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EQT Q2 Earnings Beat Estimates on Strong Sales, Lower Expenses
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EQTCorporation (EQT - Free Report) reported a second-quarter 2024 adjusted loss from continuing operations of 8 cents per share, which beat the Zacks Consensus Estimate of a loss of 20 cents. The bottom line was narrower than the year-ago quarter’s reported loss of 17 cents.
Adjusted operating revenues increased to $1.18 billion from $993 million in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $1.14 billion.
The strong quarterly results were driven by higher sales volume and lower total operating expenses.
Sales volume increased to 508 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s level of 471 Bcfe. The reported figure also beat our estimate of 499.2 Bcfe.
Natural gas sales volume was 474.1 Bcf, up from 449.7 Bcf in the year-ago quarter. The figure also beat our estimate of 470.9 Bcf.
The total liquid sales volume was 5,573 thousand barrels (MBbls), up from the year-ago period’s level of 3,530 MBbls. The figure also exceeded our projection of 4,703.6 MBbls.
Commodity Price Realizations
The average realized price was $2.33 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago quarter’s level of $2.11 per Mcfe.
The average natural gas price, including cash-settled derivatives, was $2.16 per Mcf, which increased year over year from $2.03.
The natural gas sales price was $2.02 per Mcf, lower than the year-ago quarter’s reported number of $2.20.
However, oil price was $61.96 per barrel compared with the year-ago quarter’s figure of $49.71, and our estimate for the same was pinned at $60.69.
Expenses
Total operating expenses were $949.5 million in the second quarter, lower than $1.05 billion reported in the prior-year quarter. The reported figure also came in lower than our estimate of $1.51 billion.
However, transmission expenses totaled 35 cents per Mcfe, up from the year-ago quarter’s level of 33 cents. Lease operating expenses amounted to 12 cents, up from the prior-year quarter’s figure of 8 cents.
Cash Flows
EQT’s adjusted operating cash flow totaled $405.04 million in the quarter, up from $340.79 million reported a year ago. The negative free cash flow in the quarter totaled $171.1 million, up from $129.3 million in the year-ago period.
Capex & Balance Sheet
Total capital expenditure was $576 million, up from $470 million reported a year ago.
As of Jun 30, 2024, the company had cash and cash equivalents of $29.9 million, and net debt worth $4.92 billion.
Guidance
For 2024, total sales volume is expected to be in the range of 2,100-2,200 Bcfe, indicating an increase from 2,016 Bcfe reported in 2023.
For the third quarter of 2024, EQT anticipates total sales volume and liquids sales volume (excluding ethane) to be in the band of 510-560 Bcfe and 3,600-3,900 Mbbl, respectively. In the fourth quarter, total sales volume is expected to be in the 515-565 Bcfe range, with liquids sales volume of 4,000-4,300 Mbbl.
The company forecasts per-unit operating costs of $1.12-$1.26 per Mcfe for the third quarter and $1.11-$1.25 per Mcfe for the fourth. Capital expenditures are projected to be in the band of $620-$720 million and $580-$680 million for the third and fourth quarter, respectively.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past seven days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.30. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.
Hess is a leading oil and natural gas exploration and production company that made several world-class oil discoveries in the Stabroek Block, located off the coast of Guyana. The company is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. The merger will likely result in the creation of an energy behemoth with a massive portfolio of producing assets.
The Zacks Consensus Estimate for HES’ 2024 EPS is pegged at $10.98. The company has a Zacks Style Score of A for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.
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EQT Q2 Earnings Beat Estimates on Strong Sales, Lower Expenses
EQT Corporation (EQT - Free Report) reported a second-quarter 2024 adjusted loss from continuing operations of 8 cents per share, which beat the Zacks Consensus Estimate of a loss of 20 cents. The bottom line was narrower than the year-ago quarter’s reported loss of 17 cents.
Adjusted operating revenues increased to $1.18 billion from $993 million in the prior-year quarter. The top line also beat the Zacks Consensus Estimate of $1.14 billion.
The strong quarterly results were driven by higher sales volume and lower total operating expenses.
EQT Corporation Price, Consensus and EPS Surprise
EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation Quote
Production
Sales volume increased to 508 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s level of 471 Bcfe. The reported figure also beat our estimate of 499.2 Bcfe.
Natural gas sales volume was 474.1 Bcf, up from 449.7 Bcf in the year-ago quarter. The figure also beat our estimate of 470.9 Bcf.
The total liquid sales volume was 5,573 thousand barrels (MBbls), up from the year-ago period’s level of 3,530 MBbls. The figure also exceeded our projection of 4,703.6 MBbls.
Commodity Price Realizations
The average realized price was $2.33 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago quarter’s level of $2.11 per Mcfe.
The average natural gas price, including cash-settled derivatives, was $2.16 per Mcf, which increased year over year from $2.03.
The natural gas sales price was $2.02 per Mcf, lower than the year-ago quarter’s reported number of $2.20.
However, oil price was $61.96 per barrel compared with the year-ago quarter’s figure of $49.71, and our estimate for the same was pinned at $60.69.
Expenses
Total operating expenses were $949.5 million in the second quarter, lower than $1.05 billion reported in the prior-year quarter. The reported figure also came in lower than our estimate of $1.51 billion.
However, transmission expenses totaled 35 cents per Mcfe, up from the year-ago quarter’s level of 33 cents. Lease operating expenses amounted to 12 cents, up from the prior-year quarter’s figure of 8 cents.
Cash Flows
EQT’s adjusted operating cash flow totaled $405.04 million in the quarter, up from $340.79 million reported a year ago. The negative free cash flow in the quarter totaled $171.1 million, up from $129.3 million in the year-ago period.
Capex & Balance Sheet
Total capital expenditure was $576 million, up from $470 million reported a year ago.
As of Jun 30, 2024, the company had cash and cash equivalents of $29.9 million, and net debt worth $4.92 billion.
Guidance
For 2024, total sales volume is expected to be in the range of 2,100-2,200 Bcfe, indicating an increase from 2,016 Bcfe reported in 2023.
For the third quarter of 2024, EQT anticipates total sales volume and liquids sales volume (excluding ethane) to be in the band of 510-560 Bcfe and 3,600-3,900 Mbbl, respectively. In the fourth quarter, total sales volume is expected to be in the 515-565 Bcfe range, with liquids sales volume of 4,000-4,300 Mbbl.
The company forecasts per-unit operating costs of $1.12-$1.26 per Mcfe for the third quarter and $1.11-$1.25 per Mcfe for the fourth. Capital expenditures are projected to be in the band of $620-$720 million and $580-$680 million for the third and fourth quarter, respectively.
Zacks Rank and Key Picks
Currently, EQT carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Sunoco LP (SUN - Free Report) , SM Energy Company (SM - Free Report) and Hess Corporation (HES - Free Report) . While Sunoco and SM Energy currently sport a Zacks Rank #1 (Strong Buy) each, Hess carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.26, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past seven days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.30. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.
Hess is a leading oil and natural gas exploration and production company that made several world-class oil discoveries in the Stabroek Block, located off the coast of Guyana. The company is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. The merger will likely result in the creation of an energy behemoth with a massive portfolio of producing assets.
The Zacks Consensus Estimate for HES’ 2024 EPS is pegged at $10.98. The company has a Zacks Style Score of A for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.