EQT Beats on Q3 Earnings but Misses on Revenues, Raises Q4 Outlook

EQT Corporation EQT reported third-quarter 2024 adjusted earnings from continuing operations of 12 cents per share, which beat the Zacks Consensus Estimate of 5 cents. The bottom line declined from the year-ago reported earnings of 30 cents per share.Adjusted operating revenues increased to $1.38 billion from $1.19 million in the prior-year quarter. However, the top line missed the Zacks Consensus Estimate of $1.43 billion.The better-than-expected quarterly earnings were driven by higher sales volume and average realized prices. This was partially offset by higher total operating expenses.EQT Corporation Price, Consensus and EPS Surprise EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation QuoteProductionSales volume increased to 581 billion cubic feet equivalent (Bcfe) from the year-ago level of 523 Bcfe. The reported figure also beat our estimate of 552.7 Bcfe.Natural gas sales volume was 547.2 Bcf, up from 491.5 Bcf in the year-ago quarter. The figure also beat our estimate of 521.6 Bcf.The total liquid sales volume was 5,699 thousand barrels (MBbls), up from the year-ago level of 5,205 MBbls. The figure also exceeded our projection of 5,191.7 MBbls.Commodity Price RealizationsThe average realized price was $2.38 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago figure of $2.28 per Mcfe.The average natural gas price, including cash-settled derivatives, was $2.23 per Mcf, which increased year over year from $2.14.The natural gas sales price was $2.27 per Mcf, lower than the year-ago reported number of $2.68.However, oil price was $61.25 per barrel compared with the year-ago figure of $66.75, and our estimate for the same was pinned at $58.24.ExpensesTotal operating expenses were $1.57 billion in the third quarter, higher than $1.17 billion reported in the prior-year quarter. The reported figure also came in higher than our estimate of $1.33 billion.However, gathering expenses totaled 20 cents per Mcfe, down from the year-ago level of 63 cents. Transmission expenses totaled 43 cents per Mcfe, up from 32 cents recorded a year ago. Lease operating expenses amounted to 9 cents, up from the prior-year figure of 8 cents.Cash FlowsEQT’s adjusted operating cash flow totaled $522.29 million in the reported quarter, up from $442.75 million a year ago. The negative free cash flow totaled $121 million, up from $1.8 million in the year-ago period.Capex & Balance SheetTotal capital expenditure was $558 million, up from $445 million reported a year ago.As of Sept. 30, 2024, the company had cash and cash equivalents of $88.9 million, and net debt worth $13.8 billion.GuidanceFor the fourth quarter of 2024, EQT now anticipates total sales volume and liquids sales volume (excluding ethane) to be in the band of 555-605 Bcfe and 4,100-4,400 Mbbl, respectively, up from the previously guided range of 515-565 Bcfe and 4,000-4,300 Mbbl.The company forecasts per-unit operating costs of $1.07-$1.21 per Mcfe for the fourth quarter, lower than the previously guided range of $1.11-$1.25 per Mcfe.Capital expenditures are projected to be in the band of $630-$730 million.Zacks Rank and Key PicksCurrently, EQT carries a Zacks Rank #4 (Sell).Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, Sunoco LP SUN and The Williams Companies, Inc. WMB. While Archrock sports a Zacks Rank #1 (Strong Buy), Sunoco and Williams Companies carry a Zacks Rank #2 (Buy) each at present. 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. It focuses on midstream natural gas compression, provides natural gas contract compression services and generates stable fee-based revenues.The Zacks Consensus Estimate for AROC’s 2024 EPS is pegged at $1.10. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.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 $9.28 and $6.76, respectively. The partnership has witnessed upward earnings estimate revisions for 2025 in the past seven days.The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.The Zacks Consensus Estimate for WMB’s 2024 EPS is pegged at $1.75. The company has witnessed upward earnings estimate revisions for 2024 in the past seven days.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report EQT Corporation (EQT): Free Stock Analysis Report Sunoco LP (SUN): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks