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EQT Corp (EQT) Misses on Q4 Earnings, Hikes 2023 Sales Outlook
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EQT Corporation (EQT - Free Report) reported fourth-quarter adjusted earnings from continuing operations of 42 cents per share, missing the Zacks Consensus Estimate by a penny. However, the bottom line improved from the year-ago quarter’s 37 cents.
Adjusted operating revenues declined to $1,317.2 million from $1,410.2 million in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $1,403 million.
Lower-than-expected quarterly earnings were driven by lower natural gas and liquids sales volumes. The negatives were partially offset by higher average natural gas-equivalent realized price.
Sales volumes declined to 458.6 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s figure of 527 Bcfe. Natural gas sales volume was 435.3 Bcf in the fourth quarter, down from 497 Bcf. Total liquids sales volume was 3,875 thousand barrels (MBbls) versus the year-ago period’s 4,973 MBbls.
Commodity Price Realizations
The average realized price was $2.87 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago quarter’s $2.68 per Mcfe. Natural gas price was $6.63 per Mcf, growing year-over-year from $6.10. The ethane sales price was $13.32 per barrel in the fourth quarter, higher than the year-ago quarter’s $11.93. However, oil prices were $67.82 per barrel, down from $68.50 in fourth-quarter 2021.
Expenses
Total operating expenses were $1.39 per Mcfe in the fourth quarter of 2022, up from $1.26 in the prior-year quarter.
Processing expenses were 10 cents per Mcfe, flat with the year-ago quarter. Lease operating expenses declined to 7 cents from 8 cents.
Cash Flows
EQT Corp’s adjusted operating cash flow was $621.8 million in the quarter, down from $741 million a year ago. Free cash flow in the quarter was $225.5 million, down from $422.2 million.
Capex & Balance Sheet
Total capital expenditure amounted to $398.1 million in the fourth quarter, up from $322.7 million a year ago.
As of Dec 31, 2022, the company had $1,458.6 million in cash and cash equivalents. Net debt was $4,220.3 million.
Guidance
For 2023, EQT Corp expects total sales volumes of 1,900-2,000 Bcfe, the midpoint of which suggests an increase from $1,940 Bcfe reported in 2022. For the first quarter, total sales volumes are anticipated to be 425-475 Bcfe.
The company expects total per-unit operating costs of $1.31-$1.43 per Mcfe in 2023. Capital expenditure for the year is projected at $1.7-$1.9 billion, suggesting an increase from $1.4 billion reported in 2022.
Zacks Rank & Stocks to Consider
EQT Corp currently carries a Zacks Rank #5 (Strong Sell).
RPC’s adjusted earnings of 41 cents per share in the fourth quarter beat the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Murphy USA’s fourth-quarter 2022 earnings per share of $5.21 missed the Zacks Consensus Estimate of $6.16. The underperformance could be attributed to lower-than-expected petroleum product sales.
Murphy USA projects a 2023 fuel volume of 240-245 thousand gallons on an APSM basis. Further, Murphy USA’s 2023 guidance includes up to 45 new stores, up to 30 raze-and-rebuilds, and $795-$815 million in merchandise margin contribution.
Marathon Petroleum’sadjusted earnings per share of $6.65 comfortably beat the Zacks Consensus Estimate of $5.54. The bottom line was favorably impacted by the stronger-than-expected performance of its key Refining & Marketing segment.
In the fourth quarter, MPC repurchased $1.8 billion of shares and further $700 million worth of shares from the start of this year till Jan 27. Marathon Petroleum, which gave an additional $5-billion share repurchase approval, currently has a remaining authorization of $7.6 billion.
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EQT Corp (EQT) Misses on Q4 Earnings, Hikes 2023 Sales Outlook
EQT Corporation (EQT - Free Report) reported fourth-quarter adjusted earnings from continuing operations of 42 cents per share, missing the Zacks Consensus Estimate by a penny. However, the bottom line improved from the year-ago quarter’s 37 cents.
Adjusted operating revenues declined to $1,317.2 million from $1,410.2 million in the prior-year quarter. The top line also missed the Zacks Consensus Estimate of $1,403 million.
Lower-than-expected quarterly earnings were driven by lower natural gas and liquids sales volumes. The negatives were partially offset by higher average natural gas-equivalent realized price.
EQT Corporation Price, Consensus and EPS Surprise
EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation Quote
Q4 Operations
Production
Sales volumes declined to 458.6 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s figure of 527 Bcfe. Natural gas sales volume was 435.3 Bcf in the fourth quarter, down from 497 Bcf. Total liquids sales volume was 3,875 thousand barrels (MBbls) versus the year-ago period’s 4,973 MBbls.
Commodity Price Realizations
The average realized price was $2.87 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago quarter’s $2.68 per Mcfe. Natural gas price was $6.63 per Mcf, growing year-over-year from $6.10. The ethane sales price was $13.32 per barrel in the fourth quarter, higher than the year-ago quarter’s $11.93. However, oil prices were $67.82 per barrel, down from $68.50 in fourth-quarter 2021.
Expenses
Total operating expenses were $1.39 per Mcfe in the fourth quarter of 2022, up from $1.26 in the prior-year quarter.
Processing expenses were 10 cents per Mcfe, flat with the year-ago quarter. Lease operating expenses declined to 7 cents from 8 cents.
Cash Flows
EQT Corp’s adjusted operating cash flow was $621.8 million in the quarter, down from $741 million a year ago. Free cash flow in the quarter was $225.5 million, down from $422.2 million.
Capex & Balance Sheet
Total capital expenditure amounted to $398.1 million in the fourth quarter, up from $322.7 million a year ago.
As of Dec 31, 2022, the company had $1,458.6 million in cash and cash equivalents. Net debt was $4,220.3 million.
Guidance
For 2023, EQT Corp expects total sales volumes of 1,900-2,000 Bcfe, the midpoint of which suggests an increase from $1,940 Bcfe reported in 2022. For the first quarter, total sales volumes are anticipated to be 425-475 Bcfe.
The company expects total per-unit operating costs of $1.31-$1.43 per Mcfe in 2023. Capital expenditure for the year is projected at $1.7-$1.9 billion, suggesting an increase from $1.4 billion reported in 2022.
Zacks Rank & Stocks to Consider
EQT Corp currently carries a Zacks Rank #5 (Strong Sell).
Investors interested in the energy sector might look at stocks like RPC Inc. (RES - Free Report) and Murphy USA Inc. (MUSA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Marathon Petroleum Corporation (MPC - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
RPC’s adjusted earnings of 41 cents per share in the fourth quarter beat the Zacks Consensus Estimate of 30 cents. The strong quarterly results were backed by higher activity levels in all the service lines and rising equipment utilization.
As of Dec 31, RPC had cash and cash equivalents of $126.4 million, up sequentially from $73.2 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Murphy USA’s fourth-quarter 2022 earnings per share of $5.21 missed the Zacks Consensus Estimate of $6.16. The underperformance could be attributed to lower-than-expected petroleum product sales.
Murphy USA projects a 2023 fuel volume of 240-245 thousand gallons on an APSM basis. Further, Murphy USA’s 2023 guidance includes up to 45 new stores, up to 30 raze-and-rebuilds, and $795-$815 million in merchandise margin contribution.
Marathon Petroleum’sadjusted earnings per share of $6.65 comfortably beat the Zacks Consensus Estimate of $5.54. The bottom line was favorably impacted by the stronger-than-expected performance of its key Refining & Marketing segment.
In the fourth quarter, MPC repurchased $1.8 billion of shares and further $700 million worth of shares from the start of this year till Jan 27. Marathon Petroleum, which gave an additional $5-billion share repurchase approval, currently has a remaining authorization of $7.6 billion.