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Why Is EQT Corporation (EQT) Down 3.8% Since Last Earnings Report?
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A month has gone by since the last earnings report for EQT Corporation (EQT - Free Report) . Shares have lost about 3.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is EQT Corporation 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.
EQT Corp. Q4 Earnings and Revenues Beat Estimates
EQT Corporation reported fourth-quarter 2020 adjusted loss from continuing operations of 2 cents per share, narrower than the Zacks Consensus Estimate of a loss of 24 cents and the year-ago loss of 3 cents.
Adjusted operating revenues increased to $1,253 million from $1,011 million in the prior-year quarter. Moreover, the top line beat the Zacks Consensus Estimate of $903 million.
The better-than-expected results for the fourth quarter were backed by increased gas equivalent production volumes and higher realized natural gas price.
Operations:
Total Production Increases
Sales volumes increased to 400.9 billion cubic feet equivalent (Bcfe) of natural gas from the year-ago figure of 373.5 Bcfe. Natural gas sales volume was 375.7 Bcf for the fourth quarter, up from 357.2 Bcf a year ago. Moreover, total liquids sales volume for the quarter was recorded at 4,214 thousand barrels (MBbls) versus the year-ago period’s 2,720 MBbls.
Gas Price Increases But Oil Price Declines
Average realized price was $2.30 per thousand cubic feet of natural gas equivalent (Mcfe), down from $2.54 in the year-ago quarter. Notably, natural gas price was recorded at $2.82 per Mcf, up from the year-ago level of $2.64. However, oil price was recorded at $31.61 per barrel, down from $36.76 in fourth-quarter 2019. Moreover, ethane sales price was recorded at $3.70 per barrel for the fourth quarter, lower than the year-ago level of $5.56.
Expenses
Total operating expenses were $1.30 per Mcfe for fourth-quarter 2020, down from $1.38 in the prior-year quarter.
Notably, processing expenses were 9 cents per Mcfe, up by a penny from the year-ago period. Gathering expenses were flat at 70 cents per Mcfe. Lease operating expenses were 7 cents for the quarter, up from 6 cents in the year-ago period. However, transmission costs decreased to 30 cents per Mcfe from the year-ago level of 40 cents.
Wells Drilled
The company drilled six net wells in the fourth quarter. All the wells were drilled in WV Marcellus, with the average lateral length being 13,050 feet.
Cash Flows
EQT Corp.’s adjusted operating cash flow was $370.5 million for the quarter, down from $502.9 million a year ago.
Capex & Balance Sheet
Total capital expenditure amounted to $265.9 million for the fourth quarter, down from $355.5 million a year ago.
As of Dec 31, 2020, the company had $18.2 million in cash and cash equivalents. Total debt was reported at $4,925.5 million.
Guidance
In 2021, the largest natural gas producer of the United States expects total sales volumes in the band of 1,620 to 1,700 Bcfe. Moreover, the company projects 2021 total per unit operating costs at $1.29 to $1.41 per Mcfe while free cashflow is projected in the band of $500 to $600 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 35.49% due to these changes.
VGM Scores
At this time, EQT Corporation has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, EQT Corporation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is EQT Corporation (EQT) Down 3.8% Since Last Earnings Report?
A month has gone by since the last earnings report for EQT Corporation (EQT - Free Report) . Shares have lost about 3.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is EQT Corporation 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.
EQT Corp. Q4 Earnings and Revenues Beat Estimates
EQT Corporation reported fourth-quarter 2020 adjusted loss from continuing operations of 2 cents per share, narrower than the Zacks Consensus Estimate of a loss of 24 cents and the year-ago loss of 3 cents.
Adjusted operating revenues increased to $1,253 million from $1,011 million in the prior-year quarter. Moreover, the top line beat the Zacks Consensus Estimate of $903 million.
The better-than-expected results for the fourth quarter were backed by increased gas equivalent production volumes and higher realized natural gas price.
Operations:
Total Production Increases
Sales volumes increased to 400.9 billion cubic feet equivalent (Bcfe) of natural gas from the year-ago figure of 373.5 Bcfe. Natural gas sales volume was 375.7 Bcf for the fourth quarter, up from 357.2 Bcf a year ago. Moreover, total liquids sales volume for the quarter was recorded at 4,214 thousand barrels (MBbls) versus the year-ago period’s 2,720 MBbls.
Gas Price Increases But Oil Price Declines
Average realized price was $2.30 per thousand cubic feet of natural gas equivalent (Mcfe), down from $2.54 in the year-ago quarter. Notably, natural gas price was recorded at $2.82 per Mcf, up from the year-ago level of $2.64. However, oil price was recorded at $31.61 per barrel, down from $36.76 in fourth-quarter 2019. Moreover, ethane sales price was recorded at $3.70 per barrel for the fourth quarter, lower than the year-ago level of $5.56.
Expenses
Total operating expenses were $1.30 per Mcfe for fourth-quarter 2020, down from $1.38 in the prior-year quarter.
Notably, processing expenses were 9 cents per Mcfe, up by a penny from the year-ago period. Gathering expenses were flat at 70 cents per Mcfe. Lease operating expenses were 7 cents for the quarter, up from 6 cents in the year-ago period. However, transmission costs decreased to 30 cents per Mcfe from the year-ago level of 40 cents.
Wells Drilled
The company drilled six net wells in the fourth quarter. All the wells were drilled in WV Marcellus, with the average lateral length being 13,050 feet.
Cash Flows
EQT Corp.’s adjusted operating cash flow was $370.5 million for the quarter, down from $502.9 million a year ago.
Capex & Balance Sheet
Total capital expenditure amounted to $265.9 million for the fourth quarter, down from $355.5 million a year ago.
As of Dec 31, 2020, the company had $18.2 million in cash and cash equivalents. Total debt was reported at $4,925.5 million.
Guidance
In 2021, the largest natural gas producer of the United States expects total sales volumes in the band of 1,620 to 1,700 Bcfe. Moreover, the company projects 2021 total per unit operating costs at $1.29 to $1.41 per Mcfe while free cashflow is projected in the band of $500 to $600 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 35.49% due to these changes.
VGM Scores
At this time, EQT Corporation has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, EQT Corporation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.