Production and Capital Efficiency
Production was at the high end of guidance due to robust well productivity and compression project outperformance. Capital spending was approximately $50 million below the low end of guidance.
Record Free Cash Flow
Despite a $134 million net expense from a litigation settlement, Q2 free cash flow attributable to EQT was approximately $240 million. Without the legal expense, it would have totaled $375 million, materially exceeding expectations.
Olympus Energy Acquisition
Closed acquisition of Olympus Energy on July 1, funding it with $475 million of cash on hand plus 25.2 million shares. The acquisition includes a vertically integrated 90,000 net acre position with 500 million cubic feet per day of production.
Strategic Growth Projects
Several low-risk, high-return projects are underway, including MVP Boost and Southgate, expected to begin service in 2028 and 2029, adding significant capacity and enhancing reliability of natural gas delivery.
Debt Reduction
Exited the quarter with $7.8 billion of net debt, down approximately $350 million from Q1, marking nearly $6 billion of debt reduction over the past 3 quarters.
CapEx and Guidance Update
Despite Olympus acquisition, maintained full-year capital guidance of $2.3 billion to $2.45 billion. Production guidance increased to 2,300 to 2,400 Bcfe.