Integrated energy player,
) 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
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.
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
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.
The company's operating cash flow was $481.9 million during the
quarter, reflecting an increase of 54.2% year over year.
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.
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.
The company currently holds a Zacks Rank #2 (Buy). Meanwhile one
can also consider other energy sector stocks such as
Pioneer Energy Services Corp.
RSP Permian, Inc.
Clayton Williams Energy, Inc.
). All these stocks currently sport a Zacks Rank #1 (Strong Buy).
WILLIAMS(C)ENGY (CWEI): Free Stock Analysis
EQT CORP (EQT): Free Stock Analysis Report
PIONEER EGY SVC (PES): Free Stock Analysis
RSP PERMIAN INC (RSPP): Free Stock Analysis
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