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EQT Corp Surpasses Earnings and Revenue Estimates in Q3

Integrated energy major EQT Corporation EQT reported third-quarter 2017 adjusted earnings per share of 12 cents, against the Zacks Consensus Estimate of a loss of 5 cents. The bottom line also improved from a loss of 28 cents in the prior-year quarter.

Net operating revenues in the quarter rose 18.6% year over year to $660.3 million and surpassed the Zacks Consensus Estimate of $651 million.

The strong third-quarter results were supported by improved production sales volumes and average realized commodity prices.

EQT Corporation Price, Consensus and EPS Surprise

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

Segment Details

EQT Production reported third-quarter adjusted operating revenues of $566.8 million, up 31.6% year over year.

Adjusted operating loss from this segment was $9.7 million, substantially narrower than $82.1 million loss in the year-earlier quarter.

The improvement was mainly driven by higher average realized commodity prices and increased production sales volumes.

In the EQT Gathering segment, net gathering revenues increased 17.6% year over year to $116.5 million.

Operating income rose 18.3% year over year to $85.8 million in the reported quarter.

Improvement in this segment can be attributed to production development in the Marcellus Shale.

In the EQT Transmission segment, net transmission revenues grew 16.9% to $90.7 million.

Operating income jumped 11.2% year over year to $59.7 million in the quarter under review.

The improvement in this segment occurred mainly due to the Marcellus Shale’s production development.

Financials

The company’s adjusted operating cash flow was $205.9 million during the quarter, up 23.7% year over year.

EQT’s capital expenditure in the quarter included $449.3 million spent on EQT Production, $48.2 million invested in EQT Gathering and $22.3 million in EQT Transmission.

About the Company

Based in Pittsburgh, PA, EQT is an energy company that focuses on natural gas supply activities in the Appalachian area, including production and gathering, natural gas distribution and transmission as well as energy efficiency solutions, primarily in the eastern and western coastal regions of the United States. EQT conducts its operations via three segments – EQT Production, EQT Gathering and EQT Transmission.

Q3 Price Performance

EQT has gained 11.3% in the third quarter compared with 5% growth of its industry.

Zacks Rank and Stocks to Consider

EQT carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the oil and energy sector are Par Pacific Holdings, Inc. PARR, Braskem S.A. BAK and Denbury Resources Inc. DNR. All these sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Par Pacific’s sales for the third quarter of 2017 are expected to increase 28.5% year over year. The company delivered an average positive earnings surprise of 9.1% in the last four quarters.

Braskem’s sales for the third quarter of 2017 are expected to increase 4.1% year over year. The company delivered a positive earnings surprise of 68.5% in the second quarter of 2017.

Denbury Resources’ sales for 2017 are expected to increase 5.9% year over year. The company delivered a positive earnings surprise of 100% in the second quarter of 2017.

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