Summary
EQT Corporation's second quarter 2013 results show a significant improvement compared to the prior year, driven by strong performance in its EQT Production and EQT Midstream segments. The company reported a substantial increase in net income attributable to EQT Corporation, rising to $86.9 million ($0.57 per diluted share) from $31.4 million ($0.21 per diluted share) in the same period of 2012. This growth was fueled by a 55% surge in natural gas volumes sold and a 14% increase in average effective sales prices for natural gas and NGLs, alongside higher transmission pipeline throughput and gathered volumes. The EQT Production segment saw a dramatic increase in operating income, largely due to higher production sales volumes and improved average effective sales prices, boosted by a significant rise in NYMEX natural gas prices. EQT Midstream also demonstrated robust growth, with increased transmission and gathering revenues, reflecting new capacity from the Sunrise Pipeline and expanded gathering operations. The Distribution segment experienced a slight increase in operating income, benefiting from colder weather and favorable regulatory adjustments. Significant strategic moves were underway, including the pending sale of the Distribution segment (Equitable Gas and Homeworks) and the recent acquisition of approximately 99,000 net acres in southwestern Pennsylvania from Chesapeake Energy. These activities highlight EQT's focus on developing its core Marcellus Shale assets and optimizing its business portfolio.
Financial Highlights
44 data points| SG&A Expenses | $54.82M |
| Operating Expenses | $311.11M |
| Operating Income | $161.98M |
| Interest Expense | $37.38M |
| Net Income | $86.86M |
| EPS (Basic) | $0.58 |
| EPS (Diluted) | $0.57 |
| Shares Outstanding (Basic) | 150.53M |
| Shares Outstanding (Diluted) | 151.39M |
Key Highlights
- 1Net income attributable to EQT Corporation significantly increased to $86.9 million ($0.57/share) in Q2 2013 from $31.4 million ($0.21/share) in Q2 2012.
- 2Natural gas production sales volumes increased by 54% year-over-year for EQT Production, while average effective sales price rose by 26%.
- 3EQT Midstream experienced a 25.2% increase in total operating revenues, driven by growth in transmission and gathering services, including contributions from the Sunrise Pipeline.
- 4The company completed the acquisition of approximately 99,000 net acres in southwestern Pennsylvania from Chesapeake Energy for $112.5 million.
- 5EQT is proceeding with the planned sale of its Distribution segment (Equitable Gas and Homeworks), with regulatory approvals expected by the end of 2013.
- 6Capital expenditures increased to $500.8 million for the quarter, reflecting investment in the EQT Production segment's drilling and completion activities.
- 7The company's hedging strategy shifted, showing a smaller hedge gain in Q2 2013 compared to Q2 2012, attributed to higher natural gas prices and lower average hedge prices in the current period.