EQT Beats Q2, But Stock Sits Below CEO's Sale Price
EQT generated $330 million in free cash flow in Q2 2026 at $2.89 per MMBtu average gas, raised production guidance roughly 90 Bcfe, and signed a 10-year power deal and 5-year LNG offtake that reduce c
EQT Beats Q2, But Stock Sits Below CEO's Sale Price
NEW YORK, August 6 —
EQT Corporation (EQT) beat second-quarter 2026 expectations across every operating metric, generating $330 million in free cash flow as natural gas averaged $2.89 per MMBtu. The stock trades at $51.23, below the $53.46, $55.17 range where CEO Toby Rice sold $5.26 million of shares seven weeks before the report.
- $330M Q2 free cash flow at $2.89/MMBtu; production guidance raised ~90 Bcfe, capex cut $25M.
- CPV 10-year power deal adds ~$100M annual FCF; 5-year LNG offtake adds ~$45M to 2028 FCF.
- CEO Toby Rice sold $5.26M at $53.46, $55.17 in June 2026; stock now at $51.23 after Q2 beat.
Beating at Sub-$3 Gas
The headline number from EQT's July 22 earnings release is $330 million in free cash flow at $2.89/MMBtu average gas, a price that strains most Appalachian producers. CFO Jeremy Knop credited EQT's "low end of the cost curve" position, a claim the guidance update reinforces: production raised roughly 90 billion cubic feet equivalent at the midpoint, capex cut $25 million simultaneously. The main driver is the Equitrans Midstream acquisition; compression synergies are "continuing to exceed even the company's upside forecasts," per Rice, extending flat production periods and trimming decline rates. The pattern holds across EQT's recent results: three of four prior quarters beat analyst EPS estimates.
Building Beyond the Gas Benchmark
The bigger Q2 development is what EQT is building outside spot gas. The Appalachian Basin producer signed a 10-year agreement with Competitive Power Ventures to supply 325 million cubic feet per day to a planned 2-gigawatt West Virginia power facility expected online in early 2031; management estimates roughly $100 million in incremental annual free cash flow at full capacity. The contract is indexed to PJM power pricing rather than a gas benchmark, making it EQT's second deal using that structure and cutting commodity-price exposure. A 5-year LNG offtake with a large Asian integrated energy company adds approximately $45 million to 2028 free cash flow beginning that year.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| EQT | $32.0B | 12.9x | +4.5% |
| RRC | $8.9B | 9.5x | +15.7% |
| AR | $10.6B | 7.9x | +10.3% |
| EOG | $70.4B | 9.2x | +25.6% |
| LNG | $53.4B | 12.6x | +9.7% |
| FANG | $52.1B | 10.4x | +40.8% |
The CEO's Exit Price
The friction point is CEO behavior. Toby Rice sold $5.26 million of EQT stock in early June at $53.46, $55.17 per share; the stock closed at $51.23 after the Q2 beat, meaning Rice's exit prices remain a ceiling the market has not yet reclaimed. Insider sales are not inherently bearish, but a CEO selling above $53 while his company prepares a clean beat is a tension the operational narrative does not resolve. See the full DCF model and price target →; the execution case is strong, and $53 is the price level that either validates it or extends the discount.
Current fundamentals, valuation and filing history for EQT Corporation (EQT) are tracked on its Basis Report page.
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Frequently Asked Questions
How much free cash flow did EQT generate in Q2?
EQT generated $330 million in free cash flow during Q2 2026, at an average natural gas price of $2.89 per MMBtu. The company simultaneously raised production guidance by roughly 90 billion cubic feet equivalent at the midpoint and cut capital expenditures by $25 million.
What is EQT's power deal with Competitive Power Ventures?
EQT signed a 10-year agreement with Competitive Power Ventures to supply 325 million cubic feet per day to a planned 2-gigawatt West Virginia power facility expected online in early 2031. Management estimates the contract adds roughly $100 million in incremental annual free cash flow at full capacity, indexed to PJM power pricing rather than a gas benchmark.
Did EQT's CEO sell stock before the Q2 earnings report?
CEO Toby Rice sold $5.26 million of EQT stock in early June at prices between $53.46 and $55.17 per share, roughly seven weeks before the Q2 report. After the earnings beat, the stock closed at $51.23, leaving Rice's exit prices above where the stock currently trades.
What LNG agreement did EQT sign in Q2?
EQT signed a 5-year LNG offtake agreement with a large Asian integrated energy company. The deal adds approximately $45 million to 2028 free cash flow beginning that year.
How does the Equitrans acquisition affect EQT's cost position?
Compression synergies from the Equitrans Midstream acquisition are "continuing to exceed even the company's upside forecasts," per CEO Toby Rice. Those synergies are extending flat production periods and trimming decline rates, backing the low-end cost curve position CFO Jeremy Knop cited as the driver behind the Q2 result.
EQT Corporation beat second-quarter 2026 expectations across every operating and financial metric, generated $330 million in free cash flow, raised production guidance, and signed a raft of new commercial deals — yet the stock trades at $51.23, below the $53–$55 range where CEO Toby Rice sold $5.36 million of shares seven weeks before the report.