EQT Corporation (NYSE:EQT) Q4 2022 Earnings Call Transcript

David Khani: Yes. So it will be a combination of pricing and duration and thinking about when we spend money and start to produce it’s not going to all come out in one quarter. It’s going to be over probably a 2-, 3-year period that ad matters from a returns perspective. So we’ll look at the forward curve and we’ll look at the drop and we’ll try to anticipate what we think the impact will be. And so we’ll model out. And so it will be a game-time decision. We’re not going to make a decision today, but it’s going to be price and duration that will drive it.

Paul Diamond: And just one quick follow-up. As we kind of move to a more long-term supportive fundamentals of $24 million and $25 million has there been any shift in kind of your priorities from Southwest PA versus the Northeast versus West Virginia? Or is that still kind of Southwest PA still pretty much the kind of the front runner as far as priorities go.

Toby Rice: Yes. I mean, our schedule is designed to develop the best rate of returns sooner. So that mix is sort of set. And what you see here for this year is probably going to continue into the future. So that’s sort of how we have our schedule laid out. And also the surface impacts and where we can do combos, longer lateral lengths, more wells per combo is another factor that could move to factor into the schedule.

Operator: There are no further questions. I’ll pass the call back over to the management team for closing remarks.

Toby Rice: Thanks, everybody, for your time today. Certainly, a lot of volatility in these environments. I think it’s a really good time for people to look at the differentiation that exists within the energy space. And I think the work that we’ve done at EQT really is showing up here, even in a downside scenario, we built a business that still is going to generate double-digit free cash flow yields. And with our low cost structure, we’ll be able to and look to a very promising future for natural gas and EQT. So we’ll continue to work and our employees here at EQT are going to be really focused on delivering peak performance in 2023. So thanks for your time.

Operator: That concludes the conference call. Thank you for your participation. You may now disconnect your lines.