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EQT Corporation Reports Upbeat 1Q18 Revenue and Earnings

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EQT’s 1Q18 revenue

EQT Corporation (EQT) reported its 1Q18 earnings today. The company reported revenue of ~$1.43 billion, versus analysts’ estimates of ~$1.39 billion. In 1Q18, the company reported revenue of $894 million.

Revenues were higher on account of increased sales volumes of natural gas, oil, and NGLs (natural gas liquids). Revenues from sales volumes of natural gas, oil, and NGLs were $1.22 billion in 1Q18, compared to $673.46 million in 1Q17. The increase in revenues from this segment was primarily because of an 88% increase in production volumes—which was mainly a result of the acquisition of Rice Energy as well as increased production from the company’s 2016 and 2017 drilling programs.

Production volumes in 1Q18 were 357 Bcfe (billion cubic feet equivalent), compared to ~190 Bcfe in 1Q17.

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EQT’s 1Q18 earnings

EQT reported adjusted EPS (earnings per share) of $1.01 in 1Q18, in line with Wall Street analysts’ consensus estimate of $1.00. In 1Q17, EQT reported adjusted EPS $0.44.

EQT’s adjusted earnings excluded the impact of a $2.3 billion impairment charge, non-cash derivative gains, and around $35.7 million of transaction-related expenses. EQT’s 1Q18 earnings were partially offset by high operating expenses. Operating expenses for 1Q18 were $3.16 billion, compared to $503.19 million in 1Q17.

Key 1Q18 highlights

On February 21, EQT Corporation (EQT) announced its plans to spin off its midstream business, creating a standalone, publicly traded corporation. The midstream spin-off is subject to customary conditions, but EQT Corporation (EQT) expects the midstream separation to complete by the end of 3Q18.

To learn more, see What EQT’s Midstream Spin-off Could Mean for Investors.

EQT agreed to sell its Permian Basin assets for $64 million. The sale is expected to close by the end of June.

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