EQT completed the Equitrans Midstream Merger on July 22, 2024, expanding operations to comprise three discrete segments reflective of our three lines of business of Production, Gathering and Transmission. This will allow for increased operational efficiency.

EQT completed the First and Second NEPA Non-Operated Asset Divestitures, streamlining operations and focusing on core assets. The total fair value of consideration received, net of liabilities assumed, was approximately $832 million and $1.25 billion, respectively.

EQT plans to allocate capital towards reserve development, land and lease acquisitions, production infrastructure, gathering infrastructure, transmission infrastructure, capitalized interest, capitalized overhead and other. This demonstrates a commitment to future growth.

EQT is committed to maintaining investment grade credit metrics and published a leverage and debt retirement strategy with the long-term goal of reducing our debt to $5.0 billion. This demonstrates a commitment to financial health.

EQT is subject to ongoing litigation related to the Pratt incident, which could result in increased costs and delays. The Pratt Complaint carries the possibility of a monetary sanction, that if imposed could result in a fine in excess of $300,000.

EQT is committed to maintaining investment grade credit metrics and published a leverage and debt retirement strategy with the long-term goal of reducing our debt to $5.0 billion. This demonstrates a commitment to financial health.

EQT's revenues, earnings and liquidity are substantially dependent on the prices received for natural gas, NGLs and oil, which are subject to volatility. Declines in commodity prices could affect development plans, result in impairments, and affect revenues, earnings or liquidity.

As a natural gas producer and an operator of gathering and transmission pipelines and processing facilities, there are risks inherent in our primary business operations. These risks are not necessarily unique to us, but rather, these are risks to which most operators in our industry have at least some exposure.

Our business and the natural gas industry in general have become increasingly dependent upon digital technologies. Deliberate attacks on, or unintentional events affecting, our digital work environment or other technologies and infrastructure, the systems or infrastructure of third parties or the cloud could lead to corruption or loss of our proprietary data and potentially sensitive data, delays in production or delivery of natural gas, NGLs and oil, difficulty in completing and settling transactions, challenges in maintaining our books and records, communication interruptions, environmental damage, personal injury, property damage, other operational disruptions and third-party liability.

Our competitors include independent oil and gas companies, major oil and gas companies, individual producers, operators and marketing companies and other energy companies that produce substitutes for the commodities that we produce.

When compared to us, some of our competitors have operations in multiple natural gas producing basins, greater capital resources and access to, or control of, larger natural gas supplies.

Competition for our natural gas transmission and storage business is based primarily on rates, customer commitment levels, timing, performance, commercial terms, reliability, service levels, location, reputation and fuel efficiencies. Our principal competitors include companies that own major natural gas pipelines in the Appalachian Basin.

This decrease was due primarily to our Gathering segment's ownership of the gathering assets acquired in the Equitrans Midstream Merger, our Transmission segment's ownership of the transmission and storage assets acquired in the Equitrans Midstream Merger and our Gathering segment's ownership of the additional interest in the NEPA Gathering System acquired in the NEPA Gathering System Acquisition and as consideration for the First NEPA Non-Operated Asset Divestiture.

This was due primarily to increased LOE from the operation and maintenance of our assets, including assets acquired in the Tug Hill and XcL Midstream Acquisition and the Equitrans Midstream Merger and water assets internally-developed in the prior year, as well as increased salt water disposal costs.

This was due primarily to higher legal and professional services costs as well as higher personnel costs due to increased workforce headcount. In addition, we did not recast selling, general and administrative expense for periods prior to the Equitrans Midstream Merger closing date and, upon the Equitrans Midstream Merger closing date, we adjusted our basis for selling, general and administrative expense allocation for multi-segment reporting.

Our cloud-based digital work environment serves as our primary platform for communication and collaboration as well as the home for our critical work processes and drives decision-making based on a shared and transparent view of operational data.

We believe that this helps promote real-time feedback and a greater degree of employee engagement, which lays the foundation for the success of our workforce.

Our operational strategy employs this differentiation to advance our mission of being the operator of choice for all stakeholders, while simultaneously helping to address energy security and affordability both domestically and globally.

EQT used the proceeds from the Midstream Joint Venture Transaction to repay outstanding borrowings under the Bridge Credit Facility and the Term Loan Facility and a portion of outstanding borrowings under EQT's revolving credit facility, demonstrating a focus on debt reduction.

EQT used the proceeds from the Second NEPA Non-Operated Asset Divestiture of $1.25 billion to repay a portion of outstanding borrowings under EQT's revolving credit facility, demonstrating a focus on financial health.

EQT is authorized to repurchase shares of our outstanding common stock for an aggregate purchase price of up to $2 billion, excluding fees, commissions and expenses. This demonstrates a commitment to returning capital to shareholders.

Core tenets of our ESG program include investing in technology and human capital; improving data collection, analysis and reporting; and engaging with stakeholders to understand, and align our actions with, their needs and expectations.

The benefits of combo-development extend beyond financial gains to include environmental and social interests. We have developed an integrated ESG program that interplays with our combo-development-driven operational strategy.

With the equity-for-all program, all of our employees become owners of EQT and have the opportunity to share directly in our financial success.

As the only large-scale, integrated natural gas producer in the United States, we are situated to endure and excel during times of market volatility. In periods of low commodity prices, our integrated business model is designed to produce durable free cash flow due to the annuity-like nature of our midstream assets. In periods of high commodity prices, our low-cost structure permits lower levels of financial hedging, thus providing increased exposure to higher natural gas prices.

Seasonal anomalies such as mild winters or summers may also affect demand.

Our competitors include independent oil and gas companies, major oil and gas companies, individual producers, operators and marketing companies and other energy companies that produce substitutes for the commodities that we produce.