EQT Corp. Beats on Earnings & Revs - Analyst Blog

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Integrated energy player, EQT Corporation 's ( EQT ) 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 cents.

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.

Segment Details

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 million.

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.

Cash Flow

The company's operating cash flow was $481.9 million during the quarter, reflecting an increase of 54.2% year over year.

Wells Spud

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.

Guidance

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.

Zacks Rank

The company currently holds a Zacks Rank #2 (Buy). Meanwhile one can also consider other energy sector stocks such as Pioneer Energy Services Corp. ( PES ), RSP Permian, Inc. ( RSPP ) and Clayton Williams Energy, Inc. ( CWEI ). All these stocks currently sport a Zacks Rank #1 (Strong Buy).



WILLIAMS(C)ENGY (CWEI): Free Stock Analysis Report

EQT CORP (EQT): Free Stock Analysis Report

PIONEER EGY SVC (PES): Free Stock Analysis Report

RSP PERMIAN INC (RSPP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: NGL , C , CWEI , EQT , PES

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