Upcoming AWS Coverage on Hess Corp. Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 9, 2017 / Active Wall St. announces its post-earnings coverage on EQT Corp. (NYSE: EQT). The Company posted its first quarter fiscal 2017 results on April 27, 2017. The integrated energy Company with emphasis on Appalachian area natural gas production, gathering, and transmission outperformed revenue forecasts. Register with us now for your free membership at:

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One of EQT Corp's competitors within the Independent Oil & Gas space, Hess Corp. (NYSE: HES), reported its first quarter 2017 earnings results on April 26, 2017. AWS will be initiating a research report on Hess Corp. in the coming days.

Today, AWS is promoting its earnings coverage on EQT; touching on HES. Get our free coverage by signing up to:

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Earnings Reviewed

For the quarter ended March 31, 2017, EQT's net operating revenue surged 64.7% year over year to $897.52 million as compared to revenue of $545.07 million in Q1 2016. The Company's top line exceeded Analyst Consensus of 704.41 million.

For Q1 2017, EQT announced net income attributable to the Company of $164.0 million, or $0.95 earnings per diluted share (EPS), compared to Q1 2016 net income attributable to EQT of $5.6 million, or $0.04 EPS. Adjusted net income attributable to EQT was $74.8 million or $0.43 for the reported quarter, compared to adjusted net income attributable to EQT of $7.7 million or $0.05 for the year earlier quarter, primarily due to an increase in natural gas prices. The Company's adjusted earnings fell short of Wall Street estimates for earnings of $0.45 per share

Segment Results

During Q1 2017, EQT Production achieved sales volume of 190 Bcfe in, representing a 6% increase on y-o-y basis. The segment's operating revenue totaled $828.7 million, which was $345.0 million higher than Q1 2016. Average realized price for the reported quarter was $3.50 per Mcfe, 33% higher than the $2.63 per Mcfe realized in the same period last year. Pipeline and net marketing services revenue totaled $14.5 million in Q1 2017.

EQT Production's operating income totaled $257.4 million for Q1 2017, compared to an operating loss of $5.5 million in Q1 2016, driven by an increase in the average realized price, increases in gains on derivatives not designated as hedges, an increase in production sales volume, and increases in pipeline and net marketing services revenue, partly offset by increased operating expenses. EQT Production's adjusted operating income totaled $108.2 million for the reported quarter, compared to an adjusted operating loss of $2.0 million in the year earlier quarter.

The Company drilled (spud) 48 gross wells during Q1 2017, including 28 Marcellus wells, with an average expected length-of-pay of 8,600 feet, 19 Upper Devonian wells, with an average expected length-of-pay of 9,000 feet and one Utica well with an expected length-of-pay of 8,000 feet.

EQT Gathering

For Q1 2017, EQT Gathering operating revenue was $102.3 million, a $4.3 million increase compared to the year ago period, driven by production development in the Marcellus Shale. Firm reservation fee revenue was $94.3 million in the reported quarter, a $12.3 million increase compared to the year ago quarter. EQT Gathering's operating income was $73.6 million, $1.0 million higher as compared to the year ago quarter.

EQT Transmission

EQT Transmission Q1 2017 operating revenue was $101.1 million, a $13.3 million increase over Q1 2016, which was a result of affiliates contracting for additional capacity under firm contracts, primarily on the OVC, and higher contractual rates on existing contracts. Firm reservation fee revenue was $92.3 million in Q1 2017, a $22.2 million increase over Q1 2016. The segment's operating income was $71.5 million for the reported quarter, $7.0 million higher on a y-o-y basis.

Marcellus Acreage Acquisitions

On February 01, 2017, EQT acquired approximately 14,000 net Marcellus acres located in Marion, Monongalia, and Wetzel Counties, West Virginia from a third-party for $130 million. On February 27, 2017, the Company acquired approximately 85,000 acres including 53,400 net Marcellus acres in the Company's liquids-rich West Virginia core development areas, with drilling rights on 44,100 net Utica acres, from Stone Energy Corp. for $522.5 million.

Cash Flow

During Q1 2017, net cash provided by EQT's operating activities was $514.8 million, $229.9 million higher than Q1 2016. The Company's adjusted operating cash flow attributable to EQT was $322.3 million, $105.0 million higher than the year earlier same quarter.

Outlook

For FY17, EQT is forecasting production sales volume in the range of 835 billion–855 billion cubic feet equivalent (Bcfe). Liquids volume is estimated at 12,060 tousand–12,460 thousand barrel of oil equivalent. Adjusted cash flow is expected to be $1.30 billion. For Q2 2017, EQT is projecting production sales volume at 190–195 Bcfe.

Stock Performance

At the close of trading session on Monday, May 08, 2017, EQT Corp.'s stock price dropped 1.87% to end the day at $57.13. A total volume of 2.52 million shares were exchanged during the session, which was above the 3-month average volume of 2.05 million shares. The stock currently has a market cap of $10.24 billion and has a dividend yield of 0.21%.

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SOURCE: Active Wall Street