EQT Corp (EQT) Q1 Earnings Miss, Revenues Beat Estimates

Integrated energy player EQT Corporation (NYSE:EQT) reported first-quarter 2017 adjusted earnings of 44 cents per share, which lagged the Zacks Consensus Estimate of 45 cents. Earnings, however, increased from the prior-year level of 7 cents, primarily due to improved production and higher realized prices.

Net operating revenue in the quarter jumped 64.7% year over year to $897.5 million. The top line also surpassed the Zacks Consensus Estimate of $704.41 million.

Segment Details

EQT Production reported first-quarter operating revenues of $828.7 million, up 71.3% year over year. The upside was mainly driven by higher average realized price, an improvement in production sales volume, and increase in pipeline and net marketing services revenues. This was partially offset by increased operating expenses.

Operating income was $257.4 million. The segment incurred a loss of $5.5 million in first-quarter 2016.

In the EQT Gathering segment, net gathering revenue increased 4.4% year over year to $102.3 million due to 3% higher gathered volumes.

Operating income jumped 1.4% year over year to $73.6 million in the reported quarter.

In the EQT Transmission segment, net transmission revenue grew 15.2% to $101.1 million.

Operating income jumped 11% year over year to $71.5 million in the reported quarter.

Financials

The company’s adjusted operating cash flow was $322.3 million during the quarter, up 48.3% year over year.

EQT Corp.’s capital expenditure totaled $1,015.7 million in the quarter. This includes $945.5 million spent on EQT Production, $48.8 million spent on EQT Gathering and $21.4 million spent on EQT Transmission.

Guidance

Production sales volume for 2017 is projected at 835–855 billion cubic feet equivalent (Bcfe). Liquids volume is estimated at 12,060–12,460 thousand barrel of oil equivalent (MBBl). Production sales volume for second-quarter 2017 is projected at 190–195 Bcfe. Liquids volume is expected in the range of 2,955–2,975 MBBls.

Zacks Rank

EQT currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Diamond Offshore Drilling Inc. (NYSE:DO) , China Petroleum & Chemical Corporation (NYSE:SNP) and Bellatrix Exploration Ltd. (TO:BXE) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Diamond Offshore Drilling posted a positive earnings surprise of 341.67% in the preceding quarter. It beat estimates in all of the four trailing quarters with an average positive earnings surprise of 353.28%.

Bellatrix Exploration posted a positive earnings surprise of 240.00% in the preceding quarter. It beat estimates in three of the four trailing quarters with an average positive earnings surprise of 58.54%.

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