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EQT Q1 Earnings Top Estimates on Higher Sales Volumes
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EQTCorporation (EQT - Free Report) reported first-quarter 2024 adjusted earnings from continuing operations of 82 cents per share, which beat the Zacks Consensus Estimate of 65 cents. However, the bottom line decreased from the year-ago quarter’s reported figure of $1.70.
Adjusted operating revenues decreased to $1.72 billion from $1.89 billion in the prior-year quarter. The top line, however, beat the Zacks Consensus Estimate of $1.64 billion.
Better-than-expected quarterly results were driven by higher sales volumes and lower lease operating expenses.
Sales volumes increased to 534 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s level of 459 Bcfe. The reported figure also beat our estimate of 530.4 Bcfe.
Natural gas sales volume was 499.3 Bcf in the first quarter, up from 433.4 Bcf reported in the year-ago quarter. The figure was marginally lower than our estimate of 499.5 Bcf.
The total liquid sales volume was 5,796 thousand barrels (MBbls), up from the year-ago period’s level of 4,235 MBbls. The metric also exceeded our projection of 5,143 MBbls.
Commodity Price Realizations
The average realized price was $3.22 per thousand cubic feet of natural gas equivalent (Mcfe), down from the year-ago quarter’s figure of $4.11 per Mcfe.
The average natural gas price, including cash-settled derivatives, was $3.08 per Mcf, which decreased year over year from $4.10.
The natural gas sales price was $2.39 per Mcf in the fourth quarter, lower than the year-ago quarter’s reported number of $3.62.
Also, oil prices were $58.74 per barrel compared with the year-ago quarter’s figure of $58.37. Our estimate for the same was pinned at $58.62 per barrel.
Expenses
Total operating expenses were $1.23 billion in the first quarter of 2024, higher than $1.05 billion reported in the prior-year quarter. The reported figure came in lower than our estimate of $1.59 billion.
Transmission expenses totaled 32 cents per Mcfe, down from the year-ago quarter’s level of 34 cents. Lease operating expenses amounted to 10 cents, up from the prior-year quarter’s figure of 6 cents.
Cash Flows
EQT’s adjusted operating cash flow totaled $950.5 million in the quarter, down from $1,237.1 million reported a year ago. The free cash flow in the quarter totaled $401.6 million, down from $773.6 million in the year-ago period.
Capex & Balance Sheet
Total capital expenditure was $549 million in the first quarter, up from $464 million reported a year ago.
As of Mar 31, 2024, the company had cash and cash equivalents of $648 million, and net debt worth $4.86 billion.
Guidance
For 2024, total sales volumes are expected to be in the range of 2,100-2,200 Bcfe, indicating an increase from 2,016 Bcfe reported in 2023.
For the second quarter of 2024, EQT expects total sales volumes of 455-505 Bcfe, with liquids sales volumes (excluding ethane) of 3,250-3,550 Mbbl.
The company expects total per-unit operating costs in the band of $1.43-$1.55 per Mcfe for the second quarter. Capital expenditure for the second quarter is projected to be in the $545-$620 million range.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Western Midstream Partners has a profitable portfolio of midstream assets. The partnership expects adjusted EBITDA for 2024 to be in the range of $2.2-$2.4 billion, indicating a year-over-year increase of 11% at the midpoint.
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EQT Q1 Earnings Top Estimates on Higher Sales Volumes
EQT Corporation (EQT - Free Report) reported first-quarter 2024 adjusted earnings from continuing operations of 82 cents per share, which beat the Zacks Consensus Estimate of 65 cents. However, the bottom line decreased from the year-ago quarter’s reported figure of $1.70.
Adjusted operating revenues decreased to $1.72 billion from $1.89 billion in the prior-year quarter. The top line, however, beat the Zacks Consensus Estimate of $1.64 billion.
Better-than-expected quarterly results were driven by higher sales volumes and lower lease operating expenses.
EQT Corporation Price, Consensus and EPS Surprise
EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation Quote
Production
Sales volumes increased to 534 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s level of 459 Bcfe. The reported figure also beat our estimate of 530.4 Bcfe.
Natural gas sales volume was 499.3 Bcf in the first quarter, up from 433.4 Bcf reported in the year-ago quarter. The figure was marginally lower than our estimate of 499.5 Bcf.
The total liquid sales volume was 5,796 thousand barrels (MBbls), up from the year-ago period’s level of 4,235 MBbls. The metric also exceeded our projection of 5,143 MBbls.
Commodity Price Realizations
The average realized price was $3.22 per thousand cubic feet of natural gas equivalent (Mcfe), down from the year-ago quarter’s figure of $4.11 per Mcfe.
The average natural gas price, including cash-settled derivatives, was $3.08 per Mcf, which decreased year over year from $4.10.
The natural gas sales price was $2.39 per Mcf in the fourth quarter, lower than the year-ago quarter’s reported number of $3.62.
Also, oil prices were $58.74 per barrel compared with the year-ago quarter’s figure of $58.37. Our estimate for the same was pinned at $58.62 per barrel.
Expenses
Total operating expenses were $1.23 billion in the first quarter of 2024, higher than $1.05 billion reported in the prior-year quarter. The reported figure came in lower than our estimate of $1.59 billion.
Transmission expenses totaled 32 cents per Mcfe, down from the year-ago quarter’s level of 34 cents. Lease operating expenses amounted to 10 cents, up from the prior-year quarter’s figure of 6 cents.
Cash Flows
EQT’s adjusted operating cash flow totaled $950.5 million in the quarter, down from $1,237.1 million reported a year ago. The free cash flow in the quarter totaled $401.6 million, down from $773.6 million in the year-ago period.
Capex & Balance Sheet
Total capital expenditure was $549 million in the first quarter, up from $464 million reported a year ago.
As of Mar 31, 2024, the company had cash and cash equivalents of $648 million, and net debt worth $4.86 billion.
Guidance
For 2024, total sales volumes are expected to be in the range of 2,100-2,200 Bcfe, indicating an increase from 2,016 Bcfe reported in 2023.
For the second quarter of 2024, EQT expects total sales volumes of 455-505 Bcfe, with liquids sales volumes (excluding ethane) of 3,250-3,550 Mbbl.
The company expects total per-unit operating costs in the band of $1.43-$1.55 per Mcfe for the second quarter. Capital expenditure for the second quarter is projected to be in the $545-$620 million range.
Zacks Rank and Key Picks
Currently, EQT holds a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , Sunoco LP (SUN - Free Report) and Western Midstream Partners LP (WES - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while Sunoco and Western Midstream carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin region and the South Texas region. For 2024, the company expects its production to increase from the prior- year reported figure, signaling a bright production outlook.
Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores as well as distributors. Its current distribution yield is greater than the composite stocks in the industry, providing unitholders with consistent returns.
Western Midstream Partners has a profitable portfolio of midstream assets. The partnership expects adjusted EBITDA for 2024 to be in the range of $2.2-$2.4 billion, indicating a year-over-year increase of 11% at the midpoint.