Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Could you provide details on the nonoperated asset sales in the pipeline and the structure of potential deals?
A: Toby Z. Rice, President and CEO of EQT Corporation, mentioned that the company is having constructive conversations and is confident about progressing with the sales. The deal structure with Equinor was unique due to their strategic objectives, but future sales are expected to be primarily cash transactions.
Q: How do you view the supply/demand macro for natural gas in the U.S., and what is your strategy for production adjustments?
A: Toby Z. Rice explained that they expect continued discipline from other operators and are watching for weather impacts and power demand increases due to low gas prices. Jeremy T. Knop, CFO, added that the market needs to balance by October through curtailments and increased demand, influenced by coal-to-gas switching and potentially supportive weather conditions.
Q: What are your thoughts on the differential impacts in the Appalachia Basin and your leverage to Transco Zones 4 and 5?
A: Jeremy T. Knop discussed the premium pricing secured through tranches with utilities, reflecting the demand and reliability of supply. He anticipates the Southeast market becoming the most premium due to LNG activities and other demand factors, emphasizing the strategic importance of the MVP expansion.
Q: Can you quantify the impact of non-operated curtailments and TIL deferrals on second quarter production?
A: Toby Z. Rice clarified that the guide includes about 10 to 15 Bcf impact from non-operated interests, with the remainder being operated deferrals directly influenced by EQT's decisions.
Q: What price level would need to be reached to reconsider the current curtailments of 1 Bcf per day?
A: Toby Z. Rice indicated that the decision would be based on covering cash costs plus F&D costs, suggesting a price around $1.50 in basin would be necessary.
Q: Regarding the MVP expansion and demand growth in the Southeast U.S., how do you plan to balance this with your divestiture strategy?
A: Jeremy T. Knop highlighted the optionality EQT has in its divestiture plan, emphasizing that maintaining control of strategic assets like MVP is crucial, although partial divestitures could be considered to meet deleveraging goals while maximizing asset value.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
