EQT Expects $1 Billion Windfall on Storm-Driven Gas Price Rally

Natural gas producer EQT Corp. stands to pocket $1 billion in February alone as it benefits from its unhedged position during a record price surge.

Published on Feb. 26, 2026

Got story updates? Submit your updates here. ›

EQT Corp., the second-largest US natural gas producer by volume, is set to reap a $1 billion windfall in February alone due to its fortuitous unhedged position ahead of a historic winter freeze that boosted demand and prices for the heating fuel. The company agreed to sell 98% of its expected gas production for February delivery at more than $7 per million British thermal units, more than double the prices seen about two weeks earlier. This reverses years of losses the company experienced when it hedged most of its production, missing out on extraordinary price surges in 2021 and 2022.

Why it matters

EQT's record windfall highlights the risks and rewards of hedging strategies in the volatile natural gas market. While hedging can protect producers from sudden price drops, it can also prevent them from capitalizing on unexpected price spikes. EQT's decision to reduce its hedging in recent years has paid off handsomely, but the company's approach contrasts with peers who see increasing volatility as a reason for more protective hedging.

The details

As weather forecasts changed in late January ahead of the historic winter storm, EQT agreed to sell 98% of its expected gas production for February delivery at more than $7 per million British thermal units, more than double the prices seen about two weeks earlier. This has allowed the company to notch its best month of free cash flow in its 138-year history in February. In contrast, EQT lost $3.8 billion on derivatives in 2021 and $4.6 billion in 2022 when gas prices soared far above what the company had agreed to sell for its hedges.

  • In late January, weather forecasts changed ahead of the historic winter storm.
  • EQT agreed to sell 98% of its expected gas production for February delivery at more than $7 per million British thermal units.
  • EQT expects to notch its best month of free cash flow in the company's 138-year history in February 2026.

The players

EQT Corp.

The second-largest US natural gas producer by volume, headquartered in Pittsburgh, Pennsylvania.

Toby Rice

The Chief Executive Officer of EQT Corp.

Got photos? Submit your photos here. ›

What they’re saying

“Our approach is volatility is here, we're going to take advantage of it.”

— Toby Rice, Chief Executive Officer (Bloomberg)

What’s next

EQT's record windfall in February 2026 is expected to be a one-time event, as the company's unhedged position allowed it to capitalize on the unexpected price surge. Going forward, the company may adjust its hedging strategy to balance risk and reward, but it remains focused on taking advantage of volatility in the natural gas market.

The takeaway

EQT's experience highlights the complex trade-offs involved in hedging strategies for natural gas producers. While hedging can provide stability and protect against price drops, it can also prevent companies from benefiting from unexpected price spikes. EQT's decision to reduce its hedging in recent years has paid off handsomely, but the company's approach contrasts with peers who see increasing volatility as a reason for more protective hedging.