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EQT Corporation (EQT) Up 3.2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for EQT Corporation (EQT - Free Report) . Shares have added about 3.2% in that time frame, underperforming 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 its most recent earnings report in order to get a better handle on the important drivers.
EQT Q4 Earnings Meet Estimates, Revenues Rise Y/Y
EQT 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.
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.
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 -7.72% due to these changes.
VGM Scores
At this time, EQT Corporation has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. 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 C. 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. It's no surprise EQT Corporation has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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EQT Corporation (EQT) Up 3.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for EQT Corporation (EQT - Free Report) . Shares have added about 3.2% in that time frame, underperforming 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 its most recent earnings report in order to get a better handle on the important drivers.
EQT Q4 Earnings Meet Estimates, Revenues Rise Y/Y
EQT 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.
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.
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 -7.72% due to these changes.
VGM Scores
At this time, EQT Corporation has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. 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 C. 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. It's no surprise EQT Corporation has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.