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EQT

EQT Corporation Reports Loss in Q3; Revenues Beat Estimates

Integrated energy player, EQT Corporation 's EQT reported third-quarter 2015 adjusted loss per share of 33 cents. The Zacks Consensus Estimate was of a loss of 22 cents. The reported figure also plummeted from earnings of 51 cents recorded in the year-earlier quarter.

Net operating revenue in the quarter came in at $577 million, which beat the Zacks Consensus Estimate of $437.0 million. The top line, however, decreased from $578.7 million in the year-ago quarter.

Segment Details

EQT Production's third-quarter operating revenues were $188.5 million, 43% lower than the year-ago quarter. Nonetheless, the company clocked sales volume of 156.3 billion cubic feet equivalent (Bcfe) in the third quarter, 26.7% higher than the year-ago period.

Adjusted operating loss for the third quarter was $72 million, which compared unfavourably with adjusted operating income of $107.9 million in the year-ago period.

At the EQT Midstream segment, net operating revenues soared 17% year over year to $195.3 million owing to 23% growth in gathered volumes. Net transmission revenues increased 12%.

Operating income surged 21% year over year to $113 million in the reported quarter.

Cash Flow

The company's operating cash flow was $312.8 million during the quarter, down $335.3 million from the comparable period last year.

Wells Spud

The company spud 37 gross wells during the third quarter. Of the total, 31 were drilled in the Marcellus with an average length-of-pay of 5,800 feet, while four were drilled in the Upper Devonian with an average length-of-pay of 6,900 feet. Another two were drilled in the Utica with an average length-of-pay of 4,000 feet.

Guidance

Production sales volume projection for 2015 has been reiterated at 595-605 Bcfe. Liquids volume is expected at 9,000-10,000 thousand barrel of oil equivalent (MBBl). The company also expects a loss in the average differential to the NYMEX natural gas price of $0.30-$0.40 per Mcf for the full year as well as fourth-quarter 2015. The company projects full-year 2015 midstream earnings before interest, taxes, depreciation, and amortization or EBITDA between $555 million and $575 million.

Zacks Rank

EQT currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy sector are Natural Gas Services Group Inc. NGS , Matrix Service Company MTRX and ReneSola Ltd SOL . All these stocks sport a Zacks Rank #1 (Strong Buy).

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MATRIX SERVICE (MTRX): Free Stock Analysis Report

EQT CORP (EQT): Free Stock Analysis Report

RENESOLA LT-ADR (SOL): Free Stock Analysis Report

NATURAL GAS SVC (NGS): 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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