A vertically integrated natural gas company, EQT drills for, gathers, and moves natural gas across the Appalachian Basin, serving utilities and industrial buyers with homes' heating and power. It was founded in 1888 as the Equitable Gas Company by inventor George Westinghouse to light Pittsburgh's streets with gas. Today its name, EQT, echoes those "Equitable" roots.
EQT's Q2 2026 net income fell 73% to $211M as a $675M drop in derivative gains and lower gas prices outweighed an 11.7% rise in sales volume.
The derivative that lifted recent quarters reversed sharply. rose 94.2% to $3.38 billion and widened 9.9 points to 88.2%, but fell 73% to $211 million as gains on derivatives dropped by $675 million and the average realized gas price declined 6%. The integrated cost structure held, but earnings are once again tethered to the price of gas.
Key takeaways
fell 73% to $211 million, driven by a $675 million decline in gains on derivatives and a 6% drop in the average realized price to $2.65 per Mcfe, which together more than offset an 11.7% increase in total sales volume to 634 Bcfe.
widened 9.9 percentage points to 88.2%, as the post-merger cost structure—where gathering and other midstream costs are now largely internal affiliate transactions—continued to hold, keeping production costs low even as realized prices fell.
Section summaries
Management's Discussion and Analysis
EQT's Q2 2026 net income fell 73% YoY to $211M on lower derivative gains and realized gas prices, partly offset by higher sales volumes.
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Total sales volume rose 11.7% to 634 Bcfe, driven by the Olympus Energy Acquisition and new wells turned-in-line.
Average realized price declined 6% to $2.65/Mcfe, as a lower NYMEX natural gas price was partly offset by a favorable .
The Gathering grew 5.5% to $217 million, supported by higher volumetric-based fees from the Olympus Energy acquisition, while the Transmission segment's contribution was not separately disclosed in the quarter's highlights.
rose 75.5% to $3.06 billion for the first half of 2026, and nearly doubled to $2.46 billion, funding $1.25 billion in that included acquisitions of MVP joint venture interests.
fell 32.4% to $5.5 billion, moving the company closer to its stated $5.0 billion target, while total assets were essentially flat at $41.7 billion.
What changed
The $720 million non-cash derivative gain that lifted Q2 2025 to $784 million reversed: Q2 2026 saw a $675 million decline in , confirming the risk flagged last quarter that tailwinds would reverse if NYMEX forward prices rose.
The average realized price fell 6% to $2.65 per Mcfe from $2.81 a year ago, as the higher NYMEX price environment that drove the Q1 2026 spike to $5.57 per Mcfe did not persist into Q2, validating the concern that realized prices would retreat.
reached $5.5 billion, down from $7.9 billion a year ago and $5.5 billion last quarter, putting the $5.0 billion target within reach after the $2.46 billion in quarterly was applied to debt repayment.
Strategic curtailments, which were absent in Q2 2025 and flagged as a potential return in Q2 2026, were not mentioned in the Q2 2026 highlights, suggesting the company did not curtail production this quarter despite the lower price environment.
What to watch
Whether the $675 million decline in represents a one-quarter reset or the start of a sustained , and what underlying earnings look like without effects in Q3 2026.
Whether the average realized price stabilizes or continues to decline in Q3 2026, given the guided sales volume of 570–620 Bcfe and the $710–$820 million in planned .
Whether reaches the $5.0 billion target in Q3 2026, and whether can be sustained at levels sufficient to fund both debt repayment and the increased capital expenditure plan.
Whether the Gathering 's growth accelerates as the full Olympus Energy contribution flows through, or whether the 5.5% increase in Q2 represents a new run rate.
Upstream dropped 89% to $109M, primarily due to a $675M decline in and lower gas prices.
Gathering grew 5.5% to $217M, supported by higher volumetric-based fees from acquired Olympus assets.
rose to $4.1B for the first half of 2026, while increased to $1.25B, including MVP joint venture interest acquisitions.
Q3 2026 sales volume is expected between 570 and 620 Bcfe, with total forecast at $710M to $820M.
Quantitative and Qualitative Disclosures About Market Risk
Primary market risk is natural gas and NGL price volatility, hedged with derivatives; a 10% NYMEX gas price drop would increase derivative fair value by ~$124M.
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The company’s main market risk is volatility in future natural gas and NGL prices, which it manages by hedging cash flows from produced volumes.
A hypothetical 10% decrease in NYMEX natural gas prices at June 30, 2026 would increase the fair value of gas derivative instruments by approximately $124 million.
A hypothetical 10% increase in NYMEX natural gas prices at June 30, 2026 would decrease the fair value of gas derivative instruments by approximately $117 million.
The derivative sensitivity analysis excludes the offsetting impact on physical gas sales, which the company expects would largely counter adverse fair-value moves on the hedge portfolio.
Credit exposure arises from derivative counterparty nonperformance; 76% of had a positive fair value at June 30, 2026, representing $133 million.
Interest rate risk and other market risks showed no material changes from the prior-year annual report.
In the ordinary course of business, various legal and regulatory claims and proceedings are pending or threatened against us. While the amounts claimed may be substantial, we are unable to predict with certainty the ultimate outcome of such claims and proceedings. We accrue lega…
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In the ordinary course of business, various legal and regulatory claims and proceedings are pending or threatened against us. While the amounts claimed may be substantial, we are unable to predict with certainty the ultimate outcome of such claims and proceedings. We accrue legal and other direct costs related to loss contingencies when actually incurred. We have established reserves in amounts that we believe to be appropriate for pending matters and, after consultation with counsel and giving appropriate consideration to available insurance, we believe that the ultimate outcome of any pending matter involving us will not materially affect our financial position, results of operations or liquidity.
There are no material updates to the matters previously disclosed in the "Legal Proceedings" section of our Annual Report on Form 10-K for the year ended December 31, 2025 and in the "Legal Proceedings" section of our Quarterly Report on Form 10-Q for the period ended March 31, 2026.
There are no material changes to the risk factors previously disclosed in the "Risk Factors" section of EQT's Annual Report on Form 10-K for the year ended December 31, 2025. 48 Table of Contents
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There are no material changes to the risk factors previously disclosed in the "Risk Factors" section of EQT's Annual Report on Form 10-K for the year ended December 31, 2025.
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