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EQT Corporation (EQT) Q4 Earnings & Revenues Miss Estimates
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EQT Corporation (EQT - Free Report) reported fourth-quarter 2021 adjusted earnings from continuing operations of 41 cents per share, missing the Zacks Consensus Estimate of earnings of 51 cents. The bottom line improved from the year-ago quarter’s loss of 2 cents.
Adjusted operating revenues increased to $1,410 million from $1,253 million in the prior-year quarter. The top line missed the Zacks Consensus Estimate of $1,446 million.
The lower-than-expected results stemmed from higher processing and lease operating expenses. The negatives were partially offset by increased production volumes and higher realizations of commodity prices.
Sales volumes increased to 527 billion cubic feet equivalent (Bcfe) per day from the year-ago quarter’s figure of 401 Bcfe. Natural gas sales volume was 497.2 Bcf in the fourth quarter, up from 375.7 Bcf a year ago. Total liquids sales volume in the quarter was recorded at 4,973 thousand barrels (MBbls) versus the year-ago period’s 4,214 MBbls.
Commodity Price Realizations
The average realized price was $2.68 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago quarter’s level of $2.30 per Mcfe. Natural gas price was recorded at $6.1 per Mcf, up from the year-ago quarter’s level of $2.82. Oil prices were recorded at $68.5 per barrel, up from $31.61 in fourth-quarter 2020. Also, the ethane sales price was recorded at $11.93 per barrel for the fourth quarter, higher than the year-ago quarter’s level of $3.70.
Expenses
Total operating expenses were $1.26 per Mcfe for the fourth quarter of 2021, down from $1.30 in the prior-year quarter.
Processing expenses were 10 cents per Mcfe, up from the year-ago quarter’s 9 cents. Lease operating expenses increased to 8 cents from the year-ago quarter’s level of 7 cents. However, gathering expenses were down to 65 cents per Mcfe from 70 cents a year ago. Further, transmission costs declined to 27 cents per Mcfe from the year-ago quarter’s level of 30 cents.
Cash Flows
EQT Corporation’s adjusted operating cash flow was $741 million in the quarter, up from $370.5 million a year ago. Free cash flow for the quarter was $422.2 million, up from the year-ago quarter’s free cash outflow of $109.4 million.
Capex & Balance Sheet
Total capital expenditures amounted to $322.7 million in the fourth quarter, up from $266 million a year ago.
As of Dec 31, 2021, the company had $114 million in cash and cash equivalents, up sequentially from $22.8 million. Total debt was reported at $5,485 million, down from $6,189.6 million at the third-quarter end.
Reserves
At 2021-end, EQT Corporation had total proved reserves of 25 trillion cubic feet equivalent (Tcfe), up 26% from the 2020 levels of 19.8 Tcfe. Through 2021, the company produced 1,857,817 million cubic feet equivalent of natural gas. Of the total volumes, natural gas comprises almost 94%.
Guidance
For 2022, the largest natural gas producer of the United States expects total sales volumes of 1,950-2,050 Bcfe. For first-quarter 2022, total sales volumes are expected to be 475-525 Bcfe.
The company expects total per-unit operating costs of $1.25-$1.37 per Mcfe for the year. Adjusted earnings before interest, taxes, depreciation and amortization are expected to be $3.1-$3.3 billion. Capital expenditures for the year are anticipated to be $1.3-$1.45 billion.
EQT Corporation’s free cash flow is projected to be $1.4-$1.75 billion. The company expects to achieve net-zero emissions from Scope 1 and 2 within 2025.
Valero Energy Corporation (VLO - Free Report) is the largest independent refiner and marketer of petroleum products in the United States. VLO reported fourth-quarter 2021 adjusted earnings of $2.47 per share, improving from a loss of $1.06 in the year-ago quarter.
Valero is expected to see an earnings growth of 150.2% in 2022. Among all the independent refiners, Valero offers the most diversified refinery base with a capacity of 3.1 million barrels per day in its 15 refineries located throughout the United States, Canada and the Caribbean. VLO’s Refining segment was responsible for 81.7% of the total margin in 2021.
Houston, TX-based Occidental Petroleum (OXY - Free Report) is an integrated oil and gas company, with significant exploration and production exposure. As of 2020-end, Occidental’s preliminary worldwide proved reserves totaled 2.91 billion Boe compared with 3.9 billion Boe at 2019-end.
Occidental Petroleum’s earnings for 2022 are expected to surge 80.3% year over year. OXY also witnessed four upward revisions in the past 30 days. It currently holds a Zacks Style Score of A for Momentum and B for Growth. OXY beat the Zacks Consensus Estimate thrice in the last four quarters and missed once, with an earnings surprise of 13.7%, on average.
SM Energy (SM - Free Report) is one of the most attractive players in the exploration and production space. It engages in the exploration, exploitation, development, acquisition and production of natural gas and crude oil in North America. SM’s operations are focused in the Permian basin and the South Texas & Gulf Coast region. It has total of 443,188 net acres under its possession, of which 33.5% is developed.
SM Energy’s earnings for 2022 are expected to surge 334.4% year over year. SM currently sports a Zacks Style Score of A for Growth and B for Value. The upstream energy player beat the Zacks Consensus Estimate thrice in the last four quarters and missed once, with an earnings surprise of 126.3%, on average.
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EQT Corporation (EQT) Q4 Earnings & Revenues Miss Estimates
EQT Corporation (EQT - Free Report) reported fourth-quarter 2021 adjusted earnings from continuing operations of 41 cents per share, missing the Zacks Consensus Estimate of earnings of 51 cents. The bottom line improved from the year-ago quarter’s loss of 2 cents.
Adjusted operating revenues increased to $1,410 million from $1,253 million in the prior-year quarter. The top line missed the Zacks Consensus Estimate of $1,446 million.
The lower-than-expected results stemmed from higher processing and lease operating expenses. The negatives were partially offset by increased production volumes and higher realizations of commodity prices.
EQT Corporation Price, Consensus and EPS Surprise
EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation Quote
Q4 Operations
Production
Sales volumes increased to 527 billion cubic feet equivalent (Bcfe) per day from the year-ago quarter’s figure of 401 Bcfe. Natural gas sales volume was 497.2 Bcf in the fourth quarter, up from 375.7 Bcf a year ago. Total liquids sales volume in the quarter was recorded at 4,973 thousand barrels (MBbls) versus the year-ago period’s 4,214 MBbls.
Commodity Price Realizations
The average realized price was $2.68 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago quarter’s level of $2.30 per Mcfe. Natural gas price was recorded at $6.1 per Mcf, up from the year-ago quarter’s level of $2.82. Oil prices were recorded at $68.5 per barrel, up from $31.61 in fourth-quarter 2020. Also, the ethane sales price was recorded at $11.93 per barrel for the fourth quarter, higher than the year-ago quarter’s level of $3.70.
Expenses
Total operating expenses were $1.26 per Mcfe for the fourth quarter of 2021, down from $1.30 in the prior-year quarter.
Processing expenses were 10 cents per Mcfe, up from the year-ago quarter’s 9 cents. Lease operating expenses increased to 8 cents from the year-ago quarter’s level of 7 cents. However, gathering expenses were down to 65 cents per Mcfe from 70 cents a year ago. Further, transmission costs declined to 27 cents per Mcfe from the year-ago quarter’s level of 30 cents.
Cash Flows
EQT Corporation’s adjusted operating cash flow was $741 million in the quarter, up from $370.5 million a year ago. Free cash flow for the quarter was $422.2 million, up from the year-ago quarter’s free cash outflow of $109.4 million.
Capex & Balance Sheet
Total capital expenditures amounted to $322.7 million in the fourth quarter, up from $266 million a year ago.
As of Dec 31, 2021, the company had $114 million in cash and cash equivalents, up sequentially from $22.8 million. Total debt was reported at $5,485 million, down from $6,189.6 million at the third-quarter end.
Reserves
At 2021-end, EQT Corporation had total proved reserves of 25 trillion cubic feet equivalent (Tcfe), up 26% from the 2020 levels of 19.8 Tcfe. Through 2021, the company produced 1,857,817 million cubic feet equivalent of natural gas. Of the total volumes, natural gas comprises almost 94%.
Guidance
For 2022, the largest natural gas producer of the United States expects total sales volumes of 1,950-2,050 Bcfe. For first-quarter 2022, total sales volumes are expected to be 475-525 Bcfe.
The company expects total per-unit operating costs of $1.25-$1.37 per Mcfe for the year. Adjusted earnings before interest, taxes, depreciation and amortization are expected to be $3.1-$3.3 billion. Capital expenditures for the year are anticipated to be $1.3-$1.45 billion.
EQT Corporation’s free cash flow is projected to be $1.4-$1.75 billion. The company expects to achieve net-zero emissions from Scope 1 and 2 within 2025.
Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following stocks that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Valero Energy Corporation (VLO - Free Report) is the largest independent refiner and marketer of petroleum products in the United States. VLO reported fourth-quarter 2021 adjusted earnings of $2.47 per share, improving from a loss of $1.06 in the year-ago quarter.
Valero is expected to see an earnings growth of 150.2% in 2022. Among all the independent refiners, Valero offers the most diversified refinery base with a capacity of 3.1 million barrels per day in its 15 refineries located throughout the United States, Canada and the Caribbean. VLO’s Refining segment was responsible for 81.7% of the total margin in 2021.
Houston, TX-based Occidental Petroleum (OXY - Free Report) is an integrated oil and gas company, with significant exploration and production exposure. As of 2020-end, Occidental’s preliminary worldwide proved reserves totaled 2.91 billion Boe compared with 3.9 billion Boe at 2019-end.
Occidental Petroleum’s earnings for 2022 are expected to surge 80.3% year over year. OXY also witnessed four upward revisions in the past 30 days. It currently holds a Zacks Style Score of A for Momentum and B for Growth. OXY beat the Zacks Consensus Estimate thrice in the last four quarters and missed once, with an earnings surprise of 13.7%, on average.
SM Energy (SM - Free Report) is one of the most attractive players in the exploration and production space. It engages in the exploration, exploitation, development, acquisition and production of natural gas and crude oil in North America. SM’s operations are focused in the Permian basin and the South Texas & Gulf Coast region. It has total of 443,188 net acres under its possession, of which 33.5% is developed.
SM Energy’s earnings for 2022 are expected to surge 334.4% year over year. SM currently sports a Zacks Style Score of A for Growth and B for Value. The upstream energy player beat the Zacks Consensus Estimate thrice in the last four quarters and missed once, with an earnings surprise of 126.3%, on average.