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EQT Corp (EQT) Q2 Earnings Beat, Revenues Miss Estimates
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EQT Corporation (EQT - Free Report) recently reported second-quarter 2018 adjusted earnings of 44 cents per share, which beat the Zacks Consensus Estimate of 37 cents and also improved from the prior-year level of 6 cents.
Surging profit level from the EQM Gathering segment primarily attributed to the strong second quarter earnings, negated partially by lower natural gas equivalent price realizations.
Total operating revenues jumped 53.1% year over year to $1,054.7 million. However, the top line missed the Zacks Consensus Estimate of $1,103 million.
Sales volume rose to 362,540 million cubic feet equivalent (MMcfe) of natural gas from the year-ago quarter’s 198,080 MMcfe. Average realized price of natural gas equivalents fell to $2.81 per thousand cubic feet from the year-ago period’s $2.86.
Segment Details
EQT Production reported second-quarter operating revenues of $950.6 million, up 50.6% year over year. The upside was mainly driven by higher sales volume of natural gas. Operating loss was $79.8 million against an income of $52.9 million in the year-ago quarter, due to increased operating costs (78.2% year over year) and lower average realized price of natural gas equivalent.
In the EQM Gathering segment, operating revenues increased 61.1% year over year to $180.6 million. Operating expenses rose to $59 million from $28.7 million in the year-ago period. Operating income jumped 46% year over year to $121.6 million in the quarter under review. The segment’s impressive results can be attributed to EQT’s Marcellus Shale’s output development.
In the EQM Transmission segment, operating revenues grew 5.2% year over year to $89.1 million. Operating expenses in the segment was recorded at $28.5 million, $1.7 million higher than the year-ago period. Operating income was up 4.7% year over year to $60.6 million in the reported quarter, due to rise in the existing deals’ contractual rates.
Following the acquisition of Rice Energy (Nov 13, 2017), RMP Gathering and RMP Water were included in EQT’s segments.
Operating income from RMP Gathering was recorded at $39.6 million in the quarter, while RMP Water generated an operating income of around $24 million.
Financials
The company’s adjusted operating cash flow was $526.1 million during the quarter, up 128.2% year over year. EQT’s capital expenditure totaled $960.6 million in the second quarter. This includes $47.4 million spent on RMP Gathering and $7 million on RMP Water.
Guidance
Production sales volume for the third quarter of 2018 is projected in the range of 370-380 billion cubic feet equivalent (Bcfe). For the second half of the year, production sales volume is expected in the range of 770-790 Bcfe.
Liquids volume is estimated at 2,580-2,700 thousand barrel of oil equivalent (MBBl) for the third quarter. For the second half of the year, liquids volume is expected in the range of 5,125-5,275 MBBl.
Adjusted operating cash flow for 2018 is expected in the range of $2,700-$2,800 million.
Calgary, Canada-based Canadian Natural Resources is an upstream energy company. The company’s top line for 2018 is anticipated to improve 35.3% year over year, while its bottom line is expected to increase more than 168%.
Houston, TX-based Cheniere Energy focuses mainly on liquefied natural gas-related businesses. The company’s top line for 2018 is anticipated to improve 25.9% year over year, while its bottom line is expected to increase more than 225%.
Houston, TX-based ConocoPhillips is an integrated energy company. The company’s top line for 2018 is likely to improve 19% year over year. In the last four reported quarters, the company delivered an average positive earnings surprise of 226.9%.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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EQT Corp (EQT) Q2 Earnings Beat, Revenues Miss Estimates
EQT Corporation (EQT - Free Report) recently reported second-quarter 2018 adjusted earnings of 44 cents per share, which beat the Zacks Consensus Estimate of 37 cents and also improved from the prior-year level of 6 cents.
Surging profit level from the EQM Gathering segment primarily attributed to the strong second quarter earnings, negated partially by lower natural gas equivalent price realizations.
Total operating revenues jumped 53.1% year over year to $1,054.7 million. However, the top line missed the Zacks Consensus Estimate of $1,103 million.
EQT Corporation Price, Consensus and EPS Surprise
EQT Corporation Price, Consensus and EPS Surprise | EQT Corporation Quote
Production and Price Realization
Sales volume rose to 362,540 million cubic feet equivalent (MMcfe) of natural gas from the year-ago quarter’s 198,080 MMcfe. Average realized price of natural gas equivalents fell to $2.81 per thousand cubic feet from the year-ago period’s $2.86.
Segment Details
EQT Production reported second-quarter operating revenues of $950.6 million, up 50.6% year over year. The upside was mainly driven by higher sales volume of natural gas. Operating loss was $79.8 million against an income of $52.9 million in the year-ago quarter, due to increased operating costs (78.2% year over year) and lower average realized price of natural gas equivalent.
In the EQM Gathering segment, operating revenues increased 61.1% year over year to $180.6 million. Operating expenses rose to $59 million from $28.7 million in the year-ago period. Operating income jumped 46% year over year to $121.6 million in the quarter under review. The segment’s impressive results can be attributed to EQT’s Marcellus Shale’s output development.
In the EQM Transmission segment, operating revenues grew 5.2% year over year to $89.1 million. Operating expenses in the segment was recorded at $28.5 million, $1.7 million higher than the year-ago period. Operating income was up 4.7% year over year to $60.6 million in the reported quarter, due to rise in the existing deals’ contractual rates.
Following the acquisition of Rice Energy (Nov 13, 2017), RMP Gathering and RMP Water were included in EQT’s segments.
Operating income from RMP Gathering was recorded at $39.6 million in the quarter, while RMP Water generated an operating income of around $24 million.
Financials
The company’s adjusted operating cash flow was $526.1 million during the quarter, up 128.2% year over year. EQT’s capital expenditure totaled $960.6 million in the second quarter. This includes $47.4 million spent on RMP Gathering and $7 million on RMP Water.
Guidance
Production sales volume for the third quarter of 2018 is projected in the range of 370-380 billion cubic feet equivalent (Bcfe). For the second half of the year, production sales volume is expected in the range of 770-790 Bcfe.
Liquids volume is estimated at 2,580-2,700 thousand barrel of oil equivalent (MBBl) for the third quarter. For the second half of the year, liquids volume is expected in the range of 5,125-5,275 MBBl.
Adjusted operating cash flow for 2018 is expected in the range of $2,700-$2,800 million.
Zacks Rank & Key Picks
Currently, EQT Corp. has a Zacks Rank #3 (Hold). Investors interested in the Energy sector can opt for some better-ranked stocks like Canadian Natural Resources Ltd. (CNQ - Free Report) , Cheniere Energy, Inc. (LNG - Free Report) and ConocoPhillips (COP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary, Canada-based Canadian Natural Resources is an upstream energy company. The company’s top line for 2018 is anticipated to improve 35.3% year over year, while its bottom line is expected to increase more than 168%.
Houston, TX-based Cheniere Energy focuses mainly on liquefied natural gas-related businesses. The company’s top line for 2018 is anticipated to improve 25.9% year over year, while its bottom line is expected to increase more than 225%.
Houston, TX-based ConocoPhillips is an integrated energy company. The company’s top line for 2018 is likely to improve 19% year over year. In the last four reported quarters, the company delivered an average positive earnings surprise of 226.9%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>