EQT Corporation EQT reported third-quarter 2024 adjusted earnings from continuing operations of 12 cents per share, which beat the Zacks Consensus Estimate of 5 cents. The bottom line declined from the year-ago reported earnings of 30 cents per share.

Adjusted operating revenues increased to $1.38 billion from $1.19 million in the prior-year quarter. However, the top line missed the Zacks Consensus Estimate of $1.43 billion.

The better-than-expected quarterly earnings were driven by higher sales volume and average realized prices. This was partially offset by higher total operating expenses.

EQT Corporation Price, Consensus and EPS Surprise

EQT Corporation price-consensus-eps-surprise-chart | EQT Corporation Quote

Production

Sales volume increased to 581 billion cubic feet equivalent (Bcfe) from the year-ago level of 523 Bcfe. The reported figure also beat our estimate of 552.7 Bcfe.

Natural gas sales volume was 547.2 Bcf, up from 491.5 Bcf in the year-ago quarter. The figure also beat our estimate of 521.6 Bcf.

The total liquid sales volume was 5,699 thousand barrels (MBbls), up from the year-ago level of 5,205 MBbls. The figure also exceeded our projection of 5,191.7 MBbls.

Commodity Price Realizations

The average realized price was $2.38 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago figure of $2.28 per Mcfe.

The average natural gas price, including cash-settled derivatives, was $2.23 per Mcf, which increased year over year from $2.14.

The natural gas sales price was $2.27 per Mcf, lower than the year-ago reported number of $2.68.

However, oil price was $61.25 per barrel compared with the year-ago figure of $66.75, and our estimate for the same was pinned at $58.24.

Expenses

Total operating expenses were $1.57 billion in the third quarter, higher than $1.17 billion reported in the prior-year quarter. The reported figure also came in higher than our estimate of $1.33 billion.

However, gathering expenses totaled 20 cents per Mcfe, down from the year-ago level of 63 cents. Transmission expenses totaled 43 cents per Mcfe, up from 32 cents recorded a year ago. Lease operating expenses amounted to 9 cents, up from the prior-year figure of 8 cents.

Cash Flows

EQT’s adjusted operating cash flow totaled $522.29 million in the reported quarter, up from $442.75 million a year ago. The negative free cash flow totaled $121 million, up from $1.8 million in the year-ago period.

Capex & Balance Sheet

Total capital expenditure was $558 million, up from $445 million reported a year ago.

As of Sept. 30, 2024, the company had cash and cash equivalents of $88.9 million, and net debt worth $13.8 billion.