Back to top

Analyst Blog

EQT Corporation’s (EQT - Analyst Report) second quarter 2013 adjusted earnings increased to 57 cents per share from 21 cents in prior-year quarter and surpassed the Zacks Consensus Estimate of 55 cents. The year-over-year increase was primarily attributable to increases in production sales, prices, gathered volumes, and transmission capacity sales and throughput.

Net operating revenue in the quarter was $520.1 million, ahead of the Zacks Consensus Estimate of $485.0 million and above the year-ago number of $337.8 million.
 
Segment Details
 
EQT Production's second quarter operating revenues increased 93% year over year to $306.1 million. The growth came from a 54% increase in sales volume and higher average effective price, partially offset by an increase in operating expenses. Operating income increased from $17.7 million a year ago to $105.1 million.
 
Under the EQT Midstream segment, revenues rose 21.3% year over year to $131.3 million in the reported quarter. Of this, net gathering revenues surged 21% year over year to $87.0 million, owing to 50% growth in gathered volumes. Net transmission revenue increased 81% year over year to $38.8 million. Net storage, marketing and other operating revenue fell $9.2 million year over year to $5.5 million, owing to lower margins and reduced activity. Operating income rose $12.5 million year over year to $72.2 million.
 
EQT Distribution’s net operating revenue increased $1.1 million year over year to $32.3 million. The segment generated operating income of $6.2 million versus $6.4 million a year ago.
 
Financials
 
The company’s operating cash flow was $316.7 million during the quarter, reflecting an increase of 90.8% year over year.
 
EQT’s capital expenditure totaled $499 million, with $398.1 million spent on EQT Production, $91.3 million on EQT Midstream and $9.6 million on EQT Distribution.
 
Guidance
 
The company has increased its full-year production sales volume guidance to 360–365 Bcfe, which is 40% higher than 2012. It also raised its 2013 NGL volume guidance to 4,800–5,000 Mbbls.

Ranks
 
The company holds a Zacks Rank #2, which translates to a short-term Buy rating. However, there are other Zacks Ranked #1 (Strong Buy) stocks – VOC Energy Trust (VOC - Snapshot Report), Blueknight Energy Partners, L.P. (BKEP - Snapshot Report) and Memorial Production Partners LP (MEMP - Snapshot Report), – in the oil and gas sector that are expected to outperform the market in the coming one to three months.

 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CITI TRENDS… CTRN 21.53 +5.49%
GTT COMMUNI… GTT 11.65 +4.11%
ALLERGAN IN… AGN 161.82 +3.99%
WILLIAMS(C)… CWEI 117.06 +3.73%
FIRSTSERVIC… FSRV 54.81 +2.62%