Integrated energy player,
) second-quarter 2014 adjusted earnings per share increased to 81
cents from 57 cents in the year-earlier quarter. This also came
above the Zacks Consensus Estimate of 80 cents.
Eqt Corporation - Earnings Surprise |
Net operating revenue in the quarter was up 11.2% year over year
at $526.2 million. However, reported revenues came much below the
Zacks Consensus Estimate of $598.0 million.
EQT Production's second-quarter operating revenue increased 5.2%
year over year to $322.1 million. This was due to steady focus on
Marcellus Shale, where sales volume rose 24.6% year over year to
85.8 billion cubic feet equivalent (Bcfe). Sales volume from
Marcellus/Upper Devonian averaged 943.4 million cubic feet
equivalent per day (MMcfe/d), 25% higher than the year-ago period.
Natural gas liquids (NGL) volume totaled 1,326 Mbbls, 15% higher
than the year-ago period.
Operating income rose 37.7% year over year to $144.7 million.
Under the EQT Midstream segment, net gathering revenues increased
4.8% year over year to $91.2 million, owing to 17% growth in
gathered volumes. Net transmission revenues increased 32.7% year
over year to $51.5 million. Net storage, marketing and other
operating revenues were $9.6 million, representing a 74.8% year
over year rise.
Operating income rose 22.5% year over year to $88.5 million.
The company's adjusted operating cash flow was $317.2 million
during the quarter, reflecting a decrease of 0.6% year over year.
During the quarter, EQT repurchased 0.3 million shares under the
ongoing one million share repurchase authorization.
The company spud 89 gross wells during the quarter. Of these, 55
wells were targeted in Marcellus with an average length-of-pay of
6,140 feet; 22 wells were targeted in Huron with an average
length-of-pay of 5,970 feet; 11 wells were targeted in the Upper
Devonian with an average length-of-pay of 6,960 feet; and 1 well
was targeted the Wolfcamp with a length-of-pay of 7,000 feet.
Production sales volume for 2014 is projected at 465-480 Bcfe, up
24% year over year; and liquids volume is expected at 6,500-6,600
thousand barrel of oil equivalent (MBBl). Production sales volume
for third-quarter 2014 is projected at 118-122 Bcfe; and liquids
volume is expected at 1,800-1,900 MBBl.
The company currently holds a Zacks Rank #2 (Buy). Meanwhile, one
can also consider other energy sector stocks such as
Swift Energy Co.
Vermilion Energy Inc.
Clayton Williams Energy, Inc.
). All these stocks currently sport a Zacks Rank #1 (Strong Buy).
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