AI Takeaway
EQT's Q2 FY2026 net income fell 73.0% year-over-year to $211.4 million ($0.34 diluted EPS) primarily due to a much smaller derivative gain ($45M vs $720M) and a 15.1% lower average sales price, even as sales volumes rose 11.7% on the Olympus Energy Acquisition.
Revenue
$1.81B
-29.24% YoY
EPS (Basic)
$0.34
-74.05% YoY
Operating Income
$394.04M
-65.25% YoY
Filed · Source: SEC EDGAR 10-Q filing
Eqt (EQT) reported Q2 FY2026 revenue of $1.81B, down 29.2% year over year. The company posted net income of $211.43M, down 73.0% from a year earlier, with diluted EPS of $0.34.
Upstream gain on derivatives fell to approximately $45 million for Q2 FY2026 from approximately $720 million in the prior-year quarter, primarily due to a much smaller increase in the fair value of NYMEX swaps and options ($37M vs $682M). This was the single largest driver of the 89.1% decline in Upstream segment operating income, from $1,007.1M to $109.4M.
Source: 10-Q Item 2 MD&A, p.35-36
Average sales price fell 15.1% to $2.54/Mcfe from $2.99/Mcfe due to a lower NYMEX price, partly offset by favorable basis differentials and higher liquids prices; sales of natural gas, NGLs and oil decreased ~$90 million, reflecting a ~$288 million price-driven decline partly offset by a ~$198 million volume increase.
Source: 10-Q Item 2 MD&A, p.35
Total sales volume rose 11.7% to 634,474 MMcfe, driven primarily by a 48 Bcfe increase from assets acquired in the Olympus Energy Acquisition (completed July 1, 2025), along with wells turned-in-line since Q2 2025 and well performance optimization.
Source: 10-Q Item 2 MD&A, p.35
On July 21, 2026, EQT completed the ~$77 million Blackline Midstream Acquisition (LPG storage/distribution/marine terminal assets), funded via revolving credit facility borrowings; separately, on March 30, 2026, EQT completed the MVP A and MVP C Interest Acquisitions for a combined ~$213.9 million, funded partly with cash on hand and partly by an affiliate.
Source: 10-Q Item 2 MD&A, p.30
Other operating expenses in the Upstream segment increased $35.9 million (161.8%) to $58.1 million for Q2 FY2026 versus the prior-year quarter, due primarily to increased expense from changes in legal and environmental reserves, including from settlements.
Source: 10-Q Item 2 MD&A, p.36
Average realized natural gas price fell to $2.51/Mcf including cash-settled derivatives from $2.69/Mcf a year earlier, and management explicitly states revenue, profitability, liquidity and financial position will continue to be impacted by natural gas, NGL and oil prices amid macroeconomic uncertainty and geopolitical instability. This directly contributed to the 73.0% YoY net income decline in the quarter.
Source: 10-Q Item 2 MD&A, p.30
EQT recognized only a $45 million gain on derivatives in Q2 FY2026 versus a $720 million gain in Q2 FY2025, a swing management attributes to smaller decreases in NYMEX forward prices; for the six-month period the company recorded a $194 million derivatives loss versus a $41 million gain a year earlier. This non-cash volatility can materially distort period-over-period earnings comparisons.
Source: 10-Q Item 2 MD&A, p.35, 37
The company notes it implements strategic curtailments in response to price volatility, and low or volatile natural gas prices may result in further adjustments to its 2026 development schedule or non-operated well schedules it cannot control, potentially impacting future sales volumes, revenues and capital expenditures.
Source: 10-Q Item 2 MD&A, p.30
Current ratio stands at 0.67x (current assets of $1.18B vs current liabilities of $1.75B) and cash and equivalents dropped 79.7% YoY to $112.9 million, indicating reliance on operating cash flow generation or credit facilities to meet near-term obligations.
Source: 10-Q Balance Sheet (XBRL)
Management highlights uncertainty from potential regulatory changes, executive orders affecting the oil and gas industry, and domestic/foreign tariffs that could increase costs of supplies and equipment, affect natural gas demand/pricing, and impact interest rates, though the ultimate impact remains uncertain.
Source: 10-Q Item 2 MD&A, p.30
Reported EPS of $0.39 versus the $0.42 analyst consensus — a -6.7% miss for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.81B | $2.56B | -29.24% |
Cost of Revenue | $385.02M | $389.12M | -1.05% |
Operating Income | $394.04M | $1.13B | -65.25% |
Net Income | $211.43M | $784.15M | -73.04% |
EPS (Basic) | $0.34 | $1.31 | -74.05% |
EPS (Diluted) | $0.34 | $1.30 | -73.85% |
SG&A Expense | $106.44M | $81.59M | +30.46% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $41.32B | $39.67B | +4.17% |
Current Assets | $1.18B | $1.63B | -27.80% |
Total Liabilities | $12.46B | $14.57B | -14.49% |
Current Liabilities | $1.75B | $2.31B | -24.11% |
Stockholders' Equity | $25.26B | $21.42B | +17.90% |
Cash & Equivalents | $112.86M | $555.49M | -79.68% |
Long-Term Debt | $5.66B | $8.32B | -31.98% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $4.1B | $2.98B | +37.55% |
Investing Cash FlowYTD | $-1.52B | $-1.2B | -27.17% |
Financing Cash FlowYTD | $-2.58B | $-1.43B | -80.06% |
D&A | $689.59M | $623.47M | +10.61% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 21.8% | 44.3% | -22.57% |
Net Margin | 11.7% | — | — |
ROE | 0.8% | — | — |
ROA | 0.5% | — | — |
Current Ratio | $0.673 | — | — |
Debt to Equity | $0.493 | — | — |
Expected release date, analyst estimates & what to watch
EQT delivered a standout Q1 FY2026 with revenue nearly doubling to $3.38B (+94.2% YoY) and net income surging 514% to $1.49B, driven by dramatically higher natural gas realizations and a significant reduction in long-term debt.
EQT Corporation delivered a transformational FY2025, with revenue surging 63.9% to $8.64B and net income exploding 784.4% to $2.04B, driven by higher natural gas realizations and the integration of Equitrans Midstream, while simultaneously reducing long-term debt by 16.3%.
Other companies in Oil & Gas Exploration & Production
The filing does not disclose analyst consensus estimates, so a beat/miss cannot be confirmed from this 10-Q. What is clear is that EQT's Q2 FY2026 net income of $211.4 million ($0.34 diluted EPS) fell sharply from $784.1 million ($1.30 diluted EPS) in Q2 FY2025, a 73.0% YoY decline.
Management attributes the decline primarily to lower derivative gains—only $45 million in Q2 FY2026 versus $720 million a year earlier—and lower average realized natural gas prices, partly offset by lower income tax expense and lower legal reserves. The average sales price fell 15.1% to $2.54/Mcfe from $2.99/Mcfe.
Total sales volume increased 11.7% YoY to 634,474 MMcfe (6,972 MMcfe/d), driven primarily by a 48 Bcfe contribution from the Olympus Energy Acquisition assets completed July 1, 2025, plus new wells turned-in-line and well performance optimization.
EQT highlighted continued commodity price volatility, potential strategic curtailments in response to low natural gas prices, and uncertainty from regulatory changes and tariffs that could affect costs and demand. The filing also notes a current ratio of 0.67x, indicating current liabilities exceed current assets.
EQT maintains a debt-to-equity ratio of 0.49x and generated $4.10 billion in operating cash flow year-to-date (up 37.6% YoY), though cash and equivalents fell 79.7% YoY to $112.9 million and the current ratio of 0.67x suggests reliance on cash flow generation to cover near-term liabilities. Total assets grew 4.2% YoY to $41.32 billion, supported by acquisitions like Olympus Energy.