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EQT Corp (EQT) Q2 Earnings Beat Estimates on Higher Prices

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EQT Corporation EQT reported second-quarter 2022 adjusted earnings from continuing operations of 83 cents per share, beating the Zacks Consensus Estimate of 81 cents. The bottom line improved substantially from the year-ago quarter’s profit of 7 cents.

Adjusted operating revenues increased to $1,612 million from $997 million in the prior-year quarter. The top line beat the Zacks Consensus Estimate of $1,564 million.

The strong results stemmed from higher cubic feet equivalent production and realized commodity prices.

EQT Corporation Price, Consensus and EPS Surprise

EQT Corporation Price, Consensus and EPS Surprise
EQT Corporation Price, Consensus and EPS Surprise

EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation Quote

Q2 Operations

Production

Sales volumes increased to 501.5 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s figure of 420.6 Bcfe. Natural gas sales volume was 476.7 Bcf in the second quarter, up from 394.3 Bcf. Total liquids sales volume was 4,132 thousand barrels (MBbls) versus the year-ago period’s 4,388 MBbls.

Commodity Price Realizations

The average realized price was $3.21 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago quarter’s $2.37 per Mcfe. Natural gas price was recorded at $7.54 per Mcf, up from $3.00. Oil prices were recorded at $91.38 per barrel, up from $56.18 in second-quarter 2021. Also, the ethane sales price was $17.70 per barrel in the second quarter, higher than the year-ago quarter’s $6.58.

Expenses

Total operating expenses were $1.37 per Mcfe in the second quarter of 2022, up from $1.33 in the prior-year quarter.

Processing expenses were 10 cents per Mcfe, lower than the year-ago quarter figure of 11 cents. Lease operating expenses increased to 9 cents from 6 cents.

Cash Flows

EQT Corporation’s adjusted operating cash flow was $916.3 million in the quarter, up from $396.6 million a year ago. Free cash flow in the quarter was $542.6 million, up from $154.9 million.

Capex & Balance Sheet

Total capital expenditures amounted to $376.3 million in the second quarter, up from $245.5 million a year ago.

As of Jun 30, 2022, the company had $43.7 million in cash and cash equivalents. Net debt was reported at $4,998.3 million.

Guidance

EQT Corporation projects 2022 sales volumes at 1,950-2,050 Bcfe. Capital expenditure for the year is projected at $1.400 billion to $1.500 billion.

Zacks Rank & Stocks to Consider

EQT Corporation currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the energy space include Exxon Mobil Corporation XOM, BP plc BP and Matador Resources MTDR. While Matador carries a Zacks Rank #2, ExxonMobil and BP sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ExxonMobil’s upstream operation is benefiting from high oil price. Recently, XOM reported strong earnings thanks to higher realized commodity prices and solid refinery utilization, offset partially by increased ethane feed costs in North America. In 2022, ExxonMobil is likely to see earnings growth of 130%.

High oil prices are aiding BP’s upstream operations. Its sizable refining and marketing operations will protect it if the crude pricing scenario turns unfavorable again.  In 2022, it is likely to witness earnings growth of 108.6%. Over the past few quarters, BP has successfully been reducing long-term debt.

High oil price is also aiding Matador. MTDR is highly efficient in its operations, as it is increasing production significantly despite lowering its costs. Matador has a strong focus on reducing debt and returning capital to shareholders.


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