EQT Reaps $1B Profit from Winter Storm Fern, Sells Gas for $7+

Hedging is the practice of locking in a price now to sell gas you will produce in the future. We've written a fair bit about hedging (see our stories here). In early 2022, natural gas producers, including most Marcellus/Utica producers, were caught flat-footed when the price of natgas skyrocketed, leaving them with hedges locked in at much lower prices. As the hedges “rolled off,” many producers either chose not to hedge again or hedged only a small portion of their future production. Prices crashed again in late 2022, meaning those producers were not protected and had to sell most (if not all) of their production at very low market prices (see M-U Drillers Signal 4Q Financial Losses Due to Lack of Hedging). Hedging is a "damned if you do, damned if you don't" proposition. EQT is (currently) unhedged, meaning the company reaped a huge gain from the recent Winter Storm Fern when prices skyrocketed. In fact, the company made a cool $1 billion from its unhedged gas sales.

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