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Why Is EQT Corporation (EQT) Down 5.8% 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 5.8% 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 the most recent earnings report in order to get a better handle on the important catalysts.
EQT 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.
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.
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 -9.88% due to these changes.
VGM Scores
At this time, EQT Corporation has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, 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 B. 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.
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Why Is EQT Corporation (EQT) Down 5.8% Since Last Earnings Report?
A month has gone by since the last earnings report for EQT Corporation (EQT - Free Report) . Shares have lost about 5.8% 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 the most recent earnings report in order to get a better handle on the important catalysts.
EQT Corporation Q3 Earnings & Revenues Beat Estimates
EQT 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.
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.
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 -9.88% due to these changes.
VGM Scores
At this time, EQT Corporation has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, 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 B. 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.