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What changed in EQT Corporation's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of EQT Corporation's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+582 added−587 removedSource: 10-K (2026-02-18) vs 10-K (2025-02-19)

Top changes in EQT Corporation's 2025 10-K

582 paragraphs added · 587 removed · 439 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

169 edited+57 added−53 removed130 unchanged
Biggest changeDecember 31, 2024 Pennsylvania West Virginia Ohio Total (Bcfe) Proved developed reserves 12,093 5,850 862 18,805 Proved undeveloped reserves 3,741 3,677 42 7,460 Total proved reserves 15,834 9,527 904 26,265 Gross proved undeveloped drilling locations 178 181 3 362 Net proved undeveloped drilling locations 150 158 3 311 Our 2024 total proved reserves decreased by 1,332 Bcfe, or 4.8%, compared to 2023 due to production of 2,228 Bcfe, negative revisions of previous estimates of 1,080 Bcfe and decreases from the NEPA Non-Operated Asset Divestitures of 1,563 Bcfe, partly offset by extensions, discoveries and other additions of 3,126 Bcfe and acquisitions from the First NEPA Non-Operated Asset Divestiture of 413 Bcfe.
Biggest changeDecember 31, 2025 Pennsylvania West Virginia Ohio Total (Bcfe) Proved developed reserves 13,420 6,295 866 20,581 Proved undeveloped reserves 3,833 3,632 — 7,465 Total proved reserves 17,253 9,927 866 28,046 Gross proved undeveloped drilling locations 204 173 4 381 Net proved undeveloped drilling locations 177 145 — 322 Our 2025 total proved reserves increased by 1,782 Bcfe, or 7%, compared to 2024 due to extensions, discoveries and other additions of 2,445 Bcfe and acquisitions from the Olympus Energy Acquisition of 1,768 Bcfe, partly offset by production of 2,382 Bcfe, negative revisions of previous estimates of 27 Bcfe and decreases from the Non-Core Asset Divestiture (defined in Note 12 to the Consolidated Financial Statements) of 22 Bcfe. 11 Table of Contents Our 2025 proved undeveloped reserves increased by 5 Bcfe, or 0.1%, compared to 2024.
We sell natural gas and NGLs to marketers, utilities and industrial customers located in the Appalachian Basin and in markets that are accessible through our transportation portfolio, particularly where there is expected future demand growth such as in the Gulf Coast, Midwest, East Coast corridor and Northeast United States and Canada.
Natural Gas and NGLs Customers. We sell natural gas and NGLs to marketers, utilities and industrial customers located in the Appalachian Basin and in markets that are accessible through our transportation portfolio, particularly where there is expected future demand growth such as in the Gulf Coast, Midwest, East Coast corridor and Northeast United States and Canada.
The FERC has jurisdiction over the transportation and sale for resale of natural gas in interstate commerce by natural gas companies under the Natural Gas Act of 1938 (NGA) and the Natural Gas Policy Act of 1978 (NGPA).
The FERC has jurisdiction over the transportation and sale for resale of natural gas in interstate commerce by natural gas companies under the Natural Gas Act of 1938 (the NGA) and the Natural Gas Policy Act of 1978 (the NGPA).
While our production activities have not been regulated by the FERC as a natural gas company under the NGA, we are required to report the aggregate volume of natural gas purchased or sold at wholesale to the extent such transactions exceed a specific volume and use, contribute to or may contribute to the formation of price indices.
While our production activities have not been regulated by the FERC as a natural gas company under the NGA, we are required to report the aggregate volume of natural gas purchased or sold at wholesale to the extent such transactions exceed a specific volume and use or contribute to, or may contribute to, the formation of price indices.
Changes to rates or terms and conditions of service, and contracts can be proposed by a pipeline company under Section 4 of the NGA, or the existing interstate transmission and storage rates, terms and conditions of service and/or contracts may be challenged by a complaint filed by interested persons including customers, state agencies or the FERC under Section 5 of the NGA.
Changes to rates or terms and conditions of service, and contracts can be proposed by a pipeline company under Section 4 of the NGA, and the existing interstate transmission and storage rates, terms and conditions of service and/or contracts may be challenged by a complaint filed by interested persons including customers, state agencies or the FERC under Section 5 of the NGA.
However, the distinction between FERC-regulated transmission services and federally unregulated gathering services is often the subject of litigation in the industry, so the classification and regulation of these systems are subject to change based on future determinations by the FERC, the courts or Congress. Oil and NGLs Price Controls and Transportation Rates.
However, the distinction between FERC-regulated transmission services and federally unregulated gathering services is often the subject of litigation in the industry, so the classification and regulation of these systems are subject to change based on future determinations by the FERC, the courts or Congress. NGLs and Oil Price Controls and Transportation Rates .
Sales prices of oil and NGLs are not currently regulated and are made at market prices. Our sales of these commodities are, however, subject to laws and regulations issued by the FTC prohibiting manipulative or fraudulent conduct in the wholesale petroleum market.
Sales prices of NGLs and oil are not currently regulated and are made at market prices. Our sales of these commodities are, however, subject to laws and regulations issued by the FTC prohibiting manipulative or fraudulent conduct in the wholesale petroleum market.
The FERC's regulation of oil and NGLs transportation rates may tend to increase the cost of transporting oil and NGLs by interstate pipelines, although the annual adjustments may result in decreased rates in a given year.
The FERC's regulation of NGLs and oil transportation rates may tend to increase the cost of transporting NGLs and oil by interstate pipelines, although the annual adjustments may result in decreased rates in a given year.
The Federal Water Pollution Control Act, known as the Clean Water Act (CWA), and comparable state laws impose restrictions and strict controls regarding the discharge of pollutants, including produced waters and other oil and natural gas wastes, into federal and state waters.
The Federal Water Pollution Control Act, known as the Clean Water Act (the CWA), and comparable state laws impose restrictions and strict controls regarding the discharge of pollutants, including produced waters and other oil and natural gas wastes, into federal and state waters.
The discharge of pollutants into regulated waters is prohibited, except in accordance with the terms of a permit issued by the EPA or a state equivalent agency. The discharge of dredge and fill material in regulated waters, including wetlands, is also prohibited, unless authorized by a permit issued by the U.S. Army Corps of Engineers (Corps).
The discharge of pollutants into regulated waters is prohibited, except in accordance with the terms of a permit issued by the EPA or a state equivalent agency. The discharge of dredge and fill material in regulated waters, including wetlands, is also prohibited, unless authorized by a permit issued by the U.S. Army Corps of Engineers (the Corps).
In June 2015, the EPA and the Corps issued a rule defining the scope of the EPA's and the Corps' jurisdiction over waters of the United States (WOTUS), which never took effect before being replaced by the Navigable Waters Protection Rule (NWPR) in December 2019.
In June 2015, the EPA and the Corps issued a rule defining the scope of the EPA's and the Corps' jurisdiction over waters of the United States (WOTUS), which never took effect before being replaced by the Navigable Waters Protection Rule (the NWPR) in December 2019.
Through the federal Clean Air Act (CAA) and comparable state and local laws and regulations, the EPA regulates emissions of various air pollutants through the issuance of permits and the imposition of other requirements. The EPA has developed, and continues to develop, stringent regulations governing emissions of air pollutants at specified sources.
Through the federal Clean Air Act (the CAA) and comparable state and local laws and regulations, the EPA regulates emissions of various air pollutants through the issuance of permits and the imposition of other requirements. The EPA has developed, and continues to develop, stringent regulations governing emissions of air pollutants at specified sources.
In April 2022, the White House Council on Environmental Quality (CEQ) finalized the first of two planned rules to undo changes to NEPA enacted in 2020 under the Trump Administration.
In April 2022, the White House Council on Environmental Quality (CEQ) finalized the first of two planned rules to undo changes to NEPA enacted in 2020 under the first Trump Administration.
Hydraulic fracturing typically is regulated by state oil and natural gas agencies, but the EPA has asserted federal regulatory authority pursuant to the federal Safe Drinking Water Act (SDWA) over certain hydraulic fracturing activities involving the use of diesel fuels and has prohibited the discharge of wastewater from hydraulic fracturing operations to publicly owned wastewater treatment plants.
Hydraulic fracturing typically is regulated by state oil and natural gas agencies, but the EPA has asserted federal regulatory authority pursuant to the federal Safe Drinking Water Act (the SDWA) over certain hydraulic fracturing activities involving the use of diesel fuels and has prohibited the discharge of wastewater from hydraulic fracturing operations to publicly owned wastewater treatment plants.
Fish and Wildlife Service (FWS) may designate critical habitat and suitable habitat areas that it believes are necessary for survival of a threatened or endangered species. In June and July 2022, the FWS issued final rules rescinding the regulations defining "habitat" and governing critical habitat exclusions.
Fish and Wildlife Service (the FWS) may designate critical habitat and suitable habitat areas that it believes are necessary for survival of a threatened or endangered species. In June and July 2022, the FWS issued final rules rescinding the regulations defining "habitat" and governing critical habitat exclusions.
Protections similar to the ESA are offered to migratory birds under the Migratory Bird Treaty Act (MBTA), which makes it illegal to, among other things, hunt, capture, kill, possess, sell, or purchase migratory birds, nests, or eggs without a permit. This prohibition covers most bird species in the U.S.
Protections similar to the ESA are offered to migratory birds under the Migratory Bird Treaty Act (the MBTA), which makes it illegal to, among other things, hunt, capture, kill, possess, sell or purchase migratory birds, nests or eggs without a permit. This prohibition covers most bird species in the U.S.
Our exploration and production operations are subject to various federal, state and local laws and regulations, including regulations related to the following: the location of wells; the method of drilling, well construction, well stimulation, hydraulic fracturing and casing design; water withdrawal and procurement for well stimulation purposes; well production; spill prevention plans; the use, transportation, storage and disposal of fluids and materials incidental to oil and gas operations; surface usage and the reclamation of properties upon which wells or other facilities have been located; the plugging and abandoning of wells; the calculation, reporting and disbursement of royalties and taxes; and the gathering of production in certain circumstances.
Regulation Regulation of Our Operations Our exploration and production operations are subject to various federal, state and local laws and regulations, including regulations related to the following: the location of wells; the method of drilling, well construction, well stimulation, hydraulic fracturing and casing design; water withdrawal and procurement for well stimulation purposes; well production; spill prevention plans; the use, transportation, storage and disposal of fluids and materials incidental to oil and gas operations; surface usage and the reclamation of properties upon which wells or other facilities have been located; the plugging and abandoning of wells; the calculation, reporting and disbursement of royalties and taxes; and the gathering of production in certain circumstances.
However, in January 2025, President Trump issued executive orders (i) requiring CEQ to provide guidance on implementing NEPA and to propose rescinding and replacing CEQ's NEPA regulations with implementing regulations at the agency level; (ii) requiring the EPA to issue guidance on and to consider eliminating the social cost of carbon calculation from federal permitting or regulatory decisions; and (iii) instructing federal agencies to adhere to only the relevant legislated requirements for environmental reviews and to prioritize efficiency and certainty over any other objectives in such reviews.
In January 2025, President Trump issued executive orders (i) requiring CEQ to provide guidance on implementing NEPA and to propose rescinding and replacing CEQ's NEPA regulations with implementing regulations at the agency level; (ii) requiring the EPA to issue guidance on and to consider eliminating the social cost of carbon calculation from federal permitting or regulatory decisions; and (iii) instructing federal agencies to adhere to only the relevant legislated requirements for environmental reviews and to prioritize efficiency and certainty over any other objectives in such reviews.
In April 2018, the FERC issued a Notice of Inquiry (2018 Notice of Inquiry) seeking information regarding whether, and if so how, it should revise its approach under its currently effective policy statement on the certification of new natural gas transportation facilities (Certificate Policy Statement). The formal comment period in this proceeding closed in June 2018.
In April 2018, the FERC issued a Notice of Inquiry seeking information regarding whether, and if so how, it should revise its approach under its currently effective policy statement on the certification of new natural gas transportation facilities. The formal comment period in this proceeding closed in June 2018.
The CEQ's changes could result in increased NEPA review timelines for projects involving agency action regarding federal lands, federal funds or federal permits or approvals. Additionally, in November 2024, a federal appeals court found that CEQ lacks statutory authority to issue NEPA regulations binding other federal agencies.
CEQ's changes could result in increased NEPA review timelines for projects involving agency action regarding federal lands, federal funds or federal permits or approvals. Additionally, in November 2024, a federal appeals court found that CEQ lacks statutory authority to issue NEPA regulations binding other federal agencies.
In December 2015, the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change (COP) resulted in nearly 200 countries, including the United States, coming together to develop the Paris Agreement, which calls for the signatories to the agreement to undertake "ambitious efforts" to limit increases in the average global temperature.
In December 2015, the 21st Conference of the Parties of the United Nations Framework Convention on Climate Change resulted in nearly 200 countries, including the United States, coming together to develop the Paris Agreement, which calls for the signatories to the agreement to undertake "ambitious efforts" to limit increases in the average global temperature.
Also, pursuant to these laws and regulations, we may be required to obtain and maintain approvals or permits for the discharge of wastewater or stormwater and to develop and implement spill prevention, control and countermeasure (SPCC) plans in connection with on-site storage of significant quantities of oil.
Also, pursuant to these laws and regulations, we may be required to obtain and maintain approvals or permits for the discharge of wastewater or stormwater and to develop and implement spill prevention, control and countermeasure plans in connection with on-site storage of significant quantities of oil.
However, in January 2025, President Trump issued an executive order directing the heads of all federal agencies to identify and begin the processes to suspend, revise or rescind all agency actions that are unduly burdensome on the identification, development or use of domestic energy resources.
In January 2025, President Trump issued an executive order directing the heads of all federal agencies to identify and begin the processes to suspend, revise or rescind all agency actions that are unduly burdensome on the identification, development or use of domestic energy resources.
For example, Mega Rule Part I requires MAOP reconfirmation of certain previously untested transmission pipeline segments, which are commonly referred to as ‘‘grandfathered’’ pipelines. Our grandfathered pipeline MAOP reconfirmation efforts, which we have initiated, may result in unanticipated testing and/or replacement costs.
For example, Mega Rule Part I requires MAOP reconfirmation of certain previously untested transmission pipeline segments, which are commonly referred to as "grandfathered" pipelines. Our grandfathered pipeline MAOP reconfirmation efforts, which we have initiated, may result in unanticipated testing and/or replacement costs.
These laws and any implementing regulations provide for administrative, civil and criminal penalties for any unauthorized discharges of oil and other substances and may impose substantial potential liability for the costs of removal and remediation and other damages. 23 Table of Contents The Sackett decision may also have effects on the implementation of Water Quality Certifications (WQCs) under Section 401 of the CWA.
These laws and any implementing regulations provide for administrative, civil and criminal penalties for any unauthorized discharges of oil and other substances and may impose substantial potential liability for the costs of removal and remediation and other damages. 25 Table of Contents The Sackett decision may also have effects on the implementation of Water Quality Certifications (WQCs) under Section 401 of the CWA.
Further, the U.S. Supreme Court's decision in Loper Bright Enterprises v. Raimondo to overrule Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc. and end the concept of general deference to regulatory agency interpretations of laws introduces new complexity for federal agencies and administration of climate change policy and regulatory programs.
Further, the U.S. Supreme Court's decision in Loper Bright Enterprises v. Raimondo to overrule Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc. ending the concept of general deference to regulatory agency interpretations of laws introduces new complexity for federal agencies and administration of climate change policy and regulatory programs.
The PHMSA has also published five final rules on pipeline safety applicable to us: "Enhanced Emergency Order Procedures;" "Safety of Gas Transmission Pipelines: Maximum Allowable Operating Pressure Reconfirmation, Expansion of Assessment Requirements, and Other Related Amendments" (also known as the Mega Rule Part I); and "Safety of Gas Gathering Pipelines: Extension of Reporting Requirements, Regulation of Large, High-Pressure Lines, and Other Related Amendments" (also known as the Mega Rule Part II); and "Safety of Gas Transmission Pipelines: Repair Criteria, Integrity Management Improvements, Cathodic Protection, Management of Change, and Other Related Amendments" (also known as the Mega Rule Part III); and “Pipeline Safety: Requirement of Valve Installation and Minimum Rupture Detection Standards” (the valve rule).
The PHMSA has also published five final rules on pipeline safety applicable to us: "Enhanced Emergency Order Procedures;" "Safety of Gas Transmission Pipelines: Maximum Allowable Operating Pressure Reconfirmation, Expansion of Assessment Requirements, and Other Related Amendments" (also known as the Mega Rule Part I); "Safety of Gas Gathering Pipelines: Extension of Reporting Requirements, Regulation of Large, High-Pressure Lines, and Other Related Amendments" (also known as the Mega Rule Part II); "Safety of Gas Transmission Pipelines: Repair Criteria, Integrity Management Improvements, Cathodic Protection, Management of Change, and Other Related Amendments" (also known as the Mega Rule Part III); and "Pipeline Safety: Requirement of Valve Installation and Minimum Rupture Detection Standards" (the valve rule).
The Dodd-Frank Act also created new categories of regulated market participants, such as "swap dealers" (SDs) and "security-based swap dealers" (SBSDs) that are subject to significant new capital, registration, recordkeeping, reporting, disclosure, business conduct and other regulatory requirements, a large number of which have been implemented.
The Dodd-Frank Act also created new categories of regulated market participants, such as "swap dealers" and "security-based swap dealers" that are subject to significant new capital, registration, recordkeeping, reporting, disclosure, business conduct and other regulatory requirements, a large number of which have been implemented.
Finally, it should be noted that some scientists have concluded that increasing concentrations of GHGs in the Earth's atmosphere produce climate changes that may have significant physical effects, such as increased frequency and severity of storms, floods, droughts and other extreme climatic events.
Finally, it should be noted that many scientists have concluded that increasing concentrations of GHGs in the Earth's atmosphere produce climate changes that may have significant physical effects, such as increased frequency and severity of storms, floods, droughts and other extreme climatic events.
In December 2020, President Trump signed the "Protecting our Infrastructure of Pipelines and Enhancing Safety (PIPES Act) of 2020," which reauthorized the federal pipeline safety program that expired in 2019. The PIPES Act identifies areas where Congress believed additional oversight, research, or regulations was needed.
In December 2020, President Trump signed the "Protecting Our Infrastructure of Pipelines and Enhancing Safety Act of 2020" (the PIPES Act), which reauthorized the federal pipeline safety program that expired in 2019. The PIPES Act identifies areas where Congress believed additional oversight, research or regulation was needed.
However, many of these initiatives at the international, state and local levels are expected to continue, and existing laws and regulations and any such future laws and regulations of this nature, including those imposing reporting obligations on, or imposing a tax or fee or otherwise limiting emissions of methane or other GHG emissions from, our equipment and operations, could require us to incur costs to comply with such regulations.
However, many of these initiatives at the international, state and local levels are expected to continue, and existing laws and regulations and any such future laws and regulations of this nature, including those imposing reporting obligations on, or imposing a tax or fee or otherwise limiting emissions of methane or other GHG emissions from, our equipment and operations, could require us to incur capital expenditures to comply with such regulations.
Further, the designation of previously unprotected species as threatened or endangered in areas where underlying property operations are conducted could cause us to incur increased costs arising from species protection measures or could result in limitations on our exploration, production and midstream activities that could have an adverse impact on our ability to develop and produce reserves and transport products to points of sale.
Further, the designation of previously unprotected species as threatened or endangered in areas where underlying property operations are conducted could cause us to incur increased costs arising from species protection measures or could result in limitations on our upstream and midstream activities that could have an adverse impact on our ability to develop and produce reserves and transport products to points of sale.
The PHMSA will also require that leak detection and repair programs consider the environment, the use of advance lead detection practices and technologies, and that operators be able to locate and categorize all leaks that are hazardous to human safety, the environment, or that can become hazardous.
The PHMSA will also require that leak detection and repair programs consider the environment, the use of advanced lead detection practices and technologies, and that operators be able to locate and categorize all leaks that are hazardous to human safety, the environment, or that can become hazardous.
There is also increasing interest in nature-related matters beyond protected species, such as general biodiversity, which may similarly require us or our customers to incur costs or take other measures that may adversely impact our business or operations. See Note 15 to the Consolidated Financial Statements for a description of expenditures related to environmental matters.
There is also increasing interest in nature-related matters beyond protected species, such as general biodiversity, which may similarly require us or our customers to incur costs or take other measures that may adversely impact our earnings, business or operations. See Note 13 to the Consolidated Financial Statements for a description of expenditures related to environmental matters.
Obtaining or renewing permits also has the potential to delay the development of oil and natural gas projects. Federal and state regulatory agencies can impose administrative, civil and criminal penalties and seek injunctive relief for non-compliance with air permits or other requirements of the CAA and associated state laws and regulations. National Environmental Policy Act (NEPA) .
Obtaining or renewing permits also has the potential to delay the development of natural gas and oil projects. Federal and state regulatory agencies can impose administrative, civil and criminal penalties and seek injunctive relief for non-compliance with air permits or other requirements of the CAA and associated state laws and regulations. 26 Table of Contents National Environmental Policy Act (NEPA).
Substantial limitations or fees on methane or other GHG emissions could also adversely affect demand for the natural gas, NGLs and oil we produce and transport and lower the value of our reserves. Further, activism directed at shifting funding away from fossil fuel companies could result in limitations or restrictions on certain sources of funding for the sector.
Substantial limitations or fees on methane or other GHG emissions could also adversely affect demand for the natural gas and NGLs we produce, gather, process and transport and lower the value of our reserves. Further, activism directed at shifting funding away from fossil fuel companies could result in limitations or restrictions on certain sources of funding for the sector.
Consequently, future implementation and enforcement of the final rule remains uncertain at this time. 24 Table of Contents As a result of these regulatory changes, the scope of any final air emissions regulations or the costs for complying with such regulations are uncertain. We may incur costs as necessary to remain in compliance with these regulations.
Consequently, future implementation and enforcement of the final rule remains uncertain at this time. As a result of these regulatory changes, the scope of any final air emissions regulations or the costs for complying with such regulations are uncertain. We may incur costs as necessary to remain in compliance with these regulations.
In certain circumstances, we may post information, such as presentation materials and press releases, to our corporate website, www.EQT.com, or our investor relations website to expedite public access to information regarding EQT in lieu of making a filing with the SEC for first disclosure of the information.
In certain circumstances, we may post information, such as presentation materials and press releases, to our corporate website, https://EQT.com, or our investor relations website to expedite public access to information regarding the Company in lieu of making a filing with the SEC for first disclosure of the information.
Production Acreage The majority of our production acreage is held by lease or occupied under perpetual easements or other rights acquired, for the most part, without warranty of underlying land titles. Approximately 37% of our total gross acres is developed. We retain deep drilling rights on the majority of our production acreage.
Upstream Acreage The majority of our Upstream acreage is held by lease or occupied under perpetual easements or other rights acquired, for the most part, without warranty of underlying land titles. Approximately 39% of our total gross acres is developed. We retain deep drilling rights on the majority of our production acreage.
Our principal competitors include companies that own major natural gas pipelines in the Appalachian Basin. In addition, we compete with companies that are building high-pressure gathering facilities that are able to transport natural gas to interstate pipelines without being subject to FERC jurisdiction. Regulation Regulation of our Operations.
Our principal competitors include companies that own major natural gas pipelines in the Appalachian Basin. In addition, we compete with companies that are building high-pressure gathering facilities that are able to transport natural gas to interstate pipelines without being subject to FERC jurisdiction.
We have not incurred and do not anticipate incurring material capital expenditures in connection with complying with the PIPES Act. 29 Table of Contents Occupational Safety and Health Act. We are subject to the requirements of the federal Occupational Safety and Health Act and comparable state laws that regulate the protection of the health and safety of employees.
We have not incurred and do not anticipate incurring material capital expenditures in connection with complying with the PIPES Act. Occupational Safety and Health Act. We are subject to the requirements of the federal Occupational Safety and Health Act and comparable state laws that regulate the protection of the health and safety of employees.
Endangered Species Act and Migratory Bird Treaty Act. The federal Endangered Species Act (ESA) provides for the protection of endangered and threatened species. Pursuant to the ESA, if a species is listed as threatened or endangered, restrictions may be imposed on activities adversely affecting that species' habitat. The U.S.
The federal Endangered Species Act (the ESA) provides for the protection of endangered and threatened species. Pursuant to the ESA, if a species is listed as threatened or endangered, restrictions may be imposed on activities adversely affecting that species' habitat. The U.S.
At our current drilling pace, these locations provide more than 30 years of drilling inventory based on gross undeveloped acres, average expected lateral length of 12,000 feet and well spacing of 1,000 feet.
At our current drilling pace, these locations are projected to provide more than 30 years of drilling inventory based on gross undeveloped acres, average expected lateral length of 12,000 feet and well spacing of 1,000 feet.
As of December 31, 2024, approximately 44% of our sales volume reaches markets outside of Appalachia. We do not depend on any single customer and believe that the loss of any one customer would not have an adverse effect on our ability to sell our natural gas, NGLs and oil.
As of December 31, 2025, approximately 49% of our sales volume reaches markets outside of Appalachia. We do not depend on any single customer and believe that the loss of any one customer would not have an adverse effect on our ability to sell our natural gas, NGLs and oil.
PV-10 is derived from the standardized measure of discounted future net cash flows (the Standardized Measure), which is the most comparable financial measure calculated in accordance with GAAP. PV-10 differs from the Standardized Measure in that PV-10 excludes the effects of income taxes on future net revenues.
PV-10 is derived from the Standardized Measure, which is the most comparable financial measure calculated in accordance with GAAP. PV-10 differs from the Standardized Measure in that PV-10 excludes the effects of income taxes on future net revenues.
The final rule took effect in June 2024. However, in May 2024, the states of North Dakota, Texas, Montana, Wyoming and Utah challenged the rule. In September 2024, the U.S. District Court for the District of North Dakota granted a motion prohibiting the BLM from enforcing the rule against those states pending the outcome of the litigation.
However, in May 2024, the states of North Dakota, Texas, Montana, Wyoming and Utah challenged the rule. In September 2024, the U.S. District Court for the District of North Dakota granted a motion prohibiting the BLM from enforcing the rule against those states pending the outcome of the litigation. The U.S.
As of December 31, 2024, approximately 99% of our Transmission segment's contracted firm transmission capacity was subscribed under negotiated rate agreements. As of December 31, 2024, our Transmission segment had minimal contracted firm transmission capacity subscribed at discounted rates and recourse rates. See also "Regulation" below and Part I, "Item 1A.
As of December 31, 2025, approximately 95% of our Transmission segment's contracted firm transmission capacity was subscribed under negotiated rate agreements. As of December 31, 2025, our Transmission segment had minimal contracted firm transmission capacity subscribed at discounted rates and recourse rates. See also "Regulation" below and Part I, "Item 1A.
Any legislation or regulatory programs at the international, federal, state or local levels designed to reduce methane or other GHG emissions could increase the cost of consuming, and thereby reduce demand for, the natural gas, NGLs and oil we produce.
Any legislation or regulatory programs at the international, federal, state or local levels designed to reduce methane or other GHG emissions could increase the cost of consuming, and thereby reduce demand for, the natural gas and NGLs we produce, gather, process and transport.
Reports filed with the SEC are also available on the SEC's website, http://www.sec.gov. We use our X (formerly known as Twitter) account, @EQTCorp, our Facebook account, @EQTCorporation, and our LinkedIn account, EQT Corporation, as additional ways of disseminating information that may be relevant to investors.
Reports filed with the SEC are also available on the SEC's website, https://www.sec.gov. 32 Table of Contents We use our X (formerly known as Twitter) account, @EQTCorp, our Facebook account, @EQTCorporation, and our LinkedIn account, EQT Corporation, as additional ways of disseminating information that may be relevant to investors.
(b) Composed of (i) negative revisions of 925 Bcfe related to proved undeveloped locations that we no longer expect to develop as proved reserves within five years of initial booking primarily as a result of development schedule changes, (ii) negative revisions of 87 Bcfe primarily related to revisions to lateral lengths and type curves, partly offset by (iii) positive revisions of 189 Bcfe due primarily to changes in ownership interests.
(b) Composed of (i) negative revisions of 560 Bcfe related to proved undeveloped locations that we no longer expect to develop as proved reserves within five years of initial booking primarily as a result of development schedule changes, (ii) negative revisions of 42 Bcfe primarily related to revisions to lateral lengths and type curves, partly offset by (iii) positive revisions of 291 Bcfe due primarily to changes in ownership interests.
In October 2024, the FERC issued a supplemental notice of proposed rulemaking, which would amend the initial index prospectively by adopting a revised index level for the remainder of the five-year period that began on July 1, 2021. Environmental, Health and Safety Regulations.
In October 2024, the FERC issued a supplemental notice of proposed rulemaking, which would amend the initial index prospectively by adopting a revised index level for the remainder of the five-year period that began on July 1, 2021.
We primarily sell NGLs recovered from our natural gas production. We contract with our Gathering segment (which owns and operates a processing facility), MarkWest Energy Partners, L.P., Williams Ohio Valley Midstream LLC and Blue Racer Midstream to process and extract heavier hydrocarbon streams (consisting predominately of ethane, propane, isobutane, normal butane and natural gasoline) from our produced natural gas.
We contract with our Gathering segment (which owns and operates a processing facility), MarkWest Energy Partners, L.P., Williams Ohio Valley Midstream LLC and Blue Racer Midstream to process and extract heavier hydrocarbon streams (consisting predominately of ethane, propane, isobutane, normal butane and natural gasoline) from our produced natural gas. We market the majority of our NGLs.
A coalition of 25 states, energy companies, utilities and fossil fuel industry groups immediately challenged the rules in federal court. In October 2024, the U.S. Supreme Court denied a request to stay the rule for new gas-fired and existing coal-fired power plants while the litigation continues. However, petitions for reconsideration to the EPA are pending and litigation in the D.C.
A coalition of 25 states, energy companies, utilities and fossil fuel industry groups immediately challenged the rules in federal court. In October 2024, the U.S. Supreme Court denied a request to stay the rule for new gas-fired and existing coal-fired power plants while the litigation continues. However, in February 2025, the D.C.
Under the Energy Policy Act of 2005, the FERC has substantial enforcement authority to prohibit the manipulation of natural gas markets and enforce its rules and orders, including the ability to assess substantial civil penalties of approximately $1.6 million per day for each violation and disgorgement of profits associated with any violation.
Under the Energy Policy Act of 2005, the FERC has substantial enforcement authority to prohibit the manipulation of natural gas markets and enforce its rules and orders, including the ability to assess substantial civil penalties of approximately $1.6 million (as of February 11, 2026 and adjusted periodically for inflation) per day for each violation and disgorgement of profits associated with any violation.
Investors should be careful to consider forward prices in addition to, and not as a substitute for, SEC pricing, when considering our reserves. Based on our mix of proved undeveloped probable and possible reserves, we estimate that we have an undeveloped drilling inventory of approximately 3,600 gross locations.
Investors should be careful to consider forward prices in addition to, and not as a substitute for, SEC pricing, when considering our reserves. 13 Table of Contents Based on our mix of proved undeveloped probable and possible reserves, we estimate that we have an undeveloped drilling inventory of approximately 4,000 gross locations.
While the ratemaking process establishes the maximum rate that can be charged, interstate pipelines, such as our transmission and storage system, are permitted to discount their firm and interruptible rates without further FERC authorization down to a specified minimum level, provided they do not unduly discriminate.
Rate design and the allocation of costs also can affect a pipeline's profitability. While the ratemaking process establishes the maximum rate that can be charged, interstate pipelines, such as our transmission and storage system, are permitted to discount their firm and interruptible rates without further FERC authorization down to a specified minimum level, provided they do not unduly discriminate.
Pipeline Safety and Maintenance Regulations. Our interstate natural gas pipeline system and natural gas storage assets are subject to regulation by the PHMSA.
Our interstate natural gas pipeline system and natural gas storage assets are subject to regulation by the PHMSA.
Consequently, legislation and regulatory programs designed to reduce emissions of methane or other GHGs could have an adverse effect on our business, financial condition and results of operations. It is not possible at this time to predict how legislation or regulations that may be adopted to address climate change, methane and other GHG emissions would impact our business.
Consequently, legislation and regulatory programs designed to reduce emissions of methane or other GHGs could have an adverse effect on our earnings and business. 28 Table of Contents It is not possible at this time to predict how legislation or regulations that may be adopted to address climate change, methane and other GHG emissions would impact our earnings or business.
The durability of this strategy relies on our substantial inventory of core drilling locations, our vast midstream infrastructure spanning the Appalachian Basin, our investment grade balance sheet, the low emissions profile of our operations and our best-in-class team and culture.
This strategy relies on our substantial inventory of core drilling locations, our vast midstream infrastructure spanning across the Appalachian Basin, our investment grade credit metrics, the low emissions profile of our operations and our best-in-class team and culture.
(c) Composed of (i) 2,912 Bcfe from proved undeveloped additions associated with acreage that was previously unproved but became proved due to 2024 reserve development that expanded the number of our proven locations and additions to our five-year drilling plan and (ii) positive revisions of 157 Bcfe from the extension of lateral lengths of proved undeveloped reserves.
(c) Composed of (i) 1,998 Bcfe from proved undeveloped additions associated with acreage that was previously unproved but became proved due to 2025 reserve development that expanded the number of our proven locations and additions to our five-year drilling plan and (ii) positive revisions of 133 Bcfe from the extension of lateral lengths of proved undeveloped reserves.
We cannot predict when or whether any such proposals may become effective or the effect that such proposals may have on us. The following is a summary of some of the existing laws, rules and regulations to which our business operations are subject. Natural Gas Sales and Transportation.
We cannot predict when or whether any such proposals may become effective or the effect that such proposals may have on us. The following is a summary of the more significant existing laws, rules and regulations to which our business operations are subject.
Some activities are subject to robust NEPA review, which could lead to delays and increased costs that could materially adversely affect our revenues and results of operations. Other activities are covered under a categorical exclusion, which results in a shorter NEPA review process.
Some activities are subject to robust NEPA review, which could lead to delays and increased costs that could materially adversely affect our capital expenditures and earnings. Other activities are covered under a categorical exclusion, which results in a shorter NEPA review process.
Potential areas of revision include, but are not limited to, (i) amending Section 5 of the NGA to allow the FERC to require a pipeline to make refunds from the date that a NGA Section 5 complaint was filed with the FERC if rates are later found to be unjust and unreasonable; (ii) amending Section 7 of the NGA affecting the ability of companies to exercise eminent domain; and (iii) amending Section 19(b) of the NGA to provide the FERC additional time to act on requests for rehearing.
Potential areas of revision include, but are not limited to, (i) amending Section 5 of the NGA to allow the FERC to require a pipeline to make refunds from the date that a NGA Section 5 complaint was filed with the FERC if rates are later found to be unjust and unreasonable; (ii) amending Section 7 of the NGA affecting the ability of companies to exercise eminent domain; and (iii) amending Section 19(b) of the NGA to provide the FERC additional time to act on requests for rehearing. 22 Table of Contents Section 1(b) of the NGA exempts natural gas gathering facilities from regulation by the FERC under the NGA.
Item 1. Business General We are a vertically integrated natural gas company with production, gathering and transmission operations focused in the Appalachian Basin. As of December 31, 2024, we had 26.3 Tcfe of proved natural gas, NGLs and oil reserves across approximately 2.1 million gross acres and approximately 2,925 miles of pipeline infrastructure.
Item 1. Business General We are a vertically integrated natural gas company with upstream, gathering and transmission operations focused in the Appalachian Basin. As of December 31, 2025, we had 28.0 Tcfe of proved natural gas, NGLs and oil reserves across approximately 2.3 million gross acres and approximately 2,945 miles of pipeline infrastructure.
Years Ended December 31, 2024 2023 2022 (Millions) Standardized Measure $ 7,999 $ 9,262 $ 40,065 Estimated discounted income taxes on future net revenues 1,845 2,258 11,447 PV-10 $ 9,844 $ 11,520 $ 51,512 If the prices we used to calculate the Standardized Measure instead reflected five-year strip pricing as of December 31, 2024 and held constant thereafter using (i) the NYMEX five-year strip adjusted for regional differentials using Texas Eastern Transmission Corp.
Years Ended December 31, 2025 2024 2023 (Millions) Standardized Measure $ 21,310 $ 7,999 $ 9,262 Estimated discounted income taxes on future net revenues 4,284 1,845 2,258 PV-10 $ 25,594 $ 9,844 $ 11,520 If the prices we used to calculate the Standardized Measure instead reflected five-year strip pricing as of December 31, 2025 and held constant thereafter using (i) the NYMEX five-year strip adjusted for regional differentials using Texas Eastern Transmission Corp.
The MVP and MVP Southgate We operate and hold an equity method investment in the MVP, a 303-mile long, 42-inch diameter natural gas interstate pipeline with a total capacity of 2.0 Bcf per day that spans from the Company's transmission and storage system in Wetzel County, West Virginia to Pittsylvania County, Virginia and has 3 interconnect points to other interstate pipelines.
We own an equity method investment in MVP A, which owns MVP Mainline, a 303-mile long, 42-inch diameter natural gas interstate pipeline with a total capacity of 2.0 Bcf per day that spans from our transmission and storage system in Wetzel County, West Virginia to Pittsylvania County, Virginia and has 3 interconnect points to other interstate pipelines.
Our business model enables us to generate durable free cash flow and correspondingly, we have implemented a robust capital allocation strategy directed at responsibly developing our assets and positioning us for organic growth, while also returning capital to our shareholders through a combination of debt retirements, a base dividend and opportunistic share repurchases.
Correspondingly, we have implemented a robust capital allocation strategy directed at responsibly developing our assets and positioning us for organic growth, while also returning capital to our shareholders through a combination of debt retirements, a base dividend and opportunistic share repurchases.
The following table summarizes our production acreage disaggregated by state.
The following table summarizes our Upstream acreage disaggregated by state.
In January 2022, the FERC issued an order on rehearing, lowering the index level and directing oil pipelines to recompute their ceiling levels for July 1, 2021 through June 30, 2022 to ensure compliance with the new index level. In July 2024, the U.S.
In January 2022, the FERC issued an order on rehearing, lowering the index level and directing oil pipelines to recompute their ceiling levels for July 1, 2021 through June 30, 2022 to ensure compliance with the new index level. In July 2024, the U.S. Court of Appeals for the District of Columbia Circuit (the D.C.
Any changes to state or federal programs could result in an increase in our costs to manage and dispose waste, which could have a material adverse effect on our results of operations and financial condition. We currently own, lease or operate numerous properties that have been used for oil and natural gas exploration and production activities for many years.
Any changes to state or federal programs could result in an increase in our costs to manage and dispose waste, which could have a material adverse effect on our capital expenditures and earnings. 24 Table of Contents We currently own, lease or operate numerous properties that have been used for natural gas and oil exploration and production activities for many years.
In addition, the Occupational Health and Safety Administration's (OSHA) hazard communication standard, the Emergency Planning and Community Right to Know Act and implementing regulations and similar state statutes and regulations require us to maintain information about hazardous materials used or produced in our operations and this information is required to be provided to employees, state and local government authorities, and citizens.
In addition, the Occupational Health and Safety Administration's hazard communication standard, the Emergency Planning and Community Right to Know Act and implementing regulations, and similar state statutes and regulations require us to maintain information about hazardous materials used or produced in our operations and this information is required to be provided to employees, state and local government authorities, and citizens. 31 Table of Contents Endangered Species Act and Migratory Bird Treaty Act.
A prerequisite for allowing the negotiated rates is that negotiated rate customers must have had the option to take service under the pipeline's recourse rates. As of December 31, 2024, approximately 99% of our system's contracted firm transmission capacity was subscribed under negotiated rate agreements under its tariff.
A prerequisite for allowing the negotiated rates is that negotiated rate customers must have had the option to take service under the pipeline's recourse rates. As of December 31, 2025, approximately 95% of our Transmission segment's contracted firm transmission capacity was subscribed under negotiated rate agreements.
See below for a reconciliation of the Standardized Measure to PV-10. Future net cash flows represent projected revenues from the sale of proved reserves, net of production and development costs (including transportation and gathering expenses, operating expenses and production taxes) and net of estimated income taxes. Revenues are based on a twelve-month unweighted average of the first-day-of-the-month pricing without escalation.
Future net cash flows represent projected revenues from the sale of proved reserves, net of production and development costs (including transportation and gathering expenses, operating expenses and production taxes) and net of estimated income taxes. Revenues are based on a twelve-month unweighted average of the first-day-of-the-month pricing without escalation.
Court of Appeals for the District of Columbia Circuit found that the FERC did not adhere to notice-and-comment procedures in its January 2022 rehearing order. The court vacated the rehearing order.
Circuit) found that the FERC did not adhere to notice-and-comment procedures in its January 2022 rehearing order. The court vacated the rehearing order.
In March 2024, Pennsylvania Governor Shapiro unveiled a proposal to adopt a carbon pricing program similar to RGGI and stated that he would pull Pennsylvania out of RGGI if the state legislature enacts his proposal. In September 2024, legislation that would repeal the state’s participation in RGGI passed the Pennsylvania Senate.
In March 2024, Pennsylvania Governor Shapiro unveiled a proposal to adopt a carbon pricing program similar to RGGI and stated that he would pull Pennsylvania out of RGGI if the state legislature enacts his proposal. In November 2025, Pennsylvania enacted legislation ending the state's participation in RGGI.
Some of our transportation of oil and NGLs is through FERC-regulated interstate common carrier pipelines. Effective as of January 1, 1995, the FERC implemented regulations generally grandfathering all previously approved interstate transportation rates and establishing an indexing system for those rates by which adjustments are made annually based on the rate of inflation, subject to certain conditions and limitations.
Effective as of January 1, 1995, the FERC implemented regulations generally grandfathering all previously approved interstate transportation rates and establishing an indexing system for those rates by which adjustments are made annually based on the rate of inflation, subject to certain conditions and limitations.
The PHMSA has the statutory authority to impose civil penalties for pipeline safety violations up to a maximum of approximately $272,926 per day for each violation and approximately $2.7 million for a related series of violations. This maximum penalty authority established by statute will continue to be adjusted periodically to account for inflation.
The PHMSA has the statutory authority to impose civil penalties for pipeline safety violations of up to $272,926 per day for each violation and up to approximately $2.7 million for a related series of violations, in each case as of February 11, 2026. This maximum penalty authority established by statute is adjusted periodically to account for inflation.
The following is a summary of the more significant environmental and occupational health and safety laws and regulations, as amended from time to time, to which our business operations are subject and for which compliance may have a material adverse impact on our financial condition, earnings or cash flows. Hazardous Substances and Waste Handling.
The following is a summary of the more significant environmental and occupational health and safety laws and regulations to which our business operations are subject and for which compliance may have a material adverse impact on our capital expenditures, earnings or business. Hazardous Substances and Waste Handling.
For information on our hedging strategy and our derivative instruments, refer to "Commodity Risk Management" in Item 7., "Management's Discussion and Analysis of Financial Condition and Results of Operations," Item 7A., "Quantitative and Qualitative Disclosures About Market Risk" and Note 4 to the Consolidated Financial Statements. 14 Table of Contents NGLs Sales.
For information on our hedging strategy and our derivative instruments, refer to "Commodity Risk Management" in Item 7., "Management's Discussion and Analysis of Financial Condition and Results of Operations," Item 7A., "Quantitative and Qualitative Disclosures About Market Risk" and Note 4 to the Consolidated Financial Statements. NGLs Sales. We primarily sell NGLs recovered from our natural gas production.
Third-party transmission and storage customers include local distribution companies, other producers, marketers and commercial and industrial users. For the year ended December 31, 2024, our Production segment accounted for approximately 64% of our transmission assets' throughput and approximately 59% of our Transmission segment's operating revenues.
Third-party transmission and storage customers include local distribution companies, other producers, marketers and commercial and industrial users. For the year ended December 31, 2025, our Upstream segment accounted for approximately 69% of our transmission system throughput and approximately 61% of our Transmission segment's operating revenues.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeClimate change-related developments may also impact the market prices of, or our access to, raw materials such as energy, iron, sand and water and therefore result in increased costs to our business. 42 Table of Contents Further, there have been efforts to influence the investment community, including investment advisors, insurance companies, and certain sovereign wealth, pension and endowment funds and other groups, by promoting divestment of fossil fuel equities and pressuring lenders to limit funding and insurance underwriters to limit coverages to companies engaged in the extraction of fossil fuel reserves, which if successful, could make it more difficult to secure funding for exploration and production activities or adversely impact the cost of capital for both us and our customers and could thereby adversely affect the demand and price of our securities.
Biggest changeFurther, there have been efforts to influence the investment community, including investment advisors, insurance companies, and certain sovereign wealth, pension and endowment funds and other groups, to divest themselves of fossil fuel equities and limit funding and insurance coverage to companies engaged in the extraction of fossil fuel reserves, which if successful, could adversely affect the demand and price of our securities and make it more difficult or expensive to secure funding for our activities.
The age and condition of these systems has contributed to, and could result in, adverse events, or increased maintenance or repair expenditures, and downtime associated with increased maintenance and repair activities, as applicable.
The age and condition of these systems has contributed to, and could result in, adverse events, or increased maintenance or repair expenditures, and downtime associated with increased maintenance or repair activities, as applicable.
Department of Transportation, acting through PHMSA, and certain state agencies certificated by PHMSA, have adopted regulations requiring pipeline operators to develop an integrity management program for transmission pipelines located where a leak or rupture could impact high population sensitive areas (also known as High Consequence Areas) and newly defined Moderate Consequence Areas, and an integrity management program for storage wells, unless the operator effectively demonstrates by a prescriptive risk assessment that these operational assets have mitigated risks that could affect these predefined areas, as applicable.
Department of Transportation, acting through the PHMSA, and certain state agencies certificated by the PHMSA, have adopted regulations requiring pipeline operators to develop an integrity management program for transmission pipelines located where a leak or rupture could impact high population sensitive areas (also known as High Consequence Areas) and newly defined Moderate Consequence Areas, and an integrity management program for storage wells, unless the operator effectively demonstrates by a prescriptive risk assessment that these operational assets have mitigated risks that could affect these predefined areas, as applicable.
For example, growing interest on the part of investors and regulators in ESG factors and increased demand for, and scrutiny of, ESG-related disclosure by stakeholders has also increased the risk that companies could be perceived as, or accused of, making inaccurate or misleading statements regarding their ESG-related claims, goals, targets, efforts or initiatives, often referred to as "greenwashing." Such perception or allegation could damage our reputation and result in litigation or regulatory actions.
For example, growing interest on the part of investors and regulators in ESG factors and increased demand for, and scrutiny of, ESG and sustainability-related disclosure by stakeholders has also increased the risk that companies could be perceived as, or accused of, making inaccurate or misleading statements regarding their ESG and sustainability-related claims, goals, targets, efforts or initiatives, often referred to as "greenwashing." Such perception or allegation could damage our reputation and result in litigation or regulatory actions.
To the extent that we lack available capacity on our systems for volumes, or we cannot economically increase capacity, we may not be able to compete effectively with third-party systems for additional natural gas production in our areas of operation, and capacity constraints, as well as commodity prices, may, as has occurred in the past, adversely affect the degree to which natural gas production occurs in the Appalachian Basin, and relatedly the degree to which our midstream systems are utilized.
To the extent we lack available capacity on our systems for volumes, or we cannot economically increase capacity, we may not be able to compete effectively with third-party systems for additional natural gas production in our areas of operation, and capacity constraints, as well as commodity prices, may, as has occurred in the past, adversely affect the degree to which natural gas production occurs in the Appalachian Basin, and relatedly the degree to which our midstream systems are utilized.
As disclosed in Item 1., "Business-Regulation," the Dodd-Frank Act, the rules adopted thereunder and various other foreign regulations could increase the cost of our derivative contracts, alter the terms of our derivative contracts, reduce the availability of derivatives to protect against the price risks we encounter, reduce our ability to monetize or restructure our existing derivative contracts, and lessen the number of available counterparties and, in turn, increase our exposure to less creditworthy counterparties.
As disclosed in Item 1., "Business – Regulation – Regulation of Our Operations," the Dodd-Frank Act, the rules adopted thereunder and various other foreign regulations could increase the cost of our derivative contracts, alter the terms of our derivative contracts, reduce the availability of derivatives to protect against the price risks we encounter, reduce our ability to monetize or restructure our existing derivative contracts, and lessen the number of available counterparties and, in turn, increase our exposure to less creditworthy counterparties.
Any agency's delay in the issuance of, or refusal to issue, authorizations or permits, issuance of such authorizations or permits with unanticipated conditions, or the loss of a previously-issued authorization or permit, for one or more of these projects may mean that we will not be able to pursue these projects or that they will be constructed in a manner or with capital requirements that we did not anticipate (as was the case with MVP).
Any agency's delay in the issuance of, or refusal to issue, authorizations or permits, issuance of such authorizations or permits with unanticipated conditions, or the loss of a previously-issued authorization or permit, for one or more of these projects may mean that we will not be able to pursue these projects or that they will be constructed in a manner or with capital requirements that we did not anticipate (as was the case with MVP Mainline).
Reduced cash flows could also result in us having to make downward adjustments to our financial projections, such as free cash flow, and could cause us to revise our shareholder returns initiatives, including the amount of dividends paid on our common stock, which could negatively impact the price of our common stock and our ability to access the capital markets.
Reduced cash flows could also result in us having to make downward adjustments to our financial projections, such as free cash flow, and could cause us to revise our shareholder returns initiatives, including the amount of dividends paid on EQT common stock, which could negatively impact the price of EQT common stock and our ability to access the capital markets.
Our exploration and production operations are subject to various types of federal, state and local laws and regulations, including regulations related to the location of wells; the method of drilling, well construction, well stimulation, hydraulic fracturing and casing design; water withdrawal and procurement for well stimulation purposes; well production; spill prevention plans; the use, transportation, storage and disposal of water and other fluids and materials, including solid and hazardous wastes, incidental to natural gas and oil operations; surface usage and the reclamation of properties upon which wells or other facilities have been located; the plugging and abandoning of wells; the calculation, reporting and disbursement of royalties and taxes; and the gathering of production in certain circumstances.
Our upstream operations are subject to various types of federal, state and local laws and regulations, including regulations related to the location of wells; the method of drilling, well construction, well stimulation, hydraulic fracturing and casing design; water withdrawal and procurement for well stimulation purposes; well production; spill prevention plans; the use, transportation, storage and disposal of water and other fluids and materials, including solid and hazardous wastes, incidental to natural gas and oil operations; surface usage and the reclamation of properties upon which wells or other facilities have been located; the plugging and abandoning of wells; the calculation, reporting and disbursement of royalties and taxes; and the gathering of production in certain circumstances.
Any of these risks can cause a delay or suspension of our operations, including our development program or the scheduled development of non-operated wells in which we have a working interest, or result in substantial financial losses, personal injury or loss of life, damage to or destruction of property, natural resources and equipment, pollution, environmental contamination and other regulatory penalties. 32 Table of Contents The location of certain segments of our wells and pipeline systems in or near populated areas, including residential areas, commercial business centers and industrial sites, could increase the damages resulting from these risks.
Any of these risks can cause a delay or suspension of our operations, including our development program or the scheduled development of non-operated wells in which we have a working interest, or result in substantial financial losses, personal injury or loss of life, damage to or destruction of property, natural resources and equipment, pollution, environmental contamination and other regulatory penalties. 34 Table of Contents The location of certain segments of our wells and pipeline systems in or near populated areas, including residential areas, commercial business centers and industrial sites, could increase the damages resulting from these risks.
In addition, failure or a perception (whether or not valid) of failure to implement our ESG strategy or achieve sustainability goals and targets we have set, could damage our reputation, causing our investors or consumers to lose confidence in our company, and negatively impact our operations.
In addition, failure or a perception (whether or not valid) of failure to implement our sustainability strategy or achieve sustainability goals and targets we have set, could damage our reputation, causing our investors or consumers to lose confidence in our company, and negatively impact our operations.
Such expectations and assumptions are necessarily uncertain and may be prone to error or subject to misinterpretation given the long timelines involved and the lack of an established single approach to identifying, measuring and reporting on many ESG matters.
Such expectations and assumptions are necessarily uncertain and may be prone to error or subject to misinterpretation given the long timelines involved and the lack of an established single approach to identifying, measuring and reporting on many ESG and sustainability matters.
In addition, organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on their approach to ESG matters. Such ratings are used by some investors to inform their investment and voting decisions.
In addition, organizations that provide information to investors on corporate governance and related matters have developed ratings processes for evaluating companies on their approach to ESG and sustainability matters. Such ratings are used by some investors to inform their investment and voting decisions.
Our drilling and subsequent maintenance of wells can involve significant risks, including those related to timing, cost overruns and operational efficiency, and these risks can be affected by the availability of capital, leases, rigs, equipment, a qualified work force, and adequate capacity for the treatment and recycling or disposal of wastewater generated in our operations, as well as weather conditions, natural gas, NGLs and oil price volatility, regulatory approvals, title and property access problems, geology, equipment failure or accidents and other factors.
Our drilling and subsequent maintenance of wells can involve significant risks, including those related to timing, cost overruns and operational inefficiency, and these risks can be affected by the availability of capital, leases, rigs, equipment, a qualified work force, and adequate capacity for the treatment and recycling or disposal of wastewater generated in our operations, as well as weather conditions, natural gas, NGLs and oil price volatility, regulatory approvals, title and property access problems, geology, equipment failure or accidents and other factors.
As of December 31, 2024, we and the MVP Joint Venture hold authority from the FERC to charge and collect (i) "recourse rates," which are the maximum rates an interstate pipeline may charge for its services under its tariff, (ii) "discount rates," which are rates below the "recourse rates" and above a minimum level, (iii) "negotiated rates," which involve rates that may be above or below the "recourse rates," provided that the affected customers are willing to agree to such rates and that the FERC has approved the negotiated rate agreement, and (iv) market-based rates for some of our storage services from which we derive a small portion of our revenues.
As of December 31, 2025, we and the MVP Joint Venture hold authority from the FERC to charge and collect (i) "recourse rates," which are the maximum rates an interstate pipeline may charge for its services under its tariff, (ii) "discount rates," which are rates below the "recourse rates" and above a minimum level, (iii) "negotiated rates," which involve rates that may be above or below the "recourse rates," provided that the affected customers are willing to agree to such rates and that the FERC has approved the negotiated rate agreement, and (iv) market-based rates for some of our storage services from which we derive a small portion of our revenues.
Significant delays in the regulatory approval process for projects, as well as stays and losses of critical authorizations and permits, should they be experienced, have the potential to significantly increase costs, delay targeted in-service dates and/or affect operations for projects (among other adverse effects), as has happened with the MVP and the originally certificated MVP Southgate project and could occur in the future in the case of authorizations required for our or the MVP Joint Venture's current or future projects, including in respect of developing expansions or extensions, such as expansion of the MVP and the MVP Southgate project.
Significant delays in the regulatory approval process for projects, as well as stays and losses of critical authorizations and permits, should they be experienced, have the potential to significantly increase costs, delay targeted in-service dates and/or affect operations for projects (among other adverse effects), as has happened with MVP Mainline and the originally certificated MVP Southgate project, and could occur in the future in the case of authorizations required for our or the MVP Joint Venture's current or future projects, including in respect of developing expansions or extensions, such as expansion of MVP Mainline, MVP Southgate and MVP Boost.
The integration process may be subject to delays or changed circumstances, and we can give no assurance that assets we acquire will perform in accordance with our expectations or that our expectations with respect to integration or cost savings as a result of an acquisition will materialize. 57 Table of Contents Securities class action and derivative lawsuits may be brought against us in connection with strategic transactions, which could result in substantial costs and may delay or prevent such transactions from being completed.
The integration process may be subject to delays or changed circumstances, and we can give no assurance that assets we acquire will perform in accordance with our expectations or that our expectations with respect to integration or cost savings as a result of an acquisition will materialize. 58 Table of Contents Securities class action and derivative lawsuits may be brought against us in connection with strategic transactions, which could result in substantial costs and may delay or prevent such transactions from being completed.
Any such adverse events or any significant increase in maintenance and repair expenditures or downtime, or related loss of revenue, due to the age or condition of our systems could adversely affect our business, financial condition, results of operations, and cash flows. 33 Table of Contents Expanding our business by constructing new midstream assets subjects us to construction, business, economic, competitive, regulatory, judicial, environmental, political and legal uncertainties that are beyond our control.
Any such adverse events or any significant increase in maintenance and repair expenditures or downtime, or related loss of revenue, due to the age or condition of our systems could adversely affect our business, financial condition, results of operations, and cash flows. 35 Table of Contents Expanding our business by constructing new midstream assets subjects us to construction, business, economic, competitive, regulatory, judicial, environmental, political and legal uncertainties that are beyond our control.
Further, civil protests regarding environmental justice, environmental health and safety, and social issues or challenges in project permitting processes related to such issues, including proposed construction and location of infrastructure associated with fossil fuels, poses an increased risk and may lead to increased litigation, legislative and regulatory initiatives and review at federal, state, tribal and local levels of government or permitting delays that can prevent or delay the construction of such infrastructure and realization of associated revenues.
Further, civil protests regarding environmental justice, environmental health and safety, and social issues or challenges in project permitting processes related to such issues, including proposed construction and location of infrastructure associated with fossil fuels, poses an increased risk and may lead to increased litigation, legislative and regulatory initiatives and review at federal, state, tribal and local levels of government or permitting delays that could prevent or delay the construction of such infrastructure and realization of associated revenues.
In addition, future federal, state or local legislation or regulations under which we or the MVP Joint Venture operate may have a material adverse effect on our business, financial condition, results of operations, and cash flows. 53 Table of Contents We and our joint ventures may incur significant costs and liabilities as a result of performance of our pipeline and storage integrity management programs and compliance with increasingly stringent safety regulation.
In addition, future federal, state or local legislation or regulations under which we or the MVP Joint Venture operate may have a material adverse effect on our business, financial condition, results of operations, and cash flows. 54 Table of Contents We and our joint ventures may incur significant costs and liabilities as a result of performance of our pipeline and storage integrity management programs and compliance with increasingly stringent safety regulation.
Our inability to complete a transaction or to achieve our strategic or financial goals in any transaction could have significant adverse effects on our earnings, cash flows and financial position. 56 Table of Contents We have entered into joint ventures, and may in the future enter into additional or modify existing joint ventures, that might restrict our operational and corporate flexibility and divert our management's time and our resources.
Our inability to complete a transaction or to achieve our strategic or financial goals in any transaction could have significant adverse effects on our earnings, cash flows and financial position. 57 Table of Contents We have entered into joint ventures, and may in the future enter into additional or modify existing joint ventures, that might restrict our operational and corporate flexibility and divert our management's time and our resources.
Additionally, our investment in midstream infrastructure development and maintenance programs is intended, among other items, to connect our wells to other existing gathering and transmission pipelines and can involve significant risks, including those relating to timing, cost overruns and operational efficiency. Significant portions of our natural gas production are dependent on a small number of key compression and processing stations.
Additionally, our investment in midstream infrastructure development and maintenance programs is intended, among other items, to connect our wells to other existing gathering and transmission pipelines and can involve significant risks, including those relating to timing, cost overruns and operational inefficiency. Significant portions of our natural gas production are dependent on a small number of key compression and processing stations.
We have been named from time to time as a defendant in litigation related to such matters. 55 Table of Contents In addition, new or additional laws and regulations, new interpretations of existing requirements or changes in enforcement policies could impose unforeseen liabilities, significantly increase compliance costs or result in delays of, or denial of rights to conduct, our development programs.
We have been named from time to time as a defendant in litigation related to such matters. 56 Table of Contents In addition, new or additional laws and regulations, new interpretations of existing requirements or changes in enforcement policies could impose unforeseen liabilities, significantly increase compliance costs or result in delays of, or denial of rights to conduct, our development programs.
The success of our plans and strategies could be negatively affected if our projections of future hydrocarbon prices are significantly different from the ultimate actual price.
The success of our plans and strategies could be negatively affected if our projections of future hydrocarbon prices are significantly different from the ultimate actual prices.
The approval process for certain projects has become increasingly slower and more difficult, due in part to federal, state and local concerns related to exploration and production, transmission and gathering activities and associated environmental impacts, and the increasingly negative public perception regarding, and opposition to, the oil and gas industry, including major pipeline projects like the MVP and MVP Southgate.
The approval process for certain projects has become increasingly slower and more difficult, due in part to federal, state and local concerns related to exploration and production, transmission and gathering activities and associated environmental impacts, and the increasingly negative public perception regarding, and opposition to, the oil and gas industry, including major pipeline projects like MVP Mainline, MVP Southgate and MVP Boost.
In addition to population sensitive areas, PHMSA has adopted regulations extending existing design, operation and maintenance, and reporting requirements to onshore gathering pipelines in rural areas.
In addition to population sensitive areas, the PHMSA has adopted regulations extending existing design, operation and maintenance, and reporting requirements to onshore gathering pipelines in rural areas.
Maintaining compliance with the laws, regulations and other legal requirements applicable to our business and any delays in obtaining related authorizations may affect the costs and timing of developing our natural gas, NGLs and oil resources. These requirements could also subject us to claims for personal injuries, property damage and other damages.
Maintaining compliance with the laws, regulations and other legal requirements applicable to our business and any delays in obtaining related authorizations may affect the costs and timing of developing our natural gas, NGLs and oil resources. These requirements could also subject us to claims for personal injury, property damage and other damages.
This limits our ability to operate in those areas and can intensify competition during those months for drilling rigs, oilfield equipment, services, supplies and qualified personnel, which may lead to periodic shortages. These constraints and the resulting shortages or high costs could delay our operations and materially increase our operating and capital costs.
This limits our ability to operate in those areas and can intensify competition for drilling rigs, oilfield equipment, services, supplies and qualified personnel, which may lead to periodic shortages. These constraints and the resulting shortages or high costs could delay our operations and materially increase our operating and capital costs.
Such delays, refusals, losses of permits, or resulting modifications to projects, certain of which was experienced with respect to the MVP project and the originally certificated MVP Southgate project, could materially and negatively impact the revenues and costs expected from these projects or cause us or our joint venture partners to abandon planned projects.
Such delays, refusals, losses of permits, or resulting modifications to projects, certain of which was experienced with respect to MVP Mainline and the originally certificated MVP Southgate, could materially and negatively impact the revenues and costs expected from these projects or cause us or our joint venture partners to abandon planned projects.
Consequently, legislation and regulatory programs addressing climate change or methane and other GHG emissions could have an adverse effect on our business, financial condition and results of operations. 50 Table of Contents The regulatory approval process for the construction of new transmission assets is very challenging, and, as demonstrated with the MVP, has resulted in significantly increased costs and delayed targeted in-service dates, and decisions by regulatory and/or judicial authorities in pending or potential proceedings relevant to the development of midstream assets, such as regarding the MVP Southgate project and/or expansions or extensions of the MVP, are likely to impact our or the MVP Joint Venture's ability to obtain or maintain in effect all approvals and authorizations, including as may be necessary to complete certain projects in a timely manner or at all, or our ability to achieve the expected investment returns on the projects.
Consequently, legislation and regulatory programs addressing climate change or methane and other GHG emissions could have an adverse effect on our business, financial condition and results of operations. 51 Table of Contents The regulatory approval process for the construction of new transmission assets is very challenging, and, as demonstrated with MVP Mainline, has resulted in significantly increased costs and delayed targeted in-service dates, and decisions by regulatory and/or judicial authorities in pending or potential proceedings relevant to the development of midstream assets, such as regarding MVP Southgate, MVP Boost and/or other expansions or extensions of MVP Mainline, are likely to impact our or the MVP Joint Venture's ability to obtain or maintain in effect all approvals and authorizations, including as may be necessary to complete certain projects in a timely manner or at all, or our ability to achieve the expected investment returns on the projects.
Such issues in respect of the construction of midstream assets could adversely affect our business, financial condition, results of operations, and cash flows. 34 Table of Contents A terrorist attack or armed conflict targeting our systems or natural gas infrastructure generally could materially adversely impact our operations.
Such issues in respect of the construction of midstream assets could adversely affect our business, financial condition, results of operations, and cash flows. 36 Table of Contents A terrorist attack or armed conflict targeting our systems or natural gas infrastructure generally could materially adversely impact our operations.
Substantial limitations or taxes or fees on methane or other GHG emissions, as well as other regulatory incentives or requirements to conserve energy, use alternative sources or reduce GHG emissions in product supply chains, could also adversely affect demand for the natural gas, NGLs and oil we produce and our midstream services, stimulate demand for alternative forms of energy that do not rely on combustion of fossil fuels, and lower the value of our reserves.
Substantial limitations or taxes or fees on methane or other GHG emissions, as well as other regulatory incentives or requirements to conserve energy, use alternative sources or reduce GHG emissions in product supply chains, could also adversely affect demand for the natural gas, NGLs and oil we produce and our midstream systems service, stimulate demand for alternative forms of energy that do not rely on combustion of fossil fuels, and lower the value of our reserves.
The FERC's authority extends to a variety of matters relevant to our operations. 52 Table of Contents Pursuant to the NGA, existing interstate transmission and storage rates, terms and conditions of service, and contracts may be challenged by complaint and are subject to prospective change by the FERC.
The FERC's authority extends to a variety of matters relevant to our operations. 53 Table of Contents Pursuant to the NGA, existing interstate transmission and storage rates, terms and conditions of service, and contracts may be challenged by complaint and are subject to prospective change by the FERC.
We are subject to financing and interest rate exposure risks. Our business and operating results can be adversely affected by increases in interest rates or other increases in the cost of capital resulting from a reduction in EQT's or EQM's credit ratings or otherwise.
We are subject to financing and interest rate exposure risks. Our business and operating results can be adversely affected by increases in interest rates or other increases in the cost of capital resulting from a reduction in our credit ratings or otherwise.
Moreover, economic or other circumstances may change from those contemplated by our business plan, and our failure to recognize or respond to those changes may limit our ability to achieve our objectives. Cyber incidents targeting our digital work environment or other technologies or energy infrastructure may adversely impact our operations.
Moreover, economic or other circumstances may change from those contemplated by our business plans, and our failure to recognize or respond to those changes may limit our ability to achieve our objectives. Cyber incidents targeting our digital work environment or other technologies or energy infrastructure may adversely impact our operations.
Any temporary or permanent interruption at any key pipeline interconnect or facility could have a material adverse effect on our business, financial condition, cash flows, and results of operations. 47 Table of Contents Substantially all of our producing properties and midstream infrastructure are concentrated in the Appalachian Basin, making us vulnerable to risks associated with operating primarily in one major geographic area.
Any temporary or permanent interruption at any key pipeline interconnect or facility could have a material adverse effect on our business, financial condition, cash flows, and results of operations. Substantially all of our producing properties and midstream infrastructure are concentrated in the Appalachian Basin, making us vulnerable to risks associated with operating primarily in one major geographic area.
If these third parties are unwilling to pool or unitize such leaseholds with ours, the total locations we can drill may be limited. As such, our actual drilling activities may materially differ from those presently identified. 35 Table of Contents Failure to timely develop our leased real property could result in increased capital expenditures and/or impairment of our leases.
If these third parties are unwilling to pool or unitize such leaseholds with ours, the total locations we can drill may be limited. As such, our actual drilling activities may materially differ from those presently identified. Failure to timely develop our leased real property could result in increased capital expenditures and/or impairment of our leases.
Some scientists have concluded that increasing concentrations of GHGs in the Earth's atmosphere produce climate changes that may have significant physical effects, such as increased frequency and severity of storms, fires, floods, droughts, and other extreme climatic events.
Many scientists have concluded that increasing concentrations of GHGs in the Earth's atmosphere produce climate changes that may have significant physical effects, such as increased frequency and severity of storms, fires, floods, droughts, and other extreme climatic events.
Our continuing efforts to research, establish, accomplish and accurately report on the implementation of our ESG strategy, including any climate or other ESG goals, may also create additional operational risks and expenses and expose us to reputational, legal and other risks.
Our continuing efforts to research, establish, accomplish and accurately report on the implementation of our sustainability strategy, including any climate or other sustainability goals, may also create additional operational risks and expenses and expose us to reputational, legal and other risks.
Unfavorable ESG ratings could lead to increased negative investor sentiment towards us and our industry and to the diversion of investment to other industries, which could have a negative impact on our stock price and our access to and cost of capital.
Unfavorable ESG or sustainability ratings could lead to increased negative investor sentiment towards us and our industry and to the diversion of investment to other industries, which could have a negative impact on our stock price and our access to and cost of capital.
Potential physical effects of climate change could disrupt our production, midstream and processing activities, cause us to incur significant costs in preparing for or responding to those effects, or otherwise adversely affect our business.
Potential physical effects of climate change could disrupt our upstream, midstream and processing activities, cause us to incur significant costs in preparing for or responding to those effects, or otherwise adversely affect our business.
These changes could cause our cost of doing business to increase, limit our ability to pursue acquisition opportunities, reduce cash flows used for operating and capital expenditures and place us at a competitive disadvantage. Disruptions or volatility in the financial markets may lead to a contraction in credit availability impacting our ability to finance our operations.
These changes could cause our cost of doing business to increase, limit our ability to pursue acquisition opportunities, reduce cash flows used for operating and capital expenditures and place us at a competitive disadvantage. Disruptions or volatility in the financial markets may lead to a contraction in credit availability.
Growing geopolitical instability and armed conflicts (including between Russia and Ukraine and in the Middle East) has resulted in energy infrastructure becoming a more prominent target of attack by terrorists and conflicting countries.
Growing geopolitical instability and armed conflicts (including in Venezuela, Russia and Ukraine, and the Middle East) has resulted in energy infrastructure becoming a more prominent target of attack by terrorists and conflicting countries.
Without continued successful development or acquisition activities, together with efficient operation of existing wells, our reserves and production, together with associated revenues, will decline as a result of our current reserves being depleted by production. Our proved reserves are estimates that are based on many assumptions that may prove to be inaccurate.
Without continued successful development or acquisition activities, together with efficient operation of existing wells, our reserves and production, together with associated revenues, will decline as a result of our current reserves being depleted by production. 38 Table of Contents Our proved reserves are estimates that are based on many assumptions that may prove to be inaccurate.
In particular, opponents were successful in past challenges with respect to the MVP. Opposition is ongoing regarding the MVP Southgate project and is expected for future projects, including any expansions of the MVP. If ongoing or future challenges are successful, it could result in significant, adverse impacts to our business, financial condition, results of operations and cash flows.
In particular, opponents were successful in past challenges with respect to MVP Mainline. Opposition is ongoing regarding MVP Southgate and is expected for future projects, including any expansions of MVP Mainline. If ongoing or future challenges are successful, it could result in significant, adverse impacts to our business, financial condition, results of operations and cash flows.
The existence of a material title deficiency can render a lease worthless and can adversely affect our results of operations and financial position. 36 Table of Contents The amount and timing of actual future natural gas, NGLs and oil production is difficult to predict and may vary significantly from our estimates, which may reduce our earnings.
The existence of a material title deficiency can render a lease worthless and can adversely affect our results of operations and financial position. The amount and timing of actual future natural gas, NGLs and oil production is difficult to predict and may vary significantly from our estimates, which may reduce our earnings.
The implementation of measures to protect wildlife or the designation of previously unprotected species as threatened or endangered in areas where underlying property operations are conducted could cause us to incur increased costs arising from species protection measures or could result in constraints on our exploration, production and midstream activities.
The implementation of measures to protect wildlife or the designation of previously unprotected species as threatened or endangered in areas where underlying property operations are conducted could cause us to incur increased costs arising from species protection measures or could result in constraints on our upstream and midstream activities.
Disagreements with tax authorities or courts could result in additional tax liabilities recorded by us or interest and penalties imposed on us, which could adversely impact our earnings, cash flow and financial position. 54 Table of Contents Our hedging activities are subject to numerous and evolving financial laws and regulations which could inhibit our ability to effectively hedge our production against commodity price risk or increase our cost of compliance.
Disagreements with tax authorities or courts could result in additional tax liabilities or interest and penalties imposed on us, which could adversely impact our earnings, cash flow and financial position. 55 Table of Contents Our hedging activities are subject to numerous and evolving financial laws and regulations which could inhibit our ability to effectively hedge our production against commodity price risk or increase our cost of compliance.
However, any legislation or regulatory programs at the international, federal, state or city levels designed to reduce methane or other GHG emissions could increase the cost of consuming, and thereby reduce demand for, the natural gas, NGLs and oil we produce and our midstream services.
However, any legislation or regulatory programs at the international, federal, state or city levels designed to reduce methane or other GHG emissions could increase the cost of consuming, and thereby reduce demand for, the natural gas, NGLs and oil we produce and our midstream systems service.
Although we are not aware of any current plans of Moody's, S&P or Fitch to downgrade its rating of EQT’s or EQM’s senior notes, we cannot be assured that one or more of these rating agencies will not downgrade or withdraw entirely its rating of EQT’s or EQM's senior notes.
Although we are not aware of any current plans of Moody's, S&P or Fitch to downgrade its rating of our senior notes, we cannot be assured that one or more of these rating agencies will not downgrade or withdraw entirely its rating of our senior notes.
Accordingly, authorizations needed for our or the MVP Joint Venture's projects, including any expansion of the MVP and the MVP Southgate project or other extensions, may not be granted or, if granted, such authorizations may include burdensome or expensive conditions or may later be stayed or revoked or vacated, as was repeatedly the case with the construction of the MVP.
Accordingly, authorizations needed for our or the MVP Joint Venture's projects, including any expansion of MVP Mainline, MVP Southgate, MVP Boost or other extensions, may not be granted or, if granted, such authorizations may include burdensome or expensive conditions or may later be stayed or revoked or vacated, as was repeatedly the case with the construction of MVP Mainline.
For example, the FERC is authorized to impose civil penalties of up to approximately $1.6 million (adjusted periodically for inflation) per violation, per day for violations of the NGA, the NGPA or the rules, regulations, restrictions, conditions and orders promulgated under those statutes.
For example, the FERC is authorized to impose civil penalties of up to approximately $1.6 million (as of February 11, 2026 and adjusted periodically for inflation) per violation, per day for violations of the NGA, the NGPA or the rules, regulations, restrictions, conditions and orders promulgated under those statutes.
Increases in our level of indebtedness may: • require us to use a substantial portion of our cash flow to make debt service payments, which will reduce the funds that would otherwise be available for our operations, future business opportunities, and our shareholder returns strategy; • limit our operating flexibility due to financial and other restrictive covenants, including restrictions on incurring additional debt, making certain investments and paying dividends; • place us at a competitive disadvantage compared to our competitors with lower debt service obligations; • depending on the levels of our outstanding debt, limit our ability to obtain additional financing for working capital, capital expenditures, general corporate and other purposes; and • increase our vulnerability to downturns in our business or the economy, including declines in prices for natural gas, NGLs and oil. 43 Table of Contents In addition, our level of indebtedness may be viewed negatively by credit rating agencies and our credit ratings may be lowered.
Increases in our level of indebtedness may: • require us to use a substantial portion of our cash flow to make debt service payments, which will reduce the funds that would otherwise be available for our operations, future business opportunities, and our shareholder returns strategy; • limit our operating flexibility due to financial and other restrictive covenants, including restrictions on incurring additional debt, making certain investments and paying dividends; • place us at a competitive disadvantage compared to our competitors with lower debt service obligations; • depending on the levels of our outstanding debt, limit our ability to obtain additional financing for working capital, capital expenditures, general corporate and other purposes; and • increase our vulnerability to downturns in our business or the economy, including declines in prices for natural gas, NGLs and oil.
We may incur significant delays, costs and liabilities as a result of environmental and occupational health and safety requirements applicable to our exploration, production and midstream activities.
We may incur significant delays, costs and liabilities as a result of environmental and occupational health and safety requirements applicable to our upstream and midstream activities.
Because our production and reserves predominantly consist of natural gas (approximately 93% of our equivalent proved developed reserves), changes in natural gas prices have significantly greater impact on our financial results than oil prices. The prices for natural gas, NGLs and oil have historically been volatile and have been particularly volatile in recent years.
Because our production and reserves predominantly consist of natural gas (approximately 93% of our equivalent proved developed reserves as of December 31, 2025), changes in natural gas prices have a significantly greater impact on our financial results than oil prices. The prices for natural gas, NGLs and oil have historically been volatile and have been particularly volatile in recent years.
As of December 31, 2024, approximately 99% of our contracted firm transmission capacity was subscribed to by customers under negotiated rate agreements under our tariff, rather than recourse, discount or market-based rate contracts.
As of December 31, 2025, approximately 95% of our contracted firm transmission capacity was subscribed to by customers under negotiated rate agreements under our tariff, rather than recourse, discount or market-based rate contracts.
Our ability to de-lever and the pace thereof will depend on our future financial and operating performance, which will be affected by the prevailing economic conditions and financial, business, regulatory and other factors, as well as the MVP Joint Venture's (defined in Note 11 to the Consolidated Financial Statements) ability to execute on project-level financing, some of which are beyond our control.
Our ability to de-lever and the pace thereof will depend on our future financial and operating performance, which will be affected by the prevailing economic conditions and financial, business, regulatory and other factors, as well as the MVP Joint Venture's ability to execute on project-level financing, some of which are beyond our control.
These transactions involve various inherent risks, such as our ability to obtain the necessary regulatory and third-party approvals; the timing of and conditions imposed upon us by regulators in connection with such approvals; the assumption of, or retaining, potential environmental or other liabilities; and our ability to realize the benefits and synergies expected from such transactions within our projected timeframe or at all, including with respect to the recently completed Equitrans Midstream Merger.
These transactions involve various inherent risks, such as our ability to obtain the necessary regulatory and third-party approvals; the timing of and conditions imposed upon us by regulators in connection with such approvals; the assumption of, or retaining, potential environmental or other liabilities; and our ability to realize the benefits and synergies expected from such transactions within our projected timeframe or at all.
See also Item 1A., "Risk Factors – We have entered into joint ventures, and may in the future enter into additional or modify existing joint ventures, that might restrict our operational and corporate flexibility and divert our management's time and our resources.
See also Item 1A., "Risk Factors-Risks Associated with Strategic Transactions – We have entered into joint ventures, and may in the future enter into additional or modify existing joint ventures, that might restrict our operational and corporate flexibility and divert our management's time and our resources.
There can be no assurance that we will be able to successfully integrate companies and assets that we acquire, including Equitrans Midstream Corporation (Equitrans Midstream) and its subsidiaries, and the anticipated benefits of such strategic transactions may not be realized fully or at all or may take longer than expected.
There can be no assurance that we will be able to successfully integrate companies and assets that we acquire, and the anticipated benefits of such strategic transactions may not be realized fully or at all or may take longer than expected.
Our operations, projects and growth opportunities require us to have strong relationships with various key stakeholders, including our shareholders, employees, suppliers, customers, local communities and others. However, opposition towards oil and natural gas drilling and pipeline construction generally has been growing globally and is particularly pronounced in the U.S.
Our operations, projects and growth opportunities require us to have strong relationships with various key stakeholders, including our shareholders, employees, suppliers, customers, local communities and others. However, opposition towards oil and natural gas drilling and pipeline construction generally has been growing globally.
Joint venture arrangements and dynamics can also divert management and operating resources in a manner that is disproportionate to our ownership percentage in such ventures.
Joint venture arrangements may restrict our operational and corporate flexibility. Joint venture arrangements and dynamics can also divert management and operating resources in a manner that is disproportionate to our ownership percentage in such ventures.
We expect commodity price volatility to continue or increase in the future due to rising macroeconomic uncertainty and geopolitical tensions. 38 Table of Contents Commodity prices are affected by a number of factors beyond our control, which include: • weather conditions and seasonal trends; • the domestic and foreign supply of and demand for natural gas, NGLs and oil; • prevailing prices on local price indexes in the areas in which we operate and expectations about future commodity prices (the market price for natural gas in the Appalachian Basin is typically lower relative to NYMEX Henry Hub as a result of the increased production and supply of natural gas in the Northeast United States); • national and worldwide economic and political conditions, particularly those in, or affecting, other countries which are significant producers of natural gas and/or oil; • new and competing exploratory finds of natural gas, NGLs and oil; • changes in U.S. exports of natural gas, NGLs and oil; • the effect of energy conservation efforts; • the price, availability and consumer demand for alternative fuels; • the availability, proximity, capacity and cost of pipelines, other transportation facilities, and gathering, processing and storage facilities and other factors that result in differentials to benchmark prices; • technological advances affecting energy consumption and production; • the actions of the Organization of Petroleum Exporting Countries; • the level and effect of trading in commodity futures markets, including commodity price speculators and others; • the cost of exploring for, developing, producing and transporting natural gas, NGLs and oil; • risks associated with drilling, completion and production operations; and • domestic, local and foreign governmental regulations, tariffs and taxes, including environmental and climate change regulation.
Commodity prices are affected by a number of factors beyond our control, which include: • weather conditions and seasonal trends; • the domestic and foreign supply of and demand for natural gas, NGLs and oil; • prevailing prices on local price indexes in the areas in which we operate and expectations about future commodity prices (the market price for natural gas in the Appalachian Basin is typically lower relative to NYMEX Henry Hub as a result of the increased production and supply of natural gas in the Northeast United States); • national and worldwide economic and political conditions, particularly those in, or affecting, other countries which are significant producers of natural gas and/or oil; • new and competing exploratory finds of natural gas, NGLs and oil; • changes in U.S. exports of natural gas, NGLs and oil; • the effect of energy conservation efforts; • the price, availability and consumer demand for alternative fuels; • the availability, proximity, capacity and cost of pipelines, other transportation facilities, and gathering, processing and storage facilities and other factors that result in differentials to benchmark prices; • technological advances affecting energy consumption and production; • the actions of the Organization of Petroleum Exporting Countries; • the level and effect of trading in commodity futures markets, including commodity price speculators and others; • the cost of exploring for, developing, producing and transporting natural gas, NGLs and oil; • risks associated with drilling, completion and upstream operations; and • domestic, local and foreign governmental regulations, tariffs and taxes, including environmental and climate change regulation. 40 Table of Contents We use financial models to attempt to project future prices for the hydrocarbons we produce and sell, and we make decisions regarding our production, operations and hedging strategy in part based on such modeling.
Concerns over global economic conditions, stock market volatility, energy costs, geopolitical issues (including continued hostilities between Russia and Ukraine as well as other conflicts, including in the Middle East), potential tariffs imposed by the United States or other countries on goods and natural resources, including natural gas and LNG, inflation and U.S.
Concerns over global economic conditions, stock market volatility, energy costs, geopolitical issues (including in and relating to Venezuela, Russia and Ukraine, and the Middle East), potential tariffs imposed by the United States or other countries on goods and natural resources, including natural gas and LNG, inflation and U.S.
In recent years, the EPA has proposed and adopted amendments to existing rules as well as new rules directed at restricting the amount of methane and other GHG emissions from new and existing oil and natural gas production and natural gas processing and transmission facilities. See Item 1., "Business-Regulation-Air Emissions" for more information.
For example, in recent years, the EPA has proposed and adopted amendments to existing rules as well as new rules directed at restricting the amount of methane and other GHG emissions from new and existing oil and natural gas production and natural gas processing and transmission facilities.
Under FERC policy, a regulated service provider and a customer may mutually agree to a "negotiated rate," and that contract must be filed with and accepted by the FERC. As of December 31, 2024, approximately 99% of the contracted firm transmission capacity on our systems was subscribed under such "negotiated rate" contracts.
Under FERC policy, a regulated service provider and a customer may mutually agree to a "negotiated rate," and that contract must be filed with and accepted by the FERC. As of December 31, 2025, approximately 95% of our Transmission segment's contracted firm transmission capacity was subscribed under negotiated rate agreements.
As of February 14, 2025, EQT's senior notes were rated "Baa3" with a "Negative" outlook by Moody's Investors Services (Moody's), "BBB–" with a "Stable" outlook by Standard & Poor's Ratings Service (S&P) and "BBB–" with a "Stable" outlook by Fitch Ratings Service (Fitch).
As of February 11, 2026, our senior notes were rated "Baa3" with a "Stable" outlook by Moody's Investors Services (Moody's), "BBB–" with a "Stable" outlook by Standard & Poor's Ratings Service (S&P) and "BBB–" with a "Stable" outlook by Fitch Ratings Service (Fitch).
Those risks include, but are not limited to: • physical construction conditions, such as topographical, or unknown or unanticipated geological, conditions and impediments; • construction site access logistics; • crew availability and productivity and ability to adhere to construction workforce drawdown plans; • adverse weather conditions; • project opposition, including delays caused by landowners, advocacy groups or activists opposed to our projects and/or the natural gas industry through lawsuits or intervention in regulatory proceedings; • evolving regulatory or legal requirements and related impacts therefrom, including additional costs of compliance; • the application of time of year or other regulatory restrictions affecting construction; • failure to meet customer contractual requirements; • environmental conditions; • vandalism and acts of sabotage; • the lack of available skilled labor, equipment and materials (or escalating costs in respect thereof, including as a result of inflation and/or tariffs); • issues regarding availability of or access to connecting infrastructure; and • the inability to obtain necessary rights-of-way or approvals and permits from regulatory agencies on a timely basis or at all (and maintain such rights-of-way, approvals and permits once obtained) Risks inherent in the construction of these types of projects, such as unanticipated geological conditions, challenging terrain in certain of our construction areas and severe or continuous adverse weather conditions, have adversely affected, and in the future could adversely affect, project timing, completion and costs, as well as increase the risk of loss of human life, personal injuries, significant damage to property or environmental contamination.
Those risks include, but are not limited to: • physical construction conditions, such as topographical, or unknown or unanticipated geological, conditions and impediments; • construction site access logistics; • crew availability and productivity and ability to adhere to construction workforce drawdown plans; • adverse weather conditions; • project opposition, including delays caused by landowners, advocacy groups or activists opposed to our projects and/or the natural gas industry through lawsuits or intervention in regulatory proceedings; • evolving regulatory or legal requirements and related impacts therefrom, including additional costs of compliance; • the application of time of year or other regulatory restrictions affecting construction; • failure to meet customer contractual requirements; • environmental conditions; • vandalism and acts of sabotage; • the lack of available skilled labor, equipment and materials (or escalating costs in respect thereof, including as a result of inflation and/or tariffs, particularly on steel and aluminum); • issues regarding availability of or access to connecting infrastructure; and • the inability to obtain necessary rights-of-way or approvals and permits from regulatory agencies on a timely basis or at all (and maintain such rights-of-way, approvals and permits once obtained).
Most notably, certain of these risks have been realized in the construction of the MVP, including construction-related risks and adverse weather conditions, and such risks or other risks may be realized in the future which may further adversely affect the timing and/or cost of the MVP and MVP Southgate (defined in Note 11 to the Consolidated Financial Statements).
Most notably, certain of these risks have been realized in the construction of MVP Mainline, including construction-related risks and adverse weather conditions, and such risks or other risks may be realized in the future which may further adversely affect the timing and/or cost of MVP Mainline, MVP Southgate and MVP Boost.
The actual amount and timing of our future capital expenditures may differ materially from our estimates as a result of, among other things, natural gas prices, actual drilling results, the availability of drilling rigs and other services and equipment, and regulatory, technological and competitive developments. 44 Table of Contents Our cash flows from operations and access to capital are subject to a number of variables, including: • our level of proved reserves and production; • the level of hydrocarbons we are able to produce from existing wells; • our access to, and the cost of accessing, end markets for our production; • the prices at which our production is sold; • our ability to acquire, locate and produce new reserves; • our ability to obtain and/or maintain necessary rights-of-way, real-estate rights or permits or other government approvals, including approvals by regulatory agencies; • our ability to successfully integrate the infrastructure we build or acquire with our existing systems; • our success in securing or maintaining adequate customer commitments for our midstream services, including to use newly expanded facilities; • the levels of our operating expenses; and • our ability to access the public or private capital markets or borrow under EQT's revolving credit facility.
Our cash flows from operations and access to capital are subject to a number of variables, including: • our level of proved reserves and production; • the level of hydrocarbons we are able to produce from existing wells; • our access to, and the cost of accessing, end markets for our production; • the prices at which our production is sold; • our ability to acquire, locate and produce new reserves; • our ability to obtain and/or maintain necessary rights-of-way, real estate rights or permits or other government approvals, including approvals by regulatory agencies; • our ability to successfully integrate the infrastructure we build or acquire with our existing systems; • our success in securing or maintaining adequate customer commitments for our midstream services, including to use newly expanded facilities; • the levels of our operating expenses; and • our ability to access the public or private capital markets or borrow under EQT's revolving credit facility.
We intend to fund our Debt Retirement Plan through asset monetizations, such as the NEPA Non-Operated Asset Divestitures and the Midstream Joint Venture Transaction, and free cash flow; however, there can be no assurance that we will be able to generate sufficient monetization proceeds and free cash flow to execute our Debt Retirement Plan on our anticipated timeframe, if at all.
We intend to fund our Debt Retirement Plan through asset monetizations and free cash flow; however, there can be no assurance that we will be able to generate sufficient monetization proceeds and free cash flow to execute our Debt Retirement Plan on our anticipated timeframe, if at all.
Approximately 6% of our net undeveloped acres are subject to leases that could expire over the next three years.
As of December 31, 2025, approximately 5% of our net undeveloped acres are subject to leases that could expire over the next three years.
We have entered into several joint ventures primarily pertaining to the construction and operation of certain midstream infrastructure, including the MVP Joint Venture, Eureka Midstream Holdings, LLC (Eureka Midstream Holdings) and the Midstream Joint Venture, and may in the future enter into additional joint venture arrangements with third parties. Joint venture arrangements may restrict our operational and corporate flexibility.
We have entered into several joint ventures primarily pertaining to the construction and operation of certain midstream infrastructure, including the MVP Joint Venture, Eureka Midstream Holdings, LLC (Eureka Holdings) and the Midstream Joint Venture (defined in Note 9 to the Consolidated Financial Statements), and may in the future enter into additional joint venture arrangements with third parties.
Such costs may adversely affect our future business, financial condition, results of operations, and liquidity. Laws and regulations directed at restricting emissions of methane and other GHGs could result in increased operating costs and reduced demand for the natural gas, NGLs and oil that we produce and our midstream services.
If we become subject to such regulations, we may incur additional compliance and reporting costs, which may adversely affect our future business, financial condition, results of operations and liquidity. 50 Table of Contents Laws and regulations directed at restricting emissions of methane and other GHGs could result in increased operating costs and reduced demand for the natural gas, NGLs and oil that we produce and our midstream systems service.
In addition, the 10% discount factor we use when calculating the standardized measure may not be the most appropriate discount factor based on interest rates in effect from time to time and risks associated with our operations or the natural gas, NGLs and oil industry in general. 37 Table of Contents Natural gas, NGLs and oil price declines, and changes in our development strategy, have resulted in impairment of certain of our assets.
In addition, the 10% discount factor we use when calculating the standardized measure may not be the most appropriate discount factor based on interest rates in effect from time to time and risks associated with our operations or the natural gas, NGLs and oil industry in general.
Any failure to extend or replace a significant portion of our existing gathering, transmission and storage contracts, or extending or replacing such contracts at unfavorable or lower rates or with lower or no associated firm reservation fee revenues, or other disadvantageous terms relative to the prior contract structure, or disagreements or disputes on the interpretation of existing or future contractual terms, could have a material adverse effect on our business, financial condition, results of operations, and cash flows.
Additionally, disagreements may arise with contractual counterparties on the interpretation of contractual provisions, including during the negotiation, for example, of contract amendments required to be entered into upon the occurrence of specified events. 42 Table of Contents Any failure to extend or replace a significant portion of our existing gathering, transmission and storage contracts, or extending or replacing such contracts at unfavorable or lower rates or with lower or no associated firm reservation fee revenues, or other disadvantageous terms relative to the prior contract structure, or disagreements or disputes on the interpretation of existing or future contractual terms, could have a material adverse effect on our business, financial condition, results of operations, and cash flows.
Our potential midstream customers may prefer to obtain services under other forms of contractual arrangements which could require volumetric exposure or potentially direct commodity exposure, and we may not be willing to agree to such other forms of contractual arrangements. 41 Table of Contents A substantial majority of the services we provide on our transmission and storage systems are subject to long-term, fixed-price "negotiated rate" contracts that are subject to limited or no adjustment, even if our cost to perform such services exceeds the revenues received from such contracts, and, as a result, our costs could exceed our revenues received under such contracts, we could be unable to achieve the expected investment return under such contracts, and/or our business, financial condition, results of operations, and cash flows could be adversely affected.
A substantial majority of the services we provide on our transmission and storage systems are subject to long-term, fixed-price "negotiated rate" contracts that are subject to limited or no adjustment, even if our cost to perform such services exceeds the revenues received from such contracts, and, as a result, our costs could exceed our revenues received under such contracts, we could be unable to achieve the expected investment return under such contracts, and/or our business, financial condition, results of operations, and cash flows could be adversely affected.
In addition, derivative transactions may expose us to the risk of financial loss in certain circumstances, including instances in which our production is less than expected or an event materially impacts natural gas, NGLs or oil prices or the relationship between the hedged price index and the natural gas, NGLs or oil sales price.
In addition, derivative transactions may expose us to the risk of financial loss in certain circumstances, including instances in which our production is less than expected or an event materially impacts natural gas, NGLs or oil prices or the relationship between the hedged price index and the natural gas, NGLs or oil sales price. 46 Table of Contents We cannot be certain that any derivative transaction we may enter into will adequately protect us from declines in the prices of natural gas, NGLs or oil.
Lack of access to capital, changes in government regulations, changes in future development plans or commodity prices, reduced drilling activity, or the reduction in the fair value of undeveloped properties in the areas in which we operate could impact our ability to preserve, trade or sell our leases prior to their expiration, resulting in the termination or impairment of leases for properties that we have not developed.
Lack of access to capital, changes in government regulations, changes in future development plans or commodity prices, reduced drilling activity, or the reduction in the fair value of undeveloped properties in the areas in which we operate could impact our ability to preserve, trade or sell our leases prior to their expiration, resulting in the termination or impairment of leases for properties that we have not developed. 37 Table of Contents We evaluate capitalized costs of unproved oil and gas properties at least annually to determine recoverability on a prospective basis.
Future declines in natural gas, NGLs or oil prices, increases in operating costs or adverse changes in well performance, among other circumstances, may result in our having to make significant future downward adjustments to our estimated proved reserves and/or could result in additional non-cash impairment charges to write-down the carrying amount of our assets, including other long-lived intangible assets, which may have a material adverse effect on our results of operations in future periods.
Proved oil and gas properties that have carrying amounts in excess of estimated future cash flows are written down to fair value, which is estimated by discounting the estimated future cash flows using discount rate assumptions that marketplace participants would use in their estimates of fair value. 39 Table of Contents Future declines in natural gas, NGLs or oil prices, increases in operating costs or adverse changes in well performance, among other circumstances, may result in our having to make significant future downward adjustments to our estimated proved reserves and/or could result in additional non-cash impairment charges to write-down the carrying amount of our assets, including other long-lived intangible assets, which may have a material adverse effect on our results of operations in future periods.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur Enterprise Risk Committee has delegated to our Chief Information Officer primary responsibility for identifying, assessing and managing cybersecurity-related risks. Our Chief Information Officer has a Bachelor of Science in Computer Science from the University of Kentucky and a Master of Business Administration in Finance from the Wharton School of Business at the University of Pennsylvania.
Biggest changeThis report is presented to the Audit Committee by our Chief Information Officer or our Vice President, Information Technology. Our Enterprise Risk Committee has delegated to our Chief Information Officer primary responsibility for identifying, assessing and managing cybersecurity-related risks.
Our Enterprise Risk Committee also oversees periodic follow-up assessments to analyze changes in existing, evolving and emerging risks and identify new or more effective measures for mitigation. Cybersecurity risk was classified as a Tier 1 enterprise risk for our Company by our Enterprise Risk Committee for 2024.
Our Enterprise Risk Committee also oversees periodic follow-up assessments to analyze changes in existing, evolving and emerging risks and identify new or more effective measures for mitigation. Cybersecurity risk was classified as a Tier 1 enterprise risk for our Company by our Enterprise Risk Committee for 2025.
Our Board of Directors has delegated to its Audit Committee (the Audit Committee) primary responsibility for regular oversight of cybersecurity risk at the Board-level and this delegation is reflected in the Audit Committee's Charter. Our Chief Information Officer provides a regular quarterly report to the Audit Committee regarding cybersecurity matters and our enterprise cybersecurity program.
Our Board of Directors has delegated to its Audit Committee (the Audit Committee) primary responsibility for regular oversight of cybersecurity risk at the Board level and this delegation is reflected in the Audit Committee's Charter. Our Audit Committee receives a regular quarterly report regarding cybersecurity matters and our enterprise cybersecurity program.
Our Information Security team, led by our Vice President, Information Technology, who reports directly to our Chief Information Officer, manages our enterprise cybersecurity program and is responsible for managing all reported cybersecurity threats and addressing matters related to cybersecurity risk, information security and technology risk.
Our Information Security team, led by our Vice President, Information Technology manages our enterprise cybersecurity program and is responsible for managing all reported cybersecurity threats and addressing matters related to cybersecurity risk, information security and technology risk. Our Vice President, Information Technology, has served in his current role since 2019 and has over 25 years of information technology experience.
We maintain a Cybersecurity Incident Management Policy (Cybersecurity Policy), which provides guidance and processes for preventing, identifying, assessing, mitigating, resolving and ensuring timely public disclosure, when appropriate, of cybersecurity threats, including both cybersecurity threats directed at our Company and those associated with our use of third-party service providers.
He is responsible for our enterprise technology strategy and operations, including infrastructure, applications, cybersecurity, and data platforms, and previously served as Director of IT Operations at Rice Energy Inc. for four years prior to joining EQT. 59 Table of Contents We maintain a Cybersecurity Incident Management Policy (Cybersecurity Policy), which provides guidance and processes for preventing, identifying, assessing, mitigating, resolving and ensuring timely public disclosure, when appropriate, of cybersecurity threats, including both cybersecurity threats directed at our Company and those associated with our use of third-party service providers.
We have retained a leading cybersecurity incident response vendor to assist us in responding to cybersecurity incidents and we maintain relationships with technology providers to help us recover or rebuild technology systems in the event of a large-scale cybersecurity incident. 58 Table of Contents Our Cybersecurity Policy requires that all of our employees, contractors and vendors report any suspected cybersecurity threat to our Information Security team using reporting functions within our digital work environment.
We have retained a leading cybersecurity incident response vendor to assist us in responding to cybersecurity incidents and we maintain relationships with technology providers to help us recover or rebuild technology systems in the event of a large-scale cybersecurity incident.
He has served in his current role at EQT since 2019 and has over twenty years of information technology experience within the energy industry.
Our Chief Information Officer has a Bachelor of Science in Computer Science from the University of Kentucky and a Master of Business Administration in Finance from the Wharton School of Business at the University of Pennsylvania. He has served in his current role at EQT since 2019 and has over 20 years of information technology experience within the energy industry.
Added
During our Chief Information Officer's sabbatical from September 2025 to the beginning of February 2026, our Vice President, Information Technology, who reports directly to our Chief Information Officer, assumed such responsibility and consulted with our Chief Information Officer as he deemed appropriate.
Added
Our Cybersecurity Policy requires that all of our employees, contractors and vendors report any suspected cybersecurity threat to our Information Security team using reporting functions within our digital work environment.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

9 edited+6 added−5 removed7 unchanged
Biggest changeThe PADEP issued a final report and closed its investigation in August 2022, and we do not expect further inquiry from the PADEP on this matter; however, the Pennsylvania Public Utilities Commission and PHMSA investigations are still pending.
Biggest changeThe PADEP issued a final report and closed its investigation in August 2022, and we do not expect further inquiry from the PADEP on this matter; however, the Pennsylvania Public Utilities Commission and the PHMSA investigations are still open. 60 Table of Contents On October 23, 2023, Equitrans, L.P. received permission from the FERC to plug and abandon the AH Hupp 3660 storage well (Hupp Well) in the Pratt Storage Field that was the subject of the PADEP's investigation of the Pratt Incident.
Following the explosion, the Pennsylvania Department of Environmental Protection (PADEP), the Pennsylvania Public Utilities Commission and the PHMSA began investigating the Pratt Incident.
Following the explosion, the Pennsylvania Department of Environmental Protection (the PADEP), the Pennsylvania Public Utilities Commission and the PHMSA began investigating the Pratt Incident.
Environmental Proceedings Pratt Storage Field Matter, Morgan Township, Pennsylvania . On October 31, 2018, a gas explosion occurred in Morgan Township, Greene County, Pennsylvania (the Pratt Incident), close in proximity to Equitrans, L.P.'s (one of our subsidiaries) Pratt Storage Field assets.
Environmental Proceedings Pratt Storage Field Matter, Morgan Township, Pennsylvania On October 31, 2018, a gas explosion occurred in Morgan Township, Greene County, Pennsylvania (the Pratt Incident), close in proximity to the Pratt Storage Field assets of Equitrans, L.P., one of our subsidiaries.
On November 6, 2022, Equitrans Midstream became aware of natural gas venting from one of the storage wells, well 2244, at Equitrans, L.P.'s Rager Mountain natural gas storage facility (the Rager Mountain Facility), located in Jackson Township, a remote section of Cambria County, Pennsylvania. Venting at the Rager Mountain Facility was halted on November 19, 2022.
Rager Mountain Storage Field Venting, Jackson Township, Pennsylvania On November 6, 2022, Equitrans Midstream Corporation (Equitrans Midstream) became aware of natural gas venting from one of the storage wells, well 2244, at Equitrans, L.P.'s Rager Mountain natural gas storage facility (the Rager Mountain Facility), located in Jackson Township, a remote section of Cambria County, Pennsylvania.
The Pratt Complaint carries the possibility of a monetary sanction, that if imposed could result in a fine in excess of $300,000; however, we expect that the resolution of this matter will not have a material adverse impact on our financial condition, results of operations or liquidity. Rager Mountain Storage Field Venting, Jackson Township, Pennsylvania.
The Pratt Complaint carries the possibility of a monetary sanction, that if imposed could result in a fine in excess of $300,000; however, we expect that the resolution of this matter will not have a material adverse impact on our financial condition, results of operations or liquidity.
On January 24, 2025, Equitrans, L.P. requested an additional extension of time, until July 31, 2025, to complete the plugging and abandonment of the Hupp Well. 59 Table of Contents On October 30, 2023, Equitrans, L.P. received a criminal complaint from the State Attorney General's Office charging Equitrans, L.P. with violations of Pennsylvania's Clean Streams Law (the Pratt Complaint), and generally alleging that: (i) natural gas leaked from the Hupp Well and into a water well and (ii) Equitrans, L.P. failed to conduct a stray gas investigation of the Pratt Incident.
On October 30, 2023, Equitrans, L.P. received a criminal complaint from the State Attorney General's Office charging Equitrans, L.P. with violations of Pennsylvania's Clean Streams Law (the Pratt Complaint), and generally alleging that: (i) natural gas leaked from the Hupp Well and into a water well and (ii) Equitrans, L.P. failed to conduct a stray gas investigation of the Pratt Incident.
W e expect that the resolution of this matter will not have a material impact on our financial condition, results of operations or liquidity.
We expect that the resolution of this matter, including the payment of the civil penalty, will not have a material adverse impact on our financial condition, results of operations or liquidity.
Since the time of the incident, the PADEP has concluded its investigation and the PHMSA and other investigators are continuing to conduct civil and criminal investigations of the incident, and we are cooperating in such investigations.
Venting at the Rager Mountain Facility was halted on November 19, 2022. Since the time of the incident, the PADEP has concluded its investigation and the PHMSA and other investigators are continuing to conduct civil and criminal investigations of the incident, and we are cooperating in such investigations.
If additional penalties are pursued and ultimately imposed related to the Rager Mountain Facility incident, the penalties, individually and/or in the aggregate, may exceed $300,000; however, we expect that the resolution of this matter will not have a material adverse impact on our financial condition, results of operations or liquidity.
The Rager Complaint carries the possibility of a monetary sanction, that if imposed could result in a fine in excess of $300,000; however, we expect that the resolution of this matter will not have a material adverse impact on our financial condition, results of operations or liquidity.
Removed
On October 23, 2023, Equitrans, L.P. received permission from the FERC to plug and abandon the AH Hupp 3660 storage well (Hupp Well) in the Pratt Storage Field that was the subject of the PADEP's investigation of the Pratt Incident.
Added
On March 4, 2025, Equitrans, L.P. was granted an additional extension of time, until July 31, 2025, to complete the plugging of the Hupp Well, and, on July 21, 2025, the FERC further extended the time period until January 31, 2026.
Removed
We plan to continue working with the PHMSA, pursuant to the consent order between PHSMA and Equitrans Midstream, regarding the remaining two disconnected wells at the Rager Mountain Facility.
Added
Plugging operations were completed in advance of the January 31, 2026 deadline, and Equitrans L.P. plans to complete formal abandonment of the Hupp Well.
Removed
Plugging and Abandoning of Wells at the Holbrook Storage Reservoir, Center Township, Pennsylvania. One of our wholly owned subsidiaries, EQT Gathering, LLC, is the owner of fifteen inactive storage wells within the Holbrook storage reservoir located in Center Township, Pennsylvania. The wells have been inactive since 2021.
Added
The corrective measures in the May 2023 consent order with the PHMSA have been completed, all wells at the Rager Mountain Facility have returned to service, and on January 9, 2026, we submitted a request to the PHMSA that the consent order be terminated.
Removed
On June 10, 2024, we were notified by the PADEP of alleged violations of the 2012 Oil and Gas Act, which requires wells located in Pennsylvania which are inactive for a period of twelve months to be reported to the PADEP as "inactive" and plugged.
Added
On October 17, 2025, the PHMSA issued a Notice of Probable Violation and Proposed Civil Penalty pertaining to this matter, pursuant to which the PHMSA recommended assessing a civil penalty of $939,000.
Removed
We are actively working with the PADEP to plug the inactive wells in accordance with the 2012 Oil and Gas Act and resolve this matter, and in connection therewith, we may be assessed a monetary penalty in excess of $300,000.
Added
Additionally, on July 24, 2025, the Pennsylvania Fifty-First Statewide Investigating Grand Jury returned four criminal charges against Equitrans, L.P., consisting of one violation of the Air Pollution Control Act (35 P.S. 4009(b)(1)) and three violations of the Clean Streams Law (35 P.S. 691.602(b); 35 P.S. 691.401; and 35 P.S. 691.611). All charges are second degree misdemeanors.
Added
In its complaint (the Rager Complaint), the Commonwealth of Pennsylvania alleges that from November 6, 2022, to November 19, 2022, Equitrans, L.P. negligently caused air pollution and brine water to emit and discharge into the air, groundwater, and wetlands around the George L. Reade #1 Well, without first obtaining a permit from the PADEP.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeWilliam E. Jordan (44) Chief Legal and Policy Officer and Corporate Secretary (2019) Mr. Jordan was appointed as Chief Legal and Policy Officer of EQT Corporation in October 2024 and assumed the role of Corporate Secretary in November 2020. Prior to his current role, Mr.
Biggest changeWilliam E. Jordan (45) Chief Legal and Policy Officer (2019) Mr. Jordan was appointed as Chief Legal and Policy Officer of EQT Corporation in October 2024. Prior to his current role, Mr. Jordan served as EQT’s Executive Vice President and General Counsel from July 2019 through September 2024. Mr.
From September 2005 to December 2013, Mr. Jordan was an Associate at Vinson & Elkins LLP (international law firm) representing public and private companies in capital markets offerings and mergers and acquisitions, primarily in the oil and natural gas industry. Jeremy T. Knop (36) Chief Financial Officer (2023) Mr.
From September 2005 to December 2013, Mr. Jordan was an Associate at Vinson & Elkins LLP (international law firm) representing public and private companies in capital markets offerings and mergers and acquisitions, primarily in the oil and natural gas industry. Jeremy T. Knop (37) Chief Financial Officer (2023) Mr.
(independent natural gas and oil company acquired by EQT in November 2017) from January 2016 to November 2017; and as Interim Chief Information Officer of Express Energy Services (oilfield services company for well construction and well testing services) from September 2015 to December 2015. Lesley Evancho (47) Chief Human Resources Officer (2019) Ms.
(independent natural gas and oil company acquired by EQT in November 2017) from January 2016 to November 2017; and as Interim Chief Information Officer of Express Energy Services (oilfield services company for well construction and well testing services) from September 2015 to December 2015. Lesley Evancho (48) Chief Human Resources Officer (2019) Ms.
Earlier in his career, Mr. Knop served as an Analyst in Global Natural Resources Investment Banking at Barclays Capital (a multinational investment bank) from June 2010 to August 2012. Toby Z. Rice (43) President and Chief Executive Officer (2019) Mr.
Earlier in his career, Mr. Knop served as an Analyst in Global Natural Resources Investment Banking at Barclays Capital (a multinational investment bank) from June 2010 to August 2012. Toby Z. Rice (44) President and Chief Executive Officer (2019) Mr.
Fenton was appointed as Executive Vice President Upstream of EQT Corporation in October 2024. Previously, Ms. Fenton served as EQT’s Senior Vice President Asset Performance from February 2023 to October 2024, and Vice President Asset Performance from July 2019 to February 2023. Todd M. James (42) Chief Accounting Officer (2019) Mr.
Fenton was appointed as Executive Vice President Upstream of EQT Corporation in October 2024. Previously, Ms. Fenton served as EQT’s Senior Vice President Asset Performance from February 2023 to October 2024, and Vice President Asset Performance from July 2019 to February 2023. Todd M. James (43) Chief Accounting Officer (2019) Mr.
Tony Duran (46) Chief Information Officer (2019) Mr. Duran was appointed as Chief Information Officer of EQT Corporation in July 2019. Prior to joining EQT, Mr. Duran ran PH6 Labs, a technology incubator he founded, from December 2017 to July 2019. Prior to that, he served as Chief Information Officer of Rice Energy Inc.
Tony Duran (47) Chief Information Officer (2019) Mr. Duran was appointed as Chief Information Officer of EQT Corporation in July 2019. Prior to joining EQT, Mr. Duran ran PH6 Labs, a technology incubator he founded, from December 2017 to July 2019. Prior to that, he served as Chief Information Officer of Rice Energy Inc.
(biotechnology product development company) from August 2018 to March 2019; Vice President, Human Resources at Edward Marc Brands (food services company) from March 2018 to August 2018; and Vice President, Human Resources at Rice Energy Inc. from April 2017 to November 2017. Sarah Fenton (46) Executive Vice President Upstream (2024) Ms.
(biotechnology product development company) from August 2018 to March 2019; Vice President, Human Resources at Edward Marc Brands (food services company) from March 2018 to August 2018; and Vice President, Human Resources at Rice Energy Inc. from April 2017 to November 2017. Sarah Fenton (47) Executive Vice President Upstream (2024) Ms.
Item 4. Mine Safety Disclosures Not Applicable. 60 Table of Contents Information about our Executive Officers (as of February 19, 2025) Name and Age Current Title (Year Initially Elected an Executive Officer) Business Experience J.E.B. Bolen (46) Executive Vice President Operations (2024) Mr. Bolen was appointed as Executive Vice President Operations of EQT Corporation in October 2024.
Item 4. Mine Safety Disclosures Not Applicable. 61 Table of Contents Information about Our Executive Officers (as of February 18, 2026) Name and Age Current Title (Year Initially Elected an Executive Officer) Business Experience J.E.B. Bolen (47) Executive Vice President Operations (2024) Mr. Bolen was appointed as Executive Vice President Operations of EQT Corporation in October 2024.
Prior to that, he served in a number of positions with Rice Energy, its affiliates and predecessor entities beginning in February 2007, including as President and Chief Executive Officer of a predecessor entity from February 2008 through September 2013. Mr. Rice is the brother of Daniel J.
Prior to that, he served in a number of positions with Rice Energy, its affiliates and predecessor entities beginning in February 2007, including as President and Chief Executive Officer of a predecessor entity from February 2008 through September 2013. Mr. Rice is the brother of Daniel J. Rice IV, a member of EQT's Board of Directors since November 2017.
Jordan served as EQT’s Executive Vice President and General Counsel from July 2019 through September 2024. Mr. Jordan served as an advisor to the Rice Investment Group (multi-strategy investment fund investing in all verticals of the oil and gas sector) from May 2018 to July 2019.
Jordan served as an advisor to the Rice Investment Group (multi-strategy investment fund investing in all verticals of the oil and gas sector) from May 2018 to July 2019.
Removed
Rice IV, a member of EQT's Board of Directors since November 2017. 61 Table of Contents Name and Age Current Title (Year Initially Elected an Executive Officer) Business Experience Robert R. Wingo (46) Executive Vice President Corporate Ventures & Midstream (2024) Mr. Wingo was appointed as Executive Vice President Corporate Ventures & Midstream of EQT Corporation in October 2024.
Removed
Prior to his current role, Mr. Wingo was EQT’s Executive Vice President Corporate Ventures from September 2021 to October 2024. Prior to joining EQT, Mr. Wingo served as Managing Director at Encap Flatrock Midstream (venture capital and private equity investment fund) from March 2018 through August 2021.
Removed
Prior to that he was Senior Vice President of Midstream and Marketing at Rice Energy Inc., as well as Chief Operating Officer and a member of the Board of Directors for Rice Midstream Partners LP, from June 2013 and December 2014, respectively, until their acquisition by EQT in November 2017.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

14 edited+3 added−1 removed3 unchanged
Biggest changeThe 2023 Self-Constructed Peer Group is comprised of the companies included in our 2023 performance peer group (with the exception of (i) PDC Energy Inc., which was excluded for purposes of the stock performance graph because it was acquired by Chevron Corp. in August 2023, (ii) Pioneer Natural Resources Co., which was excluded for purposes of the stock performance graph because it was acquired by ExxonMobil in May 2024, (iii) Chesapeake Energy Corp. and Southwestern Energy Co., which were excluded for purposes of the stock performance graph because they completed a merger with each other in October 2024 and formed a new company which does not have five years of stock performance history, and (iv) Marathon Oil Corp., which was excluded for purposes of the stock performance graph because it was acquired by ConocoPhillips in November 2024), as selected by the Management Development and Compensation Committee of our Board of Directors for purposes of evaluating our relative total shareholder return under the 2023 Incentive Performance Share Unit Program.
Biggest changeThe 2025 Self-Constructed Peer Group is comprised of the companies included in our 2025 performance peer group, as selected by the Management Development and Compensation Committee of our Board of Directors for purposes of evaluating our relative total shareholder return under the 2025 Incentive Performance Share Unit Program. Item 6. [Reserved] 64 Table of Contents
On September 6, 2022, we announced that our Board of Directors approved a $1 billion increase to the Share Repurchase Program, pursuant to which approval we are authorized to repurchase shares of our outstanding common stock for an aggregate purchase price of up to $2 billion, excluding fees, commissions and expenses.
On September 6, 2022, we announced that our Board of Directors approved a $1 billion increase to the Share Repurchase Program, pursuant to which approval we are authorized to repurchase shares of EQT's outstanding common stock for an aggregate purchase price of up to $2 billion, excluding fees, commissions and expenses.
On December 13, 2021, we announced that our Board of Directors approved a share repurchase program (the Share Repurchase Program) authorizing us to repurchase shares of our outstanding common stock for an aggregate purchase price of up to $1 billion, excluding fees, commissions and expenses.
On December 13, 2021, we announced that our Board of Directors approved a share repurchase program (the Share Repurchase Program) authorizing us to repurchase shares of EQT's outstanding common stock for an aggregate purchase price of up to $1 billion, excluding fees, commissions and expenses.
Repurchases under the Share Repurchase Program may be made from time to time in amounts at prices we deem appropriate and will be subject to a variety of factors, including the market price of our common stock, general market and economic conditions, applicable legal requirements and other considerations.
Repurchases under the Share Repurchase Program may be made from time to time in amounts and at prices we deem appropriate and will be subject to a variety of factors, including the market price of EQT's common stock, general market and economic conditions, applicable legal requirements and other considerations.
As of December 31, 2024, we had purchased shares for an aggregate purchase price of $622.1 million, excluding fees, commissions and expenses, under the Share Repurchase Program since its inception, and the approximate dollar value of shares that may yet be purchased under the Share Repurchase Program is $1.4 billion.
As of December 31, 2025, we had purchased shares for an aggregate purchase price of $622.1 million, excluding fees, commissions and expenses, under the Share Repurchase Program since its inception, and the approximate dollar value of shares that may yet be purchased under the Share Repurchase Program is $1.4 billion.
(US), CNX Resources Corp., Comstock Resources Inc., Coterra Energy Inc., Devon Energy Corp., Diamondback Energy, Inc., Hess Corp., Matador Resources Co., Murphy Oil Corp., Ovintiv Inc. and Range Resources Corp.
(US), CNX Resources Corp., Comstock Resources Inc., Coterra Energy Inc., Devon Energy Corp., Diamondback Energy Inc., Matador Resources Co., Murphy Oil Corp., Ovintiv Inc. and Range Resources Corp.
Our common stock was included in the S&P MidCap 400 index until October 2022, at which time our common stock was added to the S&P 500 Index. Accordingly, we have presented both indices for comparison in the following graph.
EQT common stock was included in the S&P MidCap 400 Index until October 2022, at which time EQT common stock was added to the S&P 500 Index. Accordingly, we have presented both indices for comparison in the following graph.
Stock Performance Graph The following graph compares the most recent cumulative five-year total return provided to shareholders of our common stock relative to the cumulative five-year total returns of the S&P 500 Index, the S&P MidCap 400 Index and two customized peer groups, the 2023 Self-Constructed Peer Group and the 2024 Self-Constructed Peer Group, whose company composition is discussed in footnotes (a) and (b), respectively, below.
Stock Performance Graph The following graph compares the most recent cumulative five-year total return provided to shareholders of EQT common stock relative to the cumulative five-year total returns of the S&P 500 Index, the S&P MidCap 400 Index and two customized peer groups, the 2024 Self-Constructed Peer Group and the 2025 Self-Constructed Peer Group, whose company composition is discussed in footnotes (a) and (b), respectively, below.
The 2024 Self-Constructed Peer Group is comprised of the companies included in our 2024 performance peer group (with the exception of (i) Chesapeake Energy Corp, which was excluded for purposes of the stock performance graph because it merged with Southwestern Energy Co. in October 2024, and (ii) Marathon Oil Corp., which was excluded for purposes of the stock performance graph because it was acquired by ConocoPhillips in November 2024), as selected by the Management Development and Compensation Committee of our Board of Directors for purposes of evaluating our relative total shareholder return under the 2024 Incentive Performance Share Unit Program. 64 Table of Contents Item 6. [Reserved]
The 2024 Self-Constructed Peer Group is comprised of the companies included in our 2024 performance peer group (with the exception of (i) Chesapeake Energy Corp., which was excluded for purposes of the stock performance graph because it merged with Southwestern Energy Co. in October 2024, and (ii) Marathon Oil Corp., which was excluded for purposes of the stock performance graph because it was acquired by ConocoPhillips in November 2024), as selected by the Management Development and Compensation Committee of our Board of Directors for purposes of evaluating our relative total shareholder return under the 2024 Incentive Performance Share Unit Program.
An investment of $100, with reinvestment of all dividends, is assumed to have been made in our common stock, in the S&P 500 Index, the S&P MidCap 400 Index and in each of the peer groups on December 31, 2019 and its relative performance is tracked through December 31, 2024.
An investment of $100, with reinvestment of all dividends, is assumed to have been made in EQT common stock, in the S&P 500 Index, the S&P MidCap 400 Index and in each of the peer groups on December 31, 2020 and its relative performance is tracked through December 31, 2025.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is traded on the New York Stock Exchange under the symbol "EQT." As of February 14, 2025, there were 3,084 shareholders of record of our common stock.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities EQT common stock is traded on the New York Stock Exchange under the symbol "EQT." As of February 11, 2026, there were 2,914 shareholders of record of EQT common stock.
On February 6, 2025, our Board of Directors declared a quarterly cash dividend of $0.1575 per share of EQT common stock, payable on March 3, 2025, to shareholders of record at the close of business on February 18, 2025.
On February 5, 2026, our Board of Directors declared a quarterly cash dividend of $0.165 per share of EQT common stock, payable on March 2, 2026, to shareholders of record at the close of business on February 17, 2026.
Recent Sales of Unregistered Securities We did not repurchase any equity securities registered under Section 12 of the Exchange Act during the three months ended December 31, 2024.
Recent Sales of Unregistered Equity Securities None. Issuer Purchases of Equity Securities We did not repurchase any equity securities registered under Section 12 of the Exchange Act during the fourth quarter of 2025.
(b) The 2024 Self-Constructed Peer Group includes the following eleven companies: Antero Resources Corp., APA Corp. (US), CNX Resources Corp., Comstock Resources Inc., Coterra Energy Inc., Devon Energy Corp., Diamondback Energy Inc., Matador Resources Co., Murphy Oil Corp., Ovintiv Inc. and Range Resources Corp.
(b) The 2025 Self-Constructed Peer Group includes the following fifteen companies: Antero Resources Corp., Antero Midstream Corp., APA Corp. (US), Coterra Energy Inc., Devon Energy Corp., Diamondback Energy Inc., EOG Resources Inc., Expand Energy Corp., Occidental Petroleum Corp., ONEOK Inc., Ovintiv Inc., Permian Resources Corp., Range Resources Corp., Targa Resources Corp. and Williams Companies Inc.
Removed
The stock price performance shown in the graph below is not necessarily indicative of future stock price performance. 63 Table of Contents 12/19 12/20 12/21 12/22 12/23 12/24 EQT Corporation $ 100.00 $ 117.25 $ 201.20 $ 317.08 $ 368.48 $ 447.25 S&P 500 Index 100.00 118.40 152.39 124.79 157.59 197.02 S&P MidCap 400 Index 100.00 113.66 141.80 123.28 143.54 163.54 2023 Self-Constructed Peer Group (a) 100.00 71.23 139.11 220.34 212.19 209.41 2024 Self-Constructed Peer Group (b) 100.00 67.93 147.63 222.46 209.88 210.77 (a) The 2023 Self-Constructed Peer Group includes the following twelve companies: Antero Resources Corp., APA Corp.
Added
Repurchases under the Share Repurchase Program may be made from time to time in amounts at prices we deem appropriate and will be subject to a variety of factors, including the market price of EQT's common stock, general market and economic conditions, applicable legal requirements and other considerations.
Added
The stock price performance shown in the graph below is not necessarily indicative of future stock price performance. 63 Table of Contents *$100 invested on 12/31/2020 in stock, index or peer group, including reinvestment of dividends. Fiscal year ended December 31. Copyright © 2026 Standard & Poor’s, a division of S&P Global.
Added
All rights reserved. 12/20 12/21 12/22 12/23 12/24 12/25 EQT Corporation $ 100.00 $ 171.60 $ 270.43 $ 314.26 $ 381.45 $ 448.69 S&P 500 Index 100.00 128.71 105.40 133.10 166.40 196.16 S&P MidCap 400 Index 100.00 124.76 108.47 126.29 143.88 154.68 2024 Self-Constructed Peer Group (a) 100.00 217.31 327.46 308.95 310.25 315.95 2025 Self-Constructed Peer Group (b) 100.00 181.38 277.66 279.54 330.20 323.98 (a) The 2024 Self-Constructed Peer Group includes the following eleven companies: Antero Resources Corp., APA Corp.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

101 edited+57 added−62 removed11 unchanged
Biggest changeChanges to these amounts are discussed under "Other Income Statement Items." PRODUCTION Years Ended December 31, 2024 2023 Change % Change (Thousands, unless otherwise noted) Total sales volume (MMcfe) 2,228,159 2,016,273 211,886 10.5 Average daily sales volume (MMcfe/d) 6,088 5,524 564 10.2 Average sales price ($/Mcfe) $ 2.21 $ 2.50 $ (0.29) (11.6) Operating revenues: Sales of natural gas, NGLs and oil $ 4,934,366 $ 5,044,768 $ (110,402) (2.2) Gain on derivatives 67,880 1,838,941 (1,771,061) (96.3) Pipeline, net marketing services and other 7,587 12,649 (5,062) (40.0) Total operating revenues 5,009,833 6,896,358 (1,886,525) (27.4) Operating expenses: Transportation and processing: Gathering 775,114 1,282,402 (507,288) (39.6) Transmission 846,563 642,688 203,875 31.7 Processing 293,939 232,170 61,769 26.6 Transportation and processing to affiliate (a) 704,094 148,830 555,264 373.1 Total transportation and processing 2,619,710 2,306,090 313,620 13.6 LOE 196,771 143,274 53,497 37.3 Production taxes 180,236 95,727 84,509 88.3 Exploration 2,735 3,330 (595) (17.9) Selling, general and administrative (b) 244,450 236,171 8,279 3.5 Production depletion 2,013,120 1,702,198 310,922 18.3 Other depreciation and depletion 3,550 3,113 437 14.0 (Gain) loss on sale/exchange of long-lived assets (764,431) 17,445 (781,876) (4,481.9) Impairment and expiration of leases 97,368 109,421 (12,053) (11.0) Other operating expenses 12,696 9,177 3,519 38.3 Total operating expenses 4,606,205 4,625,946 (19,741) (0.4) Operating income $ 403,628 $ 2,270,412 $ (1,866,784) (82.2) Per Unit ($/Mcfe): Gathering $ 0.35 $ 0.64 $ (0.29) (45.3) Transmission 0.38 0.32 0.06 18.8 Processing 0.13 0.12 0.01 8.3 Transportation and processing to affiliate (a) 0.32 0.07 0.25 357.1 LOE 0.09 0.07 0.02 28.6 Production taxes 0.08 0.05 0.03 60.0 Selling, general and administrative (b) 0.11 0.12 (0.01) (8.3) Production depletion 0.90 0.84 0.06 7.1 70 Table of Contents (a) Transportation and processing to affiliate represents intercompany transactions with our Gathering and Transmission segments, which are eliminated in consolidation.
Biggest changeThis change had no impact on the structure of our internal organization, including the composition of our reportable segments. 68 Table of Contents Upstream Results of Operations Years Ended December 31, 2025 2024 Change % Change (Thousands, unless otherwise noted) Total sales volume (MMcfe) 2,382,367 2,228,159 154,208 6.9 Average daily sales volume (MMcfe/d) 6,527 6,088 439 7.2 Average sales price ($/Mcfe) $ 3.24 $ 2.21 $ 1.03 46.6 Operating revenues: Sales of natural gas, NGLs and oil $ 7,726,712 $ 4,934,366 $ 2,792,346 56.6 Gain on derivatives 290,994 67,880 223,114 328.7 Other revenues 6,351 7,587 (1,236) (16.3) Total operating revenues 8,024,057 5,009,833 3,014,224 60.2 Operating expenses: Transportation and processing: Gathering 196,594 775,114 (578,520) (74.6) Transmission 1,008,438 846,563 161,875 19.1 Processing 327,058 293,939 33,119 11.3 Transportation and processing to affiliate (a) 1,251,365 704,094 547,271 77.7 Total transportation and processing 2,783,455 2,619,710 163,745 6.3 LOE 216,198 196,771 19,427 9.9 Production taxes 172,498 180,236 (7,738) (4.3) Exploration 3,601 2,735 866 31.7 Selling, general and administrative (b) 217,803 244,450 (26,647) (10.9) Production depletion 2,258,540 2,013,120 245,420 12.2 Other depreciation and depletion 4,565 3,550 1,015 28.6 Gain on sale/exchange of long-lived assets (31,513) (764,431) 732,918 (95.9) Impairment and expiration of leases 50,341 97,368 (47,027) (48.3) Other operating expenses 30,438 12,696 17,742 139.7 Total operating expenses 5,705,926 4,606,205 1,099,721 23.9 Operating income $ 2,318,131 $ 403,628 $ 1,914,503 474.3 Per Unit ($/Mcfe): Gathering $ 0.08 $ 0.35 $ (0.27) (77.1) Transmission 0.42 0.38 0.04 10.5 Processing 0.14 0.13 0.01 7.7 Transportation and processing to affiliate (a) 0.53 0.32 0.21 65.6 LOE 0.09 0.09 — — Production taxes 0.07 0.08 (0.01) (12.5) Selling, general and administrative (b) 0.09 0.11 (0.02) (18.2) Production depletion 0.95 0.90 0.05 5.6 (a) Transportation and processing to affiliate represents intercompany transactions with our Gathering and Transmission segments, which are eliminated in consolidation.
Future declines in commodity prices, increases in operating costs or adverse changes in well performance or additional changes in our development strategy may result in additional write-downs of the carrying amounts of our assets, including long-lived intangible assets, which could materially and adversely affect our results of operations in future periods." Intangible Assets.
Future declines in commodity prices, increases in operating costs or adverse changes in well performance or additional changes in our development strategy may result in additional write-downs of the carrying amounts of our assets, including long-lived intangible assets, which could materially and adversely affect our results of operations in future periods.
Adjustments to our 2025 planned development schedule or the development schedule of non-operated wells in which we have a working interest, including due to declines in natural gas prices, the pace of well completions, access to sand and water to conduct drilling operations, access to sufficient pipeline takeaway capacity, unscheduled downtime at processing facilities or otherwise, could impact our future sales volume, operating revenues and expenses, per unit metrics and capital expenditures.
Adjustments to our 2026 planned development schedule or the development schedule of non-operated wells in which we have a working interest, including due to declines in natural gas prices, the pace of well completions, access to sand and water to conduct drilling operations, access to sufficient pipeline takeaway capacity, unscheduled downtime at processing facilities or otherwise, could impact our future sales volume, operating revenues and expenses, per unit metrics and capital expenditures.
We could choose to defer a portion of our planned 2025 capital expenditures depending on a variety of factors, including prevailing and anticipated prices for natural gas, NGLs and oil; the availability of necessary equipment, infrastructure and capital; the receipt and timing of required regulatory permits and approvals; and drilling, completion and acquisition costs.
We could choose to defer a portion of our planned 2026 capital expenditures depending on a variety of factors, including prevailing and anticipated prices for natural gas, NGLs and oil; the availability of necessary equipment, infrastructure and capital; the receipt and timing of required regulatory permits and approvals; and drilling, completion and acquisition costs.
Average Realized Price Reconciliation The following table presents detailed natural gas and liquids operational information to assist in the understanding of our consolidated operations, including the calculation of our average realized price ($/Mcfe), which is based on Production adjusted operating revenues, a non-GAAP supplemental financial measure.
Average Realized Price Reconciliation The following table presents detailed natural gas and liquids operational information to assist in the understanding of our consolidated operations, including the calculation of our average realized price ($/Mcfe), which is based on Upstream adjusted operating revenues, a non-GAAP supplemental financial measure.
See Item 7., "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the year ended December 31, 2023, which is incorporated herein by reference, for discussion and analysis of consolidated results of operations for the year ended December 31, 2022.
See Item 7., "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our Annual Report on Form 10-K for the year ended December 31, 2024, which is incorporated herein by reference, for discussion and analysis of consolidated results of operations for the year ended December 31, 2023.
Production adjusted operating revenues (also referred to in this report as total natural gas and liquids sales, including cash settled derivatives) is presented because it is an important measure we use to evaluate period-to-period comparisons of earnings trends.
Upstream adjusted operating revenues (also referred to in this report as total natural gas and liquids sales, including cash settled derivatives) is presented because it is an important measure we use to evaluate period-to-period comparisons of earnings trends.
Proved oil and gas reserves, as defined by SEC Regulation S-X Rule 4-10, are those quantities of oil and gas that, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward from known reservoirs and under existing economic conditions, operating methods and government regulations prior to the time at which contracts providing the right to operate expire unless evidence indicates that renewal is reasonably certain regardless of whether deterministic or probabilistic methods are used for the estimation.
Oil and Gas Reserves Proved oil and gas reserves, as defined by SEC Regulation S-X Rule 4-10, are those quantities of oil and gas that, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from known reservoirs under existing economic conditions, operating methods and government regulations prior to the time at which contracts providing the right to operate expire unless evidence indicates that renewal is reasonably certain regardless of whether deterministic or probabilistic methods are used for the estimation.
We believe that Production adjusted operating revenues provides useful information to investors regarding our financial condition and results of operations because it helps facilitate comparisons of operating performance and earnings trends across periods.
We believe that Upstream adjusted operating revenues provides useful information to investors regarding our financial condition and results of operations because it helps facilitate comparisons of operating performance and earnings trends across periods.
Production adjusted operating revenues is presented because it is an important measure we use to evaluate period-to-period comparisons of earnings trends. Production adjusted operating revenues should not be considered as an alternative to total Production operating revenues.
Upstream adjusted operating revenues is presented because it is an important measure we use to evaluate period-to-period comparisons of earnings trends. Upstream adjusted operating revenues should not be considered as an alternative to total Upstream operating revenues.
Further, tariffs on foreign goods and services could result in other countries instituting tariffs on U.S. goods and services, which could impact the price of natural gas, increase the price of supplies and raw materials that we rely on to conduct our business, and could impact interest rates.
Tariffs on foreign goods and services could result in other countries instituting tariffs on U.S. goods and services, which could impact the demand for and price of natural gas, increase the price of supplies and raw materials that we rely on to conduct our business, and impact interest rates.
See Note 2 to the Consolidated Financial Statements for a reconciliation of total Production operating revenues to EQT Corporation operating revenues as reported in the Statements of Consolidated Operations.
See Note 2 to the Consolidated Financial Statements for a reconciliation of total Upstream operating revenues to EQT Corporation operating revenues as reported in the Statements of Consolidated Operations.
The overall objective of our hedging program is to protect cash flows from undue exposure to the risk of changing commodity prices. The derivative commodity instruments that we use are primarily swap, collar and option agreements. The following table summarizes the approximate volume and prices of our NYMEX hedge positions as of February 14, 2025.
The overall objective of our hedging program is to protect cash flows from undue exposure to the risk of changing commodity prices. The derivative commodity instruments that we use are primarily swap, collar and option agreements. The following table summarizes the approximate volume and prices of our NYMEX hedge positions as of February 11, 2026.
Gathering expense decreased on an absolute and per Mcfe basis for 2024 compared to 2023 due primarily to our Gathering segment's ownership of the gathering assets acquired in the Equitrans Midstream Merger, our Transmission segment's ownership of the transmission and storage assets acquired in the Equitrans Midstream Merger and our Gathering segment's ownership of the additional interest in the NEPA Gathering System acquired in the NEPA Gathering System Acquisition and as consideration for the First NEPA Non-Operated Asset Divestiture.
Gathering expense decreased on an absolute and per Mcfe basis for 2025 compared to 2024 due primarily to our Gathering segment's ownership of the gathering assets acquired in the Equitrans Midstream Merger, our Transmission segment's ownership of the transmission and storage assets acquired in the Equitrans Midstream Merger and our Gathering segment's ownership of additional interest in the NEPA Gathering System acquired in the NEPA Gathering System Acquisition and First NEPA Non-Operated Asset Divestiture.
See Note 10 to the Consolidated Financial Statements for discussion of redemptions and repurchases of debt and Note 12 to the Consolidated Financial Statements for discussion of repurchases of EQT common stock.
See Note 7 to the Consolidated Financial Statements for discussion of redemptions and repurchases of debt and Note 10 to the Consolidated Financial Statements for discussion of repurchases of EQT common stock.
Rating agency Senior notes Outlook Moody's Ba2 Stable S&P BBB– Stable Fitch BB+ Stable Changes in credit ratings may affect our access to the capital markets, the cost of short-term debt through interest rates and fees under our revolving credit facilities, the interest rate on our senior notes with adjustable rates, the rates available on new debt, our pool of investors and funding sources, the borrowing costs and margin deposit requirements on our OTC derivative instruments and credit assurance requirements, including collateral, in support of our midstream service contracts, joint venture arrangements or construction contracts.
(Moody's) Baa3 Stable S&P Global Ratings (S&P) BBB– Stable Fitch Ratings Service (Fitch) BBB– Stable Changes in our credit ratings may affect our access to the capital markets, the cost of short-term debt through interest rates and fees under our revolving credit facilities, the interest rate on our senior notes with adjustable rates, the rates available on new debt, our pool of investors and funding sources, the borrowing costs and margin deposit requirements on our OTC derivative instruments and credit assurance requirements, including collateral, in support of our midstream service contracts, joint venture arrangements or construction contracts.
We recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in our Consolidated Financial Statements or tax returns.
" Income Taxes We recognize deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the Consolidated Financial Statements or tax returns.
Changes in our assumptions are sensitive to numerous factors; however, based on income before taxes for the years ended December 31, 2024, 2023 and 2022, we estimate that a 1% change in our effective tax rate would decrease or increase income tax expense by approximately $3 million, $21 million and $23 million, respectively. Derivative Instruments.
Changes in our assumptions are sensitive to numerous factors; however, based on income before taxes for the years ended December 31, 2025, 2024 and 2023, we estimate that a 1% change in our effective tax rate would increase or decrease income tax expense by approximately $30 million, $3 million and $21 million, respectively.
Production adjusted operating revenues reflects only the impact of settled derivative contracts; thus, the measure excludes the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement. The measure also excludes Production net marketing services and other revenues, which consists of costs of, and recoveries on, pipeline capacity releases and other revenues.
Upstream adjusted operating revenues reflects only the impact of settled derivative contracts; thus, the measure excludes the often-volatile revenue impact of changes in the fair value of derivative instruments prior to settlement. The measure also excludes Upstream other revenues, which consists of costs of, and recoveries on, pipeline capacity releases and other revenues.
EQT's revolving credit facility contains financial covenants that require us to have a total debt to total capitalization ratio no greater than 65%. As of December 31, 2024, we were in compliance with all EQT, Eureka and EQM debt provisions and covenants under our debt agreements.
EQT's revolving credit facility contains financial covenants that require us to have a total debt to total capitalization ratio no greater than 65%. As of December 31, 2025, we were in compliance with all provisions and covenants under our debt agreements.
Affiliate transportation and processing expense increased on an absolute and per Mcfe basis for 2024 compared to 2023 due primarily to our Gathering segment's ownership of the gathering assets acquired in the Equitrans Midstream Merger, our Transmission segment's ownership of the transmission and storage assets acquired in the Equitrans Midstream Merger and our Gathering segment's ownership of the additional interest in the NEPA Gathering System acquired in the NEPA Gathering System Acquisition and as consideration for the First NEPA Non-Operated Asset Divestiture.
Affiliate transportation and processing expense increased on an absolute and per Mcfe basis for 2025 compared to 2024 due primarily to our Gathering segment's ownership of the gathering assets acquired in the Equitrans Midstream Merger and the Olympus Energy Acquisition, our Transmission segment's ownership of the transmission and storage assets acquired in the Equitrans Midstream Merger and our Gathering segment's ownership of additional interest in the NEPA Gathering System acquired in the NEPA Gathering System Acquisition and First NEPA Non-Operated Asset Divestiture.
The table below reflects the credit ratings and rating outlooks assigned to EQT's debt instruments as of February 14, 2025. Rating agency Senior notes Outlook Moody's Investors Service, Inc.
The table below reflects the credit ratings and rating outlooks assigned to EQT's debt instruments as of February 11, 2026. Rating agency Senior notes Outlook Moody's Investors Service, Inc.
(c) Also referred to in this report as Production adjusted operating revenues, a non-GAAP supplemental financial measure. 68 Table of Contents Non-GAAP Financial Measures Reconciliation The table below reconciles Production adjusted operating revenues, a non-GAAP supplemental financial measure, from total Production operating revenues, the most comparable financial measure calculated in accordance with GAAP.
(c) Also referred to in this report as Upstream adjusted operating revenues, a non-GAAP supplemental financial measure. 67 Table of Contents Non-GAAP Financial Measures Reconciliation The table below reconciles Upstream adjusted operating revenues, a non-GAAP supplemental financial measure, to total Upstream operating revenues, the most comparable financial measure calculated in accordance with GAAP.
The following critical accounting estimates, which were reviewed by the Audit Committee of our Board of Directors, relate to our more significant judgments and estimates used in the preparation of our Consolidated Financial Statements. Actual results could differ from our estimates. Oil and Gas Reserves.
The following critical accounting estimates, which were reviewed by the Audit Committee of our Board of Directors, relate to our more significant estimates and assumptions used in the preparation of the Consolidated Financial Statements. Actual results could differ from those estimates.
We estimate future net cash flows from natural gas, NGLs and oil reserves based on selling prices and costs using a twelve-month average price, which is calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the twelve-month period and, as such, is subject to change in subsequent periods.
We estimate future net cash flows from proved reserves based on selling prices using the prescribed twelve-month average price, which is calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the twelve-month period and, as such, is subject to change in subsequent periods.
Production adjusted operating revenues is defined as total Production operating revenues, less the revenue impact of changes in the fair value of derivative instruments prior to settlement and Production net marketing services and other revenues.
Upstream adjusted operating revenues is defined as total Upstream operating revenues, less the revenue impact of changes in the fair value of derivative instruments prior to settlement and Upstream other revenues.
Other operating expenses increased for 2024 compared to 2023 due primarily to increased rig release expense and increased legal and environmental reserves, including from settlements, partly offset by proceeds received in 2024 from business interruption insurance claim recoveries. See Note 1 to the Consolidated Financial Statements for a summary of consolidated other operating expenses.
Other operating expenses increased for 2025 compared to 2024 due primarily to proceeds received in 2024 from business interruption insurance claim recoveries and increased expense from changes in legal and environmental reserves, including settlements. See Note 1 to the Consolidated Financial Statements for a summary of consolidated other operating expenses.
During 2024 and 2023, we recognized impairment and expiration of leases related to leases that we no longer expect to extend or develop prior to their expiration based on our development plan. Other operating expenses . We recognized approximately $13 million and $9 million of other operating expenses for 2024 and 2023, respectively.
Impairment and Expiration of Leases. During 2025 and 2024, we recognized impairment and expiration of leases of approximately $50 million and $97 million, respectively, related to leases that we no longer expect to extend or develop prior to their expiration based on our development plan. Other Operating Expenses.
For 2024, we recognized a gain on derivatives of approximately $68 million related primarily to increases in the fair market value of our NYMEX swaps and options of approximately $377 million due to decreases in NYMEX forward prices, partly offset by decreases in the fair market value of our basis swaps of approximately $309 million.
For 2024, we recognized a gain on derivatives of approximately $68 million related primarily to increases in the fair market value of our NYMEX swaps and options of approximately $422 million due to decreases in NYMEX forward prices, partly offset by decreases in the fair market value of our basis and liquids swaps of approximately $309 million and premiums paid for derivative settlements of $45 million.
We have also entered into derivative instruments to hedge basis. We may use other contractual agreements to implement our commodity hedging strategy from time to time. See Item 7A., "Quantitative and Qualitative Disclosures About Market Risk" and Note 4 to the Consolidated Financial Statements for further discussion of our hedging program.
We may use other contractual agreements to implement our commodity hedging strategy from time to time. See Item 7A., "Quantitative and Qualitative Disclosures About Market Risk" and Note 4 to the Consolidated Financial Statements for further discussion of our hedging program.
Planned Capital Expenditures and Sales Volume In 2025, we expect to spend approximately $2.3 billion to $2.5 billion on total capital expenditures. We expect to fund our capital expenditures with cash generated from operations and, if required, borrowings under EQT's revolving credit facility.
Planned Capital Expenditures, Capital Contributions and Sales Volume In 2026, we expect to spend approximately $2,650 million to $2,850 million on total capital expenditures. We expect to fund our capital expenditures with cash generated from operations and, if required, borrowings under EQT's revolving credit facility.
For a discussion of potential commodity market risks, refer to Item 1A., "Risk Factors – Natural gas, NGLs and oil price volatility, or a prolonged period of low natural gas, NGLs and oil prices, may have an adverse effect on our revenue, profitability, future rate of growth, liquidity and financial position." Investing Activities Net cash used in investing activities was $1,580 million and $4,314 million for 2024 and 2023, respectively.
For a discussion of potential commodity market risks, refer to Item 1A., "Risk Factors – Natural gas, NGLs and oil price volatility, or a prolonged period of low natural gas, NGLs and oil prices, may have an adverse effect on our revenue, profitability, future rate of growth, liquidity and financial position." Investing Activities.
We enter into derivative commodity instrument contracts primarily to reduce exposure to commodity price risk associated with future sales of our natural gas production. See Note 5 to the Consolidated Financial Statements for a description of the fair value hierarchy.
Derivative Instruments We use derivative commodity instruments primarily to reduce exposure to commodity price risk associated with future sales of natural gas production. See Note 4 t o the Consolidated Financial Statements for a description of our derivative instruments and Note 5 to the Consolidated Financial Statements for a description of the fair value hierarchy.
The impact of accrued capital expenditures includes the current period estimate, net of the reversal of the prior period accrual. 75 Table of Contents Financing Activities Net cash used in financing activities was $1,126 million and $243 million for 2024 and 2023, respectively.
The impact of accrued capital expenditures includes the current period estimate, net of the reversal of the prior period accrual. Financing Activities . Net cash used in financing activities was approximately $2,372 million and $1,126 million for 2025 and 2024, respectively.
Production depletion expense increased on an absolute and per Mcfe basis for 2024 compared to 2023 due to increased sales volume and higher annual depletion rate. (Gain) loss on sale/exchange of long-lived assets .
Production depletion expense increased on a per Mcfe basis for 2025 compared to 2024 due to higher annual depletion rate. In addition, production depletion expense increased on an absolute basis due to higher sales volumes. Gain on Sale/Exchange of Long-Lived Assets.
Recently Issued Accounting Standards Our recently issued accounting standards are described in Note 1 to the Consolidated Financial Statements. 77 Table of Contents Critical Accounting Estimates Our significant accounting policies are described in Note 1 to the Consolidated Financial Statements.
Recently Issued Accounting Standards See Note 1 to the Consolidated Financial Statements for a description of recently issued accounting standards. Critical Accounting Estimates Our significant accounting policies are described in Note 1 to the Consolidated Financial Statements.
In addition, we did not recast selling, general and administrative expense for periods prior to the Equitrans Midstream Merger closing date and, upon the Equitrans Midstream Merger closing date, we adjusted our basis for selling, general and administrative expense allocation for multi-segment reporting. Depreciation and depletion.
Selling, General and Administrative Expense . Selling, general and administrative expense incurred prior to the Equitrans Midstream Merger closing date was not recast for our change in reportable segments; upon the Equitrans Midstream Merger closing date, we adjusted our basis for selling, general and administrative expense allocation for multi-segment reporting.
On February 6, 2025, our Board of Directors declared a quarterly cash dividend of $0.1575 per share of EQT common stock, payable on March 3, 2025, to shareholders of record at the close of business on February 18, 2025.
On February 5, 2026, our Board of Directors declared a quarterly cash dividend of $0.165 per share of EQT common stock, payable on March 2, 2026, to shareholders of record at the close of business on February 17, 2026.
For 2024, the primary sources of financing cash flows were net proceeds from the sale of units of the Midstream Joint Venture, proceeds from the issuance of EQT's 5.750% senior notes, net borrowings under EQT's revolving credit facility and proceeds from the net settlement of the Capped Call Transactions (defined in Note 10 to the Consolidated Financial Statements).
In addition, for 2024, the primary sources of financing cash flows were net proceeds from the sale of units of the Midstream Joint Venture, proceeds from the issuance of EQT's 5.750% senior notes and net borrowings under EQT's revolving credit facility.
Off-Balance Sheet Arrangements As of December 31, 2024, we did not have any material off-balance sheet arrangements other than the commitments described in Note 15 to the Consolidated Financial Statements. Commitments and Contingencies See Note 15 to the Consolidated Financial Statements for a discussion of our commitments and contingencies.
Off-Balance Sheet Arrangements As of December 31, 2025, we did not have any material off-balance sheet arrangements other than the commitments described in Note 13 to the Consolidated Financial Statements and the MVP B and MVP C guarantees discussed in Note 8 to the Consolidated Financial Statements. 76 Table of Contents Commitments and Contingencies See Note 13 to the Consolidated Financial Statements for a discussion of our commitments and contingencies.
(b) Selling, general and administrative expense incurred prior to the Equitrans Midstream Merger closing date was not recast as the necessary information is not available and the cost to develop such information would be excessive. Sales of natural gas, NGLs and oil.
(b) Selling, general and administrative expense incurred prior to the Equitrans Midstream Merger closing date was not recast for our change in reportable segments from one reportable segment to three reportable segments as the necessary information was not available and the cost to develop such information would be excessive. 69 Table of Contents Sales of Natural Gas, NGLs and Oil.
In connection with the recent U.S. election and corresponding inauguration of President Trump on January 20, 2025, the President executed several executive orders, some of which impact the oil and gas industry, and he and others in Congress have indicated the potential for further changes to regulations, many of which could impact the oil and gas industry, as well as the institution of tariffs on foreign goods and services.
President Trump has also executed several executive orders, some of which impact the oil and gas industry, and he and others in Congress have indicated the potential for further changes to regulations, many of which could impact the oil and gas industry, as well as the implementation of tariffs on foreign goods and services.
We believe income taxes is a "critical accounting estimate" because we must assess the likelihood that our deferred tax assets will be recovered from future taxable income and exercise judgment on the amount of financial statement benefit recorded for uncertain tax positions.
We believe income taxes is a "critical accounting estimate" because we rely on significant assumptions regarding the likelihood, including whether it is more likely than not, that our deferred tax assets will be recovered from future taxable income and the assessment of the amount of financial statement benefit recorded for uncertain tax positions.
Lastly, we expect commodity prices to be volatile through 2025 due to macroeconomic uncertainty, changes to the regulatory environment and geopolitical tensions, including developments pertaining to Russia's invasion of Ukraine, conflicts in the Middle East and potential further imposition of domestic and foreign tariffs.
Trends and Uncertainties Commodity prices were volatile in 2025, and we expect commodity prices to continue to be volatile in 2026 due to macroeconomic uncertainty, changes to the regulatory environment and geopolitical instability and tensions, including in Venezuela, Russia, Ukraine and the Middle East, and potential further imposition of domestic and foreign tariffs.
See "Non-GAAP Financial Measures Reconciliation" for a reconciliation of Production adjusted operating revenues from total Production operating revenues, the most directly comparable financial measure calculated in accordance with United States generally accepted accounting principles (GAAP). 67 Table of Contents Years Ended December 31, 2024 2023 (Thousands, unless otherwise noted) NATURAL GAS Sales volume (MMcf) 2,086,441 1,907,343 NYMEX price ($/MMBtu) $ 2.30 $ 2.74 Btu uplift 0.13 0.14 Natural gas price ($/Mcf) $ 2.43 $ 2.88 Basis ($/Mcf) (a) $ (0.41) $ (0.51) Cash settled basis swaps ($/Mcf) (0.07) (0.03) Average differential, including cash settled basis swaps ($/Mcf) $ (0.48) $ (0.54) Average adjusted price ($/Mcf) $ 1.95 $ 2.34 Cash settled derivatives ($/Mcf) 0.64 0.34 Average natural gas price, including cash settled derivatives ($/Mcf) $ 2.59 $ 2.68 Natural gas sales, including cash settled derivatives $ 5,401,642 $ 5,112,278 LIQUIDS NGLs, excluding ethane: Sales volume (MMcfe) (b) 87,564 64,859 Sales volume (Mbbl) 14,594 10,810 NGLs price ($/Bbl) $ 39.13 $ 36.39 Cash settled derivatives ($/Bbl) (0.30) (1.27) Average NGLs price, including cash settled derivatives ($/Bbl) $ 38.83 $ 35.12 NGLs sales, including cash settled derivatives $ 566,808 $ 379,663 Ethane: Sales volume (MMcfe) (b) 44,586 34,441 Sales volume (Mbbl) 7,431 5,740 Ethane price ($/Bbl) $ 6.03 $ 6.00 Ethane sales $ 44,806 $ 34,417 Oil: Sales volume (MMcfe) (b) 9,568 9,630 Sales volume (Mbbl) 1,595 1,605 Oil price ($/Bbl) $ 58.67 $ 59.93 Oil sales $ 93,551 $ 96,191 Total liquids sales volume (MMcfe) (b) 141,718 108,930 Total liquids sales volume (Mbbl) 23,620 18,155 Total liquids sales $ 705,165 $ 510,271 TOTAL Total natural gas and liquids sales, including cash settled derivatives (c) $ 6,106,807 $ 5,622,549 Total sales volume (MMcfe) 2,228,159 2,016,273 Average realized price ($/Mcfe) $ 2.74 $ 2.79 (a) Basis represents the difference between the ultimate sales price for natural gas, including the effects of delivered price benefit or deficit associated with our firm transportation agreements, and the NYMEX natural gas price.
See "Non-GAAP Financial Measures Reconciliation" for a reconciliation of Upstream adjusted operating revenues to total Upstream operating revenues, the most directly comparable financial measure calculated in accordance with United States generally accepted accounting principles (GAAP). 66 Table of Contents Years Ended December 31, 2025 2024 (Thousands, unless otherwise noted) NATURAL GAS Sales volume (MMcf) 2,238,652 2,086,441 NYMEX price ($/MMBtu) $ 3.42 $ 2.30 Btu uplift 0.19 0.13 Natural gas price ($/Mcf) $ 3.61 $ 2.43 Basis ($/Mcf) (a) $ (0.48) $ (0.41) Cash settled basis swaps ($/Mcf) (0.01) (0.07) Average differential, including cash settled basis swaps ($/Mcf) (0.49) (0.48) Average adjusted price ($/Mcf) 3.12 1.95 Cash settled derivatives ($/Mcf) (0.04) 0.64 Average natural gas price, including cash settled derivatives ($/Mcf) $ 3.08 $ 2.59 Natural gas sales, including cash settled derivatives $ 6,888,420 $ 5,401,642 LIQUIDS NGLs, excluding ethane: Sales volume (MMcfe) (b) 88,478 87,564 Sales volume (Mbbl) 14,746 14,594 NGLs price ($/Bbl) $ 38.04 $ 39.13 Cash settled derivatives ($/Bbl) 0.15 (0.30) Average NGLs price, including cash settled derivatives ($/Bbl) $ 38.19 $ 38.83 NGLs sales, including cash settled derivatives $ 563,150 $ 566,808 Ethane: Sales volume (MMcfe) (b) 44,534 44,586 Sales volume (Mbbl) 7,422 7,431 Ethane price ($/Bbl) $ 8.01 $ 6.03 Ethane sales $ 59,447 $ 44,806 Oil: Sales volume (MMcfe) (b) 10,703 9,568 Sales volume (Mbbl) 1,784 1,595 Oil price ($/Bbl) $ 49.08 $ 58.67 Oil sales $ 87,562 $ 93,551 Total liquids sales volume (MMcfe) (b) 143,715 141,718 Total liquids sales volume (Mbbl) 23,952 23,620 Total liquids sales $ 710,159 $ 705,165 TOTAL Total natural gas and liquids sales, including cash settled derivatives (c) $ 7,598,579 $ 6,106,807 Total sales volume (MMcfe) 2,382,367 2,228,159 Average realized price ($/Mcfe) $ 3.19 $ 2.74 (a) Basis represents the difference between the ultimate sales price for natural gas, including the effects of delivered price benefit or deficit associated with our firm transportation agreements, and the NYMEX natural gas price.
During 2024, we recognized a gain on the First NEPA Non-Operated Asset Divestiture of approximately $299 million and a gain on the Second NEPA Non-Operated Asset Divestiture of approximately $463 million. See Note 7 to the Consolidated Financial Statements.
During 2025, we recognized a net gain on sale/exchange of long-lived assets of approximately $36 million related to acreage trade transactions. During 2024, we recognized a gain on the First NEPA Non-Operated Asset Divestiture of approximately $299 million and a gain on the Second NEPA Non-Operated Asset Divestiture of approximately $463 million. See Note 12 to the Consolidated Financial Statements.
The average sales price decreased for 2024 compared to 2023 due to a lower NYMEX price, partly offset by lower basis spreads and higher NGLs price.
Average sales price increased for 2025 compared to 2024 due primarily to a higher NYMEX price, partly offset by lower NGLs price and an unfavorable basis differential.
Management's discussion and analysis of the Consolidated Financial Statements and results of operations are based on our Consolidated Financial Statements, which have been prepared in accordance with GAAP.
Management's discussion and analysis of the Consolidated Financial Statements and results of operations are based on our Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of the Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported therein.
See Note 2 to the Consolidated Financial Statements for financial information by business segment, including our profit and loss metric and capital expenditures for the year ended December 31, 2022 and segment assets as of December 31, 2022. 66 Table of Contents See "Average Realized Price Reconciliation" for a discussion and calculation of our average realized price, which is based on our Production segment's adjusted operating revenues (Production adjusted operating revenues), a non-GAAP supplemental financial measure that has been reconciled from total Production operating revenues in "Non-GAAP Financial Measures Reconciliation." See "Business Segment Results of Operations" for a discussion of segment operating revenues and expenses and "Other Income Statement Items" for a discussion of other income statement items.
See "Average Realized Price Reconciliation" for a discussion and calculation of our average realized price, which is based on our Upstream segment's adjusted operating revenues (Upstream adjusted operating revenues), a non-GAAP supplemental financial measure that has been reconciled to total Upstream operating revenues in "Non-GAAP Financial Measures Reconciliation." See "Business Segment Results of Operations" for a discussion of segment operating revenues and expenses and "Other Income Statement Items" for a discussion of other income statement items.
The following sections summarize operating income and certain operational measures by our three reportable segments. We believe this information is useful to investors for evaluating our financial condition, results of operations and trends and uncertainties of our segments.
Business Segment Results of Operations The following sections present operating income and key operational measures for our three reportable segments of Upstream, Gathering and Transmission. We believe this information provides useful information to investors regarding our financial condition, results of operations and trends and uncertainties. See Note 2 to the Consolidated Financial Statements for financial information by business segment.
We believe derivative instruments is a "critical accounting estimate" because our financial condition and results of operations can be significantly impacted by changes in the market value of our derivative instruments due to the volatility of both NYMEX natural gas prices and basis.
We believe derivative instruments is a "critical accounting estimate" because changes in the market value of our derivative instruments resulting from the volatility of both NYMEX natural gas prices and basis can materially affect our results of operations or financial position. Future results of operations for any quarterly or annual period could be materially affected by changes in our assumptions.
We are involved in various legal and regulatory proceedings that arise in the ordinary course of business. We record a liability for contingencies based on our assessment that a loss is probable and the amount of the loss can be reasonably estimated. We consider many factors in making these assessments, including historical experience and matter specifics.
Contingencies and Asset Retirement Obligations We are involved in various legal and regulatory proceedings that arise in the ordinary course of business. We record a liability for contingencies when a loss is probable and the amount can be reasonably estimated.
For 2023, we recognized a gain on derivatives of approximately $1,839 million related primarily to increases in the fair market value of our NYMEX swaps and options of approximately $1,830 million due to decreases in NYMEX forward prices as well as increases in the fair market value of our basis swaps of approximately $9 million. Transportation and processing Gathering.
For 2025, we recognized a gain on derivatives of approximately $291 million related primarily to increases in the fair market value of our NYMEX swaps and options of approximately $291 million due to decreases in NYMEX forward prices and increases in the fair market value of our basis and liquids swaps of approximately $45 million, partly offset by premiums paid for derivative settlements of $45 million.
Low natural gas prices or volatility in the natural gas market may result in adjustments to our 2025 planned development schedule or the development schedule of non-operated wells in which we have a working interest. Further, we cannot control or otherwise influence the development schedule of non-operated wells in which we have a working interest.
We cannot control or otherwise influence the development schedule of non-operated wells in which we have a working interest.
See Note 1 to the Consolidated Financial Statements for additional information on impairment of our proved and unproved oil and gas properties, impairment of other property, plant and equipment. See also Item 1A., "Risk Factors – Natural gas, NGLs and oil price declines, and changes in our development strategy, have resulted in impairment of certain of our assets.
See also Item 1A., "Risk Factors – Natural gas, NGLs and oil price declines, and changes in our development strategy, have resulted in impairment of certain of our assets.
Processing expense increased on an absolute and per Mcfe basis for 2024 compared to 2023 due primarily to increased processing expense from the liquids-rich properties acquired in the Tug Hill and XcL Midstream Acquisition of approximately $40 million and increased volumes of gas requiring processing from wells that we turned-in-line in 2024. Transportation and processing to affiliate.
Processing Expense. Processing expense increased on an absolute and per Mcfe basis for 2025 compared to 2024 due primarily to increased production of gas requiring processing from wells turned-in-line since 2024. Transportation and Processing Expense to Affiliate.
Security Ratings and Financing Triggers Our credit ratings and rating outlooks are subject to revision or withdrawal at any time by the assigning rating agency, and each rating should be evaluated independently from any other rating.
See Note 7 to the Consolidated Financial Statements for a discussion of borrowings under EQT's and Eureka's revolving credit facilities. 75 Table of Contents Security Ratings Our credit ratings and rating outlooks are subject to revision or withdrawal at any time by the assigning rating agency, and each rating should be evaluated independently from any other rating.
Other income increased for 2024 compared to 2023 due to proceeds received from insurance claim recoveries of $19.1 million related to the assets acquired in the Tug Hill and XcL Midstream Acquisition and dividends received from our investment in the Investment Fund. Loss on debt extinguishment.
During 2024, we received proceeds from insurance claim recoveries of approximately $19 million related to the assets acquired in the Tug Hill and XcL Midstream Acquisition (defined in Note 11 to the Consolidated Financial Statements). Loss on Debt Extinguishment.
See Note 1 to the Consolidated Financial Statements for a discussion of significant accounting policies related to income taxes and Note 9 to the Consolidated Financial Statements for a discussion of deferred tax assets, valuation allowances and the amount of financial statement benefit recorded for uncertain tax positions.
See Notes 1 and 6 to the Consolidated Financial Statements for additional information on our accounting policies for income taxes and the composition of deferred tax assets, valuation allowances and uncertain tax positions.
Margin deposits on our OTC derivative instruments are also subject to factors other than credit rating, such as natural gas prices and credit thresholds set forth in the agreements between us and our hedging counterparties. 76 Table of Contents Our debt agreements and other financial obligations contain various provisions that, if not complied with, could result in default or event of default under EQT's revolving credit facility and Eureka's revolving credit facility, mandatory partial or full repayment of amounts outstanding, reduced loan capacity or other similar actions.
Our debt agreements and other financial obligations contain various provisions that, if not complied with, could result in default or event of default under EQT's and Eureka's revolving credit facilities, mandatory partial or full repayment of amounts outstanding, reduced loan capacity or other similar actions.
Sales volume increased for 2024 compared to 2023 primarily as a result of sales volume increases of 164 Bcfe from the assets acquired in the Tug Hill and XcL Midstream Acquisition as well as increases from wells turned-in-line, partly offset by sales volume decreases of 107 Bcfe from the Strategic Curtailment and net decreases of 21 Bcfe due to the First NEPA Non-Operated Asset Divestiture.
Sales volume increased for 2025 compared to 2024 primarily as a result of production curtailments in 2024 of 107 Bcfe (compared to production curtailments in 2025 of 14 Bcfe), wells turned-in-line since 2024, sales volume increases of 92 Bcfe from the assets acquired in the Olympus Energy Acquisition and sales volume increases of 26 Bcfe from the assets received as consideration for (net of assets divested in) the First NEPA Non-Operated Asset Divestiture.
Year Ended December 31, 2024 (Thousands, unless otherwise noted) Transmission pipeline throughput (BBtu/d): Firm capacity (a) 3,695 Interruptible capacity 24 Total transmission pipeline throughput 3,719 Average contracted firm transmission reservation commitments (BBtu/d) 4,779 Operating revenues: Firm reservation fee revenue $ 183,088 Volumetric-based fee revenue 34,968 Other revenues 237 Total operating revenues 218,293 Operating expenses: Operating and maintenance 20,496 Selling, general and administrative 17,183 Depreciation 33,505 Amortization of intangible assets 5,901 Loss on sale/exchange of long-lived assets 409 Total operating expenses 77,494 Operating income $ 140,799 (a) Includes all volumes associated with firm capacity contracts, including volumes in excess of firm capacity.
Transmission Results of Operations Years Ended December 31, 2025 2024 Change % Change (Thousands, unless otherwise noted) Transmission pipeline throughput (BBtu/d): Firm capacity (a) 4,426 3,695 731 20 Interruptible capacity 39 24 15 63 Total transmission pipeline throughput 4,465 3,719 746 20 Average contracted firm transmission reservation commitments (BBtu/d) 5,025 4,779 246 5 Operating revenues: Firm reservation fee revenue $ 435,194 $ 183,088 $ 252,106 138 Volumetric-based fee revenue 137,058 35,205 101,853 289 Total operating revenues 572,252 218,293 353,959 162 Operating expenses: Operating and maintenance 58,141 20,496 37,645 184 Selling, general and administrative 37,339 17,183 20,156 117 Depreciation 88,385 33,505 54,880 164 Amortization of intangible assets 13,333 5,901 7,432 126 Loss on sale/exchange of long-lived assets 349 409 (60) (15) Other operating expenses (527) — (527) 100 Total operating expenses 197,020 77,494 119,526 154 Operating income $ 375,232 $ 140,799 $ 234,433 167 (a) Includes all volumes associated with firm capacity contracts, including volumes in excess of firm capacity.
Purchase Obligations We have commitments to pay demand charges under long-term contracts and binding precedent agreements with various pipelines as well as charges for processing capacity to extract heavier liquid hydrocarbons from the natural gas stream. In addition, we have commitments to pay for services related to our operations, including electric hydraulic fracturing services and purchase equipment, materials and sand.
In 2026, we expect our sales volume to be 2,275 Bcfe to 2,375 Bcfe. 73 Table of Contents Material Cash Requirements We have commitments to pay demand charges under long-term contracts and binding precedent agreements with various pipelines as well as charges for processing capacity to extract heavier liquid hydrocarbons from the natural gas stream.
See Note 2 to the Consolidated Financial Statements for financial information by business segment. 69 Table of Contents Certain amounts, including cash and cash equivalents, debt, income taxes and other amounts related to our headquarters function as well as amounts related to our energy transition initiatives are managed on a consolidated basis and, as such, have not been allocated to our reportable segments.
Items that are managed on a consolidated basis, including cash and cash equivalents, debt, income taxes and amounts related to our corporate function, and items related to our energy transition initiatives have not been allocated to our reportable segments.
It is uncertain at this time to what extent such changes in regulations and tariffs will impact our business. A changing regulatory environment could increase our costs to comply with such regulations or make us susceptible to lawsuits or fines for failure to comply with such regulations.
It is uncertain at this time to what extent such changes in regulations and tariffs will impact our business.
For 2024, the primary uses of financing cash flows were our repayment and retirement of debt, repayment of EQM's revolving credit facility, payment of dividends and cash paid for taxes to net settle share-based incentive awards.
For 2024, the primary uses of financing cash flows were the repayment and retirement of debt, repayment of borrowings under the revolving credit facility of our wholly owned subsidiary, EQM Midstream Partners LP, and payment of dividends.
See also Item 1A., "Risk Factors – Natural gas, NGLs and oil price volatility, or a prolonged period of low natural gas, NGLs and oil prices, may have an adverse effect on our revenue, profitability, future rate of growth, liquidity and financial position." Income Taxes.
Based on proved reserves as of December 31, 2025, we estimate that a 1% change in proved reserves would decrease or increase 2026 depletion expense by approximately $11 million and $21 million, respectively, based on current production estimates for 2026. 77 Table of Contents See also Item 1A., "Risk Factors – Natural gas, NGLs and oil price volatility, or a prolonged period of low natural gas, NGLs and oil prices, may have an adverse effect on our revenue, profitability, future rate of growth, liquidity and financial position.
Years Ended December 31, 2024 2023 (Thousands, unless otherwise noted) Total Production operating revenues $ 5,009,833 $ 6,896,358 (Deduct) add: Production gain on derivatives (67,880) (1,838,941) Net cash settlements received on derivatives (a) 1,217,895 900,650 Premiums paid for derivatives that settled during the period (45,454) (322,869) Production net marketing services and other (7,587) (12,649) Production adjusted operating revenues, a non-GAAP financial measure $ 6,106,807 $ 5,622,549 Total sales volume (MMcfe) 2,228,159 2,016,273 Average sales price ($/Mcfe) $ 2.21 $ 2.50 Average realized price ($/Mcfe) $ 2.74 $ 2.79 (a) For the years ended December 31, 2024 and 2023, composed of net cash settlements received on NYMEX natural gas hedge positions of approximately $1,374 million and $976 million , respectively, and net cash settlements paid on basis and liquids hedge positions of $157 million and $76 million, respectively.
Years Ended December 31, 2025 2024 (Thousands, unless otherwise noted) Total Upstream operating revenues $ 8,024,057 $ 5,009,833 (Deduct) add: Upstream gain on derivatives (290,994) (67,880) Net cash settlements (paid) received on derivatives (a) (83,381) 1,217,895 Premiums paid for derivatives that settled during the period (44,752) (45,454) Upstream other revenues (6,351) (7,587) Upstream adjusted operating revenues, a non-GAAP financial measure $ 7,598,579 $ 6,106,807 Total sales volume (MMcfe) 2,382,367 2,228,159 Average sales price ($/Mcfe) $ 3.24 $ 2.21 Average realized price ($/Mcfe) $ 3.19 $ 2.74 (a) Net cash settlements (paid) received on derivatives are included in average realized price but may not be included in operating revenues.
(b) Selling, general and administrative expense incurred prior to the Equitrans Midstream Merger closing date was not recast as the necessary information is not available and the cost to develop such information would be excessive. 72 Table of Contents Gathering revenues and expenses increased for 2024 compared to 2023 primarily from the gathering assets acquired in the Equitrans Midstream Merger during the third quarter of 2024 and in the Tug Hill and XcL Midstream Acquisition during the third quarter of 2023.
(c) Selling, general and administrative expense incurred prior to the Equitrans Midstream Merger closing date was not recast for our change in reportable segments from one reportable segment to three reportable segments as the necessary information was not available and the cost to develop such information would be excessive. 71 Table of Contents Firm Reservation Fee Revenue.
For oil and gas wells, the fair value of our plugging and abandonment obligations is recorded at the time the obligation is incurred, which is typically at the time the well is spud. See Note 1 to the Consolidated Financial Statements.
We also accrue a liability for asset retirement obligations based on the estimated timing and cost of settlement. For oil and gas wells, the fair value of plugging and abandonment obligations is recorded when the obligation is incurred, which is typically at the time the well is spud.
A changing regulatory environment and domestic or foreign tariffs could ultimately impact our future sales volume, operating revenues and expenses, per unit metrics and capital expenditures.
A changing regulatory environment and domestic or foreign tariffs could ultimately impact our future sales volume, operating revenues and expenses, per unit metrics and capital expenditures. Consolidated Results of Operations Net income attributable to EQT Corporation for 2025 was $2,039 million, $3.31 per diluted share, compared to $231 million, $0.45 per diluted share, for 2024.
Our estimates of proved reserves are reassessed annually using geological, reservoir and production performance data. Reserve estimates are prepared by our engineers and audited by independent engineers. Revisions may result from changes in, among other things, reservoir performance, development plans, prices, operating costs, economic conditions and governmental restrictions.
Proved reserve estimates are reassessed annually using geological, reservoir and production performance data. Estimates are prepared by internal engineers and audited by independent engineers. Management evaluates significant changes in development plans, cost structure and operating conditions that could affect reserve quantities.
GATHERING Years Ended December 31, 2024 2023 Change % Change (Thousands, unless otherwise noted) Gathered volume (BBtu/d): Firm capacity 5,277 — 5,277 100 Volumetric-based services 4,234 976 3,258 334 Total gathered volume 9,511 976 8,535 874 Operating revenues: Loss on derivatives $ (16,763) $ — $ (16,763) 100 Firm reservation fee revenue 313,987 — 313,987 100 Volumetric-based fee revenue (a) 452,476 161,395 291,081 180 Total operating revenues 749,700 161,395 588,305 365 Operating expenses: Operating and maintenance 89,897 15,699 74,198 473 Selling, general and administrative (b) 38,837 — 38,837 100 Depreciation 89,513 17,066 72,447 425 Gain on sale/exchange of long-lived assets (22) — (22) 100 Total operating expenses 218,225 32,765 185,460 566 Operating income $ 531,475 $ 128,630 $ 402,845 313 (a) For agreements structured with MVCs, includes volumes up to the contractual MVC; volumes in excess of the contractual MVC are reported under volumetric-based services.
Gathering Results of Operations Years Ended December 31, 2025 2024 Change % Change (Thousands, unless otherwise noted) Gathered volume (BBtu/d): Firm capacity (a) 5,407 5,277 130 2 Volumetric-based services (a) 4,788 4,234 554 13 Total gathered volume 10,195 9,511 684 7 Operating revenues: Loss on derivatives $ — $ (16,763) $ 16,763 (100) Firm reservation fee revenue (b) 632,916 313,987 318,929 102 Volumetric-based fee revenue 668,518 452,476 216,042 48 Total operating revenues 1,301,434 749,700 551,734 74 Operating expenses: Operating and maintenance 166,990 89,897 77,093 86 Selling, general and administrative (c) 66,642 38,837 27,805 72 Depreciation 212,353 89,513 122,840 137 Gain on sale/exchange of long-lived assets (29) (22) (7) 32 Impairment and expiration of leases 811 — 811 100 Other operating expenses 18,013 — 18,013 100 Total operating expenses 464,780 218,225 246,555 113 Operating income $ 836,654 $ 531,475 $ 305,179 57 (a) For agreements structured with MVCs, firm capacity includes volumes up to the contractual MVC and volumetric-based services includes volumes in excess of the contractual MVC.
The increase in sales volume had a favorable impact on per unit costs for 2024 compared to 2023. Production gain on derivatives.
Increases in sales volume were partly offset by sales volume decreases of 155 Bcfe from the assets divested in the Second NEPA Non-Operated Asset Divestiture. The increase in sales volume had a favorable impact on per unit costs for 2025 compared to 2024. Gain on Derivatives .
Operating costs, production and ad valorem taxes and future development costs are based on current costs with no escalation. Income tax expense is based on currently enacted statutory tax rates and tax deductions and credits available under current laws.
Future production and development costs are based on current costs with no escalation. Income taxes are based on currently enacted statutory tax rates and available tax deductions and credits. Estimate changes during 2025 primarily reflected proved reserves acquired as part of the Olympus Energy Acquisition and development schedule refinements.
We believe the impairment of investments in unconsolidated entities is a "critical accounting estimate" because evaluations of impairment involve significant judgment about future events, such as our ability to recover the carrying value of our investment or the investee's inability to generate cash flows sufficient to justify the carrying value of our investment. Goodwill .
There were no indicators of impairment to our investments in unconsolidated entities identified during 2025, 2024 and 2023. We believe the impairment of investments in unconsolidated entities is a "critical accounting estimate" because these evaluations require significant judgment regarding the investee's ability to recover its carrying value.
Sales of natural gas, NGLs and oil decreased for 2024 compared to 2023 by approximately $110 million, of which approximately $640 million was attributable to lower average sales price, which was partly offset by approximately $530 million attributable to increased sales volumes.
Sales of natural gas, NGLs and oil increased by approximately $2,792 million for 2025 compared to 2024, reflecting an increase of approximately $2,451 million from higher average sales price and approximately $341 million from increased sales volumes.
Such decreases were partly offset by higher net cash settlements received on derivatives, lower net premiums paid on derivatives, higher cash operating revenues (including from pipeline revenues on assets acquired in the Equitrans Midstream Merger) and higher distributions from equity method investments (including approximately $53 million from our investment in the MVP Joint Venture).
The increase was due primarily to higher cash operating revenues, lower net cash operating expenses and higher distributions received from our investment in MVP A of approximately $189 million, partly offset by net cash settlements paid on derivatives in 2025 compared to net cash settlements received in 2024.
See Note 6 to the Consolidated Financial Statements for a discussion of the most significant assumptions used to estimate the fair value of the assets acquired and liabilities assumed in the Equitrans Midstream Merger. We believe business combinations is a "critical accounting estimate" because the valuation of acquired assets and assumed liabilities involves significant judgment about future events.
Because a quantitative test was not performed, no fair value assumptions were developed. See Note 1 to the Consolidated Financial Statements for a discussion of our goodwill impairment assessment process. We believe goodwill impairment is a "critical accounting estimate" because these evaluations require significant judgment about future events.
(b) Represents the net impact of non-cash capital expenditures, including the effect of timing of receivables from working interest partners, accrued capital expenditures, transfers to or from inventory as assets are completed or assigned to a project and capitalized share-based compensation costs.
Years Ended December 31, 2025 2024 (Millions) Upstream: Reserve development $ 1,537 $ 1,653 Land and lease 153 156 Other upstream infrastructure 70 71 Capitalized overhead, capitalized interest and other 118 124 Total Upstream 1,878 2,004 Gathering 368 202 Transmission 52 31 Other corporate items 26 29 Total capital expenditures 2,324 2,266 Deduct: Non-cash items (a) (36) (12) Total cash capital expenditures $ 2,288 $ 2,254 (a) Represents the net impact of non-cash capital expenditures, including the effect of timing of receivables from working interest partners, accrued capital expenditures, transfers to or from inventory as assets are completed or assigned to a project and capitalized share-based compensation costs.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeIn addition, changes in Eureka's Consolidated Leverage Ratio (defined in that certain Credit Agreement, dated May 13, 2021, among Eureka, Sumitomo Mitsui Banking Corporation, as administrative agent, the lenders party thereto from time to time and any other persons party thereto from time to time, as amended, governing Eureka's revolving credit facility (the Eureka Credit Agreement)) as a result on Eureka's liquidity needs, operating results or distributions to its members affect the interest rate Eureka pays on borrowings under its revolving credit facility.
Biggest changeIn addition, changes in Eureka's consolidated leverage ratio as a result of Eureka's liquidity needs, operating results or distributions to its members affect the interest rate Eureka pays on borrowings under its revolving credit facility. None of the interest we pay on EQT's senior notes fluctuates based on changes to market interest rates.
See Note 10 to the Consolidated Financial Statements for further discussion of our debt and Note 5 to the Consolidated Financial Statements for a discussion of fair value measurements, including the fair value measurement of our debt. Other Market Risks. We are exposed to credit loss in the event of nonperformance by counterparties to our derivative contracts.
See Note 7 to the Consolidated Financial Statements for further discussion of our debt and Note 5 to the Consolidated Financial Statements for a discussion of fair value measurements, including the fair value measurement of our debt. Other Market Risks We are exposed to credit loss in the event of nonperformance by counterparties to our derivative contracts.
During 2024, we made no adjustments to the fair value of our derivative contracts due to credit related concerns outside of the normal non-performance risk adjustment included in our established fair value procedure. We monitor market conditions that may impact the fair value of our derivative contracts.
During 2025, we made no adjustments to the fair value of our derivative contracts due to credit related concerns outside of the normal non-performance risk adjustment included in our established fair value procedure. We monitor market conditions that may impact the fair value of our derivative contracts.
For purposes of this analysis, we applied the 10% change in the NYMEX natural gas price on December 31, 2024 and 2023 to our natural gas derivative commodity instruments as of December 31, 2024 and 2023 to calculate the hypothetical change in fair value.
For purposes of this analysis, we applied the 10% change in the NYMEX natural gas price on December 31, 2025 and 2024 to our natural gas derivative commodity instruments as of December 31, 2025 and 2024 to calculate the hypothetical change in fair value.
We monitor price and production levels on a continuous basis and adjust quantities hedged as warranted. A hypothetical decrease of 10% in the NYMEX natural gas price on December 31, 2024 and 2023 would increase the fair value of our natural gas derivative commodity instruments by approximately $283 million and $204 million, respectively.
We monitor price and production levels on a continuous basis and adjust quantities hedged as warranted. A hypothetical decrease of 10% in the NYMEX natural gas price on December 31, 2025 and 2024 would increase the fair value of our natural gas derivative commodity instruments by approximately $100 million and $283 million, respectively.
Interest rates for EQT's other outstanding senior notes and EQM's senior notes do not fluctuate based on changes to the credit ratings assigned to EQT's or EQM's respective senior notes by Moody's, S&P and Fitch.
Interest rates for EQT's other outstanding senior notes do not fluctuate based on changes to the credit ratings assigned to EQT's senior notes by Moody's, S&P and Fitch.
To manage the level of credit risk, we enter into transactions primarily with financial counterparties that are of investment grade, enter into netting agreements whenever possible and may obtain collateral or other security. Approximately 20%, or $93 million, of our OTC derivative contracts outstanding at December 31, 2024 had a positive fair value.
To manage the level of credit risk, we enter into transactions primarily with financial counterparties that are of investment grade, enter into netting agreements whenever possible and may obtain collateral or other security. Approximately 62%, or $159 million, of our OTC derivative contracts outstanding at December 31, 2025 had a positive fair value.
A hypothetical increase of 10% in the NYMEX natural gas price on December 31, 2024 and 2023 would decrease the fair value of our natural gas derivative commodity instruments by approximately $340 million and $482 million, respectively.
A hypothetical increase of 10% in the NYMEX natural gas price on December 31, 2025 and 2024 would decrease the fair value of our natural gas derivative commodity instruments by approximately $93 million and $340 million, respectively.
If the underlying physical transactions or positions are liquidated prior to the maturity of the derivative commodity instruments, a loss on the financial instruments may occur or the derivative commodity instruments might be worthless as determined by the prevailing market value on their termination or maturity date, whichever comes first. 81 Table of Contents Interest Rate Risk.
If the underlying physical transactions or positions are liquidated prior to the maturity of the derivative commodity instruments, a loss on the financial instruments may occur or the derivative commodity instruments might be worthless as determined by the prevailing market value on their termination or maturity date, whichever comes first.
Approximately 86%, or $912 million, of our OTC derivative contracts outstanding at December 31, 2023 had a positive fair value. As of December 31, 2024, we were not in default under any derivative contracts and had no knowledge of default by any counterparty to our derivative contracts.
Approximately 20%, or $93 million, of our OTC derivative contracts outstanding at December 31, 2024 had a positive fair value. As of December 31, 2025, we were not in default under any derivative contracts and had no knowledge of default by any counterparty to our derivative contracts.
Changes in market interest rates affect the amount of interest we earn on cash, cash equivalents and short-term investments and the interest rate we pay on borrowings under EQT's revolving credit facility, Eureka's revolving credit facility and (prior to its payoff and termination) the Term Loan Facility.
Interest Rate Risk Changes in market interest rates affect the amount of interest we earn on cash, cash equivalents and short-term investments and the interest rate we pay on borrowings under EQT's and Eureka's revolving credit facilities.
In addition, to the extent we have hedged our production at prices below the current market price, we will not benefit fully from an increase in the price of natural gas, and, depending on our then-current credit ratings and the terms of our hedging contracts, we may be required to post additional margin with our hedging counterparties.
In addition, to the extent we have hedged our production at prices below the current market price, we will not benefit fully from an increase in the price of natural gas, and, depending on our then-current credit ratings and the terms of our hedging contracts, we may be required to post additional margin with our hedging counterparties. 80 Table of Contents The overall objective of our hedging program is to protect our cash flows from undue exposure to the risk of changing commodity prices.
We also contract with certain processors to market a portion of our NGLs on our behalf. As of December 31, 2024, no one lender of the large group of financial institutions in the syndicate for EQT's revolving credit facility held more than 10% of the financial commitments thereunder.
We also contract with certain processors to market a portion of our NGLs on our behalf. As of December 31, 2025, no single lender in the syndicates for EQT's and Eureka's revolving credit facilities held more than 10% and 11%, respectively, of the financial commitments under each facility.
Interest rates for EQT's revolving credit facility and EQT's 7.000% senior notes fluctuate based on changes to the credit ratings assigned to EQT's senior notes by Moody's, S&P and Fitch.
A 1% increase in interest rates for the borrowings under EQT's revolving credit facility and Eureka's revolving credit facility during 2025 would have increased interest expense attributable to EQT by approximately $3 million. 81 Table of Contents Interest rates for EQT's revolving credit facility and EQT's 7.000% senior notes fluctuate based on changes to the credit ratings assigned to EQT's senior notes by Moody's, S&P and Fitch.
Removed
The overall objective of our hedging program is to protect our cash flows from undue exposure to the risk of changing commodity prices.
Removed
None of the interest we pay on EQT's or EQM's senior notes fluctuates based on changes to market interest rates. A 1% increase in interest rates for the borrowings under EQT's revolving credit facility, Eureka's revolving credit facility and the Term Loan Facility during 2024 would have increased interest expense by approximately $15.6 million.
Removed
In addition, as of December 31, 2024, no one lender of the large group of financial institutions in the syndicate for Eureka's revolving credit facility held more than 13% of the financial commitments thereunder.