EQT (EQT) signs a series of commercial deals with power and LNG customers while reporting stronger-than-expected Q2 operating performance, as the US natural gas producer seeks to capitalize on rising domestic electricity demand and export growth, TPH Energy strategists said on Wednesday.
The energy firm signed a 10-year agreement to supply 325,000 dekatherms per day of natural gas to the CPV Shay power plant in West Virginia, under a pricing structure linked to the PJM power market.
Jake Roberts, analyst at TPH, said that deliveries are projected to begin as early as 2031.
The agreement is one of EQT's most significant moves to date to secure long-term demand from the power sector, where electricity consumption is forecasted to rise amid the expansion of data centers and artificial intelligence infrastructure.
EQT also signed an LNG offtake agreement for 0.5 million metric tons per annum beginning in 2028 and agreed to acquire Blackline Midstream, which owns two propane storage and distribution terminals in the US Northeast, for $77 million.
The US energy firm reported Q2 financial results that beat estimates, buoyed by higher production volumes, better price realizations, and lower capital expenditures.
Production reached 634 billion cubic feet equivalent, above the company's guidance range and ahead of TPH analyst expectations, driven by stronger well performance, compression optimization and fewer production curtailments.
EQT raised its full-year production guidance by 90 bcfe to a range of 2.38 trillion to 2.45 trillion cubic feet equivalent, citing stronger-than-expected compression performance and lower base production declines.
The company lowered its maintenance capital outlook by $25 million but increased expected equity contributions by $85 million as it accelerates spending on the Mountain Valley Pipeline Southgate project, targeting completion by the end of 2026. Total capital spending guidance now stands at roughly $2.89 billion.
For Q3, EQT forecasts production of 570 bcfe to 620 bcfe and capital spending of about $830 million.
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