What caused EQT's Q2 2024 earnings to fall short?

EQT's Q2 2024 earnings fell short due to a combination of factors:

1. **Natural Gas Prices Decline**: EQT experienced a substantial decrease in net income, which can be attributed to the decline in natural gas prices. The company's sales volume outlook for the full year was reduced as producers, including EQT, curtailed production to combat falling gas prices. This decline in prices resulted in a 46.9% decrease in quarterly operating revenues for EQT.
2. **Market Conditions and Commodity Price Volatility**: The oil and gas sector, including EQT, is sensitive to market conditions and commodity price volatility. In the first quarter of 2024, natural gas prices fell by 20.4% compared to the previous year, which had a significant impact on EQT's financial performance. This decline in prices affected not only EQT but also other natural gas producers, leading to production curtailments to maintain profitability.
3. **Strategic Acquisitions and Financial Adjustments**: EQT's acquisition of Equitrans Midstream, announced in Q1 2024, is a strategic move aimed at creating a vertically integrated natural gas business. However, such acquisitions often involve significant financial adjustments, including debt management, which can temporarily impact earnings. EQT reduced its total debt from $5.8 billion to $5.5 billion by the end of Q1 2024, indicating effective financial management but also reflecting the financial adjustments associated with strategic expansions.

In conclusion, EQT's Q2 2024 earnings fell short primarily due to the decline in natural gas prices and market conditions, with additional factors being the strategic acquisitions and financial adjustments.