EQT Corporation’s (EQT) second quarter 2013 adjusted earnings increased to 57 cents per share from 21 cents in prior-year quarter and surpassed the Zacks Consensus Estimate of 55 cents. The year-over-year increase was primarily attributable to increases in production sales, prices, gathered volumes, and transmission capacity sales and throughput.
Net operating revenue in the quarter was $520.1 million, ahead of the Zacks Consensus Estimate of $485.0 million and above the year-ago number of $337.8 million.
Segment Details
EQT Production's second quarter operating revenues increased 93% year over year to $306.1 million. The growth came from a 54% increase in sales volume and higher average effective price, partially offset by an increase in operating expenses. Operating income increased from $17.7 million a year ago to $105.1 million.
Under the EQT Midstream segment, revenues rose 21.3% year over year to $131.3 million in the reported quarter. Of this, net gathering revenues surged 21% year over year to $87.0 million, owing to 50% growth in gathered volumes. Net transmission revenue increased 81% year over year to $38.8 million. Net storage, marketing and other operating revenue fell $9.2 million year over year to $5.5 million, owing to lower margins and reduced activity. Operating income rose $12.5 million year over year to $72.2 million.
EQT Distribution’s net operating revenue increased $1.1 million year over year to $32.3 million. The segment generated operating income of $6.2 million versus $6.4 million a year ago.
Financials
The company’s operating cash flow was $316.7 million during the quarter, reflecting an increase of 90.8% year over year.
EQT’s capital expenditure totaled $499 million, with $398.1 million spent on EQT Production, $91.3 million on EQT Midstream and $9.6 million on EQT Distribution.
Guidance
The company has increased its full-year production sales volume guidance to 360–365 Bcfe, which is 40% higher than 2012. It also raised its 2013 NGL volume guidance to 4,800–5,000 Mbbls.
Ranks
The company holds a Zacks Rank #2, which translates to a short-term Buy rating. However, there are other Zacks Ranked #1 (Strong Buy) stocks – VOC Energy Trust (VOC), Blueknight Energy Partners, L.P. (BKEP) and Memorial Production Partners LP (MEMP), – in the oil and gas sector that are expected to outperform the market in the coming one to three months.
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment