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EQT Corp (EQT) Q3 Earnings Top Estimates, Revenues Decline Y/Y
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EQT Corporation (EQT - Free Report) reported third-quarter 2023 adjusted earnings from continuing operations of 30 cents per share, beating the Zacks Consensus Estimate of a loss of 12 cents. However, the bottom line declined from the year-ago quarter’s adjusted earnings of $1.04.
Adjusted operating revenues declined to $1,192.5 million from $1,661.3 million in the prior-year quarter. However, the top line beat the Zacks Consensus Estimate of $1,141 million.
Better-than-expected quarterly results were driven by higher sales volumes. Declining realizations of commodity prices and higher operating costs partially offset the positives.
Sales volumes increased to 522.7 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s 487.7 Bcfe. The reported figure also beat our estimate of 487.9 Bcfe. Natural gas sales volume was 491.5 Bcf in the third quarter, up from 463.9 Bcf. It was also above our estimate of 466.8 Bcfe. Total liquids sales volume was 5,205 thousand barrels (MBbls) compared with the year-ago period’s 3,969 MBbls and significantly higher than our estimate of 3,521.5 MBbls.
Commodity Price Realizations
The average realized price was $2.28 per thousand cubic feet of natural gas equivalent (Mcfe), down from the year-ago quarter’s $3.41 per Mcfe. The Average natural gas price, including cash-settled derivatives, was $2.14 per Mcf, which decreased year over year from $3.28.
The natural gas sales price was $2.68 per Mcf in the third quarter, lower than the year-ago quarter’s $8.62. It lagged our estimate of $2.78 per Mcf. Also, oil prices were $66.75 per barrel, up from $63.20. The reported figure also beat our estimate of $59.95 per barrel.
Expenses
Total operating expenses were $1,170.3 million in the third quarter of 2023, higher than the $1,144.9 million reported in the prior-year quarter. The reported figure surpassed our estimate of $988.9 million.
Transmission expenses were 32 cents per Mcfe, up from the year-ago quarter’s 31 cents. Lease operating expenses were 8 cents, unchanged from the prior-year quarter.
Cash Flows
EQT’s adjusted operating cash flow was $442.8 million in the quarter, down from $939.7 million a year ago. The free cash flow in the quarter was negative $1.8 million, significantly down from $590.6 million.
Capex & Balance Sheet
Total capital expenditure amounted to $444.6 million in the third quarter, up from $355.6 million a year ago.
As of Sept 30, 2023, the company had $64.8 million in cash and cash equivalents. Net debt was $5,851.1 million.
Guidance
For the fourth quarter, EQT expects total sales volumes of 525 -575 Bcfe, with liquids sales volumes (excluding ethane) of 4,000-4,300 Mbbl.
The company expects total per-unit operating costs of $1.25-$1.37 per Mcfe for the fourth quarter. Capital expenditure for the fourth quarter is projected to be $525-$575 million.
Zacks Rank & Stocks to Consider
EQT Corp currently carries a Zacks Rank #3 (Hold).
Liberty Energy Inc. (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver-CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
Matador Resources Company (MTDR - Free Report) reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, Matador expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the prior mentioned 143,000 BOE/D.
APA Corp. (APA - Free Report) released supplemental information regarding its financial and operational results for the third quarter of 2023. The company anticipates its quarterly total adjusted production and adjusted oil production to be in the upper half of its guided range. This can be mainly attributed to strong Permian oil and U.K. North Sea volumes.
The company expects its adjusted production and adjusted oil production figures to be in the upper half of its guided range. It anticipates an adjusted production of 337-339 Mboe/d and an adjusted oil production of 159-161 Mboe/d. APA is scheduled to release third-quarter results on Nov 1.
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EQT Corp (EQT) Q3 Earnings Top Estimates, Revenues Decline Y/Y
EQT Corporation (EQT - Free Report) reported third-quarter 2023 adjusted earnings from continuing operations of 30 cents per share, beating the Zacks Consensus Estimate of a loss of 12 cents. However, the bottom line declined from the year-ago quarter’s adjusted earnings of $1.04.
Adjusted operating revenues declined to $1,192.5 million from $1,661.3 million in the prior-year quarter. However, the top line beat the Zacks Consensus Estimate of $1,141 million.
Better-than-expected quarterly results were driven by higher sales volumes. Declining realizations of commodity prices and higher operating costs partially offset the positives.
EQT Corporation Price, Consensus and EPS Surprise
EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation Quote
Production
Sales volumes increased to 522.7 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s 487.7 Bcfe. The reported figure also beat our estimate of 487.9 Bcfe. Natural gas sales volume was 491.5 Bcf in the third quarter, up from 463.9 Bcf. It was also above our estimate of 466.8 Bcfe. Total liquids sales volume was 5,205 thousand barrels (MBbls) compared with the year-ago period’s 3,969 MBbls and significantly higher than our estimate of 3,521.5 MBbls.
Commodity Price Realizations
The average realized price was $2.28 per thousand cubic feet of natural gas equivalent (Mcfe), down from the year-ago quarter’s $3.41 per Mcfe. The Average natural gas price, including cash-settled derivatives, was $2.14 per Mcf, which decreased year over year from $3.28.
The natural gas sales price was $2.68 per Mcf in the third quarter, lower than the year-ago quarter’s $8.62. It lagged our estimate of $2.78 per Mcf. Also, oil prices were $66.75 per barrel, up from $63.20. The reported figure also beat our estimate of $59.95 per barrel.
Expenses
Total operating expenses were $1,170.3 million in the third quarter of 2023, higher than the $1,144.9 million reported in the prior-year quarter. The reported figure surpassed our estimate of $988.9 million.
Transmission expenses were 32 cents per Mcfe, up from the year-ago quarter’s 31 cents. Lease operating expenses were 8 cents, unchanged from the prior-year quarter.
Cash Flows
EQT’s adjusted operating cash flow was $442.8 million in the quarter, down from $939.7 million a year ago. The free cash flow in the quarter was negative $1.8 million, significantly down from $590.6 million.
Capex & Balance Sheet
Total capital expenditure amounted to $444.6 million in the third quarter, up from $355.6 million a year ago.
As of Sept 30, 2023, the company had $64.8 million in cash and cash equivalents. Net debt was $5,851.1 million.
Guidance
For the fourth quarter, EQT expects total sales volumes of 525 -575 Bcfe, with liquids sales volumes (excluding ethane) of 4,000-4,300 Mbbl.
The company expects total per-unit operating costs of $1.25-$1.37 per Mcfe for the fourth quarter. Capital expenditure for the fourth quarter is projected to be $525-$575 million.
Zacks Rank & Stocks to Consider
EQT Corp currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked companies mentioned below. The three companies presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Liberty Energy Inc. (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 74 cents. The Denver-CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of 7 cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. The dividend increased 40% from the previous quarter’s level.
Matador Resources Company (MTDR - Free Report) reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of $1.59. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, Matador expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the prior mentioned 143,000 BOE/D.
APA Corp. (APA - Free Report) released supplemental information regarding its financial and operational results for the third quarter of 2023. The company anticipates its quarterly total adjusted production and adjusted oil production to be in the upper half of its guided range. This can be mainly attributed to strong Permian oil and U.K. North Sea volumes.
The company expects its adjusted production and adjusted oil production figures to be in the upper half of its guided range. It anticipates an adjusted production of 337-339 Mboe/d and an adjusted oil production of 159-161 Mboe/d. APA is scheduled to release third-quarter results on Nov 1.