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EQT’s Earnings: Key 2Q16 Highlights

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EQT’s 2Q16 revenue

EQT (EQT) reported its 2Q16 earnings on July 28. Its 2Q16 revenue was $276 million versus an estimate of $440.2 million. Revenue in 2Q15 was ~$433 million. In 1Q16, it was $545.2 million.

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EQT’s 2Q16 earnings

EQT reported an adjusted net loss of $57.6 million in 2Q16. Its adjusted net loss in the corresponding period in 2015 was $9.2 million.

The company reported adjusted EPS (earnings per share) of -$0.35. Wall Street analysts’ consensus estimate for EPS was -$0.42.

As you can see in the graph above, EQT’s earnings came in better than expected. However, reported revenues were a huge miss compared to estimates.

Peer comparison

Peers Noble Energy (NBL) and Antero Resources (AR) haven’t announced their 2Q16 earnings yet. Analysts expect the EPS for these companies to come in at about -$0.29 and $0.10, respectively. Watch this space for earnings coverage on these companies.

The above companies make up ~6.2% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

Key 2Q16 highlights

On July 8, 2016, EQT closed its Statoil acquisition. Earlier in May, EQT had announced that it will acquire 62,500 Marcellus Shale acres and natural gas production of 50 MMcfe (millions of cubic feet equivalent) per day from Statoil (STO) for $407 million.

Along with news of its acquisition, EQT had also announced a stock offering of ~12 million shares, including the underwriter’s option to purchase additional shares. The company raised $796 million through this stock offering.

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