EQT’s 4Q17 and 2017 revenue
EQT (EQT) reported its 4Q17 and 2017 earnings on February 15, 2018. It reported revenue of $1.1 billion compared to analysts’ estimate of $728 million. It reported revenue of $379 million in 4Q16.
EQT’s revenue for 2017 was $3.4 billion compared to $1.6 billion in 2016. The company credited its revenue growth to improved production and realized energy prices.
EQT completed its acquisition of Rice Energy on November 13, 2017. Through the acquisition, EQT gained a controlling interest in Rice Midstream Partners LP (RMP).
EQT’s 4Q17 and 2017 earnings
EQT reported adjusted EPS (earnings per share) of $0.76 in 4Q17, which was higher than Wall Street analysts’ consensus estimate of $0.26. In 4Q16, EQT reported adjusted EPS of $0.25.
EPS for 2017 was $1.47 compared to -$0.33 in 2016. Its higher earnings were supported by tax benefits resulting from the recently enacted tax reform legislation.
EQT management noted in its 4Q17 earnings release, “As a result of the federal tax reform legislation, net income for the three months and year-ended December 31, 2017, includes a tax benefit of approximately $1.2 billion for the revaluation of existing net deferred tax liabilities to the lower corporate tax rate.”
Earnings for 4Q17 and 2017 were partially offset by high operating expenses of $781.4 million for 4Q17 compared to $577.4 million in 4Q16. In 2017, EQT reported operating expenses of $2.5 billion compared to $2.1 billion in 2016.