Integrated energy player, EQT Corporation’s (EQT) third-quarter 2014 adjusted earnings per share decreased to 51 cents from 58 cents in the year-earlier quarter. The figure also came below the Zacks Consensus Estimate of 65 cents.
Net operating revenue in the quarter was up 20.7% year over year at $578.7 million. However, reported revenues came much below the Zacks Consensus Estimate of $590.0 million.
Segment Details
EQT Production's third-quarter operating revenue increased 19.4% year over year to $363.1 million. Total sales volume of 123.3 billion cubic feet equivalent (Bcfe), which was a 25% increase over third-quarter 2013, was primarily driven by greater production from the Marcellus/Upper Devonian plays. Natural gas liquids (NGL) volume totaled 2,008 Mbbls, 87% higher than the year-ago period. This was due to increased liquids production in the Marcellus and Permian.
Operating income rose 43.5% year over year to $140.0 million.
Under the EQT Midstream segment, net gathering revenues increased 12% year over year to $102.4 million, owing to 24% growth in gathered volumes. Net transmission revenues increased 40% year over year to $55.8 million. Net storage, marketing and other operating revenues were $8.2 million, representing a 1.0% year over year rise.
Operating income rose 19.2% year over year to $93.6 million.
Cash Flow
The company’s adjusted operating cash flow was $335.3 million during the quarter, reflecting an increase of 42% year over year.
Wells Spud
In the reported quarter, the company spud 42 gross wells in the Marcellus, 13 Upper Devonian wells, and 36 Huron wells.
Guidance
Production sales volume for 2014 is projected at 465–470 Bcfe, and liquids volume is expected at 6,650–6,750 thousand barrel of oil equivalent (MBBl).
Zacks Rank
The company currently holds a Zacks Rank #5 (Strong Sell). Meanwhile, one can consider better-ranked energy sector stocks such as Tallgrass Energy Partners LP (TEP), Delek Logistics Partners LP (DKL) and Enbridge Energy Management LLC (EEQ). All these stocks currently sport a Zacks Rank #1 (Strong Buy).
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