quarter of 2027, subject to regulatory and shareholder approvals.

The combined company would have pro forma enterprise value above $50 billion, net production above 9 Bcfe per day and more than 30 years of inventory. The companies cited about $20 billion of cumulative free cash flow over five years at recent strip pricing and expect investment-grade-level credit metrics at closing.

EQT also raised its dividend 3% to $0.68 per share annualized, which it linked to cost structure improvements and synergy capture.

EQT Earnings: What Guidance and Milestones Come Next?

For the fourth quarter, EQT guided to sales volume of 550 to 600 Bcfe, including 10 to 20 Bcfe of curtailments, and operating costs of $1.14 to $1.28 per Mcfe. Full-year volume is guided to 2,375 to 2,450 Bcfe, with maintenance capital of $2,020 million to $2,100 million and growth capital of $580 million to $640 million. Watch for the joint proxy filing, shareholder votes and interest in the 42-inch POWER pipeline open season.