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EQT Corporation EQT reported first-quarter 2024 adjusted earnings from continuing operations of $1.18 per share, which beat the Zacks Consensus Estimate of $1.02. The bottom line increased from the year-ago reported figure of 82 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Adjusted operating revenues increased to $2,153 million from $1,720 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $2,147 million.
The strong quarterly results were driven by higher sales volume and increased average realized prices.
EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation Quote
Sales volume increased to 571 billion cubic feet equivalent (Bcfe) from the year-ago level of 534 Bcfe. The reported figure also beat our estimate of 543 Bcfe.
Natural gas sales volume was 536.3 Bcf, up from 499.3 Bcf in the year-ago quarter. The figure also beat our estimate of 509.8 Bcf.
The total liquid sales volume was 5,735 thousand barrels (MBbls), down from the year-ago level of 5,796 MBbls. The figure was above our projection of 5,602.7 MBbls.
The average realized price was $3.77 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago figure of $3.22.
The average natural gas price, including cash-settled derivatives, was $3.66 per Mcf, which increased year over year from $3.08.
The natural gas sales price was $3.83 per Mcf, higher than $2.39 recorded a year ago.
However, the oil price was $53.05 per barrel compared with the year-ago figure of $58.74, and our estimate for the same was pinned at $54.42.
Total operating expenses were $1.24 billion in the first quarter, higher than $1.23 billion reported in the prior-year quarter.
Gathering expenses totaled 8 cents per Mcfe, down from the year-ago level of 60 cents. Transmission expenses totaled 44 cents per Mcfe, up from 32 cents recorded a year ago. Lease operating expenses amounted to 7 cents, down from the prior-year figure of 8 cents.
EQT’s adjusted operating cash flow totaled $1.67 billion in the reported quarter, up from $951 million a year ago. The free cash flow totaled $1.15 billion, up from $399 million in the year-ago period.
Total capital expenditure was $497 million, down from $549 million reported a year ago.
As of March 31, 2025, the company had cash and cash equivalents of $281 million and net debt worth $8.39 billion.
For the second quarter of 2025, EQT anticipates total sales volume to be in the band of 520-570 Bcfe. For 2025, the company has raised its total sales volume forecast to 2,200-2,300 Bcfe, suggesting an increase of 25 Bcfe from its earlier projection.
Capital expenditures are projected to be in the band of $2,300-$2,450 million for the full year.
EQT has announced plans to acquire Olympus Energy’s upstream and midstream assets for $1.8 billion in a cash-and-stock deal, aiming to strengthen its position in the natural gas-rich Marcellus shale region. The transaction, which includes 26 million EQT shares and $500 million in cash, is expected to be closed in the third quarter of 2025. Despite efforts to reduce its $8.1 billion debt, partly stemming from the $14 billion Equitrans Midstream acquisition, EQT remains focused on strategic growth, highlighting Olympus’ more than 10 years of high-quality Marcellus inventory and additional upside in the Utica formation. All current projections exclude the impact of the pending Olympus Energy acquisition.
Currently, EQT carries a Zacks Rank #2 (Buy).
Investors interested in the energy sector may look at some other top-ranked stocks like Archrock Inc. AROC, Kinder Morgan, Inc. KMI and Enterprise Products Partners L.P. EPD. While Archrock presently sports a Zacks Rank #1 (Strong Buy), Kinder Morgan and Enterprise Products carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. AROC provides natural gas contract compression services and generates stable fee-based revenues.
Archrock’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 8.81%.
Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to shareholders. KMI operates one of the largest natural gas pipeline networks, positioning it to benefit from the projected increase in U.S. natural gas demand by 2030.
Kinder Morgan’s earnings missed estimates in three of the trailing four quarters and met once, delivering an average negative surprise of 3.33%.
Enterprise generates stable fee-based revenues from its vast network of oil and gas pipelines spanning 50,000 miles, connecting prolific U.S. shale plays. Notably, the acquisition of Pinon Midstream, which aims to provide services in the prolific Permian Basin, is expected to drive the partnership’s cash flows. This move enhances its NGL value chain and addresses regional infrastructure constraints, with strong customer demand expected to boost revenues.
EPD’s earnings beat estimates in two of the trailing four quarters and missed in the other two, delivering an average surprise of 1.83%.
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This article originally published on Zacks Investment Research (zacks.com).
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