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EQT Corp (EQT) Shares Gain Marginally Since Q3 Earnings Beat
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EQT Corporation (EQT - Free Report) shares have gained 0.9% since it reported strong third-quarter 2022 earnings on Oct 26.
EQT Corp reported third-quarter adjusted earnings from continuing operations of $1.04 per share, beating the Zacks Consensus Estimate of 99 cents. The bottom line improved substantially from the year-ago quarter’s profit of 12 cents.
Adjusted operating revenues increased to $1,661.4 million from $1,155 million in the prior-year quarter. However, the top line missed the Zacks Consensus Estimate of $1,736 million.
The strong quarterly earnings were driven by the higher realization of commodity prices.
Sales volumes declined to 487.7 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s figure of 495 Bcfe. Natural gas sales volume was 463.9 Bcf in the third quarter, marginally down from 464.6 Bcf. Total liquids sales volume was 3,969 thousand barrels (MBbls) versus the year-ago period’s 5,074 MBbls.
Commodity Price Realizations
The average realized price was $3.41 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago quarter’s $2.33 per Mcfe. Natural gas price was $8.62 per Mcf, up from $4.21. Oil prices were $63.20 per barrel, up from $46.79 in third-quarter 2021. Also, the ethane sales price was $15.68 per barrel in the third quarter, higher than the year-ago quarter’s $9.22.
Expenses
Total operating expenses were $1.42 per Mcfe in the third quarter of 2022, up from $1.25 in the prior-year quarter.
Processing expenses were 11 cents per Mcfe, higher than the year-ago quarter’s 10 cents. Lease operating expenses increased to 8 cents from 6 cents.
Cash Flows
EQT Corp’s adjusted operating cash flow was $939.7 million in the quarter, up from $396.1 million a year ago. Free cash flow in the quarter was $590.6 million, up from $99.1 million.
Capex & Balance Sheet
Total capital expenditure amounted to $355.6 million in the third quarter, up from $297.7 million a year ago.
As of Sept 30, 2022, the company had $87.5 million in cash and cash equivalents. Net debt was $4,681.8 million.
Guidance
For 2022, EQT Corp revised its sales guidance downward to 1,925-1,975 Bcfe from the prior stated 1,950-2,050 Bcfe. For the fourth quarter, total sales volumes are expected to be 450-475 Bcfe.
The company expects total per-unit operating costs of $1.28-$1.40 per Mcfe for the year. Adjusted earnings before interest, taxes, depreciation and amortization are expected to be $3.45-$3.55 billion. Capital expenditure for the year is projected at $1.4-$1.475 billion.
EQT Corp’s free cash flow is projected to be $1.9-$2 billion.
Liberty Energy Inc. (LBRT - Free Report) announced third-quarter 2022 earnings per share of 78 cents, which handily beat the Zacks Consensus Estimate of 63 cents. The outperformance reflects the impact of strong execution, higher activity and increased service pricing, which more than offset rising costs.
As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million of cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers that are hugely burdened with debts.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2022 operating earnings of $3.83 per share, which improved 117.6% from the year-ago figure of $1.76 per share. The improvement resulted from an increase in commodity prices.
TotalEnergies is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years. Net debt to capital was 9.5% at the end of third-quarter 2022, down from 22.1% at the end of third-quarter 2021.
Shell plc (SHEL - Free Report) reported third-quarter earnings per ADS of $2.58, well above the year-earlier quarter’s adjusted profit of $1.06 per ADS, backed by stronger commodity prices.
As of Sep 30, 2022, Shell had $36 billion in cash and $82 billion in debt (including short-term debt). Net debt-to-capitalization was 20.3%, down from 25.6% a year ago.
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EQT Corp (EQT) Shares Gain Marginally Since Q3 Earnings Beat
EQT Corporation (EQT - Free Report) shares have gained 0.9% since it reported strong third-quarter 2022 earnings on Oct 26.
EQT Corp reported third-quarter adjusted earnings from continuing operations of $1.04 per share, beating the Zacks Consensus Estimate of 99 cents. The bottom line improved substantially from the year-ago quarter’s profit of 12 cents.
Adjusted operating revenues increased to $1,661.4 million from $1,155 million in the prior-year quarter. However, the top line missed the Zacks Consensus Estimate of $1,736 million.
The strong quarterly earnings were driven by the higher realization of commodity prices.
EQT Corporation Price, Consensus and EPS Surprise
EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation Quote
Q3 Operations
Production
Sales volumes declined to 487.7 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s figure of 495 Bcfe. Natural gas sales volume was 463.9 Bcf in the third quarter, marginally down from 464.6 Bcf. Total liquids sales volume was 3,969 thousand barrels (MBbls) versus the year-ago period’s 5,074 MBbls.
Commodity Price Realizations
The average realized price was $3.41 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago quarter’s $2.33 per Mcfe. Natural gas price was $8.62 per Mcf, up from $4.21. Oil prices were $63.20 per barrel, up from $46.79 in third-quarter 2021. Also, the ethane sales price was $15.68 per barrel in the third quarter, higher than the year-ago quarter’s $9.22.
Expenses
Total operating expenses were $1.42 per Mcfe in the third quarter of 2022, up from $1.25 in the prior-year quarter.
Processing expenses were 11 cents per Mcfe, higher than the year-ago quarter’s 10 cents. Lease operating expenses increased to 8 cents from 6 cents.
Cash Flows
EQT Corp’s adjusted operating cash flow was $939.7 million in the quarter, up from $396.1 million a year ago. Free cash flow in the quarter was $590.6 million, up from $99.1 million.
Capex & Balance Sheet
Total capital expenditure amounted to $355.6 million in the third quarter, up from $297.7 million a year ago.
As of Sept 30, 2022, the company had $87.5 million in cash and cash equivalents. Net debt was $4,681.8 million.
Guidance
For 2022, EQT Corp revised its sales guidance downward to 1,925-1,975 Bcfe from the prior stated 1,950-2,050 Bcfe. For the fourth quarter, total sales volumes are expected to be 450-475 Bcfe.
The company expects total per-unit operating costs of $1.28-$1.40 per Mcfe for the year. Adjusted earnings before interest, taxes, depreciation and amortization are expected to be $3.45-$3.55 billion. Capital expenditure for the year is projected at $1.4-$1.475 billion.
EQT Corp’s free cash flow is projected to be $1.9-$2 billion.
Zacks Rank & Other Stocks to Consider
EQT Corp currently carries a Zacks Rank #2 (Buy).
Investors interested in the energy sector might look at the following companies that also presently carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Liberty Energy Inc. (LBRT - Free Report) announced third-quarter 2022 earnings per share of 78 cents, which handily beat the Zacks Consensus Estimate of 63 cents. The outperformance reflects the impact of strong execution, higher activity and increased service pricing, which more than offset rising costs.
As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million of cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers that are hugely burdened with debts.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2022 operating earnings of $3.83 per share, which improved 117.6% from the year-ago figure of $1.76 per share. The improvement resulted from an increase in commodity prices.
TotalEnergies is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years. Net debt to capital was 9.5% at the end of third-quarter 2022, down from 22.1% at the end of third-quarter 2021.
Shell plc (SHEL - Free Report) reported third-quarter earnings per ADS of $2.58, well above the year-earlier quarter’s adjusted profit of $1.06 per ADS, backed by stronger commodity prices.
As of Sep 30, 2022, Shell had $36 billion in cash and $82 billion in debt (including short-term debt). Net debt-to-capitalization was 20.3%, down from 25.6% a year ago.