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EQT Beats Q4 Earnings & Revenue Estimates on Higher Production
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EQTCorporation (EQT - Free Report) reported fourth-quarter 2024 adjusted earnings from continuing operations of 69 cents per share, which beat the Zacks Consensus Estimate of 50 cents. The bottom line increased from the year-ago reported figure of 48 cents.
Adjusted operating revenues increased to $1.82 billion from $1.55 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $1.72 billion.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The strong quarterly results were driven by higher sales volume, increased average realized prices and lower total operating expenses.
Sales volume increased to 605 billion cubic feet equivalent (Bcfe) from the year-ago level of 564 Bcfe. The reported figure also beat our estimate of 597 Bcfe.
Natural gas sales volume was 565.8 Bcf, up from 532.8 Bcf in the year-ago quarter. The figure also beat our estimate of 561.8 Bcf.
The total liquid sales volume was 4,028 thousand barrels (MBbls), up from the year-ago level of 3,842 MBbls. The figure was also above our projection of 3,819.9 MBbls.
Commodity Price Realizations
The average realized price was $3.01 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago figure of $2.75 per Mcfe.
The average natural gas price, including cash-settled derivatives, was $2.86 per Mcf, which increased year over year from $2.58.
The natural gas sales price was $2.97 per Mcf, lower than $3.04 recorded a year ago.
However, oil price was $54.75 per barrel compared with the year-ago figure of $59.98, and our estimate for the same was pinned at $52.63.
Expenses
Total operating expenses were $843 million in the fourth quarter, lower than $1.32 billion reported in the prior-year quarter. The reported figure also came in lower than our estimate of $1.35 billion.
Gathering expenses totaled 9 cents per Mcfe, down from the year-ago level of 58 cents. Transmission expenses totaled 41 cents per Mcfe, up from 30 cents recorded a year ago. Lease operating expenses amounted to 9 cents, up from the prior-year figure of 7 cents.
Cash Flows
EQT’s adjusted operating cash flow totaled $1.23 billion in the reported quarter, up from $774.6 million a year ago. The free cash flow totaled $580 million, up from $229.5 million in the year-ago period.
Capex & Balance Sheet
Total capital expenditure was $582.9 million, up from $538.5 million reported a year ago.
As of Dec. 31, 2024, the company had cash and cash equivalents of $202 million and net debt worth $9.3 billion.
Guidance
For the first quarter of 2025, EQT anticipates total sales volume and liquids sales volume (excluding ethane) to be in the band of 525-575 Bcfe and 3,900-4,200 Mbbl, respectively. The full-year 2025 total sales volume is projected to be between 2,175 Bcfe and 2,275 Bcfe.
The company forecasts per-unit operating costs of $1.07-$1.21 per Mcfe for the first quarter, and $1.10-$1.24 per Mcfe for full-year 2025.
Capital expenditures are projected to be in the band of $565-$665 million for the first quarter and $2,300-$2,500 million for the full year.
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 SMEnergyCompany (SM - Free Report) , NextDecade Corporation (NEXT - Free Report) and Range Resources Corporation (RRC - Free Report) . While SM Energy and NextDecade presently sport a Zacks Rank #1 (Strong Buy) each, Range Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, NextDecade’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, the company is well-positioned to tap into the increasing export demand from the United States.
Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet the rising global demand, capitalizing on natural gas' role as a cleaner-burning fuel amid a low-carbon shift.
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EQT Beats Q4 Earnings & Revenue Estimates on Higher Production
EQT Corporation (EQT - Free Report) reported fourth-quarter 2024 adjusted earnings from continuing operations of 69 cents per share, which beat the Zacks Consensus Estimate of 50 cents. The bottom line increased from the year-ago reported figure of 48 cents.
Adjusted operating revenues increased to $1.82 billion from $1.55 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $1.72 billion.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The strong quarterly results were driven by higher sales volume, increased average realized prices 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 605 billion cubic feet equivalent (Bcfe) from the year-ago level of 564 Bcfe. The reported figure also beat our estimate of 597 Bcfe.
Natural gas sales volume was 565.8 Bcf, up from 532.8 Bcf in the year-ago quarter. The figure also beat our estimate of 561.8 Bcf.
The total liquid sales volume was 4,028 thousand barrels (MBbls), up from the year-ago level of 3,842 MBbls. The figure was also above our projection of 3,819.9 MBbls.
Commodity Price Realizations
The average realized price was $3.01 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago figure of $2.75 per Mcfe.
The average natural gas price, including cash-settled derivatives, was $2.86 per Mcf, which increased year over year from $2.58.
The natural gas sales price was $2.97 per Mcf, lower than $3.04 recorded a year ago.
However, oil price was $54.75 per barrel compared with the year-ago figure of $59.98, and our estimate for the same was pinned at $52.63.
Expenses
Total operating expenses were $843 million in the fourth quarter, lower than $1.32 billion reported in the prior-year quarter. The reported figure also came in lower than our estimate of $1.35 billion.
Gathering expenses totaled 9 cents per Mcfe, down from the year-ago level of 58 cents. Transmission expenses totaled 41 cents per Mcfe, up from 30 cents recorded a year ago. Lease operating expenses amounted to 9 cents, up from the prior-year figure of 7 cents.
Cash Flows
EQT’s adjusted operating cash flow totaled $1.23 billion in the reported quarter, up from $774.6 million a year ago. The free cash flow totaled $580 million, up from $229.5 million in the year-ago period.
Capex & Balance Sheet
Total capital expenditure was $582.9 million, up from $538.5 million reported a year ago.
As of Dec. 31, 2024, the company had cash and cash equivalents of $202 million and net debt worth $9.3 billion.
Guidance
For the first quarter of 2025, EQT anticipates total sales volume and liquids sales volume (excluding ethane) to be in the band of 525-575 Bcfe and 3,900-4,200 Mbbl, respectively. The full-year 2025 total sales volume is projected to be between 2,175 Bcfe and 2,275 Bcfe.
The company forecasts per-unit operating costs of $1.07-$1.21 per Mcfe for the first quarter, and $1.10-$1.24 per Mcfe for full-year 2025.
Capital expenditures are projected to be in the band of $565-$665 million for the first quarter and $2,300-$2,500 million for the full year.
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 SM Energy Company (SM - Free Report) , NextDecade Corporation (NEXT - Free Report) and Range Resources Corporation (RRC - Free Report) . While SM Energy and NextDecade presently sport a Zacks Rank #1 (Strong Buy) each, Range Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, NextDecade’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, the company is well-positioned to tap into the increasing export demand from the United States.
Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet the rising global demand, capitalizing on natural gas' role as a cleaner-burning fuel amid a low-carbon shift.