EQT (EQT) 26 Oct 232023 Q3 Earnings call transcript

Thank you for standing by. My name is Eric, and I will be your conference operator today. At this time, I would like to welcome everyone to the EQT Q3 2023 Results Conference Call. [Operator Instructions] I would now like to turn the call over to Cameron Horwitz, Director of Investor Relations and Strategy. Please go ahead.

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

morning, Thanks, and good Cam, everyone.

third including closing multitude The EQT, and acquisition Tug of August. performance strategic XcL of and Hill record-breaking quarter positive in the at late highlights a Midstream saw

multiple As a closing, relative Alta our reflective total on platform Chevron. The is and refine repeatable is this to currently belt complexity XX our days to for XX% to Slide integration to opportunities post see which record X Midstream well-designed the successive our acquisition. hard months. Alongside efficiencies. deal integrating transactions greater not lessons pace that this crew areas leveraging a have honed XcL facilitated with proprietary we is the our of efficiently is unique over buckets significantly that learned underwriting a shout-out integration broadly completed. has that huge of X X playbook, work assets, of the efficient digital in efficiency potential the despite pace into to the when and improvements under moment yet identified these a deck, from with and we have integration integration process did EQT achieved falling and EQT's teams shown operational the investor of past to operational We contemplate improvement To actions I Hill send incredible Tug most all integration successful roughly context, want milestones have each and comprised put the we of in take EQT for acquisition. the previous

the first performance As it and relates then to to on stand-alone have Tug Hill the teams assets. quarter what achieved for efficiencies, operational talk third provide EQT want I already on stats about some

of again operational X of Recall lasted last Slide new on the after posting August. mere on drilling drilling shown feet as XX hours hours As quarter, stellar feet XX EQT's our set and XX,XXX our in over run. well both in world This effort drilling by completions records world team our in quarter days and in on a XX,XXX investor highlighted internal record deck, Denver same record XH XQ. our bested we performance, second XX that

of maximum team, on for each underscores averaging as This which for these achieving X the many firing this the accruing quarter supply our pumping with the with twice time, pumping as record into a are bottlenecks pumping accounting quarter, all knocking aggressively monthly the crew On month is single put teams in for hours doorstep minimum prior pumping of hours hours teams XXX the on context, month. To are reflects attacking our maintenance completions besting our our completions crew of so from dividends during efforts. of our chain crews in cylinders execution strategy of and eliminate north hours possible EQT. includes XXX all perfection. all-time This for a theoretical XXX roughly front, an per north hours a for pace our third high is hours, the frac performance QX after facets to

Turning Tug back Hill. to

logistics As teams the no wasting shown team operational our unleashing we've already assets. of industry-leading as since see XX taken Tug upside EQT's XX% day days of asset some water over teams the completions and to across additional over optimize operations, has amount we per investor around on increased taking stages are in base. progress our and as time deck, To for Slide legacy development, handling relative numbers room by our completed X put sand just the our Hill this,

operations, legacy Tug over drilling since horizontal driven XX% more taking performance down and improved drilling already On by cost speeds drilling foot by the per Hill our team than has to front, XX%. relative horizontal

implement year-over-year As footage gains the we best and amount acreage by efficiency rigs practices, of to fully activity equipment all expect to same we high-grade allow drilling will us the while in of on drop still X year lateral end that X EQT from further XXXX. drilling the Tug's

stage, name methodically also teams to spacing, the proppant changes including a Our Tug test few. clusters EQT well loading, cluster type various proppant per assets, casing and design Hill on plan weight, to

represent potential from the impact of deal. potential still well associated top the operational improving design full per foot impact cost the Tug for of upside well announced up million and savings we efficiencies $XX to quantify of with the on on early efficiency assets, preliminarily creation with synergy Hill operational these we value synergies it's optimizing of efforts. The parameters to see gains potential value While and the $XXX

accrue efficiencies, and the discussed we which land a system transport should As original reminder, years. only driven water next were by synergies several integration, over the spend firm optimization

billion horizontal fine-tuning in cash $XX cumulative that of total we crews and preliminarily of X.X pro per pro level $X.X we of flow still to and production a rigs expect Tcfe run Looking to process while XXXX, forma roughly current in million ahead XXXX. forma X X our operation strip pricing BTU approximately approximately next the free from preliminarily is frac at of X annum. At we which flow cash year, free maintains XXXX are schedule, of activity billion year, to see to in approximately next per $X.XX XXXX

broader EQT's X millions shown each on Zones South. investor benefits EQT of value, concurrently only but in million Henry initially the We to these per for energy represent the of peers upstream coal-fired our tremendous and day receive will be X of deliver have the uplift improve enterprise day clear ability clean dampening of X investment-grade the of generation, cumulative increasing beginning southeastern debottlenecking and would Bcf simultaneously buyers put gas Slide by while assuming firm in Southeast agreements in physical excited million are equates molecule the firm the will the annual supply interruptions. ability on several debottlenecking Southeast while XXX our MVP and sales investment-grade outlook scale a of the to exposure the States. These environmental risk relative to Hub gas EQT gas benefits, gas EQT's counterparty. into in at more fostering to of have that sheet, capacity, we separate which coal-fired our firm also to our free flow this shareholder are day is cash outcomes year. On gas more sale providing counterparty American capacity in free utilities should previously of and part service premium believe an examples in with with supply gasoline-powered inventory Recall, XX% of these million reductions, shares cash and top price completion in pricing we capacity arrangements are equivalent Transco of sales of of concurrent entered our deals highest day XXXX. At these strong perspective, firm stock consumers To peer-leading with environmental taking the American how of blend after natural the restructured it to we replace market, among flow structure, per which Slide combined centers low economic a downstream sales X the confidence of the than demand context, our and should and catalyzing is feet of years. Shifting emissions road same will million To flow view, AMA same see new deals our EQT the downstream our this downstream attributes. EQT's vehicles further of value for agreements generate an balance but X gears with cubic sales feet projects which X feet the these climate into to shift Station of and cubic consisting we region. every needed time, of for not affordable As natural per will sector. tons supply relative of North in natural United also where grid cost these the presentation, past cash leveraging demand all environmental projects strong deck, proposition gas agreements and natural projects areas, consumers platform our region, of the EQT's underscores and million per off the advantaged arrangement MVP inventory and million volatility firm performance we executed than opportunities over unique supply expansion to annum including In the XX consumers for our MVP out X.X result reliability approximately signed create commence, this additional gas the long-term customers further a $XXX even impact, differentiated commence an dampen critically XX reliable, that as reduce is to goals. our per signal meet XX-year and XXXX. cubic approximately agreements depth high-quality ever of unique largest impact scale, a XXX, value investor believe will announce region's volatility of tangible impact XXX of covering and absolute bring power deep put into materially associated displaces and in power on into better into Recall, for These which debottlenecked the downstream the into expansion arrangements XXX by MVP, we EQT's had the the entered the pricing natural Southeast capacity generation highlight price win-win

This Last Louisiana to comes Parish, million per into agreements which on of entails services liquefaction committed a with will continuation of of and million international LNG of per agreement. day. LNG Charles a X.X agreement we definitive HOA feet Turning strategy per tolling of on to a Coast take of to heads facility to from XXX Lake last via is million upon markets. LNG Cameron heel our produce our LNG. agreement cubic in annum call, prior X or annum the LNG for day The roughly XX-year month, capacity total our X the Gulf a described gas LNG Commonwealth the a we announced under Commonwealth tolling we firm tons Bcf capacity tons per diversifying portion of delivered completion pipeline

exposure differentiated EQT upside arrangements, with we which international through pursuing believe risk a and provide mitigation. a tolling approach reminder, exposure is more downside the combination best integrated to of As

gives strategy flexibility and connectivity for our to superior market structuring end gas users protection. direct allows Our downside globally, of end us

We additional prospective exposure. tolling international increase with buyers to opportunities well as are our pursuing signing currently SPAs as

position meaningful will structure, covet molecules setting us low-cost the to in uniquely win as and coal long-duration arena. via emissions are peer-leading supply the reductions displacement, secure precedent the depth believe can we and that increasingly to inventory core EQT's And scale, international in environmental market we drive global source U.S. Our energy a similar the compete attributes

advanced Resources, West and Virginia the at of XX renowned Appalachia's Facilitated to Southeast partners plan accurate transparent, and as data-driven position commitment technology implement development lands announced reduction we market Division deploy our investor with state. our Slide state recently from Teralytic, the in public-private measurement directly by advance deck, brings of soil forest to to approach world partner Division and partnership the Commerce, decarbonization. the Natural is Virginia's premier utilities. Shifting across first-of-its-kind identify the with which transparent. with and to a protection together a emissions ensure for and its carbon Department quantification sales to of probe We to management Forestry of soil real-time West allow reduction partnership practices to of of conservation, forest our newly EQT's of the agreements state's announced firm

provide integration facility. with of We of and Virginia strategic will a carbon Labs these being We Natural and Center, will our accountability our full to deployed also projects our nature-based of by sequestration X output emissions. efficacy of the effort West X meaningful a effort. West Context Virginia Resources X in teaching carbon one assured believe partnership net Analysis company audited leverage and The processes projects multidisciplinary the partnership Operational University's in reduction highest-quality, first with digital research be be become globe. verifiable will most create to achieve of EQT to for scale the world the anywhere and factor around GHG will enabling key verifiable the this energy Scope

Appalachian Clean We excited our X country decarbonizing X of to sectors the Hub, to investor of to hydrogen Hydrogen to accelerate economy. hubs as the Regional receive funding selected deployment hydrogen recently see XX the of to in technologies U.S. Turning multiple presentation. DOE contribute the and Slide ARCHX, or were of

As as by chain community entities and development and Science provide natural Allegheny technical will gas has the to access emissions this technology with leverage Along EQT, lower team natural including hub. The COX. will the to Technology. deeply institutions, potential the state ample clean jobs. consultants, community selection various low ARCHX, up a $XXX that benefits, at permanently hub forefront organizations operations nation's future, organizations, ARCHX The the gas, Appalachian play impact, allocated million region's sequester a the and decarbonization as for role create ARCHX the of commercial and reinforces Energy produce EQT low-cost, is leadership the carbon in gas, West ARCHX critical the energy is the uniquely is initiated academic of collaboration hydrogen Virginia, transition of Appalachian GTI noting reminder, across build-out to DOE to of particularly to The and comprised Battelle, NGOs be of well than spanning our the and ARCHX and value multiple hydrogen will to the region, a broader natural XX,XXX to to with anticipated more positioned high-paying process. is facilitate

to rigorous years. we expect requirements EQT's terms In early plan are value formulating next project of in better potential, stages understand participation, the of development assessment we creation the capital with over of of a and economics high-level couple minimal

relates expect medium term, exposure. optionality low the significant for and of EQT projects for as of could driving present and within while will we all to our net to evaluate retaining Over leverage in and complete position have natural effects ARCHX Outside acreage level X.X in-basin million second-order greater have us participation, our participate EQT's subsurface it the ARCHX of gas direct hub, our for to also emissions COX demand sequestration. will expertise opportunities flexibility

hub, the pillars natural catalyze of along the have carbon the of new grail participation are strategy, over we the Jeremy. planting I'll turn in venture While seeds evolution ARCHX, call reliable various to potential EQT's that and with of our still of energy. the to into very transformation now in the the early holy believe gas zero cheap, other

quarter, assets. Toby, adjusted quarter morning, includes from noncontrolling Capital operating the CapEx results, Hill Sales impacted would Bcf comprised liquids. from without expenditures, our of water Thanks, I'll reflecting Bcfe, which the was million, of the and million, however, We efficiency gas transaction, third quarter and X.X days and continued and recycling. XcL XXX which LOE guidance Hill's reminder, our expenses barrels benefit XXX previously. Adjusted in XX mentioned million third worth a of operational Tug by produced as were range, approximately good generated note briefly low-cost excluding natural Toby $XXX reflecting flow of start revenues quarter gains and nonoperated accretion with including It's free a EQT per from contribution of Tug and of everyone. of summarizing Mcfe, respectively. volumes flow volumes million second $XXX was approximately by per included from lines and of turn-in local roughly and the unit million costs $XX the due $X.XX principally the million, increased low operating Tug the curtailments. On free noting, total lower-than-expected $X.XX, weak and to our a curtailment contribution operating cash have production were $X were response unit were were negatively per end Bcfe nonrecurring positive which in X stand-alone Bcfe $XXX quarter in of negative during free flow third cash cash basis, assets to at flow associated lower-than-expected Hill quarter. demand $X.XX interests, cash we X the partial down

second Looking guidance cost to note full accretion highlighting assets. GP&T in Tug XX, Midstream curtailments storage the our expectations our of Hill which midpoint ahead is on quarter structure our XcL of weakness. of fourth I'd and given seasonal GP&T in the of underscores Mcfe stand-alone roughly quarter, the breakeven demand a that low quarter, the reflects Slide contribution quarter worth elevated range production which $X.XX first than XcL Eastern Tug outlook $X provided we Hill fourth the per the and guidance also from quarter, the of lower It's and from half embeds acquisitions.

$X.XX natural buy structures a XX%. of a highest per run cash nearly Tcfe. free X the we production basis, premier year, and While billion company pricing of maintain at current quality opportunity yield cash schedule $X.X free working X MMBtu, the development best in gas and through X.X recent flow year our of deepest among $XX XXXX, lowest to next roughly which of and of rating our flow We from approximately inventory valuation, of in cost discount most peers. next crews we're approximately billion and anticipate value market XXXX forma project This equity to to North capitalization. and cumulative preliminarily free equates rigs flow the allow frac at of cash pro roughly strip our for to at with XXXX, X XXXX still we the credit process enterprise means to us which to the early material is to a should have the optimization scale, at the expect budgeting On XX% XX% America and investors which the

of balance and funded cash upon on quarter the cash August the $X.XX acquisition Recall, We we of with hand the loan to of sheet. borrowings. leverage in and impact to consideration though Turning of acquisitions to of term close EBITDA financing Tug $X exited this of billion $X.X third LTM convertible Hill XcL figure with Hill note billion just equates $XXX of the including days debt, total billion equity-light million we an the related contribution. which includes and the notes, full XcL Tug XX with X.Xx,

unwavering I basis average, the strength low low commitment across inventory points all peers, impacts, For XXX EQT's reference, the we upgraded has also the note quality, our credit BaaX treasury at to acquisition, differentiated of are excluding Tug Tug been rating also investment-grade net have tightened, to the the which after lowest EBITDA rising Recall, and below debt X-year profile. quarter. Despite will the and yields, leverage cost have would third natural bond shortly Hill credit by and X.XXx highlighting our an approximately EQT gas-weighted spreads end closed estimate credit we now structure. strong of reflects among quality we LTM were to so scale, yields Hill Moody's X credit XcL we that our agencies.

our coming we'll of will, a Consistent to will ahead. remain relates movements being bias our what our commodity of our maintain all-the-above achieve which to towards execution Xx limit long-term per framework the until the asymmetric a shareholder of defensively opportunistic downside to date, to allocation, track the enterprise all Star will in with strategy North with we it cycle. minimize in This risk price pleased and to anticipate turn, gas leverage continue quarters, upside target pricing, record, with at while compounding capital return natural allowing repayment sheet unpredictable debt to through balance years least our at need $X.XX flow. our the MMBtu with we countercyclical over As the being the the hedge us fortress cash provide we cap strong and parts we

to highlighted investment We we to water of new also that quarter. our Virginia the continue similar with opportunities assess strong improve rigorously returns quality risk-adjusted our last West business, system

With into with compound very cash are our opportunities now Midstream EQT, XcL improving investments of exploring upstream that allow to can team operational debottleneck efficiency. us risk differentiated deploy at infrastructure rates while return actively to part the capital flow attractive durably we of production, simultaneously our minimal

in growth program a we have that recently initiating a an shareholder which also by dividend the share underscores key is it of strategy, return raised amongst our confidence late and current existing have our share our more at than peer have business the in finally, to shareholders $X.XX repurchases the X% dividend approximate highest share $XXX see we by North the which base per Since of of our corporate increased at approximately for basis. sustainable that an cash over risk-reward pillar to annualized of key returns lowest cost weighted share America. billion sustainability executed breakeven period, price is execution XXXX, buyback a remaining of in return flow in opportunistic we this and amongst we capital. price, cycle our cumulatively and long-term XX% $X.X still on potential end, dividend favorable free generating our now authorization. And to Recall, roughly group, tool we our we our where excess the generated Our our remains have under XX% is for points well on date, million for average in

continue share structure. time on corporate repayment, pressure eliminate dividend we growing we as cost without As actions costs putting our synergy over upward structural the repurchases from our capture, debt to base and expect business such through

natural market the to the see lending We gas beyond. and to environment. several support XXXX macro in factors Turning

were gas-fired export storage back production lower-than-expected this First, overhang Bcf. than strong generation, summer LNG resilient many forecasting spring the XXX demand and by over power in reduced expected

Second, further with connection especially XXXX to rig in first in volumes XX pipeline impact while XXXX. begins in incremental we we the drop well And capacity half rigs a since quarter, this supply new in declines in, exiting down do from in flat remains high associated decline to compared slightly of see as to expect Lower year commencing QX the Permian set some the fourth gas see of from the March XX%-plus gas Haynesville levels. the maintenance count play below where we

fully natural been natural progress the are continue cleaner LNG the coal turning for with tailwinds, facilities structural as Plaquemines expect Fourth, to record away power reach and facilities create the coal will to Third, Golden before even burning share Pass we to operational. the gas. increasingly demonstrated allowing the generation from taking gas Bcf a encouraging market further, XX weakens day case commissioning investment and demand per LNG has

per We expect stands retirement coal hold, fundamentals in a demand moving XX market total production of sector alone. the will recent coal the Bcf the the to States further effect coal of equivalent drop gas support in takes where and natural by gas wave at power XX% the forward, United still as in tightening year-over-year day coal for XXXX over

debt half of have we XXXX Tug see remains of goals. of where tilted derisk position further towards We Note, XX% now with of MMBtu. should inclusive most expected portion our risk hedge Moving the a average and flow quarter weather price a added materialize. approximately per Hill's hedged, hedging. $X.XX normal production $X.XX a greater per than and weighted cash We not QX the average strategically free hedge core ceiling our to position of through XXXX, first our tactically repayment downside the MMBtu again of our potential QX weighted to volumes, to during

XXXX, and the cash protecting upside and our higher. in maximum move price market XXXX gas repayment are the near-term maintain exposure debt beyond for we flexibility when we pricing While late tight see the intentionally asymmetrically looks goals, to creating to increasingly flow prioritizing and potential natural

have storage to wide late, of winter. prior levels, Eastern a relates been Appalachian of it As byproduct by relatively basis, elevated differentials the driven warm

basis paid quarter, per strong by $X.XX corporate-wide gas this boosting natural position Our hedge our realized price MMBtu. dividends

so We have local the volumes term. an strip, the we remain near with in basis covered expected roughly XX% of advantaged relative hedges quarter fourth position money are in to current that

term, that the could to coal-fired power several including Over and day. medium of in Appalachian long additional PJM structural the of factors X demand support MVP creating see upward to we lend per the Bcf commencement incremental market, bases, retirements

recent for increasingly encouraged relates by in-service and FEMSA XXXX U.S. As to of the it MVP timing, production move we're to the quarter Equitrans projects derisks and date. outlook further first into to consent model order continue expansion The MVP Southeast the progressing. are

an create meaningful simultaneously sheet in link agreements dynamic utility for facilitate decades of $XXX to more providing is depth surety turn uniquely investment-grade see projects. EQT's that and than As cost as structure help these our these agreements the come. Upon of and projects and corporate-wide to differentials the debottlenecking while with to position commencement, million we price This of the long-term sales to X.X by balance Bcf XXXX natural investment-grade associated time. underscored recently over should in by us XXXX market EQT's quality low-cost deals per These and deals firm uplift day long-term could low scale, flow and paired utilities markets uplift EQT Toby highlighted, signed directly in free which debottlenecking optionality inventory, dynamics per flow greater a provide at to Hub premium a even that cash annualized they long-term the beyond. underpin supply is with a These free Southeast downstream growth win-win outcome of of volumes Henry region. sustainable expansion drive demand, gas we which Mcf, with drive improving customers cash $X.XX supply utility

we cash Haynesville, these occur driving per and the higher time at gas today free the our accelerating Mcf $X.XX gas. Quite cost operator natural the plays, EQT's around the the difference various a when supercharging EQT's North for complete XXXX, value clear cash structure us to down thus of relative these creation. opportunities of gravity like be value depletion, decline flow ultimately the growth believe sales compared our American growth market. price and flow cost the to years with breakeven of free in are uniquely between of cost contracts create opportunities in time agreements marginal EQT's allow natural should debottleneckings in the the approaching expect represent in and will ahead. other peers Equitrans These we continue further to accrue flow to the choice to inventory marginal $X.XX as a step by and experienced gas contractual the Importantly, declining we from cash shareholder shareholders free up differentiated highest-quality peers inventory firm gas from to to seeing differentiated same natural simply, the momentum gathering rates form examples And long-duration of arise the in

to that of capital. corporate natural supply cost observations shareholders. I'll gas return investor value, on Slide a choice a the on most amongst to U.S. gas Instead, respective opportunities as view enterprise the teams and producer believe simply, want marginal price tenet simply curve generates burdened EQT's days illustrates wellhead a to internal few XX on see just of related driven producers with or capital coupled We level to but of very relentless highlight U.S. decade. value, flow basic natural creation. cost shareholder a simple of that to this beholden are of a the to gas levels the enterprise scale of operator presentation, such the our the activity in of are cost rearview corporate unrelated an and pursuit destruction to Importantly, mirror highlighting in what the these of as generate of field we of last the by this requires CapEx. I sufficient cash current of of wellhead billions Put CapEx a underpinned hundreds assets, of capital analysis gas behavior be maximize due return types value slide. which return world-class on dollars in for IRRs excellence returns close D&C a and are XX% we value are that IRRs sufficient free required by from not to not corporate driving culture fully their

molecule marginal shareholder in from coming mode, $X.XX gas a and inventory per maintenance Haynesville, being supply price, generating is no optionality to even price requiring being created natural flow value below this is of is the depleted. cash the begin gas First, U.S. of meaning approximately MMBtu

curve, supply current corporate for less end also the is more shareholders to through-the-cycle MMBtu EQT for defensively flow cash we other which and on the of based cost per price hand, the returns On generation need durable translates at free our structurally gas low producers Haynesville of to $X already price upside. Further, see generate hedge required return market north to valuations. the away at of and

gas EQT exposure risk-adjusted prices gain superior lower pricing embedding EQT's the a gap to providing to of supply. manner in shares and a natural a to superior in hand, entry other point level cost due On are a mid-$X price,

As toward the previously and low-cost inventory. improvement, X agreements over even pressure rest period sales contractual as drive will will lower-quality in depth of the upward to peer supply our see new inventory contrast move lower of rate EQT's years cost gathering producers repeatable industry, which next likely firm over unrivaled of this the noted,

to in EQT over we now disproportionate capture positioned turn uniquely of result, believe remarks. some is a ahead. I'll upside Toby concluding a to years As price the back the for gas relative to natural amount peers call

Thanks, key one, EQT now remarks, reiterate Number is like anything career. want it gravity Jeremy. and points. prepared at few in I my felt To the and unrivaled, right to have I never conclude today's momentum a

historic of each record signing the a at simultaneously that levels, executing on and preeminent low-cost deals physical executing supply gas on the secure and supply of to value end maximize the natural create molecule emissions stage. customers vision are while cutting We provide global to producer

the our Second, power integration our blazing and of platform of proprietary digital pace, speaks playbook. to ahead Hill of integration assets at Tug the and is refinements continued which XcL record

first-of-its-kind and value already the driving our new potential this associated depth help team completion we one should flow public-private and sixth, West the and records is facilitating And again completions projects set environmental EQT's on open drilling of additional our a superior highest with in differentiated attributes. the the in per teams now Hill with scale, cash second in sales and forest EQT's days Tug with questions. to I'd first call that, carbon management the most internal by to creation peer-leading the assets, QX. operational quarter, structure, improving arising partnership EQT after becoming potential Third, stellar drilling world of yet and scale outlook sequestration world accretive to the state should execution with finally, free efficiency Virginia cost energy savings. Fifth, from achieve agreements highlight of our emissions. capacity the foot and for to company and announced assets, our just of firm operating are XX% the net like low XX $XXX quality, MVP And well value shareholder X materially of long-term Fourth, the inventory meaningful create opportunities nature-based verifiable cost facilitate

[Operator Sachs. first the Instructions] Choudhary Goldman Your line of comes with from Umang question

The firm given which Slide improves Valley Pipeline positioning, company's #XX. Mountain not the reflected on sales assume completely on I it supply notable, cost contract the long-term is is

here. for cash And future? questions come free did help in flow a So $XXX risk of the better of potential Like million. how uplift together? the there opportunities the Is you this sense than of if achieving similar deal a also get couple can more a investors in

Toby. is Umang, this

details. more what's in me then put United States, the I'll it Let color over of Jeremy the happening to some broader just kick for on and

XX% this natural demand about we've XX last grow the country. Over years, in gas seen

XX%. During about that built that's capacity the only period of grown time, been has pipeline

do shows need points it this came the about drive this lead detailed so infrastructure Jeremy, cover going it forward. more would pipeline how you the of opportunities together? from transaction, a that like for to some And want to more

Yes, absolutely.

for really just ongoing this. like commercial is find something it's to and on our part this opportunities we've been several of So months, strategy working

about to MVP. into If selling type call to you gets That these differential cost to account is you and take getting $X.XX at taking that's $X.XX think gets company-wide it uplift. differential $X.XX all-in local that flow total that's to And it, volume instead, just being on annual improvement that NYMEX want what the $XXX in the that, of beyond. MX day it in-market cash of of effectively the you premium million when in about a pricing in we're transport X.X through at there XXXX a a and net effect currently the transactions, high market. minus Bcf we're sold And level,

that flow And nature any also, the $XXX in EQT? the there that see around not for $XXX Great. through come of you Do you such help million uplift is further And foresee of where if any quantify opportunities million. risk can free cash which you future? scenarios us will

question. were relatively a to because the tranches. It's Yes. low pricing. Gulf many good contracts the we're and We think structured actually ways, pricing In in linked Coast NYMEX is risk different

directly. way change priced And from contracts and the Coast so export any in region benefit Gulf that market these the just the in they're NYMEX really on or pull LNG should

to can of of the essence is deals on at with them And terms of this. really plenty think LNG a doing taking contracts our scale what the really, try what to really about further we're tolling like pair we still We to if our sold selling that really strategy we'd volume this to molecules do of In this. hope them like the the like and into pairing we uplift, that way lot abroad. are the like approaching contracts we're structure, stage, of use through domestically replicate look, up this global is first have try and you here

this. But that's do, evidence a up is sales it's business run, for of think there sort hit, downside a we deal in it, I you that again, but really to -- I next like of like hope cash if the little deals mean, near the we it's be, couple this think hundred we're flow. across long restructured XXx So many the that But or year life like the even to of they be really there but think of of deals, deals cost, the a business, building AMA this made these that about about doing first might the million maybe here term, some these dollars the firm take time might X over is of by contracts. bit near-term

to return as XX:X value. at long-term it's is really really how build a restructuring So something we for of look investment trying kind really it we're

of from question the America. with next John of Your Bank comes line Abbott

here do you role of that? industry been press in lot there's and How from think industry potential about gas even consolidation recently see do about a Toby, between further companies. speculation consolidation how you EQT's

hasn't lot is a view Well, changed. correctly, my a to tool, of when value consolidation used We for think create shareholders.

$X.XX record done on acquisition, our we've track by assets structure. look Look are established the cost pre-synergies. we've lowering a value. Hill cost Tug I our created focused think deals smart you structure have we've at the about we few over that past lowered really Those and years, at of the lot

So but to improved clean inventory making the and Hill these that, goal, incorporated ran assets cleaner. Tug so operational X energy efficiencies a of our energy we our program, on well. be the will net that top as now into the long-life cleaner we're now make going pretty also be additive demonstrating produce are

the opportunity better every produce continue we that cost looked attractive at to think what disciplined us at, has is energy. I looks reliable to to and stand-alone And our basis. So make we be lower But a we'll do always light guiding structure, us, until us. anything a more can cleaner for wait be see business, to and

this But sort haven't opportunities, you question, for flat? the X.X but when potential do spending, you maybe without think And put about budget, provided appreciate I spend right Tcfe in when cash into of hold your you mean, at free taking about long-term perspective a that point out from you our there. follow-up how account debottlenecking time long-term true maintenance you -- flow Appreciate think of guidance that then to think CapEx that.

me let Yes, that take one.

So let's use proxy. as year next a

good what so this, things on just trying $X date to we number. it's low-risk, more color expect, new the through now still but really billion think we're that debottleneck to system about to pricing. which front, these million unique required seeing We're other we provide to is a couple land we're the water business projects note quarter, CapEx Virginia below we locations that on quite about $X location, locations like to are for later opportunities a is base at return where into acquire all-in a at looking do worth to bit million right volumes, find the platform to invested now realize $X million But example budget, when are through CapEx $XX drilled. West reinvest maintain infrastructure really really So while talked and strong the we'll Really, type last new working we expect important of opportunities, XcL to opportunities can our a in we also that. of opportunities our effectively that. We're low per better Appalachia,

our inventory. each developed program sort a about year, So active our lateral we which perpetually replacing pretty footage of have XX% extends of

basis, those And we so on as, return type it, of a see investments. call XX:X rate X:X,

number we the CapEx that And to don't towards just really that. those And maintenance see is billion. But closer the business X-year right about probably for allocate see $X that base at materially long-term so changing we come CapEx in up, to forecast continue we'll really as least.

Arun of the comes next from Jayaram line JPMorgan. Your with question

in I Toby, Tug creation thoughts Hill going wanted the is to your the Obviously, help midstream get the it terms of to of integrating value crown you highlighted and opportunities third-party system. from further the XcL on as well. structure Midstream your as was internal deal opportunities. cost jewel

That thing come have say for we're we will mind going of looking efficiency top create that's that to of for returns that from to just potential something identified. leadership ball keep highlight the lot water. is Connector to area. on Clarington we're team and picked synergies generate just completion this we're But we we're the more this capturing as any investment really low-risk up us, looking debottlenecking Arun, opportunities a pushing accelerate gains looking excited the debottlenecking. One Yes. in base to asset that's and attractive for to for, I'd water about is those value pretty important continue the that

is LOE on water And this on that business front. investments be to both that savings, and continue talk about a us infrastructure big opportunity, focus will definitely So completion come the these in those. will eyes to of and provide we're large we've makes out things we a where those if pop it to side opportunities advantage got to with able systems hopefully, really third-party front third-party things. From with give the back an that and But they up, have, an others be our are continually position cost is the opportunity of of there sense. acreage contiguous team our -- limited, for taking one them a do opportunities be we'll but and capable

CapEx you've potential. billion you billion the be $X Great. of cash And next like in differentials us free the range. Can It just give maybe thoughts where a XXXX year? flow low for $X.X outlook on highlighted sounds on your a follow-up on sense will

but differential. probably -- all-in say appropriate that's I'd if company bit of mean, trying all-in that of an in $X.XX embedded the kind right a tie like to we're now, on a basis of seeing what's movement out. is range quite a kind $X.XX Yes. I on numbers you're to

Your of Nitin next question Mizuho. comes from the Kumar line with

new contract. want of start kind sales I this firm to on

gap pricing. us the from help there's about you? of I that mentioned term. the impact an you the that Jeremy, longer-term of bridge that? million benefit What's $XXX restructuring think, I you comes to AMA is driving costing near better what understand of $XXX Could million the

Yes.

$XXX million a remember, that AMA was day. you if So originally,

during free in about we to that's XX% give is X-year call yield, about cash expansion it, total. maybe flow these period year projects and a so like up, high-level And online billion. call what out, to opted $XXX are near-term million And a $XXX MVP that's these cash some projects million it's we total flow it saying say gain effectively, $XXX math when is of probably free free come X- the built million, cash use to cost annual that flow of this, the $X until million so $XXX you is if

it again, see as, million So kind $XXX XX:X. of over billion is about we $X

for about we a again, investment pretty long-term value an near-term more from a investment it uplift. So material think it's perspective,

makes just sense. And maybe Got it. That then costs. question service quick a around

type for number mentioned year. You $X low billion CapEx of the next

us the If around peel bit onion a you could help deflation. little assumptions around maybe

talked much from what the environment foot. efficiencies capital You on in? are Tug is now? per operating right cost pretty thoughts material Or on of about savings Hill, $XXX your that How baked service

we're from reduction at lower the to cost where the driver the high on So operational cost bigger opportunity deflation. XX% steel say say, in us I'd a field. Biggest costs. very we'll steel excellence our is in see I'd expecting, a service is there continued come single-digit to for going level,

year of is a And hours One we've underpinning hour the our is XXX frac with seen this that's month pace. teams, upcoming as XXX possible. per examples assuming the budget of sort in

do high what XXX significant than probably we're seeing So we're to working can watermark. make the what we translate will just the to savings shore And on number to the more not up more service of the cost those average, side.

David next with Deckelbaum of Your the comes from question TD line Cowen.

outlook. for base that to wanted I EQT $X.X so Tug budget billion that's that sounds and ask the 'XX provided point, at the then of like just or the $XXX it this assume Hill. original million-plus you for I

you're of side. any on improvements, of benefits incorporating far so Tug you're the like seeing seem doesn't Hill it the So that especially

perspective the think caveat spend CapEx the end. come important small would is in we that our maintenance other and have opportunistic again, infrastructure there, say, if a very don't true I that to in spend, at Well, number couple low some business, the of actual a I of land count maybe items you would much maintenance from from

that CapEx, So we're capital, some more if growth makes towards total that sense. opportunistic including of guiding

So numbers to. you're the that that, I talking should think, bridge

I expand on maybe that's you a because that if think like helpful. Well, bit could

this infrastructure business you an be into 'XX, of As think and Or standpoint situation? 'XX? integration upfront more 'XX lands maybe about around we 'XX? sort front-loaded quantify this investments improvements multiyear the investment 'XX, is process? Is some extend that like into efficiency in and of of the that from an could opportunistic Does would a through

to make they years it's And looking the think see our we're we opportunities obviously, opportunistic. X to additional pretty in X at if stringent criteria to have when to just opportunity again, on come investment. based ahead I about. some pick meet Look, justify up It's XX:X going But land long-term of X:X, risk, infrastructure we on the drill the virtually XX% XX%, no going cash to we're to flow and get time. yield a that to If opportunity we're do that bit in and invest with every investment, that that. on see do

of I additional that And year, to to number. million growth billion million to true so you closer look, if $X the think want next I maintenance, about think $XXX probably much that, think is could And in $XXX what's it be that capital. range

year, shift it. one. tax deferred Is next housekeeping guess assumptions a overall percentage Appreciate for I there your burden? meaningful sneaking a of in a in tax cash as

maybe we're looking to I at kind today, full No. then XXXX, into we're XXXX, you low a We And And rate. don't where a by get time see closer at XX% think any XX% cash XXXX. a get taxpayer, like paid to tax least material tax you taxes in as is strip then rate. cash of the

the from Stephens. line question next of with Your Michael comes Scialla

a the for to those Wanted happen about Tug to the $XXX Hill so I reality? assets, there into on foot operational are what needs the far? the savings become potential based guess talked And where wells you to costs per see, that that relative efficiencies completed for of the with you're

cost the the of Well, well efficiency, the we had, that other is about that half $XXX, half savings is operational design.

continue need executing possible on as completion big So speeds and field we some that. as for safely it that doing the to to in numbers materialize, to up pace, obviously accomplish drilling putting and

to just probably don't the I'd bit of going other science. methodical a because make on all changes side the the pace to take well The run things, design more take at and thing little a more time out once. say We materialize that's will on we

the translate $X.XX. you back $XXX So which of could our a call these foot $X.XX when would about spend, about, the total time $X.XX think $XX achieve, cost million there'll about to and monitoring structure of to translate be synergies it, observed lower we'll type on of planned But operational previously on some to that step top there.

So I some your hope to question. more adds that color

And I with your the to agreements wanted about helpful. That's the ask -- LNG.

HOAs users play Sort would end on any with processes be there In having to agreement contingent binding agreements? converting any And -- potential the the terms of on comments what's you're of out LNG? there? discussions your there of

to question. Yes. us a a parties interest, of Great lot There's actually out reaching been about lot of this.

been that So encouraged we've really to date. by

the supply working through sequencing, signing SPA. we side to do of agreements terms we need on But process it's it's get the ultimate are before long-term a really In and those so a signed that. -- parallel

In terms out kind by probably of But before look, X progress the is really done. date. to package the timing, months it's whole to of been encouraged we've of XX those

comes with Energy line next the Partners. from MacCurdy Your Kevin question of Pickering

And you sales XXXX do into have margins grow those XXXX in volumes? the XXXX to baked starting in outlook? impressive. flow derisked, is locked cash firm The free are into plans your you With any very contracts to that

an ago, We we've that this just environment is merits option standpoint creation weeks But that's activity. to. a value not any time if with really that have that plan couple adjustments. a price will certainly paired exciting got in We something of we evaluate deals the made option and level these so the signed long-term of from

Got you.

free this that XX% at outlook it's into flow BV? the time, at So not baked cash

right. That's

the to bit Great. And clarity ff wanted for and $X.XX just a BTU that whether then on little basis more included I get NYMEX any you mentioned XXXX. hedges uplift.

all in. It's right. that's Yes,

question Jean Bernstein. Salisbury Ann the with next of line comes from Your

linked ideal that on X of ideal -- thinking kind prices? portfolio what's share the if gas your I global to share you MPA of that HOAs, of just And do? an have you do underpins

Yes.

the and the at what type balanced. -- if will from exposed to toes where diversification world, somewhere to this that we and by is a markets of I around sit a this less around amount mean, sort of for turn as us the of step this and water. I significant with our a of it's ton volume. tons that. XX% of and security But million it's to connecting back looked in it now, energy on that the provide achieve X% market, But said our international per think depend able total ultimately will knob purely than you for stands, X right customers on us netbacks feels perspective, we're auditing gas that annum market but putting

accessing this measured approach going to market. take So in we're a

line the Diamond Paul question Your comes from of with next Citi.

quick one. Just a

kind the close is of about bit about max I of could to Like what I of guys theoretical frame? around, currently. put to talked XXX you versus the gap? bridging XXX guys get time if that see just little can and that how You guess, you you XXX a days see average the how over wanted clarity

Yes.

us sites. Those investment $XX understand then the time upfront the could bring million about behind and for to much be the to benefits sand but possible. actual infrastructure. as theoretical time. hope around max support small, There on side. is that's sand to a million frac infrastructure water repeat to opportunities and the we to set pace the biggest closer are and $X can is hours going that spent as per We've Listen, operations. these relatively dividends the month, transload frac all XXX for for XXX and hours the cost, of per some on thing facilities And So plans opportunities location over And XXX getting month. pay logistical economics to be obviously, water we lot they

these this present One differentiator others. key certainly because that's to and the a our opportunities of benefits And inventory is able investments. think think one make much of you about in area about we're investments going these having deep we to of be versus have benefits biggest from the inventory going to with EQT benefit -- that when is EQT within these so to a

Understood. And just one follow-up. quick

You the of X producing and about demand coal out about retirements guys Bcf Appalachia. of talked incorporation MVP incremental of

you next Just X clarity wanted Just of if that. that Is you developing? timing bit do give over see the year, kind could how of years? the a X of around that

Yes.

number, mean, we at Bcf X changes the is MVP not the it, kind showing but a It's day. we over And over of annual that rest see in kind chipping at through up that those years growth of obviously demand an market. of of of obviously that different next the So half kind look I it frame away. X time

the Your Tuohy next question line comes Brothers. from of Parks with Noel

One question I had forecasts was of longer-term piece projections, there, as compelling. the you you have really the put together making some look and trends and of some these when infrastructure

different gets As reintroduced of high sustained picture high pricing you know at this, is again? you $X be like would feeder Do of $X, enough I you I look something of industry or the a plausible picture do a kind that? where class course, -- overdrilling that scenarios, a and gas mean, price problem.

level is right free investors to flow going thing demanding below wellhead back to think of Yes. supply, gas needed and but generate that of spend more actually are And the our is at drilling us your and that right-now returns people shareholders. and I biggest create, strip half-cycle from driving returns dollars on value generate maybe not biggest scenario is of actually how now. think with cover towards to they cost about current holistic cost that I looking price price force is really a mean, cost be deliver the the towards needed even the showing returns cash the that getting just away

in from little be that era over past this But the So bit shale activity it perspective, years cautious more in few a industry we at you'd think sustainable look I -- if over levels. operators, you what's happened think, this I the term to is they're over more to much that's investors and customers to serve decisions, durable going and they're -- and happy with being better their making. a long the the investment returns keep also that's holistic are lead when industry better more satisfied that making think

to I'd remember. interesting say really that's another to important that, caveat

a I or averages think I people when a cover lot world gas you coal the of gas switch about commodity terms gas. bit for in the think of is have dwindling going of in your renewable you character prices future a market days to intermittency, talking In prices. forward talk where our like view, have to, to to of change demand there's less in what's going

So you're more lot volatility. a going to see

give pause an $X, is in see that, from the producers, And of year another where more of a saying, of where extra year invest price so a really drilling which an signal, think think low. what middle, you will out that given it And and a to want for to see lot before to of I want volatility. And upstream if I you a really happened perspective we case can gas that look is $X would study companies in instead at go year. confidence lot billion that of as digits. the be low couple might were so past you a pure all seemed does took but a to creates the grow, $X. high as where gas attractive average create really are fell and price XXXX I months XX high clear That were as and in single speak, to suggested, it prices events in just prices drill all or And think $X to a you you a rage planning it where to

to start really Haynesville the seeing decline. you're Now

you ahead, going like saw cycle. And cost that So an oversupply long to you're then to be as I And going because and focus you're falling and nearly emerge to think not that higher, to this durable to have $X really back you be one cash just to missed for going able prices but prices generate materially flow much value. run, return through again, hedge year up investors year about worried to and don't the if and over we want of see really on structure I the produce back has decline differentiation. important the But love effect up. has that underpins net think I to when think you some ramp We'd that's we of undersupply. aircrafts you're is our those to one look producers

future outlook in be I prior lot years the business, it's it's M&A. that an important organic that how and a balance informing But scope is again, to we think, years. the it will through we cost cutting, our compared characteristic, just our hedging X different next how really X strategy, So about is the think whether sheet, caveat

want the from and as the advanced of lower on a gas emissions replacement. volatility some bringing you you it. wondering, impact I that on see so -- see Thanks longer-term example, for their see just these utilities Great. I And the And planning, lot doing technology of the angle you signs as are also some into for you equation the was Is turbines, to any do there, for touch the issue of coal forth? replacements horizon? greater in of efficiency, out core

back Well, the is look seeing a all, been lot capacity security power are you And into at in headlines added. what when think coming I the you American energy the of grid. that's generation

carbon this last lot peak see across energy wind Over reliability saying, And close a stepping solar. has you do the the people country intermittent, all electricity lower of we ISOs across reliable And albeit need? have it coming generation. years, are the demand your X solutions come that very and we and your where like from number is to back now

-- for you're blow to and your the now that more the to power While low when you're realize that that world the and are sun to gas your electricity the solution needs. you have energy that that, energy from above sources solutions red hits looking shine. security people And realizing demand knees be pushing I on generation, you going your praying intermittent natural like and peak lining wind carbon reliable for at and looking coverage think may this are

line Truist. Donnes Your of final question comes with Bert from the

a of the floor. LNG the some to few up think you're this brought you protection risk think careful provides that it strategy seems I downside when hedging a more in your downside of comes times, and your like I protecting idea It peers. even versus Toby,

once just you investor guy asking that So are maybe of there. of think just nature or you do term? is Or you base any maybe are longer looking you? target. the a But thoughts you that in just things your off room bit the being different hit the different backs this But little a have biggest leverage currently you guys

think think to downside protecting about is as going the also against prudent market. think an I exposure providing just investor Well, be a really gas to exciting while it's natural we what to

get really pull has of the control the to ground, move ultimately that producer energy integrated the is generate our supply it energy that needs, the that delivering will the that's that allow returns is our that with to play day, offer our tailpipe the that floors from us us and the So structure we the caring ceilings end about world deals, I also some pipeline it but EQT of blowouts. And cost can are can desperately prevent thing -- we're the contracts to right ceilings also cover the one that by think in returns caring be that over pricing. -- floors -- of demanding we do the gives so putting going price hedging our pricing is now. security And also able the while cost investors on gas and the out the like ensures through with that give facility, alternative guardrails to them that to through the to and of of at needed which experiencing providing and be can we about we the business, customers it what capital, is LNG generate

take scenarios the this for that customers of win-win think generates again, still can we we great spot some play really create exciting. the going pretty to some think returns looking pretty and volatility, are So great I to with market and get it's And volatility away customers.

opportunity? And hedging peers reemphasize me see in how of we we again, look, the moved more fully I at we being do to cost position world approach of years, let to last And Where we're say, hedging grade think programmatically the a much where more couple a opportunistically playing that's see on we investment trying why the low amongst moment. one taking can we've curve? now mean, from to do Yes. lowest Bert. the very structure, add risk keep defense that, where the a and tactical back to to I with we're

don't really production other by the exports the probably to Bcf is time leaned increase a in where see the which get more it, be because again, form to the normal whether warm and with winter in a at the another materialize increasingly to that factors in changes increase, have a up to lot as or now a during a period, $X. day we're could prices demand, into So day later you winter, right combined it really playing driver's X Haynesville, LNG biggest end you and into materially of probably $X see whether but XX, to the into on X LNG, and we've XXXX, in modeling in down strip winter, XX a so the hedges about that X the top Bcf relative cold beyond moving a winter, Mexico. XXXX, fundamental of next we of is expect $X.XX start to We to declines particular, months into the XXXX that, the $X.XX where in that that pickup

looks with inventory and demand under-investment. a low market of actually from increasingly Another tight industrial. things That backdrop structural DUC like

high could be the a of you have at some day, play, we with taking when think associated we dynamic in we that. And end that emerge, focus were to cost like say, hedging at our the the want provide structure But to see that. like volatility, just the opportunities be protecting a don't again, a of fixed to look, And great exposure I that to so I will investors this few of tough pretty the as out there'll that year. earlier also in expect and some the years world ago, like that be business really minutes future, volatility explained I saw we'd see and years in of if

out. right years. runway provide right? highest are for run our business. run about the to a option trying price. essence and they that We're program take volatility is in you the like X the we're yield We're price and investors to so trying real do in to really investors, exposure business we'd where high-quality a XX cash for exposure, not and really that think hedging scope to it try so volatility trying that And on now, can like to those that of particular, to what durable an long-term next gas have And of through just a energy investors, is flow that And its is what if lot looking

line like you're points. laterals. a great a some completing still And are Those shorter laterals then turning bit. maybe maybe It you're or slightly lot little longer but in XQ of in XQ, looks shifting gears drilling versus

you blip laterals? there's strategy still could a quarterly if talk targeting you're or if that's shift longer there So and a just

The applied may Yes. We're There base be of laterals. common of top unlock will that's has to But strategy and of be still development strategy targeting quarter-to-quarter mind our sort every changed. day. being variances asset longer you still leverage is what seeing the to here. and scale not the and continue

there Ladies for to will further at now questions and gentlemen, I are Toby remarks. closing Rice time. the call no turn this over

Eric. Thanks,

some quarter aspects are for business creating in you creating really structure, low-cost forward make some our environmental pretty how opportunities cleaner This guys business, the that our and us reliable are attributes meaningful actually opportunities and EQT we've we energy and steps of we keeping cheaper, quarter at the What marks will our another the our scale, to along optimistic deep is see inventory demonstrated and present for really also our world value and attractive way. for updated look really future, we the investment produce great talking quarter value shareholders. about the to create was for more this where to differentiating

concludes Thank for you that gentlemen, and Ladies joining. all today's call.

now disconnect. may You