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EQT's Q3 Earnings Top Estimates on Gas Equivalent Production

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Shares of EQT Corporation (EQT - Free Report) gained about 1% since it released better-than-expected third-quarter 2024 earnings on Oct. 29.

Before delving into the recently reported quarterly results, let’s examine the business of the large natural gas exploration and production company.

Upstream Business of EQT

EQT Corporation is among the leading upstream energy players producing natural gas, with a solid footprint in the prolific Appalachian Basin. In the United States, it ranks as one of the largest natural gas producers in terms of average daily sales volumes. In the third quarter, the company’s total sales volumes were recorded at 581.4 billion cubic feet equivalent, the majority of which is natural gas.

EQT’s Q3 Results

The natural gas producer, carrying a Zacks Rank #3 (Hold), reported earnings from continuing operations of 12 cents per share, which beat the Zacks Consensus Estimate of 5 cents. The bottom line was, however, lower than the year-ago quarter’s profit of 30 cents. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Adjusted operating revenues increased to $1.38 billion from $1.19 billion in the prior-year quarter. The top line, however, missed the Zacks Consensus Estimate of $1.43 billion.

The better-than-expected quarterly earnings were driven by higher gas equivalent sales volume, offset partially by lower oil price realizations.

EQT’s Operational Performance

Production

Sales volume increased to 581.4 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s level of 522.7 Bcfe. The reported figure also beat our estimate of 552.7 Bcfe.

Natural gas sales volume was 547.2 Bcf, up from 491.5 Bcf in the year-ago quarter. The figure also beat our estimate of 521.6 Bcf.

The total liquid sales volume was 5,699 thousand barrels (MBbls), up from the year-ago period’s level of 5,205 MBbls.

Commodity Price Realizations

The average realized price was $2.38 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago quarter’s level of $2.28 per Mcfe.

The average natural gas price, including cash-settled derivatives, was $2.23 per Mcf, which increased year over year from $2.14.

The natural gas sales price was $2.27 per Mcf, lower than the year-ago quarter’s reported number of $2.68. Oil price was $61.25 per barrel compared with the year-ago quarter’s figure of $66.75.

Performance of Other Energy Players

ConocoPhillips (COP - Free Report) , Antero Resources Corporation (AR - Free Report) and Matador Resources Company (MTDR - Free Report) are three energy companies that have also reported third-quarter earnings. While ConocoPhillips and Matador Resources beat the Zacks Consensus Estimate, Antero Resources missed the mark.


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