It has been about a month since the last earnings report for EQT Corporation (EQT Quick QuoteEQT - Free Report) . Shares have added about 8.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is EQT Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

EQT Corporation Beats on Q1 Earnings & Revenue Estimates

EQT Corporation reported first-quarter adjusted earnings from continuing operations of $1.70 per share, beating the Zacks Consensus Estimate of $1.32. The bottom line also improved from the year-ago quarter’s 81 cents.

Adjusted operating revenues increased to $1,888 million from $1,569 million in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $1,784 million.

Q1 Operations

Production

Sales volumes declined to 458.8 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s 492.3 Bcfe. Natural gas sales volume was 433.4 Bcf in the first quarter, down from 466.1 Bcf. Total liquids sales volume was 4,235 thousand barrels (MBbls) compared with the year-ago period’s 4,357 MBbls.

Commodity Price Realizations

The average realized price was $4.11 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago quarter’s $3.19 per Mcfe. Average natural gas price, including cash-settled derivatives, was $4.10 per Mcf, which increased year-over-year from $2.97.  The ethane sales price was $7.04 per barrel in the first quarter, lower than the year-ago quarter’s $10.54. Also, oil prices were $58.37 per barrel, down from $85.55.

Expenses

Total operating expenses were $1.34 per Mcfe in the first quarter of 2023, up from $1.33 in the prior-year quarter.

Processing expenses were 12 cents per Mcfe, up from the year-ago quarter of 10 cents. Lease operating expenses declined to 6 cents from 8 cents.

Cash Flows

EQT’s adjusted operating cash flow was $1,237.1 million in the quarter, up from $888.5 million a year ago. Free cash flow in the quarter was $773.6 million, up from $580.2 million.

Capex & Balance Sheet

Total capital expenditure amounted to $468.9 million in the first quarter, up from $310.1 million a year ago.

As of Mar 31, 2023, the company had $2,127.3 million in cash and cash equivalents. Net debt was $3,344.5 million.

Guidance

For 2023, EQT 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 second quarter, total sales volumes are anticipated to be 450-500 Bcfe.

The company expects total per-unit operating costs of $1.29-$1.41 per Mcfe in 2023. Capital expenditure for the year is projected at $1.7-$1.9 billion.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -10.12% due to these changes.

VGM Scores

Currently, EQT Corporation has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% 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.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, EQT Corporation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.