03:46 PM EDT, 07/05/2024 (MT Newswires) -- EQT's (EQT) Q2 sales volumes probably topped the midpoint of company guidance despite production curtailments, UBS Securities said in a report emailed Friday.

Q2 volumes probably will be 487 billion cubic feet equivalent including curtailments through the end of May, compared with guidance of 455 Bcfe to 505 Bcfe, UBS said.

EQT reduced its gross production estimate in late February due to the low natural gas price environment amid warm winter weather and higher storage inventories.

The company is expected to provide its first formal outlook with Equitrans Midstream's ( ETRN ) assets in Q2 results later this month.

"We continue to see the deal's merits as it supports EQT's cost structure and improved inventory depth, but execution of asset sales over the next 18 months will be key to de-levering the balance sheet that's taking on $6.6 billion of debt," UBS said.

UBS reiterated its neutral rating on EQT and the $38 price target.

EQT shares fell 2.3% in recent trading Friday.

Price: 36.19, Change: -0.85, Percent Change: -2.30