EQT Corp (EQT) Q3 2023 Earnings: Key Highlights and Financial Performance
EQT Corp (NYSE:EQT) successfully closed the strategic acquisitions of Tug Hill and XcL Midstream, with integration progressing at a record pace.
The company achieved ~40% drilling and completion efficiency improvements in just ~60 days of operating the newly acquired assets.
EQT Corp (NYSE:EQT) set new records in drilling and completion efficiency, including a world record of 18,264 feet drilled in 48 hours.
The company's financial performance showed a net income of $81 million and adjusted EBITDA of $520 million for Q3 2023.
On October 25, 2023, EQT Corp (NYSE:EQT) announced its financial and operational results for the third quarter of 2023. The company's performance was marked by strategic acquisitions, record-setting operations, and significant efficiency improvements.
Operational Highlights and Strategic Acquisitions
EQT Corp (NYSE:EQT) successfully closed the strategic acquisitions of Tug Hill and XcL Midstream. The integration of these assets is progressing at a record pace, which the company attributes to its proprietary digital platform and refined integration playbook. The company has already achieved approximately 40% drilling and completion efficiency improvements in just about 60 days of operating the newly acquired assets.
Record-Setting Operations
The company set new records in drilling and completion efficiency. Notably, EQT Corp (NYSE:EQT) set a new drilling world record of 18,264 feet in 48 hours, surpassing its own previous record set in Q2. The company also set a new EQT record for completion efficiency, with two frac crews each achieving greater than 500 monthly frac pumping hours during Q3.
Financial Performance
For the third quarter of 2023, EQT Corp (NYSE:EQT) reported a net income of $81 million, a significant decrease from the $684 million reported in the same period in 2022. The company's adjusted net income was $126 million, down from $422 million in Q3 2022. The company's diluted earnings per share (EPS) stood at $0.20, a decrease from $1.69 in the same period last year.
The company's adjusted EBITDA for the quarter was $520 million, a decrease from $974 million in Q3 2022. Net cash provided by operating activities was $455 million, down from $1,150 million in the same period last year. The company's capital expenditures, excluding noncontrolling interests, were $445 million, an increase from $349 million in Q3 2022.
Looking Ahead
For Q4 2023, EQT Corp (NYSE:EQT) expects total sales volume to be between 525 Bcfe and 575 Bcfe. The company also expects its total per unit operating costs to be between $1.25/Mcfe and $1.37/Mcfe. Capital expenditures for the quarter are projected to be between $525 million and $575 million.
Despite the challenges, EQT Corp (NYSE:EQT) remains committed to its strategic growth initiatives and continues to focus on operational efficiency and financial discipline. The company's performance in Q3 2023 demonstrates its ability to successfully integrate acquisitions, improve operational efficiency, and set new records in drilling and completion.
Explore the complete 8-K earnings release (here) from EQT Corp for further details.
This article first appeared on GuruFocus.
