EQT (EQT) 10 Feb 222021 Q4 Earnings call transcript

Good morning. Welcome to today's EQT Q4 quarterly results 2022 and outlook conference call. My name is Candice, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for question-and-answer at the end. [Operator Instructions] I would now like to pass the conference over to our host, Andrew Breese, Director of Investor Relations.

you call. our thank year-end quarter and conference XXXX morning, for fourth joining and Good today Toby me David With are Khani, Officer; Chief Chief and Executive Financial Officer. Rice, President and on today's will period for this evening. for replay The beginning be available a our call seven-day website number XXXXXX. telephone code replay for X-XXX-XXX-XXXX the with The confirmation a is of session and Toby moment, the a follow. will present prepared to remarks In Dave and the question-and-answer during has portion will presentation investor been discussion. slides of reference website, updated the Relations posted An Investor we our and certain today's to I'd call statements. like that also may today's to remind you contain forward-looking filings these Actual statements yesterday's SEC. events results investor Factors and and could we future in subsequent our release, of materially presentation, in make differ described with of from the Risk XX-K section forward-looking the factors in our because Form earnings in to undertake update forward-looking not statements. do any any We duty contain Today's non-GAAP call may also financial measures. certain earnings most to including investor Please comparable recent for to most measures, the release refer such disclosures reconciliations important and measures. regarding financial our presentation GAAP I'll over that, the call to turn With Toby.

is to drivers and scenario. on more than years our as of operations position, the several year-end, roll comes position. recent gas mapped off. we This The production peers, any representing play. EQT other maintenance and nearly runway flow At XX generated it would cash representing I lateral generate importance to XX Andrew, is our on today. differentiated I free inventory has cash any do Thank in in XXXX, we operator than XXXX gas a that and XXXX step our of reveal is operational most reflect today's transformative in from In the the billion, drilling. flow like of of I including with value despite presentation, back to in today grows our picture. EQT and a feet long and backwardated to trajectory been current flow about goes for team cash differentiated, XXXX discuss strip opportunity. and of fourth and the excess to and roughly sustainable the natural XX% near our of before pricing In But am pricing, our excited quarter that, of strip approximately That our And line natural that two this it flow investor is beyond the XXX cash growing XXXX EQT, in cash presents. as to of When When X,XXX another has generation. opportunity January XX free set have flow and I'd roughly value turn-in-line ecosystem. hedges a and our is now of from market increase free $XX Further, to production free like to compared financial never ship XXXX year yield value inventory opportunity our inventory results XX%, will of benefit a in for stronger core our has to on shareholders, has gas well year energy been natural translates we updated high-quality, us our outlook. any contiguous take locations righted support a peer, The projected cap. longest sight talk net long-term gas runway years, EQT and EQT million a free opportunity investment increasing investment allow XXX% you, the highlight and program represents for believe EQT to the morning, have everyone. good through EQT inventory term. to out

to upgraded First cost and early grade international of contracts. as sign improved multiple is a as as be ability and this such year. long-term access to as investment expect to capital, unlocks grade as sales stronger benefits Investment balance sheet status first to that half domestic the well we the

years implementing the our a bullish work continue while commodity. today, position two believe leaving, stronger the building and hedging for we Second, in higher exposure protection, we that structurally updated to have an of large gas backdrop downside upside financial natural on what past to provide strategy prices is begun

over levels well and growth even contractually additional a in will expand years has improvements, design have allowed free efficiency to program, we testing provide cash excellence fall production $X.XX by has from gathering translated without growth. ramp declining rates around Third, the strong our into that which us which moment. on operational current flow methodical coming Fourth, our I

future Lastly, capital continue equal shallow inflationary to our in and business further decline our rates current low decline XX-month from inflating corporate to production activity and required to with XX% and approximately XXs, to declining pressures. our base less base maintain the resulting

sustainability drivers the our that In the we improve value generate price our of recognize these to realizations. we will addition of can that through further business, improvement

us hedge program rising ability prices. now provides to with capture First, the our

price of For corporate million per $X.XX share. million free or flow incremental than above cash per an every cash we Btu, increase of free of less $X.XX $XXX $X.XX in our breakeven get unhedged realized flow

in XX footprint, X X.X have premiums in signed of expansive Bcf deals Second, roughly around for already which approximately RSG we've a day, $XX certified Tcfe total to encompassing we million date. on our

and the will value the market as further expect We increases. RSG of of as improve carbon cost the develops

we LNG the across exposure Lastly, gain attracting chain prices. value parties several from international to are whole interest to

key meaningful, to these see in decreasing by EQT, costs for we inflationary operate provide our efforts lost these of base, a is their multiple evident depletion are simultaneous is parent wells sustained improving EQT pads. asset for the development we business and of way and requires an catalysts our real the sight EURs, differentiator a coordinated introduced two-plus of which While results long-term adjacent In not combo-development, well fruit. large-scale, create these and provides and opportunities. years, we unconstrained creation core future we Combo-development join on legacy bearing When limited value the efforts efforts are which EQT, as we requires in large value plays. have other The to exciting and pressures. contiguous our campaigned schedule in

than XX are wells We value to minimize developing XXX,XXX combo-development leverages activity which to well XX scale multiyear, long-term down free And adjacent drive flow. to on capital cash means to sequentially guidance that long-term efficiency drive average. of approach be future through consistent slide maximize like. and the modern XXXX to from feet our we expect now asset combo and costs, interference XX lateral XX% of sustained our EQT our combo-development, per results. presentation, pads On XXX,XXX shale what you development greater we with looks show investor repeatable window, This to

well Since minimize Another well streamlined performance variability. of contributing factor to EQT, the approach our consistent number design. joining allowing to our we've wells the better to results forecast us designs, is and our of

along our have humming, in we weaving These runway well of apply drilling were starting confidence beginning our XXXX to development findings now science flow in phase in couple With is leading in consistent small And small-scale our learnings inventory. long pilots productivity, the operations that in economics, small-scale long-term driving dollars XXXX. in further creation with piloting, scale, the these across began next-generation to we design we past cash core from with of the and improvements a well as geared towards free in value years.

roughly XXXX, end time the to frame and XXXX of the have by million understand visibility translates be late the enhancements in per our standard which full offset Marcellus potential turn deployment, we on Southwest which well Given our the to preliminary than between expected by foot XXXX. believe impact. by will results investment to costs, approximately expect spud $XX is line planned in The phase Pennsylvania $XX to production we and more

flow five-year forecast full materially and when could $XXX multiples more applied entire could design our by million, our inventory. implementation well with increase that than Next-generation of cash offer across free

simple. with we that that our provides investor Slide to our balance continued cash XX leverage philosophy protection, of maintenance with, production momentum our downside times. highlights expenditures improve We This our hedging X and per X.X volumes Tcfe and is $X.X the free runway segue core billion wells, can while program, providing the a flow to reward upside ability X our capital X.X to produce in XXXX production program great afford story a with maintenance The inventory longer. from of operations, run maintain disciplined efficiency here will even what while approximately day implement participation, substantial also annually, approximately pursuit of To in expect $X.XX generate to Bcfe us our EQT of is expect into well in XXXX. to next-generation billion. of shareholders a of sheet extending also fewer this increasing capital design presentation the

$X.X flow. to We $X.X billion cash of expect EBITDA $X.XX to to generate and adjusted $X.X free billion billion of billion

XX% this before, in represents cash XXXX. yield mentioned As roughly a flow free

XXXX of foot inflation average reflect in of Our $XX program, per inclusive approximately Southwest $XXX foot. $X assumes our wells our compared for XXXX per well next-gen cost program of per per does is PA year about $XXX capital Marcellus or our This foot of to not but expected full a design foot, investment XX%.

net the the foot capital why our recognize of look total lens efficiency, volumes CapEx delivered. not at the a we spend allocation is this is we per decisions, also fully further sales or XX that concept. through picture which program However, dollar details for capital representative our Slide of

of The by have our in by from wells operations decrease have closing. Alta and increase two better. the has XX% reduced XX%. over on since been equities assets I'd cost pickup that And In next-generation and field over could in have created divergence strip to that as now timing are all the have past capital operating of to vein we a have in the efficiency of capital development, our higher beyond we value widening expected current reservoir illustration provides Despite nine capital you months, nuance M&A metric Further, deliver well a observed view better of a from inclusive public foot per expenses transactions doubled integration the value dollar despite we our In first pressures. chosen those per-volume asset teams the drilling CapEx the pricing, remain Our provide integrated in disciplined than where a Chevron, like the is value of the believe took not has acquisition capital is that between already closing improvements well on Similarly, we with assets on to design cost M&A. as same the the is invested. allocation, are we our with over in production, already costs traded. the being because efficiency of we complete, investing a our driving more significant evidenced ignores. of team inflationary per the

As ownership. substantial and than Marcellus infrastructure months the of assets XXX a net what net over Alta only more and also locations core locations midstream Recent ago. paid net of and plus included mineral included lower reminder, double we total acres more imply Alta six than transactions a value XXX XXX,XXX

$XX of representing the outstanding. waited we shareholder for this large our now myself, greater one have program. billion shares, that never never not repurchased announcement, the shares repurchase million as we our X.X more XXXX, and a repurchasing we capitalize million excitement on shares. compelling. December As use the my begin proposition value has In to $X opportunity Since roughly EQT to have of been share And month, to ability of

We to we be to available XXXX top market the best nearly look liquidity of and forward methodical natural buy like efforts, I'd with to rare in progress. pass XX% discuss a some at reserve flow the recognize hedging our stock now prudent it's of on updating free yield investment-grade results. us balance gas in to to year-end to a the strip Dave our repurchasing on to today company strategy, country. assets While opportunity the it our sheet, in cash

goals allocation the of and We and sight Toby. with excluding our line I'll impact begin developed, our achieve program, updated announced of the our executed summary. Thanks, Alta realized strategy, capital replacement ratio, investment XXX% solid XQ reserve implemented proved reported to have a hedge acquisition. grade XXXX results,

$XX.X PV-XX inventory. our As X.XX a of based billion, value, value than drilling on multi-decade is proxy only billion XX% total of or for is our less which XX% years $XX.X above before-tax of our enterprise

a As complement creating out of sheet free operations, the flow balance strong Toby outlook and laid cash are has sustainability to we the it.

approach. paying off of all XXXX, allowed strategy we are nearing wall, balanced completion in from We a maturity to to X.X early us has billion swaps which defensive more the shift with faced a hedging nearly

us allowing to years and designed benefit gas outer now investment-grade metrics, to this to continue strategy strategy XXXX, We downside we provides as maintain will for execute it Our appropriate. prices. and while from protection in rising natural implemented

XXXX, a overall and an $X. For approximately of $X we floor approximately on laid ceiling of

about which XXXX, execute shareholder program. now are to cash hedged free return XX% our on We for locks in flow

a our ability to hedges more additional capture a these As a with XX effort some the of our ourselves to portfolio hedging our expected which wanted result, capture. of preserved to provided is run-up provide slide movement and we view recent we quarterly In have details, position of for XXX% presentation. investor the for to we XXXX, on time

talk basis manage we how it. about to and like pricing I'd Now

First, quarter, REX some transportation we added Last we always firm optimize. have portfolio strong a we that Midwest capacity.

financial physical with hedges. we lock our Second, in and further basis

have our production. market. out we further slide XXXX, have For in-basin exposure by of only presentation, exposure price laid of had XX% our our On XX approximately we on

transparency, XXXX pricing, forecast free are further approximately $X.XX There flow this shown we or by of of impact that in have than would Basis. our for $XX less every parts For forecast. cash change moving a million X% local that lot move

in all, XXXX The our weather hedging open, and Basis large further. colder been quarter significantly tightens the a demonstrates first XXXX in and volatility. of fourth factor warmer outages program XX% driving fourth than growth. up the as capture quarter weather, has the of pricing, local and quarter our wider had and as volatility product between NYMEX in than We a well exposure XX% correlation resulting Basis levels, local sits XX%, range. our of modest First to The normal. storage pipeline between Historically, guidance differential this in approximately hoping weather and was this

in flow solid $XXX fourth However, costs delivered million. despite expected fourth free results quarter and the line pricing cash as in pressure, still other were quarter. we CapEx All operating key of production

in our tighter start add Now quarter the has year-over-year fourth cold Basis other positives, Bcf which created levels. several the February of deficit, X first should winter since than January much normal weather The be returned looking weather more forward, has will per quarter, to storage a demand. and with approximately

to to of at utilization been out the increased flowing is basin added the new years capacity region. FT and prior First, Appalachian compared

and Second, we by are industrial of coal of witnessing power X.X demand, and bolstered retirements growing coal in-basin tightness approximately Appalachian gigawatts supply.

setting a the higher switching As fourth quarter nearly have contracted a bar coal in result, for prices much tripled, dynamics.

production, fundamental of Having now execute valuation in-basin positive sheet and plan. to our trends. shift balance of which I'd ability track allocation keep discuss some our gears will our like and and We liquidity will balance and offset these to capital sheet liquidity. underpins a strong

As debt a of representing XX-month $X.X leverage times. our X.X net position December billion, roughly XX, of was XXXX, last

above-average a plan repurchasing next XX the and paying additional we dividend. significant meaningfully months, of amount debt, on Over distributing our down stock

to position on be plan, support XXXX capital flow Our Based hedge we leverage X.X XXXX use respectively, confidence now around buildup a our to can plan. and times, in that and and includes allocation and which our cash stated retained cash our XXXX net X.X we to flexibility. the free outlook year-end execute XXXX strip reserves able forecast be and for our times

the multiple paying are will committing we the benefits Our We're balance of XXXX from investment-grade we to attractive, plans environment. interest this, sheet doorstep contracts. which a by and $X.X down as rising unlock expect straightforward. ability absolute long-term on savings that secure interest rating, believe debt year-end With in rate cost billion are customer benefit and to such to

our liquidity rating and A the benefiting our improving is shares ability enabling confident have repurchase Our positive, our tailwind our about recent near-term conversations cash we strength of been with frequent position. to is position balance are the agencies sheet. and and are that

billion liquidity XX, $X.X of was As the third of billion, XXXX, an position $X.X improvement December from our quarter.

credit we quarter, $XXX fourth the approximately and reduced of During posted our on paid outstanding by revolver our down $XXX million. approximately million letters

quarter. XXXX, In an flows for addition, debt. impacted of of and long-term which our cash deposits $XXX margin we by January also down we our operating additional million, reduced and the collateral paid million $XXX capital working positively In

Tcfe by reported up Lastly, associated providing total the reserves up on I XXXX with reserves. for to XX% would from year-end proved acquisition. X% we XX like At conclude normalizing Alta our in XXXX, and insight some the reserves,

for Our increase increase XXXX of substantially billion the higher from $XX.X PV-XX by SEC was $XX.X XXXX. an year total before-tax price was deck. billion, ending a driven This

As previously of noted, approximately our XX% our reflecting total value, before-tax enterprise is current despite PV-XX over bookings. only higher years than PUD X.XX

less open up Mcf in per regional NYMEX I the remarks, calculation reference, the pricing we year-over-year before now used adjustments. will representing our for Toby $X.XX difference let For conclude Q&A. to prepared was

I been take have assertion, of a on Dave. beginning box. relates unparalleled natural business with the us that strengths play in what is and natural company done long-term believe organically, long-term as excitement opportunity. long-term role to and markets a dynamic SKU. addressing differentiated we've structure investment over gas the we time, to focused pricing and greater By EQT climate medium- with and of substantially core at back the differentiated, Thanks, this conclude, decline to in what inventory, appreciation our of checked want natural a of and cost Everything I investment an opportunity ability reducing our macro I to and has to base now a to Underpinning the about growing US risk operational this particular, will make able gas date upside being is as the medium pricing LNG. it gas access call. change, our said the to To see can financial we we

forcing it States LNG to we is be United grounded anywhere the questions. reduction up ramping ready be in nat world. As now will Gas reality. best America. speed, opportunity with to We apparent at to be America's influence for that scale, with to call will emissions events And open work Natural EQT, believe global do continue at significant can call cost a replicated others conversation for that are an more a are that in end conversation like executed we US Champion, the else US low in a opportunity the in here on call. gas. seeing a change, climate that cannot This The macro the that is answer way and of I'd on

Jayaram from is Instructions] [Operator Arun Our from you. Thank first JPMorgan. question

Please go Your open. line now is ahead.

Yeah, good of is thoughts on morning My first gentlemen. your return capital. on question

investors you year billion buyback differentiate yields, on E&Ps urgency given your capital return yields have and free next I continue the of on year. guide flow XX% the going outlined you get $X flexing X.X% a this to year-end. authorization to As, XX% know, And on to you wanted any your thoughts dividend about on through cash buyback

Hey is Arun. good This morning, Toby.

great and of on question exciting in yeah, us. pace. Certainly, So buyback an it's front opportunity

accelerate to pace us that $XX pace. done to understand market can look it that more even had more think think very ran on pace if focused, the that obviously, $XXX the the Just But to opportunity if at played A little bit put help started we that One, winter. would little little you has to compelling that for things us months, the a here the that had that at, you we're warm an And winter, been stock. seems bit now, buy million out. date a I XX the and I may of a the annualized influencing conservative because, about we've warmer see back have working have And is would we've bit forward short-term to given buyback. forward you created we a winter, our on the us going how about fact over a million disciplined been what couple off pretty buyback. with month, been the see through that we're weather first

we'd part the is consistent a the is our color game of talked that's to I concerned, allocation like As the to capital dividend last provide company our haven't plan that some on plan future. for -- ultimate really much I'd it, the the be about position And far dividend to as say dividend too in this mean we grower. while

follow-up, you billion in It free below Great. And mid-December. a what is my $X.X bit flow you outlined outlined a this cash year. target

affecting frequent So the I through is XXXX MVP question your free you walk was and perhaps us wondering flow XXXX or how delta and a the cash delay if impact the forecast. could on is

hi. Yeah,

So is Dave. this

and given first we out, notice guidance, prices gas put $X.XX higher. foremost, that that in free when you'll volatile. the So ranges for we were provided fact flow is actually and guidance very cash We just provided started wider basis, the our

we was we And have can did we put volatility. our that into so that here we some ranges, what that handle so cushion guidance conservatism a so

And So the that's delta the one. of part other part is.

our versus our well about we've $X.X what is above of If -- a design. billion, touch actually tied CapEx it before out new noticed, put million you at it to is actually XX up $XX

And so RSG million us. is also year-over-year I'll our in back that's guidance $XX some. going then to within bear which that about a lot will paid note get of pneumatics, and of fruit for incremental

So call with obviously, little then, And a those inflation. two things. dealt we I

So drive being along items we probably would delta what wider that before in, say the the with with out pushed, out when of what are now. and the between I the factor basis we're majority that you those that fact put MVP was and putting that,

lot. a Thanks Great.

welcome. You're

Thank you.

Capital Hanold comes from next Our question from RBC Scott Markets.

is Please live. go Your line ahead.

Thanks. Yeah.

what we if Just relief, going I'd but it where look Can can occur payments also how some that goes, to could like delayed. maybe discuss were event topical. and should it's gets to just you there staying your at think forward? interested what is assume But provide the MVP some Obviously, you in positioning you some that the on be fee that you subject. on that views very color. on that, obviously your related get

Yeah.

update and our in because we we our the MVP on – how did online. XXXX. about E-Train out have gas slides, we as placeholder if a portfolio, And their on for to something puts that before was and a in or XXXX we so. around, pick thought provided a going to moves We So come week spot FT had noticed you had we where

picked we XXXX. midyear So

think So effectively, But year guidance. updated that we we'll puts out E-Train delay. a that I is placeholder say to again, adjust set once about a their

in the fee impact benefit we as the I also say, the basis So it but the when the And we'll well. the us, XXXX, Henry XXXX, cost to pay, wide you portion relief, of basis would at we in don't don't kicker piece retained. Hub we lose look high we XXs on that widened also call pay

So when you net it's it look total out bigger or you out, it's free – I'll It's over does. call six-year it But a basis a of little actually, a so, perspective, if overall actually modest and irregardless XX%. flow the cash negative for from bit XXXX. net period an what benefit negative

Yeah, Scott, is Toby. this

– United Just American. And infrastructure, And way, States. world the because provide – energy looking New the relevant to we energy read providers. really to to is areas. as in simple. some for got this to of just of paying their these and reason now. going country, reliable continue happening England scenarios, in weeks without how they're the which, is right important in they're the like extreme to basically low-cost, New in from that, to pricing every pipeline why in Southeastern England they're comments it's into what's in people we looking what's infrastructure supply see MVP. letter on these want We relevant extreme more of is New going a just pipelines, And saying And Listen, through England senators lack high-level two we're while specifically why ago, pipeline plain don't by prices

going something States that what's You now looking England energy. United right that's starts with is is from is to is what's it south happening completed. MVP with reliable the need of part and we’ve – of aware like pipeline Europe, clean people forward benefit in things you allow are in that be that need because, to in this eastern to again really pipeline project New a there that, happening the – understand be to And to happening low-cost,

you it Appreciate core this design cut the that my bit. you give if uplift, that But Toby, of follow-up, productivity about color. it's sense And well I And well maintenance. designs? what till you And TIL's new us like little XXX these into all works? identified, a that left. you count X,XXX a think, as mentioned think, of kind I of look have can you could get kind could like Can for from what locations like

Sure.

So the -- yes.

the EUR now going at what double-digit be will right a So to able that uplift on be we're exactly looking increases say basis. not in. dialed to We're percentage are

we're different of just on and that's up give last small-scale well Each best, now -- parameters. putting have you couple have together years that the program making well-designed of color to those, well-designed those the We our next-gen parameter well-designed of uplifts, of we've some different, our done what parameters testing over picked we those doing, design. our shown testing uplifts. science that And we're combining XX was all pieces

together, if pretty of pieces So the exciting. those now. it all putting uplift a approach from We're taking got assume we that we that right would we're conservative be

all XXXX, we'll themselves the exciting of and for have by activity percentage will each of increase of EURs end total And putting impact what need. something of dictate them that assessment the forward But looking in by the think individual XXXX. full these is together three assessing in amount the mean, we we'll get reductions to that we're I I a So that tests were these. of

it. Appreciate Understood.

Thank you.

Howard from Stewart comes question Holly Weil. from next Our Scotia

Your go now open, please line ahead. is

Good and well XXXX that then cash that Dave, morning, take of gentlemen. How it just first, your you current as option expires Maybe a thinking at to E-Train. step in about the stake further are on MVP. end as

it's question. great a Yes, Holly,

make to knows. everybody Just sure

for next place XXXX comes could that fee to call approximately $XXX million We as subject call that that the through put have $XXX was cash MVP whether We take we'll relief it, a in three determine for, years, all about, take when the we'll million. check we to back roughly. want back and relief of of to we it, online, fee

think So going determination question be come right? to when online, we really That's mark. do be the will the MVP

what pull sit timing, trigger think look whether of sort we'll we wait and the so, And the see and as on about and and cash. then E-Train that we'll says pulling

Okay. And the shares? in then your stake

and we in be fourth them in some we the we'll sell want sold again. Yes, when to actually thoughtful -- quarter, we'll shares

And be is specter little now given the the timing with MVP, of probably so below unknown on stock I here, we'll patient X. think a

think we'll so the on stock. over E-Train I and we the wait MVP get And that's because until timing, creating view a cloud obviously,

Yes, indeed.

then, of acquisitions you And What you've those touch on having those mentioned Maybe that done in kind Toby, why, two deals. certainly big you about just like that It thinking you. about asset both learned of XX% area. in but as Alta and isn't maybe deals Thank move you've CEO. guess, you easy kind your the I Okay. isn't your as will specifically. of Chevron be base obviously those into to excites XXXX. hard TILs -- as looks separate, as

one, Number learned. Yes. lessons

as disciplined fact continue proven that drilling deals. Alta. to the OpEx taken to we're efficiencies on improvements completion. dropping excited underwriting pretty be conservative, We've and I we're think about we the were to approach that the these step we've see learned in pretty seeing a conservative efficiencies Chevron we Hopefully, more by the XX%, more into performance with we over operational seeing

can So, we example I think conservatively we've model really great a value built the and the this that unlock operating underwrite. modern teams it's here of

Well, these just always value disciplined, gas $X.XX, being the X prices amount of amount -- pay consider, We this to today. significant Tier to inventory. said number where any -- a we is in didn't unlocked. of what that a going both option these at acreage packages, Number we two, we're that's tremendous again, quality we always lesser there's for one. the if be of said So get ever that

So, say approach conservative all again, to to be just in our there.

that's been So, great.

focus. it's stock, we're always to But we I landscape, And best given it's the think anything I investments, for at mean or return. M&A deals of best that's our the market on future. about whether do, -- buying the in looking competes and all today the with our dollars our putting nothing rate buybacks, been M&A

color. Thank guys. you great That’s

Thank you.

you. Thank

question Neil next Our from from Mehta Sachs. comes Goldman

Your ahead. open, please line is now go

team. you Thank

higher around natural gas on perspective. question we cash Any some great. of And higher signs move inflation unit of be They color that to How function X of there? versus would XXXX. much seeing just your costs. that's get XXXX just prices? a do First in is Are

Yes.

we impact have bit a little -- some up. of midstream So that went

little probably we that have also drove then signed a pieces agreement We Those and bit with PA. went And non-op -- -- non-op our sorry water really up. cost I'm the are gas of increase. the E-Train three some

a little so inflation, -- I with you And updated we of that classify that water those but also it's bit did deal. can on is some think contracting are the E-Train

moving a David, high you not we're despite ton like environments some pretty it seeing. confidence that that's have around the sounds a of inflationary

Yes.

on and When view overall beat our we Just up. guidance high an it guidance, just we very guidance. provide do and confidence move goal to with is

we is want so we that's when just our set years' our our guidance, last guidance. And look track beat to been at goal record, two

follow-up into the just Okay. conversations is take ratings can you room the the with agencies. your for us And

And your call? to on to as indicated And you'll investment-grade? with this aggressive so comfortable on agencies ratings on everything credit guys you an take are you've posture is repurchases get taking share track

Yes.

So to have are glide our to of grade. agencies, our make just rating to want try and in they we back we to commercial we with banks, try the with -- comfortable investment path all like investors, our lots sure we very – conversations

if our they goals think multiple that's notice, that how from setting sheet I feel balance reduction, and we're is feel balance debt you our very manage comfortable our very to leverage. So we where And buyback much long-term And about standpoint sheet. and we prudent And our we've and with plan. had our shareholder allocation our our paired conversations capital right? our

So, higher prices. It's taking about important it's us. down it's to and taking not that's with important because just down, that debt really very about them absolute will very and to leverage happen

Thanks.

Thank you.

from from Dingmann Our next Securities. question is Neal Truist now

ahead. go Your line open. now Please is

Toby. who it. I'm to want and Dave unsure take morning, Good

cash Toby, that longer or Just maybe some flow. $XX laid love in expecting such you of that? you what could of on free you're or the the a talk Dave, out about the just talk efficiencies, Could billion highlighted of assumptions sort cost pace, you about, as term, bit I items you pipelines that

probably is the some we I the out on of and have, But backward color – know term strip some cash of forecast things is put Dave key the is let to assumptions. flow dated. I'll of the call the Yes. one -- cost assuming one long think free I mean, which pricing, we

in generate environment. – about So can free Obviously, 'XX, business 'XX. ton a higher you're cash in $X price flow more talking a is this

and see prices demand big be I that, be on is pretty that, a in with this I gone future. to a me to winter this So is I can I But very probably Neal, have think And the seeing and the -- clean little, greater, quickly cold energy mean, never winter. we can think here season. call energy read-through over a what clean what the I reliable you, past been really think for remind was that going has prices think, think extreme energy not let pretty have a we we're mover. gotten

a what but our and do what be Dave, do be to compelling is about setup infrastructure going there? us forecast. costs of macro low it's natural for in longer cash the investment and it, prices to got still think we have resources and solves, want free and keeps in gas. the the you so of I to talk on volatile call term some going flow cost, commitment So to not and We've sustainable

Yes.

material have our well that benefit design design in new know foremost, 'XX really and well $XX we'll We first into any cost, benefit, call embedded production. it, So that new of slightly the don't is million. over

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one follow-up. Toby. ahead, just Go then And point. Great

to is to just our which run are mentioned we're going sub-XXX I things be Dave that going those enough to calling I was what wrap-up. and mean, today all lower. represented yeah, the going business, breakeven in cost

your Great, most think a how you about just great of to just I and And many seems you just carbon other becoming mean, then talked mean, talk analysis. maybe it all you leaning cost how to about this be your one of you wondering low environmental of seem obviously, initiative, you add. have gas, lot than benefits more cost-benefit follow-up, on the like I have think number nearly about Toby. initiatives. a me, And peers. these all recently, RSG, Could initiatives? a you a your about into you

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which can our country that out laid take the methane been which of out lot. biggest going we've That's across has been methane off question is device this is knock program. emission do a Let's of to But this is the pneumatic emissions great park. a at we because that get industry the table, -- getting the something thing EQT. We've

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of a excited the front So process, but really, us. really opportunity I mean, in about it's

Thanks, said. guys. Well,

it. Got

you. Thank

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XXXX, in cash flow just at look you on $XX this talking hedging flow cash to volatility? time offensive that just about take Do you're through in point you at more billion. If cumulative the of a gas lock more given free view

Yes.

needs. and evolution think our I and look before. at way we it it our call, of I'll So balance what really, now, sheet an we've approach done the it's, We

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time, this in so tested applicable across all in this to Northeast it the at in million, or portion the Virginia in Southwest is Is this Is have this really West up a $XX PA. is to And point this want Just wells? being PA? clarify, the or you wells? of Southwest the spent across

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the So keep as to in. here and in it on XXXX, everybody that's results looking comes we're we'll excited the – updated forward about progress

taking it our Thank you Appreciate color. for the questions. you

John. you, Thank

Thank you.

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testing look for pulling it line used well on historically. could free all are those technical what you entailed different level Good maybe questions. ask to improvement But more follow-up in in the the the the my on one and improvement anything on like? from is some there out expected thanks with assuming that you how internally? modeling the around Just If the maybe share I the play of designs you aspects, are morning, these just I new moving parameters design can the are things what what designs at cash and and the could color flow plan maybe across well well appreciate taking

want the but don't tell get I too I into will this. much you to details, Yeah.

the spacing, touching we're biggest to not of factors One and well is spacing. improve design

things are So the flexibility. we have going are still where we to that be doing things

to not commit we're up completely So ourselves setting to this.

design the NextGen in flexibility of this selected parameters lot a preserving as are design. We we that

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Sure.

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feel that's that's towards drivers the alleviate much will end bigger think one that's that of like So and things inflation half the steel. that, largely year you're we and There pretty country in the there. hopefully are this some of the year, seeing of the or back of across

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it. Appreciate Okay.

you. Thank

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Good you the EQT mentioned are markets. to thanks guys. question and I a international picture of you and you morning start in squeezing and those for guess, for right. with the to Toby, me U.S. hard in. access it's But All landlocked I'm big for going opportunity particular. kind

the last just, maybe comfort foreseeable about basin. look to sense the I a or of M&A for approach is but what going that might year, Some future, outside you growth? that heard or But you in talk in your outside open prepared that took your your next basin things if peers does up, this of remarks. year, not some different force year

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So Coast the touch to while our do we do that. have access opportunity portfolio, Gulf through FT to have we

pipeline rising leadership need to question your than -- this going This to more be EQT. going than and use energy being require means at security. just that require about take industry. claim energy we prices definitely as their about landlocked, a going more It's their going It's projects be New As it's concerned to England. people voice look to to far this required to are in and is

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focus pipeline very just in have this a Appalachia that put just Russia. big has And everybody, reserves And reserves of out Appalachia. in place so given than of more amount has us, to getting in access got perspective Appalachia here we to for for be the

So we it's on focus that this. incredibly important

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bit And for the year my technology. production is guess, X.X you Yes. bit I despite Bcfe Alta the XX% different, this forma a weaker, deals, for of a follow-up is is pro little terribly little did focus. from narrower day. -- not wells having about this was new it When but a Guidance too question, Great.

in timing? Is want if Just the a the Just here. production Is us slight despite maintenance understand just risking? to you can puts it understand this takes help decline and program.

or but Yeah, that risk do say, would going again, meet we're Nitin. to our We guidance put production, beat. just actually out hopefully I we

we stay so And and year. I this how you'll execute think just tuned, see

and last of So, we in couple we effectively productivity we've down. the actually improvements -- wells, production, the instead as taken years, our of efficiency show growing CapEx

we a not want grow we'll is decide little efficiency our what if to CapEx, bit this or reducing it, So, end solve that and could continue which we year for, to we'll take doing. up probably call

read much into our guidance. wouldn't I too So, production

guys. answers the for Thanks Great.

welcome. You're

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morning. Good

Good morning.

of had things. Just a couple

the much -- been policymakers, front, gas the on ESG to the educating role while industry's road alternatives. it's the of importance resonate your with in On about natural on very comments public the

the you trying talk And making goals heard decade more Europe, that or so awareness I've the of rhetoric with in they're some here, within even about having And is terms or something signs its from international for environmental realism terms just just even more the I past the of is about or lobby agreements. wonder approaching moving gas. on long-term if -- there that aggressive of over been to in either time European concretely you way over that in need supply more see climate concerns natural there, they're

Yes.

Europe. happening We natural gas seen a towards movement have of favorably change in lot and

about on energy they're and States I impacts gas exciting. think put the and grid green really policies. climate seeing as perspective, ahead the energy over think comes is Europe And they nuclear options. of and renewables, it reliable has sacrificing, of their the five most clean Europe just to significantly marking stuff. prioritizing natural my how is and XX% United of and green probably years That's influencing

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in blackouts every I about XX talked call, States the last hours. years. The over think over the I being last XX,XXX blackout there three United happening

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mean, I yes, a solution. credible got really So, we've

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I wondering on higher maybe going more for I inflation I'm strategically environment. like to either terms between, just of that look wanted mean and of and of just core about of or and you modeling, difference wondered cost areas. know, of of that or five-year how are off ask impact. higher rates at we're Great. say, I rate in rates. story, interest just have a your impact Thanks just what some a M&A capital like, I about COVID a inflation thinking be story of less whether higher one-year terms thinking ripple looking essentially a whether lot. don't your say, might your sort then in to the divestment But of a And And in inflation

Yes.

very is inflation, asked actually So everybody you it's of interesting the because are looking people question accelerated very inflation. and at obviously, a aware

on inflationary commodities rising natural And is the are it, driving of think hand, the you underinvestment net about environment. that. all So of commodities across one beneficiary some

And so is keeping that means as demand up. to supply grow, continues not

the more, and basis. the on we're fuels net we'll and the to carbon a of get of prices impacts it cost exacerbated this it carbon in from also so inflation beneficiary And gas and rise by natural coal it's polluting has going rising call the

be So gas beneficiary. – net we'll will

cash side, free rising to flip we're and generally the flow, debt. On we're our going retire

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us helping So our of cost down capital allocation program over our time. is absolutely weighted drive average capital

that trying that good question theoretical value. really a it really we to question. sure into It's it's So good make real we're catalyze

Great. Thanks a lot.

you. Thank

from comes Research. Our from next Josh Wolfe question Silverstein

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for But investment-grade happens? to what off? need trigger away to What Thanks. referring of how else when to able mentioned Good Are slides investment you just that on pricing. And you here. can morning, in subject, same sticking that credit PCF JKM that happens is much grade something related pricing. Letters LNG something come working the Like right potentially go guys. or contract the to? Maybe doing you the then capital question right away?

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Yes.

investment it of away. the credit, by all, call letters So of not million $XXX our will get when we materially, go if grade, we'll upgraded

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you that’s effort gets pipelines happens So the that? work but do you with Herculean you get did deal. do buy infrastructure to? into around How of mentioned you like kind REX nothing the Like what if access needed new build, other to

the mean going And is flow potential EQT happens a generating and of Marcellus cash that's situation. – stays be What maintenance will the that program continued throttled. a free Yes. of disciplined to lot maintenance in

unique EQT companies the things One of grow. obviously, how can is about

is, free per cash our going a One of share things to flow about unique we the even EQT in maintenance are mode. grow

for free going flow gas I incredibly from go from to even to 'XX and is down going And our our grow, 'XX. that think unique XX% to cash in is prices us. XX% yield to is 'XX, with going

locally prices -- hope supply would can the I can where opportunity higher see long-term secure listen. we're that the to demand with to we here sustainable have we demand. than love we secure getting and what I So

from So out That throwing we're I be just sort the not until there but But and then, production pushing business, to demand everybody it. here for out letting signal. fundamentals our and without more growth hope, of definitely it's to the than have that's help. go opportunity, solution we're the But be out we and supply-demand we're itself, being willing we'll in up not whack. know going here of presents -- sustainable

Thanks.

are questions at time. There no waiting this you. Thank additional

pass So for to Rice Toby closing over remarks. the conference I'll

you. Thank

starting that price. The momentum have Thank this is this the change we got has I in of why we reason really we're was years, this? and lot position to of up, and you. a of about a The are years through over built of lot our be this to you couple show this cash past company went for The this story The flow takeover, tremendous. the excited momentum work. question continuing It This incredibly the shareholders. delivering the rate doing is is today. free really Toby, Over a why business? is turnaround

for call. you Thank your conference today's concludes That participation.

You lines. may now disconnect your