EQT Corp (EQT) Q1 Earnings Miss, Revenues Beat Estimates

EQT Corporation EQT reported first-quarter 2018 adjusted earnings of $1.01 per share, which lagged the Zacks Consensus Estimate of $1.05 and improved from the prior-year quarter’s level of 44 cents. The downside was caused by increased operating expenses and lower realized prices.
 

EQT Corporation Price, Consensus and EPS Surprise

 

EQT Corporation Price, Consensus and EPS Surprise | EQT Corporation Quote

Total operating revenues jumped 60.3% year over year to $1,433.6 million. The top line also surpassed the Zacks Consensus Estimate of $1360 million. The uptick can be attributed to higher production.

Segment Details

EQT Production reported first-quarter operating revenues of $1,348.6 million, up 62.7% year over year. The upside was mainly driven by higher production.

Operating loss was $1,893.8 million against the Zacks Consensus Estimate of income of $371 million. The segment earned an income of $257.5 million in the year-ago quarter.

In the EQT Gathering segment, net gathering revenues increased 23% year over year to $125.9 million on 23.9% higher gathered volumes.

Operating income jumped 34.2% year over year to $98.9 million in the quarter under review.

In the EQT Transmission segment, net transmission revenues grew 9.4% to $106.9 million.

Operating income jumped 11% year over year to $79.5 million in the reported quarter.

Financials

The company’s adjusted operating cash flow was $718.4 million during the quarter, up 116.1% year over year.

EQT’s capital expenditure totaled $762.9 million in the completed quarter. This includes $675 million spent on EQT Production, $68.9 million on EQT Gathering and $18.9 million allocated toward EQT Transmission.

Guidance

Production sales volume for 2018 is projected in the range of 1,520-1,550 billion cubic feet equivalent (Bcfe). Liquids volume is estimated at 12,300-12,600 thousand barrel of oil equivalent (MBBl). Production sales volume for second-quarter 2018 is projected in the range of 360-370 Bcfe. Liquids volume is expected in the range of 3,275-3,295 MBBls.

Q1 Price Performance

During the January-to-March quarter, EQT’s shares lost 16.6% against the industry’s 4.5% decline.

 

Zacks Rank & Key Picks

EQT currently carries a Zacks Rank #3 (Hold).

A few better-ranked players in the same sector are Nine Energy Service, Inc. NINE, Baytex Energy Corp. BTE and SunCoke Energy Inc. SXC. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nine Energy Service is engaged in delivering onshore completion and production services to unconventional oil and gas resource development. The company posted a positive earnings surprise of 6.25% in the preceding quarter.

Baytex Energy is a conventional oil and gas income trust focused on maintaining its production and asset base through internal property development and delivering consistent returns to its unitholders. It pulled off an average positive earnings surprise of 77.3% over the last three quarters.

SunCoke Energy produces metallurgical coke in the United States. The company delivered an average positive earnings surprise of 130.6% in the last four quarters.

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