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EQT Corp (EQT) Reverses to Earnings in Q4, Revenues Miss

Integrated energy player EQT CorporationEQT posted fourth-quarter 2016 adjusted earnings per share of 25 cents. The Zacks Consensus Estimate was of a loss of 10 cents. The company had incurred a loss of 7 cents per share in the year-earlier quarter.

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Full-year 2016 adjusted loss of 33 cents per share compared unfavourably with adjusted earnings of 75 cents in 2015. The loss was narrower than the Zacks Consensus Estimate of a loss of 64 cents per share.

Net operating revenue in the quarter came in at $379.0 million. The top line not only lagged the Zacks Consensus Estimate of $552.38 million but also decreased from $601.4 million in the year-ago quarter.

Net operating revenue in 2016 decreased 31.3% year over year to $1,608.3 million. Revenues were also below the Zacks Consensus Estimate of $1,791.0 million.

Segment Details

EQT Production 's fourth-quarter operating revenues were $318.3 million compared with $546.1 million in the year-ago quarter. The company clocked sales volume of 198.4 billion cubic feet equivalent (Bcfe) in the fourth quarter, up 28.4% year over year.

Operating loss in the fourth quarter was $251.1 million, substantially wider than an operating loss of $72.3 million in the year-ago period.

In the EQT Gathering segment , net gathering revenues increased 10.5% year over year to $100.2 million due to 15% higher gathered volumes. Net transmission revenue grew 18.5% to $94.8 million.

Operating income jumped 12% year over year to $63.8 million in the reported quarter.

EQT Corporation Price, Consensus and EPS Surprise

EQT Corporation Price, Consensus and EPS Surprise | EQT Corporation Quote

Cash Flow

The company's adjusted operating cash flow was $296.6 million compared with $316.7 million in the year-ago quarter.

Wells Drilled

The company spud 135 gross wells in 2016. Of the total, the company drilled 117 wells in the Marcellus with an average length-of-pay of 7,300 feet, 13 were drilled in the Upper Devonian with an average length-of-pay of 9,800 feet and four were drilled in Utica with an average length-of-pay of 6,100 feet.

Reserves Replacement

At the end of 2016, oil and gas proved reserves were 13.5 trillion cubic feet equivalent (Tcfe), up 35% from 2015. In 2016, the company added 1.9 Tcfe of proved reserves.

Guidance

Production sales volume for 2017 are expected in the band of 810-830 Bcfe. Liquids volume is projected at 10,100-10,500 thousand barrel of oil equivalent (MBBl). Of this, first-quarter 2017 volume is estimated at 190-195 Bcfe, with liquids of 2,520-2,540 MBBls. The company estimates full-year earnings before interest, taxes, depreciation, and amortization or EBITDA between $1,160 million and $1,180 million.

Zacks Rank

EQT currently carries a Zacks Rank #2 (Buy). Other well-ranked players in the same space include Denbury Resources Inc. DNR , Enable Midstream Partners LP ENBL and Noble Midstream Partners L.P. NBLX . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Denbury Resources posted a positive earnings surprise of 100.00% in the last reported quarter. It had an average earnings surprise of 283.33% in the four trailing quarters.

Enable Midstream Partners posted a positive earnings surprise of 36.84% in the preceding quarter. It had an average negative earnings surprise of 0.79% in the four trailing quarters.

Noble Midstream Partners posted a negative earnings surprise of 77.78% in the last reported quarter.

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EQT Corporation (EQT): 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 Nasdaq, Inc.


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

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