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EQT Down 5.4% Since Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for EQT Corporation (EQT - Free Report) . Shares have lost about 5.4% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is EQT due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2017 Results
EQT Corporation posted fourth-quarter 2017 adjusted earnings per share of 76 cents, beating the Zacks Consensus Estimate of 22 cents. The figure also increased 204% from 25 cents in the year-earlier quarter.
In 2017, the company reported adjusted earnings of $1.47 per share, which beat the Zacks Consensus Estimate of 79 cents. The company had incurred a loss of 33 cents in 2016.
Net operating revenues in the quarter totaled $1,129.3 million, beating the Zacks Consensus Estimate of $886.3 million and improving from $379.0 million in the year-ago quarter.
Net operating revenues in 2017 improved 110% year over year to $3,378.0 million. Revenues were also above the Zacks Consensus Estimate of $3,140.0 million.
Higher production sales volume and increased realizations supported EQT’s strong fourth-quarter 2017 results.
Segment Details
EQT Production's fourth-quarter operating revenues were $1,048.9 million compared with $318.3 million in the year-ago quarter. The company clocked sales volume of 294.4 billion cubic feet equivalent (Bcfe), up 48.4% year over year.
Operating income in the fourth quarter was $267.4 million against an operating loss of $251.1 million in the year-ago quarter.
In the EQT Gathering segment, net gathering revenues improved 23.3% year over year to $123.5 million on the back of 27% higher gathered volumes. Operating income jumped 28.4% year over year to $90.8 million in the reported quarter.
Net transmission revenues grew 6.5% to $101 million. Operating income declined 8.9% year over year to $58.2 million.
Cash Flow
The company’s adjusted operating cash flow was $426.3 million compared with $296.6 million in the year-ago quarter.
Wells Drilled
The company spud 197 gross wells in 2017. Of the total, 144 wells were drilled in the Marcellus with an average length-of-pay of 8,900 feet, 49 were drilled in the Upper Devonian with an average length-of-pay of 9,800 feet and four were drilled in Utica with an average length-of-pay of 10,500 feet.
Reserves Replacement
At the end of 2017, oil and gas proved reserves were 21.4 trillion cubic feet equivalent (Tcfe), up 59% from 2016. The company added 6.3 Tcfe of proved reserves last year.
Guidance
Production sales volume for 2018 is expected in the range of 1,520-1,560 Bcfe. Liquids volume is projected in the band of 12,300-12,600 thousand barrel of oil equivalent (MBBl). Of this, first-quarter 2018 volume is estimated at 350-360 Bcfe, with liquids of 3,230-3,250 MBBls. The company projects full-year development costs and selling, general and administration (SG&A) costs in the range of 41-43 cents per Mcfe and 10-12 cents per Mcfe, respectively.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter.
At this time, EQT has a nice Growth Score of B, however its Momentum is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is primarily suitable for momentum investors while also being suitable for those looking for growth and to a lesser degree value.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Notably, EQT has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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EQT Down 5.4% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for EQT Corporation (EQT - Free Report) . Shares have lost about 5.4% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is EQT due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Fourth-Quarter 2017 Results
EQT Corporation posted fourth-quarter 2017 adjusted earnings per share of 76 cents, beating the Zacks Consensus Estimate of 22 cents. The figure also increased 204% from 25 cents in the year-earlier quarter.
In 2017, the company reported adjusted earnings of $1.47 per share, which beat the Zacks Consensus Estimate of 79 cents. The company had incurred a loss of 33 cents in 2016.
Net operating revenues in the quarter totaled $1,129.3 million, beating the Zacks Consensus Estimate of $886.3 million and improving from $379.0 million in the year-ago quarter.
Net operating revenues in 2017 improved 110% year over year to $3,378.0 million. Revenues were also above the Zacks Consensus Estimate of $3,140.0 million.
Higher production sales volume and increased realizations supported EQT’s strong fourth-quarter 2017 results.
Segment Details
EQT Production's fourth-quarter operating revenues were $1,048.9 million compared with $318.3 million in the year-ago quarter. The company clocked sales volume of 294.4 billion cubic feet equivalent (Bcfe), up 48.4% year over year.
Operating income in the fourth quarter was $267.4 million against an operating loss of $251.1 million in the year-ago quarter.
In the EQT Gathering segment, net gathering revenues improved 23.3% year over year to $123.5 million on the back of 27% higher gathered volumes. Operating income jumped 28.4% year over year to $90.8 million in the reported quarter.
Net transmission revenues grew 6.5% to $101 million. Operating income declined 8.9% year over year to $58.2 million.
Cash Flow
The company’s adjusted operating cash flow was $426.3 million compared with $296.6 million in the year-ago quarter.
Wells Drilled
The company spud 197 gross wells in 2017. Of the total, 144 wells were drilled in the Marcellus with an average length-of-pay of 8,900 feet, 49 were drilled in the Upper Devonian with an average length-of-pay of 9,800 feet and four were drilled in Utica with an average length-of-pay of 10,500 feet.
Reserves Replacement
At the end of 2017, oil and gas proved reserves were 21.4 trillion cubic feet equivalent (Tcfe), up 59% from 2016. The company added 6.3 Tcfe of proved reserves last year.
Guidance
Production sales volume for 2018 is expected in the range of 1,520-1,560 Bcfe. Liquids volume is projected in the band of 12,300-12,600 thousand barrel of oil equivalent (MBBl). Of this, first-quarter 2018 volume is estimated at 350-360 Bcfe, with liquids of 3,230-3,250 MBBls. The company projects full-year development costs and selling, general and administration (SG&A) costs in the range of 41-43 cents per Mcfe and 10-12 cents per Mcfe, respectively.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter.
EQT Corporation Price and Consensus
EQT Corporation Price and Consensus | EQT Corporation Quote
VGM Scores
At this time, EQT has a nice Growth Score of B, however its Momentum is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is primarily suitable for momentum investors while also being suitable for those looking for growth and to a lesser degree value.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Notably, EQT has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.