EQT Corp. Beats on Earnings & Revs - Analyst Blog
April 24 2014 - 4:00PM
Zacks
Integrated energy player,
EQT Corporation’s (EQT) first quarter 2014
adjusted earnings per share increased over three folds to $1.35
from 43 cents in the year-earlier quarter. This also came above the
Zacks Consensus Estimate of 82 cents.
Net operating revenue in the
quarter was up 63% year over year at $661.6 million. Also, reported
revenues comfortably beat the Zacks Consensus Estimate of $546.0
million.
Segment
Details
EQT Production's first quarter
operating revenue increased 86.7% year over year to $467.7 million.
This was due to steady focus on the Marcellus Shale, where sales
volume rose 30% year over year to 106.1 billion cubic feet
equivalent (Bcfe). Sales volume from the Marcellus/Upper Devonian
averaged 923.6 million cubic feet equivalent per day (MMcfe/d), 50%
higher than the year-ago period. Natural gas liquids (NGL) volume
totaled 1,295 Mbbls, 16% higher over the year-ago period.
Operating income rose almost fourfold year over year to $277.2
million.
Under the EQT Midstream segment, net gathering revenues increased
9.2% year over year to $89.4 million, owing to 25% growth in
gathered volumes. Net transmission revenues increased 40% to $52.1
million. Net storage, marketing and other operating revenues were
$7.2 million, representing a 25.8% fall.
Operating income rose 11.9% year over year to $83.1 million in the
reported quarter.
Cash Flow
The company’s operating cash flow was $481.9 million during the
quarter, reflecting an increase of 54.2% year over year.
Wells Spud
The company spud 64 gross wells during the quarter -- 46 wells
targeted in the Marcellus with an average length-of-pay of 5,870
feet; 14 wells targeted in the Huron with an average length-of-pay
of 6,395 feet; and 4 wells targeted in the Upper Devonian with an
average length-of-pay of 5,460 feet.
Guidance
Production sales volume for 2014 is projected at 465–480 Bcfe, up
24% year over year; and liquids volume is expected at 6,800–6,900
thousand barrel of oil equivalent (MBBl). Production sales volume
for second quarter 2014 is projected at 113–115 Bcfe; and liquids
volume is expected at 1,600–1,650 MBBls.
Zacks Rank
The company currently holds a Zacks Rank #2 (Buy). Meanwhile one
can also consider other energy sector stocks such as
Pioneer Energy Services Corp. (PES), RSP
Permian, Inc. (RSPP) and Clayton Williams Energy,
Inc. (CWEI). All these stocks currently sport a Zacks Rank
#1 (Strong Buy).
WILLIAMS(C)ENGY (CWEI): Free Stock Analysis Report
EQT CORP (EQT): Free Stock Analysis Report
PIONEER EGY SVC (PES): Free Stock Analysis Report
RSP PERMIAN INC (RSPP): Free Stock Analysis Report
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