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EQT Corp (EQT) Reports Narrower-than-Expected Loss in Q3
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Integrated energy player EQT Corporation (EQT - Free Report) posted third-quarter 2016 adjusted loss per share of 26 cents, substantially narrower than the Zacks Consensus Estimate of a loss of 44 cents. The company had incurred a loss of 33 cent per share in the year-earlier quarter.
Net operating revenue in the quarter came in at $556.7 million, which beat the Zacks Consensus Estimate of $463.7 million. The top line decreased from $584 million in the year-ago quarter.
Segment Details
EQT Production's third-quarter operating revenues were $502.5 million compared with $531.3 million in the year-ago quarter. However, the company clocked sales volume of 196.1 billion cubic feet equivalent (Bcfe) in the third quarter, up 25.5% year over year.
Operating loss for the third quarter was $22 million. The company had posted an operating income of $56.4 million in the year-ago period.
In the EQT Midstream segment, net gathering revenue increased 8.1% year over year to $136.7 million on 15% growth in gathered volumes. Net transmission revenue grew 10.8%. Net storage, marketing and other operating revenue was at $8.2 million, down 13.5%.
Operating income jumped 17.4% year over year to $132.7 million in the reported quarter.
The company’s adjusted operating cash flow was $274.3 million compared with $244.2 million in the year-ago quarter.
Wells Drilled
The company spud 24 gross wells during the third quarter. Of the total, the company drilled 21 wells in the Marcellus with an average length-of-pay of 8,300 feet, two were drilled in the Upper Devonian with an average length-of-pay of 11,100 feet and one was drilled in Utica with an average length-of-pay of 5,400 feet.
Guidance
Production sales volume for 2016 are now expected in the band of 750–755 Bcfe as against the earlier range of 730–740 Bcfe. Liquids volume is projected at 11,825–11,915 thousand barrel of oil equivalent (MBBl). Of this, fourth-quarter volume is estimated at 189–194 Bcfe, with liquids of 3,095–3,185 MBBls. The company estimates full-year earnings before interest, taxes, depreciation, and amortization or EBITDA between $1,213 million and $1,238 million.
Zacks Rank
Currently, EQT Corp. carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Enviva Partners, LP (EVA - Free Report) , Helix Energy Solution Group (HLX - Free Report) and EQT Midstream Partners . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprise in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
Helix Energy posted a positive earnings surprise of 150.00% in the preceding quarter. It reported a positive earnings surprise in all of the four preceding quarters.
In the last reported quarter, EQT Midstream Partners delivered a positive earnings surprise of 6.72%. Coming to the earnings surprise history, the partnership beat estimates in three of the last four quarters.
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EQT Corp (EQT) Reports Narrower-than-Expected Loss in Q3
Integrated energy player EQT Corporation (EQT - Free Report) posted third-quarter 2016 adjusted loss per share of 26 cents, substantially narrower than the Zacks Consensus Estimate of a loss of 44 cents. The company had incurred a loss of 33 cent per share in the year-earlier quarter.
Net operating revenue in the quarter came in at $556.7 million, which beat the Zacks Consensus Estimate of $463.7 million. The top line decreased from $584 million in the year-ago quarter.
Segment Details
EQT Production's third-quarter operating revenues were $502.5 million compared with $531.3 million in the year-ago quarter. However, the company clocked sales volume of 196.1 billion cubic feet equivalent (Bcfe) in the third quarter, up 25.5% year over year.
Operating loss for the third quarter was $22 million. The company had posted an operating income of $56.4 million in the year-ago period.
In the EQT Midstream segment, net gathering revenue increased 8.1% year over year to $136.7 million on 15% growth in gathered volumes. Net transmission revenue grew 10.8%. Net storage, marketing and other operating revenue was at $8.2 million, down 13.5%.
Operating income jumped 17.4% year over year to $132.7 million in the reported quarter.
EQT CORP Price, Consensus and EPS Surprise
EQT CORP Price, Consensus and EPS Surprise | EQT CORP Quote
Cash Flow
The company’s adjusted operating cash flow was $274.3 million compared with $244.2 million in the year-ago quarter.
Wells Drilled
The company spud 24 gross wells during the third quarter. Of the total, the company drilled 21 wells in the Marcellus with an average length-of-pay of 8,300 feet, two were drilled in the Upper Devonian with an average length-of-pay of 11,100 feet and one was drilled in Utica with an average length-of-pay of 5,400 feet.
Guidance
Production sales volume for 2016 are now expected in the band of 750–755 Bcfe as against the earlier range of 730–740 Bcfe. Liquids volume is projected at 11,825–11,915 thousand barrel of oil equivalent (MBBl). Of this, fourth-quarter volume is estimated at 189–194 Bcfe, with liquids of 3,095–3,185 MBBls. The company estimates full-year earnings before interest, taxes, depreciation, and amortization or EBITDA between $1,213 million and $1,238 million.
Zacks Rank
Currently, EQT Corp. carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy sector are Enviva Partners, LP (EVA - Free Report) , Helix Energy Solution Group (HLX - Free Report) and EQT Midstream Partners . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enviva Partners has a mixed earnings surprise history. The partnership posted positive earnings surprise in two of the last four quarters. It reported a positive earnings surprise of 20.51% in the preceding quarter.
Helix Energy posted a positive earnings surprise of 150.00% in the preceding quarter. It reported a positive earnings surprise in all of the four preceding quarters.
In the last reported quarter, EQT Midstream Partners delivered a positive earnings surprise of 6.72%. Coming to the earnings surprise history, the partnership beat estimates in three of the last four quarters.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>