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EQT Corporation (EQT - Free Report) reported fourth-quarter 2023 adjusted earnings from continuing operations of 48 cents per share, in line with the Zacks Consensus Estimate. The bottom line increased from the year-ago quarter’s adjusted earnings of 42 cents.
Adjusted operating revenues increased to $1.55 billion from $1.32 billion in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $1.52 billion.
Strong quarterly results were driven by higher sales volumes.
Sales volumes increased to 564 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s 458.6 Bcfe. The reported figure also beat our estimate of 551.7 Bcfe.
Natural gas sales volume was 532.8 Bcf in the fourth quarter, up from 435.3 Bcf reported in the year-ago quarter. It was also above our estimate of 518.9 Bcfe.
The total liquid sales volume was 5,185 thousand barrels (MBbls) compared with the year-ago period’s 3,875 MBbls. The metric was below our projection of 5,480.8 MBbls.
Commodity Price Realizations
The average realized price was $2.75 per thousand cubic feet of natural gas equivalent (Mcfe), down from the year-ago quarter’s $2.87 per Mcfe.
The Average natural gas price, including cash-settled derivatives, was $2.58 per Mcf, which decreased year over year from $2.74.
The natural gas sales price was $3.04 per Mcf in the fourth quarter, lower than the year-ago quarter’s $6.63.
Also, oil prices were $59.98 per barrel, down from $67.82. The reported figure also lagged our estimate of $60.70 per barrel.
Expenses
Total operating expenses were $1.32 billion in the fourth quarter of 2023, higher than the $1.16 billion reported in the prior-year quarter. The reported figure also surpassed our estimate of $1.22 billion.
Transmission expenses were 30 cents per Mcfe, down from the year-ago quarter’s 33 cents. Lease operating expenses were 9 cents, up from the prior-year quarter’s 7 cents.
Cash Flows
EQT’s adjusted operating cash flow was $774.6 million in the quarter, up from $621.8 million a year ago. The free cash flow in the quarter was $236 million, up from $225.5 million.
Capex & Balance Sheet
Total capital expenditure amounted to $538.5 million in the fourth quarter, up from $398.1 million a year ago.
As of Dec 31, 2023, the company had $81 million in cash and cash equivalents. Net debt was $5.7 billion.
Guidance
For 2024, EQT expects total sales volumes of 2,200-2,300 Bcfe, indicating an increase from the 2,016 Bcfe reported in 2023.
For the first quarter of 2024, EQT expects total sales volumes of 525 -575 Bcfe, with liquids sales volumes (excluding ethane) of 3,650-3,950 Mbbl.
The company expects total per-unit operating costs of $1.29-$1.41 per Mcfe for the first quarter. Capital expenditure for the first quarter is projected to be $525-$600 million.
Zacks Rank & Stocks to Consider
EQT Corp currently carries a Zacks Rank #4 (Sell).
Equitrans Midstream (ETRN - Free Report) owns, operates, acquires and develops midstream assets primarily in the Appalachian Basin. It manages natural gas transmission, storage and gathering systems, as well as high and low-pressure gathering lines.
The Zacks Consensus Estimate for ETRN’s 2024 EPS is pegged at 90 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. ETRN’s 2024 earnings are expected to rise 34.3% year over year.
Energy Transfer (ET - Free Report) is a publicly traded limited partnership focused on diverse energy assets in the United States. Its core operations involve natural gas midstream services, transportation, storage, crude oil facilities and marketing assets.
The Zacks Consensus Estimate for ET’s 2024 EPS is pegged at $1.22. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. ET’s 2024 earnings are expected to rise 18% year over year.
Subsea 7 S.A. (SUBCY - Free Report) helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 91 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. SUBCY’s 2024 earnings are expected to soar 277% year over year.
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EQT Corp (EQT) Q4 Earnings Meet Estimates, Revenues Rise Y/Y
EQT Corporation (EQT - Free Report) reported fourth-quarter 2023 adjusted earnings from continuing operations of 48 cents per share, in line with the Zacks Consensus Estimate. The bottom line increased from the year-ago quarter’s adjusted earnings of 42 cents.
Adjusted operating revenues increased to $1.55 billion from $1.32 billion in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $1.52 billion.
Strong quarterly results were driven by higher sales volumes.
EQT Corporation Price, Consensus and EPS Surprise
EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation Quote
Production
Sales volumes increased to 564 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s 458.6 Bcfe. The reported figure also beat our estimate of 551.7 Bcfe.
Natural gas sales volume was 532.8 Bcf in the fourth quarter, up from 435.3 Bcf reported in the year-ago quarter. It was also above our estimate of 518.9 Bcfe.
The total liquid sales volume was 5,185 thousand barrels (MBbls) compared with the year-ago period’s 3,875 MBbls. The metric was below our projection of 5,480.8 MBbls.
Commodity Price Realizations
The average realized price was $2.75 per thousand cubic feet of natural gas equivalent (Mcfe), down from the year-ago quarter’s $2.87 per Mcfe.
The Average natural gas price, including cash-settled derivatives, was $2.58 per Mcf, which decreased year over year from $2.74.
The natural gas sales price was $3.04 per Mcf in the fourth quarter, lower than the year-ago quarter’s $6.63.
Also, oil prices were $59.98 per barrel, down from $67.82. The reported figure also lagged our estimate of $60.70 per barrel.
Expenses
Total operating expenses were $1.32 billion in the fourth quarter of 2023, higher than the $1.16 billion reported in the prior-year quarter. The reported figure also surpassed our estimate of $1.22 billion.
Transmission expenses were 30 cents per Mcfe, down from the year-ago quarter’s 33 cents. Lease operating expenses were 9 cents, up from the prior-year quarter’s 7 cents.
Cash Flows
EQT’s adjusted operating cash flow was $774.6 million in the quarter, up from $621.8 million a year ago. The free cash flow in the quarter was $236 million, up from $225.5 million.
Capex & Balance Sheet
Total capital expenditure amounted to $538.5 million in the fourth quarter, up from $398.1 million a year ago.
As of Dec 31, 2023, the company had $81 million in cash and cash equivalents. Net debt was $5.7 billion.
Guidance
For 2024, EQT expects total sales volumes of 2,200-2,300 Bcfe, indicating an increase from the 2,016 Bcfe reported in 2023.
For the first quarter of 2024, EQT expects total sales volumes of 525 -575 Bcfe, with liquids sales volumes (excluding ethane) of 3,650-3,950 Mbbl.
The company expects total per-unit operating costs of $1.29-$1.41 per Mcfe for the first quarter. Capital expenditure for the first quarter is projected to be $525-$600 million.
Zacks Rank & Stocks to Consider
EQT Corp currently carries a Zacks Rank #4 (Sell).
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.
Equitrans Midstream (ETRN - Free Report) owns, operates, acquires and develops midstream assets primarily in the Appalachian Basin. It manages natural gas transmission, storage and gathering systems, as well as high and low-pressure gathering lines.
The Zacks Consensus Estimate for ETRN’s 2024 EPS is pegged at 90 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. ETRN’s 2024 earnings are expected to rise 34.3% year over year.
Energy Transfer (ET - Free Report) is a publicly traded limited partnership focused on diverse energy assets in the United States. Its core operations involve natural gas midstream services, transportation, storage, crude oil facilities and marketing assets.
The Zacks Consensus Estimate for ET’s 2024 EPS is pegged at $1.22. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. ET’s 2024 earnings are expected to rise 18% year over year.
Subsea 7 S.A. (SUBCY - Free Report) helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 91 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. SUBCY’s 2024 earnings are expected to soar 277% year over year.