) second quarter 2013 adjusted earnings increased to 57 cents per
share from 21 cents in prior-year quarter and surpassed the Zacks
Consensus Estimate of 55 cents. The year-over-year increase was
primarily attributable to increases in production sales, prices,
gathered volumes, and transmission capacity sales and throughput.
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Net operating revenue in the quarter was $520.1 million, ahead of
the Zacks Consensus Estimate of $485.0 million and above the
year-ago number of $337.8 million.
EQT Production's second quarter operating revenues increased 93%
year over year to $306.1 million. The growth came from a 54%
increase in sales volume and higher average effective price,
partially offset by an increase in operating expenses. Operating
income increased from $17.7 million a year ago to $105.1 million.
Under the EQT Midstream segment, revenues rose 21.3% year over
year to $131.3 million in the reported quarter. Of this, net
gathering revenues surged 21% year over year to $87.0 million,
owing to 50% growth in gathered volumes. Net transmission revenue
increased 81% year over year to $38.8 million. Net storage,
marketing and other operating revenue fell $9.2 million year over
year to $5.5 million, owing to lower margins and reduced
activity. Operating income rose $12.5 million year over year to
EQT Distribution's net operating revenue increased $1.1 million
year over year to $32.3 million. The segment generated operating
income of $6.2 million versus $6.4 million a year ago.
The company's operating cash flow was $316.7 million during the
quarter, reflecting an increase of 90.8% year over year.
EQT's capital expenditure totaled $499 million, with $398.1
million spent on EQT Production, $91.3 million on EQT Midstream
and $9.6 million on EQT Distribution.
The company has increased its full-year production sales volume
guidance to 360-365 Bcfe, which is 40% higher than 2012. It also
raised its 2013 NGL volume guidance to 4,800-5,000 Mbbls.
The company holds a Zacks Rank #2, which translates to a
short-term Buy rating. However, there are other Zacks Ranked #1
(Strong Buy) stocks -
VOC Energy Trust
Blueknight Energy Partners, L.P.
Memorial Production Partners LP
), - in the oil and gas sector that are expected to outperform
the market in the coming one to three months.