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EQT Corporation (EQT) Up 24.5% 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 24.5% in that time frame, outperforming 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 catalysts.
EQT Corporation Misses on Q4 Earnings Estimates
EQT Corporation 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 11.65% due to these changes.
VGM Scores
At this time, EQT Corporation has a great Growth Score of A, though it is lagging a lot on the Momentum Score front 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, EQT Corporation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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EQT Corporation (EQT) Up 24.5% 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 24.5% in that time frame, outperforming 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 catalysts.
EQT Corporation Misses on Q4 Earnings Estimates
EQT Corporation 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 11.65% due to these changes.
VGM Scores
At this time, EQT Corporation has a great Growth Score of A, though it is lagging a lot on the Momentum Score front 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, EQT Corporation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.