EQT (EQT) 30 Oct 242024 Q3 Earnings call transcript

Thank you for standing by. My name is Danica, and I will be your conference operator today. At this time, I would like to welcome everyone to the EQT Q3 2024 Quarterly Results Conference Call. [Operator Instructions] I would now like to turn the call over to Cameron Horwitz, Managing Director, 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 yesterday's SEC. differ statements we and investor section materially because in XX-K XX-Q in Form Factors presentation, Form release, filings results make described of and events with and recent subsequent from our the Risk the of these the earnings most our factors in to undertake update forward-looking not financial certain statements. Today's contains do any call non-GAAP any also We measures. duty release that, most disclosures financial the our measures. With to regarding refer Toby. the measures, recent most including such important Please investor to I'll over call reconciliations earnings presentation to for GAAP turn comparable and

good everyone. Cam, morning, Thanks, and

third created among one gas the has gas our curve. the This Equitrans leading has duration cost natural acquisition of absolute vertically-integrated business differentiated EQT closing which landscape, only business. by quarter transformed was strategic Midstream, natural into American the at low combination of the America's The energy model North a hallmarked large-scale of inventory that end

our We of low in eliminating believe successful unmatched are team term. total has a integration The tasks remarkable position regardless the EQT of several past synergies Equitrans multiple producer to we originally upside is EQT's of more business cycle. Since to has assumed by defensively months transactions price progress pace derisks would This Equitrans. commodity already years. pace synergy underwriting of honed XXXX. of the value upside, higher the generate environments integration pace disproportionate with in previously is testament position way, compression ahead achieved integration to middle synergy have million $XXX we integration been assumptions. Said combined characteristics we the hedge base commodity just optimize in have parts confidence cost base our system from cycle more as than our the for than highly value Recall, start our proprietary system to than simultaneously and ability to cost to another in lowest completed integration shareholders expected. of we the corporate which seen date X longer-term But capture million resulting along these with which with just half the over the our months. we of than original million in the where need while had derisked XX% efficient increases longer owning unlocking capture been entities. accruing quicker we X our across is acquisition, synergies occurring base to we've sprinting by closed our in $XX already more $XXX annualized financial of further savings rapid This date, our structurally

seen operational we this EQT for capture, already gains more base in We excited possible we are frac, to I'm This turn, originally value This culture. EQT's the anticipated. XXXX, prior what to employee see key that site, we system in water This extremely into not EQT all-time is took employees also this internal besting us record the we was faster set we drives a similar can have buy-in potential record presentation, enabled rapid has water site. to is you our and completions for efficiency. to well completion observed year Equitrans seeing delivery over the we the costs. optimization achieved delivered earlier pace example to which efficiencies record deliver new can down pumping factor combined a in the and our An to record highlight in excited simply, time, than operations, delivery another coming coordination cultural assets of be the the now acquisition. over investor the direct Equitrans Equitrans efficiency faster integrated Equitrans' our of well of could synergy record situation what water operational together drive EQT's when highlighting the of the seamless a EQT to integration water of where as only EQT with a because where Put unlocking facilitated accomplish turn are our by water consequence can standalone. of teams be years. Alongside in a water additional you XX%. The that upstream pace well of create

Pennsylvania, an water efficiency years chain highlighted of water the over with We deliver to high-return type connection along also water other improves various the network just opportunities water sites. recent low-risk, than we are of from investment which X with completion next an recently in in gains completed West investment ability the of the EQT's connection to save Equitrans' results. that initiatives, delivery our Virginia are that by system supply of in costs acquisition. Efficient should $XX disposal This also example structurally million, with million highlighting QX more unlocked water the supercharging $XX well

production our day compared operated XX% at gross along quarter, momentum, new completion than given to XXXX set faster flat X our time, efficiency space, completion day able ultimately drop which frac in operational opportunity X may sustainably is X complete in historic crews per completed XXXX able this to EQT are day remarkable we more our Equitrans continued with we are a X record from footage quarters confidence success, average. With to a third faster to per our we for to pace. and level. integration the The activity be the past footage Bcf over see of we hold a increasing averaging performance, XX% with During of

including and not and X set of is originally which that gains across total producer years, are per still The capital we this sustainably the our installing of Hill, the ] to the Not from [ were past Tug XXXX. This target We abatement, which the scale have GHG the Alta believe Scope taking could X cars assets, per first million We EQT included foot, Midstream in equivalent potential $XX advanced X,XXX traditional to million entirety which XXX,XXX to we emissions. $XX greenhouse emissions by goal, devices. upstream net to year. Shifting EQT XXXX structural could zero in these control but of achieved reductions over more acquired operations, recently that the Scope of world pneumatic of approximately bulk zero emissions these did inclusive the become energy has but achieve net accomplish the shifting recently deploying our X in of means impacts emissions development reduced tons, approximately and devices one and we road to quantifying fleets, $XX gears. translate potential gas came our than frac save XXX,XXX the announced XcL to combo annually. replacing Scope off this status the only budget, has ahead X electric over

local monitoring and technologies, as offsets wildfire as risk ensuring forest Virginia the conservation species, not which the of environmental These stakeholders. are of verified emissions all University, placement, This native region. with available for EQT are and projects invasive current our credits. management remaining the carbon removal by purchasing both such co-benefits via economic the to management has efforts to generated practices carbon through shrub was Virginia our and with tree benefits For state West includes of opposed done have West partnership that third-party and

open high-quality deals in generate emissions Southeast as life year. With partnership, Scope low-cost call the $X maximize unique to capital-efficient ways each similar turn to expect announced Jeremy. carbon will believe multi-decade below continue long-term to utilities we only million this and XX position zero offsets ton, a the EQT net Over to vertically that, per EQT's gas we approximately cost of inventory EQT's producer path zero to the the value and natural molecule with last the emissions. over to to We now of at net I'll of supply achieving underscoring integrated X with differentiated X the tons

days Thanks, like I'd during start results. third XX by quarter quarter. to the note our on our so, Toby. shown I'll to summarizing include But for Equitrans doing results financial statements that prior

continued sales the come XXX Bcfe provided pro forma guidance the to results curtailed, Equitrans range. well our estimate a So we guidance to estimates. Strong of the Bcfe consensus at modestly for in we lower-than-expected that for our purpose efficiency XXX of X% highlighting we've curtailments per numbers of Bcfe, or would gains day, above and volumes full production QX quarter and of worth the also comparability performance, end X.X drove or had high performance. strength have true It's not noting quarter, assuming

match few a even Bcf gas strategy realizations. without tactical disrupting to low to been CapEx and below pad at our the with this of strategy tactical The and in approach we volatile to minimum G&A cycle for for and gives ability volatile came response was slash underscoring Consequently, lower gains spending is us low high range relates or quarter at daily world. forced supply million, end have accrued activity operations on Pro pricing impairing in guidance our of came why below nearly midstream benefit. at while quarter $XXX believe volumes to guidance impressive level to million has guidance taking curtailments, productive than right per lowering price in commitments, the Equitrans construction commodity of highly deploy structure due time expenses we differential efficiency third rather periods due $X.XX our weak demand midpoint of of and the in a the greater creating eliminated strategy us the than in how can production it the maintain $XXX the value as $X.XX steady over it these our a day thus midpoint the of to outperformance Equitrans, of our forma operating results Mcf, costs months the As expectations. range real curtailing in tactically leverage. Pro below $X.XX $X.XX to prove approach forma to better maximizing volume acquisition Mcfe is basis, allowed past LOE cost operations the capacity. We in a this being X full simultaneously per parts This operating price of to our that environment. per

$XXX were million, expectations. million, in revenue guidance, forma driven side, at third-party end better-than-expected high Capital in On came of pro the midstream $XXX contributions with by line at uptime. the

Turning to the in was the closing of balance eventful an QX Equitrans July. quarter with sheet.

we Pennsylvania As value, approximately from on of call, closing, upside shortly Between saving At flows approximately discussed nonoperated remaining we unsecured total followed due value $X.X we in return we Northeastern by negotiated $XXX implying divestiture expect XXXX, in thereafter realize cash. to to approximately the our X $X.X allocated million of time. Alta billion Equitrans' last the EQT's $XX at closing, shares $X.X billion them we capacity conference this came billion. year, billion to transactions XXXX. Equinor ahead cash outstanding in our assets the redeemed our a X.Xx of since nonoperated $X.X reduced announced of for investment million redemption acquisition Recall, of in We preferred to $X.XX EQT announced cost and of in capital. Yesterday, all with level of of revolver these bonds XXXX. of billion assets and asset from the August EQM's annually an

We cash to announced expect have compared this close target. this proceeds $X.XX proceeds $X we transaction for with with by debt [ $X asset ] year-end, billion latest of billion Equinor used to be our sale, to repayment. With sale expected to billion now

our quarters end in us target We asset ahead balance year-end are derisking sheet the making XXXX, by schedule. of high sale simultaneously confidence rapid process, giving sales regulated several achieving progress range our midstream our in of thus

these $X Since approximately $X as a floor hedged QX. With price upside any added pro of hedge of low $X Hub update, have non-op approximately we a additions half $X.XX we business per average our in estimate year per cost MMBtu and an the with generate our are the breakeven in bulletproof flow power MMBtu color calendar high XXXX the to for Turning prices, free cash earnings of in of year of amount XXXX at sale, unrivaled Post price gas last now of can for structure, with EQT underscoring hedges we and back our hedging. updated and NYMEX as natural nearly XX% MMBtu, per forma plan. to our significant billion MMBtu flow $X.XX generate down book scenario. cash next to free Henry per deleveraging

our XXXX, facilitates the we defensively by use turn unmatched derivatives financially as to as the curve natural gas which hedge, position expect cost limiting to of Beyond high-priced to structural at scenarios rather hedge. than low commodity end exposure in our acts need opportunistically a

Turning the macro briefly to landscape.

becoming We the studying with the interesting are of on X from the a have last decades natural which direct few gas most quarters impact one corners spent power and markets. the energy awakening of lost demand. industry

data be of gigawatts stack only evolve natural and as base for natural XXXX, U.S. hole have that to time, XX we XXXX Over by gas witnessed this scheduled a widespread the XXX course of acceptance the entertain can quickly by more nearly of coal than idea filled leaving generation critical. At in capacity generation a generation. load to the by same a gigawatts into retired gas reliable reluctance gas the power of be centers year, is power

and per suited than new view of will markets. end nuclear to believe We giving up take renewables PJM facilities by of we are to from more that be incremental dynamics of intermittent greater gas XX% centers share additional not market can day in a are to and drive Bcf be the just the power natural natural our XXXX. Notably, confidence will nature that likely demand base XX% as demand in handful this XX with retirements more regional generation These to the XX/X power Southeast coal restarted of there case reliability, expect decade. through and us data come half are gas for

these exposure this ready megatrend. Given integrated to with natural only and EQT we large-scale regions, the support is gas stand to producer from benefit directly

Bcfe, some made Turning of Bcfe improving our curtailed to robust quarter outlook. from fourth XXX prior price to guidance. less production X% our to from up we We range fourth well outlook previously volumes XXX an to to now expect Appalachia results We've and due environment. modest expected prior than to tweaks XXX quarter XXX amid

X,XXX For to this year's before our for curtail Bcfe XXXX the strength perspective, high of range of tracking when normalized we X,XXX production impact guidance demonstrating end above curtailments, production. is performance estimate the original decision the of our to our underlying

forward pull Looking pro tightening efficiency Equinor still Eastern sales by local improving volumes. Mcf range into pull maintain to XXXX, intend to differential $X.XX Bcfe per we we levels $X.XX are our to year-over-year X,XXX On improvements expect flat around volumes storage as with this guidance if activity to forma quarter the continue basis and back to normalized, have pricing fourth winter. differentials, $X.XX transactions

$XX.X upstream fourth spending our operating $X we the our by of to generate gains expenses. On shift, but natural post I and expense on embedding and net strip by would lower we of LOE efficiency drove flow shifting quarter $XX per prices, mentioned by capital for cumulative we Looking non-op gas largely conservatism previously, outlook $XXX quarter higher are reallocated accounting part lower expectations, That volumes and This roughly XXXX for some fourth million at total of pro slightly by in Mcfe, free as $X.XX expenses. pro put QX. driven quarter Note, our GP&T is our third around per we $XX still had said, this non-op below into quarter GP&T we Helene spending quarter, still MVP, $X.XX some our as contributions impact in $X.XX guidance. construction recent price along nearly forecast slightly came driven XXXX within expenses, X-year referenced timing. At complete below from variance approximately fourth at with midpoint no operating QX billion from average simply estimates fine-tuned by cash gas last increase have million fine-tuned cash the pad with out reclamation the free and reflecting Hurricane guidance driven forma distribution CapEx, spending EQT expenses the cumulative a net total Equitrans, this lowering our payment higher essentially the approximately of range G&A million, we of midpoint an pricing flow. the previously. At At of in MMBtu. natural forma guidance to sale, a billion trending second half a right-of-way capital

which While own. need other a business to we exposure of There that believe as at the no protection hedge. same now close natural in defensively combination almost its We class realize downside investors. gas, $X not providing can swells to is EQT comes is this for of upside do billion, $XX to number gas we and

with framework our with investors from the of natural portfolio. gas, exports, due same date, meaning thematically the else, to we through-the-cycle gas Our prices Toby will increasingly or simple windowing be natural is oversupply concluding positioning inventory, flow to ] that, EQT growth, investors goal to retirements, LNG will long-term oil because is to a turn compounding to for it's [ resonating if cash power success some to back that energy that of after easy-to-own OPEC bullish way coal trust stock whether principal are who brought anything I natural core gas, We you're has be gain go-to to the bearish it remarks. exposure operate fixture see to year we continue for your story year. And us

records. after business quarter, with quarter for integrated today efficiency Thanks, built we history. catalysts highest continue at operating creation. Jeremy. value key the is of gas unrivaled continued break to an And We've in EQT natural levels

and better-than-expected our program high delivering completion ahead now successful questions. our call the schedule have to continuing of long with with of our to like open promises on confidence results. And that, to shareholders I'd track the record in deleveraging of We

[Operator with Doug Instructions] Wolfe Your first question Leggate from Research. comes

Gosh, -- that Toby, than we're never guided. this, on But you guys done. happy faster the on quite what moving are you and initially perhaps lot base, congratulations I you've moving I a you're guess, given with quickly especially

$XXX you when at those both is, of risking $XXX on look I optimization? timing million. is the my So about which at the which the How synergies infrastructure to your upside Slide would X, numbers, the the question from particularly progress I million. think then case And is XX, obviously and Slide have upside us look

will we're say perspective And ahead we we're I'd that in which are execution. be realizing a through Well, in folded had Doug, currently through anticipated. when than the front provide working little greater pace both synergy related of capture future we'll in really this and being better. are the a help time What's schedule, we're of our now which us budget, from synergies at to calls. operational XXXX what the little synergies us bit moving those XX% up frame into this, estimates those integration And a bit updates those

Well, be But easy to follow-up next pricing? to the stuff. malleable tricky the were then I things the in strategy ahead it. track [ of mean ultimately certainly Toby, I on the little to bring pace prices and trying gas if seems way rather again, is you it to I'm understand quarter -- not through to a Good volumes, my and I'm curtailment the at volatility Okay. how ] how that my how of response look off third and quite articulate to is sure ask. expecting. what is bit question you is?

really longer obligations relates to is behind What's that question [indiscernible]. my ownership no any your MVP you of have

in Is or about think around have tremendous you price. the flexibility to we strategy it navigate curtailment moves really that about thinking am I way? very how this short-term should So wrong

Yes.

it's really important I understand. think to

is market changed. I dynamic of they've framing laid think Slide which gas that how the sort the we out characteristics natural XX, on and up

our people really I in businesses in going to need And of question be going powerful this to ask had volatile have flexibility there's low how mentioned, going that world to going sort you're to highs. The that way us MVCs our manage lower higher that was nature more more where really the [ fact removing those to is ], chart and we the price world in that going place. of integrated you think X business, which, highly perform It's lows a by these supports is it things. are place a will in tremendous as we're that the business give volatile forward.

we're more is the thing cost allow lifted having we've equally important huge will But a to not to have months. have means structure ability slash price that's curtail not to to levels. What alter going low going when to that. And positioned to that curtail there. a or show and as we're us super So activity sitting that's other be those us the going constraint and that that and capture volumes to be higher give is flexibility X environments up,

be a is pretty behind going at. that environment been X the that's and not muscle in And really that be to it's we're be in restart. flexing rapidly. of production months It's we've sitting turn a going we looking to that important can Our muscle this going that's past, to something on

Bcf basis QX tactically quarter really and pricing a do day realized reason this been near daily if look better That just that. have is differential to being that on a at off we've is. you up in to turning $X.XX Doug, to the on where a we able specifically, is response

really environment, below when a like of tool. price Page of basis low chart, XX, you points the kind XX% a in that of that's $X. look that you Now at referenced think like data see kind on great bottom chart It's away. And hedging Toby on I are hedging

those market. where there, just of So going time, that's us generally you're environment, money that And $X. make be to off plan because rest we can't to see the below the about in that to you gas volumes XX% are of turn supplying

still out highs. almost capture so the volumes, us but positioned it allows And lows sales be delete ] the our [ to of to

average look the to over shown there, And away you difference we're and strategy between the is have don't if [ effectively that's so the data highs, us the the median but pursue value resilient is you And where production you hedge ] a the over difference $X.XX. the Ts if long at have structurally $X.XX against can term. X still tremendous are the a certainly you curtail a of added when business. you of amount and look protected you pursuing, lows, you for year out

So it's very hard that. model to

think I how to and the we keep market, talking of lot, the discussed trying as a character have you I about, as that's is changing, we're and position.

ability and Guys, But course, look MVC, volatility pardon guess. I the not too got be intra-quarter, that pick the in many to think clarification I when strategy, beat should way have curtailment basis we spots clear, the you've at and to Is it? I meant differentials? MVP, right us therefore, of pipelines, your about on think basically the your your so just you we

Correct.

Thank That's was what for. looking I you.

Our Fargo. Read Wells next comes Roger with from question

on clarity previous the appreciate question. I Yes. the

side. us were curtailment think of a on that to lot trying figure I out the

target setting think to just something the might idea, longer? to think you I outperforming 'XX, used companies it maybe the that's little you to and so you bit trying have think seen little of you Equitrans out play what likely questions I one that's take it get here. with you a a bit synergy for do What into a an And we're acquisition. synergies days, as think But that of a obviously, surprised other have about far? you -- is early

Yes.

in, adding up I uplift for outlined note, we framed think uplift we're these you that really seeing It's that have which that most to here So a to us XX, And showing estimate the uplift. XX% from see going we're benefits conservative is assuming of that thing the operationally, were pilots compression. we synergy, synergy Xx on we're showing from Slide are the of when important in biggest compression. nearly the baked the

and has So we and determining going big hard those putting these been on be the can get larger at budget. team that scale the projects a at factor will when to compression be helpful. rolling work, our into projects Timing we'll be is

framed all of 'XX be our budget plan. So timing up and that will in

other the things then well cited. non-op dispositions, stuff have my And fairly Okay. gone you the is, obviously, asset question on

I more a debt premium asset the MVP operations would to to pay think we've press Meaning, you to you in it cash seen the balance the think cash about early. more you're how addition rightsize if just rumors sales, pay do right from as how the about And what's to the generate able would and on in you to of sheet? pattern? to the sale, think methodical in off I'm way build much debt have of then any retire trying a in you do return about just cash, the

We've time No. been spending this. of lot a on

of stacks, inefficiency that. come eliminate in I don't any plan so a to to expect the we maturity have debt efficient out of us think sort we that pretty our have front of and I out smooth

I will think pretty straightforward. it be

from Sachs. next Goldman Our Mehta Neil with comes question

progress the making Congrats on some around sales. asset

power been your time You in markets. mentioned you've lot prepared remarks spending in of the a

data as well? for and real-time perspectives and any do a demand the real-time Marcellus, specifically your step-up assessment how case and you theme, as conversations, a around what you center curious see a of in see -- centers this. in-basin AI been just Just your data the mark-to-market is data you forefront So on guys that of around do the demand views have

Yes.

So on of due sort power. of XX We're 'XX Bcf between for seeing [ natural gas to ]. a day demand we growth out laid our XX and plan

to question looking is this gas. is that at generation data million-dollar we're real-time that people of natural the be know the of because is power is AI, Some coming. going percentage What

for And the are [ the a in that in looking So manufacturers you, of a like turbine coming orders. you the largest their lot increase of Mitsubishi, world, ] see seeing we're orders one at XX% turbines. natgas in

year, orders last GE, up see are their compared You to XX%.

a done the So how of to to a this isn't a over people we've demand. And the lot by taking, headlines you of of at the too gas it's that decade. growth putting what that this power is Not largely demand last Bcf now about the day. the switching, what of power seen adds forward. to strengthening which much that. market natural workhorse add not that still And gas XX coal of lot going from gas years, over are And gas making needs I power going be the is we're we've natural hard stuff orders continue share mean, requiring while driven theme looking just a to That's is the some numbers on AI. done That forward. natural these believe have was generation up talked and last XX building has baseline

seen We've we've some nuclear nuclear seen as license in PJM. the well. side on about extensions Toby, talk restarts

As about competition How this think TAM alternatives, does around demand? into for how that about the you the you think whether nuclear. for And math it's natural fit the renewables gas or market? do that

back On XX be nuclear, is XX some would at call options to like that what the that around, in estimates gigawatts. was something Three growth we it, keeping demand come other online, Mile could looked Island this mind, power of

a these sources the that's more looking turbines. for order mean when drop Relative still similar world books needs to affordable what Our potential view And it's ] up that it's but seeing pick at power that's facilities this to X gas. not the in the meaningful. the of on about in be are what's looking add happen, energy to fresh, to to nuclear And we're looking to have required, bucket, reliable, is people going demand. would and [ gigawatts going it natural

TPH. The comes from next question Roberts with Jacob

I and XXXX, of wanted could look. just earlier is the base the your sale? if comments early be QX, in shut-ins, rate think on about thinking an to market should to in of declines X,XXX, see given I slight X,XXX XXXX at run the and closer But looking QX hit the net level we production excluding kind the

Yes. where think in we time Look, we're year, I now. are think peak a within I from the right

up would it divested. XXXX. So that on I not as we've a that say assets I year-over-year, growth do little to our bit we expect But as remaining relatively see get into we come flat

sale. capital we Should production the about to lastly, from be I And know Okay. appreciate any expense? non-op thinking impact that. changes operating then release the I the noted and

at I time. No, materially say wouldn't this

comes America. question Akamine Bank Kalei of from next Your with

My in time? little you simply bit putting first happen? places right crew? about one the water look the this operational the does When is in impact a water, on can what could how cutting And you frac question particular. you capital help Can standby talk Are more synergies, drop on like?

It's Yes. efficiencies. of at feet pumping That the day. It's day. driven completion factor per amount simple. we're look the by we can amount hours per is pretty of When we that frac for driving

us, part a of a and So part we not on waiting time when We've nonproductive the that. look wedge at eliminated water. that we're big for large was pumping NPT of

time So your you out time take a per footage you day with NPT replace ] of [ and foot that lot increases.

about to or perspective, 'XX year set $XX per could up that frac So into foot can crews. to you've efficiency less crews, by operational same million footage roughly per frac XX% if monitoring and and X have you're And efficiencies a positioned cost you what yourself of savings to amount we're running that translate of increase that's From value. your $XX get the XX% bake and of plan. the

with and And just going Toby, with the I clarify, clear, this get [ proves to this But is and to time more the to be this from it synergy synergy target? ] hard guess separate? your of to your evolution it's in business tease blurry. out in over is or the is perspective, natural target still that's our

not separate. in That was would be included synergies. That our

the clarity. I appreciate

it's I and balances, gas to goes parts. one second X The guess

can bringing remind at winter have about what and in-basin you how you you what you when flow can And currently looks headline you're like? it us look then much our an that curtailments, pricing? that numbers? production And that winter, the thinking in fully on MVP, that First, for us is give how idea back the can then more could understanding in-basin on mean

Yes.

online of what on we've have that So fully we first several curtailed ], actually. [ question for been weeks,

bringing It's is additional had back expect day, a already So X been Bcf that I an at curtailed you're your looking when the EQT balances peak. back. That's at we back. which wouldn't gas

And as at gas look I trying everyone is think to so their models.

a above It targets. the was price that that And for is that's did there because pretty a think important market we gas. our factor. need look, that showed I

lot out. that's haven't And has so at in assumptions guidance to told you played us. as market had of because to curtail a made improved QX, response in October for We look the just curtailment needed just we for our the haven't previously what

at between that's demand. ] so that look, and question, And near full and why [ is to are you've better up, flow downstream December you MVP opened move seen up there's we it, assumption should making addition in your or that February, that MVP capacity see then as effectively well performance. And the that ARB on

you'll into So that's our see effectively guidance. baked what

with Your comes Dave question Deckelbaum from next Cowen. TD

and was regulated guys hoping of give asset the a bit I you could process. color update little around sales that

now, success line? have you how non-op think time do debt year the about given a I end of 'XX that know you Just the target.

down than roughly so as selling or So like done you to portion later? you that those, retain stake? outside a a get we would something of controlling I there guess, Is to is about presumably, guess, level. ownership right you XX think percentage I have before just months want sooner a this of then you those that get to assets, And

I'd our of calls, provided be pursuing we think good was in a the capital we've interest, of I Look, been we deviation we've what we're going that there that think a cost been has clarity to the seeing robust I that. expectations. open structure from exceeded prior about pretty say There's previously. are don't and outlined pretty

investors We're the our next ahead discussions had that's that. towards it's be with forward -- gets original have -- but pushing our pegged half above capital could we said done. But initially in we're And been or of which of have deal really to think when expectations expectations. pipes look, that, I remarks, like scarce this that above the a the prepared I put is in we high-quality think quantity beyond natural of like gas to through our hope of expectations, year. first parties. [ in We working ] it's certainly later, original

to Now this we the probably into before get that expect year. done

guided the ask regionalization the you demand, where Southeast could one If I has that ton the proliferating focused is utilities. know in of place industry demand obviously, contracts helpful. about, egress the talked expansion. expansion EQT I guys in That's thematic. that a that have and generation Transco of lot to in power with obviously this a MVP you with on Obviously, just the I more. of already firm have late And know benefiting via from you 'XX with

directly. EQT, about talked from and about to commercial think we you this benefiting AI As its impact

remaining Sort on this how quantum proliferation decade? that improvement the we of end in of something should of the for between this like XXXX beyond And you what basis could much we expect those if now see is the is ] Or a of [ incremental and much more top contracted of more Southeast see firm is and expectation? the sales? potential

great Yes, question.

So day XX what XX would a about in exported XX, demand taken between in-basin think that Bcf. our the -- -- out to view, plus is of basin include Bcf to should Appalachian decade, and this of is increase We demand. about really now from end

aside overlooked the previously. through new that terms So demand expansion are And really, getting that no MVP compression expect effectively from talked to ways. in in pursue adding assumption, whole think our in the pipes another we of about is many on built a EQT we've I

back ways but tightens to and one a demand, business, our One, Beyond combination does it and both. us also it's grow. that in-basin we in-basin about think really differentials of that, we when allows and it X either think it's impact and step of how probably out it's play

really a business. price times we're So volume

to in from We model, control growth our expect be that. probably of And benefits of to benefit low-cost thoroughs both demand to can as business lot come supply the different now of disproportionately see the that connect effectively sources we of those integrated expect decades to [ new in they we online. basin, we on sides a where our ] the one

backdrop that. hyper So see think in one to we we of the out we're as that that's anybody we're from I reasons Appalachia. positioned something haven't because focused as that other And It's to plays well out do benefit on. gone playing

comes Our Josh from Silverstein with question next UBS.

] [ range. talked an about Last spending X% outlook around X.X% to quarter, the for you next initial year

guys pending midstream Given have the you year, that sale, more gains use? is efficiency now the the non-op are that this of relative end likely that the and to lower then seen thinking range a initial you sale

additional was [ in ease So efficiency the of bridge referenced high and you're million that, what removes savings at and of the for level, midpoint that we assumed X.XX out sale The the we gains time. midpoint kind ]. about of discussion, just we at we prepared non-op $XX remarks, about equated $XX XXXX of range a to if beyond the start with million out gave of had

in out it lower that midstream So But still look, into I how be we're would put exactly probably range synergies. expect toward this end of accelerating to through of even some the the savings at figure those working point that some of might ], time. to [ we

range that but work a we it's the are directionally, I'd So of process, say things that side positive looked moving in at previously.

Got it.

fourth to Henry the But lower to the were fourth pricing versus of previously what quarter the volumes Hub guys that curious you in sorry XX all should Is quarterly the you that specifically for quarter. back markets kind curtailments. we adjust it else? the is see for bring something curtailments be I'm announced about when that And guys back come numbers Appalachia? there something you it thinking to curtailed. your is our expected in forward at are you going of Bcf of in guys? What Is looking to

Yes.

have without a are Those excess selling volumes are that the in are all we what we Appalachia beyond market. had So curtail the basin. we volumes into

]. [ is looking about So Appalachia the number MX $X.XX at we're at in

$X.XX a volumes market. that, sort about really the we [ see you capacity MX high be integrated flowing is you assume level level. payments we're at pay us at dips that that, above going see to the full when of when pull excluding it cash ] you'll off midstream ourselves our plus F&D, So generally should [ That below costs, ]

[ market kind way the call you you'll it. so when for think of together ] put see the means X months, about evolve market, think it and the And over kind that I of the there's what next of bands all gas

are will online online. of approach I $X back $X, to you and continue because all of as back ping pong you all should until come think $X curtailments that sort between

there. you of tills of $X ] $X.XX that start band expect the I and I out where of some ] some think there's would probably see deferred have. with second a band peers some DUCs sitting and [ that [ online. our between the that's coming short-cycle

level. But And a resistance that, once think of we you the get downside, production have and bring effect going activity is stays production there's the effect is, effect more that it to I delayed there's it's So where beyond activity, the be to to additional on need back. production you falling, delayed real which as to a see it you is added. longer down that when think I difficult resuming saw growth delayed to

that going Slide kind we XX to likely of at I we're back level. to sit So $X referenced, think that that below

predict. year. XXXX of exposed end you're to also you see goes, is QX going get of next back to you hedged I and be path to lot that back. level, as which is highly we've the towards And into think XXXX of it to get in have. why back a and hard snap going quickly, how level just a so But very aside towards the which production And we the XXXX, We way putting to this in high remain is unhedged half that winter

comes with next Truist question from Donnes Securities. Bert Our

be expect mentioned You to kind we production. remaining Historically, though, the see and some bring efficiencies of the operators take shape should at use viable of we've shoulder come production ]? once months the of [ on those attempt that directionally loss you is throughout you [ when flattish not that strategy Or all just in because naturally year? to all advantage Should try assets. the seen curtailments as anymore wells next that about ] year to their upstream

always efficient that our never the really been [ which nature ] is execute to to really Yes, really execute, I operations mean cadence, the most that's you to focused soft pursue strategy. need strategy. and we've which not way on of really operate

out see see you're So down going least from think you EQT, of at market to Appalachia and I broadly. up more that the in don't seasonal broadly that more or sort of

try think to I pretty us, that we consistently. for run

be like will production, to for will quarters of higher need you there's flat year, QX in think rising Hub some a that [ price terms relatively which that Henry real ] local are be expect than until tight. should others, market You pretty you'll that year-over-year, being there in see in the I this but see basis and

then one Makes little pointed. this And sense. more a

assets you on obviously, got sale, asset capital low near-term a the a But of we've timing strong maybe few with questions the non-op. pricing. requirements selling On lower pretty gas on got price the during

about do started -- how 'XX all with could your you when we maybe versus So should deal achieving A&D.? maybe looking just your and you price, they leverage willing balance buyers talk at target gas assets or look everybody selling near-term just to past

underwrote view see the in at [ way, we type characterize [ our value before Yes. ] least at how XPPDXX assets sold still a it $X.XX as tax ] it, I'd have would gas. we we about under this

There's Marcellus the lower the think Northeast core next Upper strip, for on driven for Upper have prompt to which years like it. that good not felt a by couple we development. value where the prices And we Marcellus going just So predominantly Pennsylvania of pretty the include in be value despite left. of we lot is

free of with us, right X billion or of the the it received for assets basis. without think $X.XX on cash. would sorry, million And generate estimated we're million value those we just We I taking now about next And discounting. $XXX an $XXX years, effect intrinsic so specifically, happy really --

again, pretty cut no you we really matter it, feel strong. how valuation like So is the

has to of compare end you deal also One, the the come with $X.XX. differences. you prior, real had did X months probably we X curve back that If Equinor, the down

The impacts value. component. that deal So also had prior swap asset

that. element process. little There's U.S. for some of we a was out it strategic the premium them That onshore operations. feel of it's muddies really obviously strong also a that a a like outcome entirety for But overall, of of out probably bit. exit So the

Is saying when seeing value work ways? got on that you well? And were that sellers the with looking A&D, it potentially clarify, both that you're Does later it of so you Are just pricing. other to for periods you the assets? work on does side -- as acquiring strip at

It's just say. the depends. I just think It depends hard environment. on to it

think But likely are gone Toby last to longer-term as see EQT you're I a M&A we've cost been in mode in for of in I like that to and very with producer think what core now, assets, EQT we value that lowest transformation inventory. transform I for more of those X -- has right into key think inventory. the the a to the part years. like area of most it through

today, where assets other compare there's think what we're built. I there no we've at that out to

as we're focused M&A going think don't I forward. on So

have we ] inventory buy think of if our what work cycle, is character you're lowest where wasn't look available, going sheet ability that's on what and pretty shares can really -- we to cash because let's it the we the the to balance through think duration the had business have once extra the heavily that of do didn't at focus we back. acquisitively put see going we confidence. at now. -- that ensure to I actually the and that we Historically, us But with we haven't clear buy forward, I most that cost, [ just enough option

from comes today Parks Brothers. with for question final Noel Our Tuohy

the how compared to a ] comments And about where volatility thinking integrated low up have winds just [ I'm going about guess more beyond strip, interested so where your what as this thoughts about hear to there. there I a speculative reflected is do prior was in us really liquidity volatility reaching eras, in your see again, year point just forward. more out you you become or is I saw capital out we

that. curious just your on thoughts So what

get I think self-storage to market storage you look, capacity. you especially incentivize of to The out. more -- capacity will be widen I spreads way seasonal mean the is built, what is short like what -- storage need short-cycle to

storage winter in bit a the widen spreads where will the summer you are I think I And they build think quite from incentive ahead that to see so because the out that's evolves as capacity. years market

I think the that see to you other place be options will market. in begin is expressed the

terms looking So like how the I'd volatility. is that's towards be to in price extra going what market that of

favorable just the to your comes wondering, how useful. always any have pushed and for that be trying you as more be was effect? out everything look and again, that neutral get your get you planned, can at Do structure burst, contemplate your outlined And the curtailments with or capacity less of [ if ] your or does scenarios been later. sense sooner its start-up. And cost floor Storage it. getting could that given delayed of Got and you just that sort LNG strategy strategy, around I'm have I of possibility just demand of to actually a those or whether something

quarter our to -- can business when happens, and major think back to of going that get before the business to step weather advantage why the at last does take comes, how think gas are we've that look the through set hard this and react like third translated that few that proven created volatility it we've it's I mean, able we really remain able to realized business. I when geopolitical opportunity is I think Yes. gas think We've advantage because them curtailing and you seen model a prior optimizing I to demand the or has pricing activity. think volumes, gas time pricing, the higher you be higher pricing. being I on positioned to your prices cost where so to will be hard this moving opportunities. of big question a we've so come, and If position up LNG events at happen to those. And matter able withstand unhedged, get in those come I of to is on pick things whether would some instances. that it's or going to I just that price reflect and those to and it's take not environments look to prices. strip, to have some better structure just demand lower for pretty being be prices troughs the it's our have dynamic going And companies curtail years, I the that mean low-cost more to we've it's opportunistically is the think And curtail to in worked

some Noel, think of you if your exactly by I'm -- to question what about this, trying mean too.

question Pass half or year. for of If facilities getting delayed, other getting back call your is next example, the Golden at, it,

think things the most all I happens bullish of think just balances. that that's XXX Over slowing XXXX, online other if really it is right near of for respond instead X facility is you think short along swing so more of Bcf unbelievably amount very that U.S. very gas see short that that to online not do in it's comes get [ If one in happens, term, the I I say order. bullish. a XXXX, a a comes if is you're that market as with comes a towards of I and TCF into a that ] the online that progressively, in bearish of demand. material and actually days, now end little once incremental think is while capacity quickly Producers facilities going time, that

be we're look, opportunistic. to going So

well and delayed I be to back next positioned time, think getting of all getting same either together But half in of silver really happens this the potentially a some whatever kind year. of at to the way. for we're going lining stacked that's

build out and the the TILs overall back. it is activity, earlier DUCs back to That was stay suppresses remark industry your Right. activity about exactly to was it come getting I prices longer and what beyond low harder

that So I kind what of was thinking. was

All for all call. concludes today's joining. Thank right. That you

disconnect. may You now