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EQT in 3Q17: Improved Price and Production Outlook?

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EQT in 3Q17: Improved Price and Production Outlook? PART 1 OF 6

How Will EQT Corporation’s Revenue and Earnings Fare In 3Q17?

EQT Corporation’s 3Q17 revenue estimates

EQT Corporation (EQT) is scheduled to release its 3Q17 earnings on October 26. Its 3Q17 revenue estimates stand at ~$676.9 million. Its revenue in 3Q16 was ~$556.7 million, while in 2Q17, its revenue was $690.8 million.

How Will EQT Corporation’s Revenue and Earnings Fare In 3Q17?

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In 3Q17, analysts expect EQT’s revenue to be higher than in 3Q16, as we can see above. This outlook is likely a result of improved natural gas prices in 3Q17 versus 3Q16. In 3Q17, natural gas prices were averaging ~$2.955 per MMBtu (million British thermal units) while in 3Q16 they were averaging $2.796 per MMBtu.

In 3Q17, revenues are expected to fall slightly versus 2Q17. Natural gas prices in 2Q17 were averaging $3.139 per MMBtu—higher than the 3Q17 average.

Revenue expectations are also based on expected production levels. EQT’s 3Q17 volumes are expected to rise both on a year-over-year and sequential basis. We’ll talk about EQT’s production expectations in the next part of this series.

As a result of increased 3Q17 production estimates and higher realized prices in 3Q17 versus 3Q16, revenue in 3Q17 is expected to be higher versus 3Q16.

The impact of lower natural gas prices (leading to lower realized prices for EQT) in 3Q17 compared to 2Q17 will likely offset increased production estimates in 3Q17 over the previous quarter, explaining the estimated sequential revenue decline.

EQT’s 3Q17 earnings estimates

EQT’s 3Q17 loss per share estimate is ~$0.03. In 3Q16, the company had posted an adjusted loss of $0.26 per share. The improved loss per share estimates in 3Q17 likely result from improved revenue expectations in 3Q17. Compared to 2Q17, 3Q17 earnings are expected to fall—likely due to lower revenue expectations.

EQT’s peers Cabot Oil and Gas (COG), Noble Energy (NBL), and Antero Resources (AR) are expected to report 3Q17 earnings per share of -$0.10, approximately -$0.12, and $0.04, respectively, compared to their corresponding 3Q16 earnings of -$0.02, -$0.21, and $0.13.

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