Summary
EQT Corporation reported a significant improvement in financial performance for the first quarter of 2017 compared to the same period in 2016. Net income attributable to EQT Corporation surged to $164.0 million, or $0.95 per diluted share, from $5.6 million, or $0.04 per diluted share, driven primarily by a substantial increase in the average realized price of natural gas and oil, coupled with higher gains from derivatives not designated as hedges. The company also saw an increase in sales volumes and revenue from pipeline and marketing services, signaling a strengthening operational and market position. The company's EQT Production segment was the primary driver of this growth, showing a dramatic turnaround from an operating loss in Q1 2016 to a significant operating income in Q1 2017, largely due to favorable commodity pricing and strategic hedging. EQT Gathering and EQT Transmission also demonstrated solid performance with increased revenues, supported by expanded firm capacity contracts and new infrastructure coming online. The company also made significant strategic acquisitions during the quarter, acquiring substantial acreage in West Virginia, indicating a proactive approach to expanding its resource base and future production potential.
Financial Highlights
47 data points| Revenue | $828.66M |
| SG&A Expenses | $71.96M |
| Operating Expenses | $503.19M |
| Operating Income | $243.57M |
| Interest Expense | $42.66M |
| Net Income | $163.99M |
| EPS (Basic) | $0.95 |
| EPS (Diluted) | $0.95 |
| Shares Outstanding (Basic) | 173.21M |
| Shares Outstanding (Diluted) | 173.51M |
Key Highlights
- 1Net income attributable to EQT Corporation dramatically increased to $164.0 million ($0.95/share) in Q1 2017 from $5.6 million ($0.04/share) in Q1 2016.
- 2Total operating revenues rose to $897.5 million in Q1 2017 from $545.1 million in Q1 2016, driven by higher sales of natural gas, oil, and NGLs, and increased pipeline/marketing services revenue.
- 3EQT Production segment revenue increased by 71.3% to $828.7 million, and it swung from an operating loss of $5.5 million in Q1 2016 to an operating income of $257.4 million in Q1 2017.
- 4The company completed significant acquisitions of approximately 99,000 net Marcellus/Utica acres for $652.5 million in the first quarter of 2017, bolstering its resource base.
- 5Average realized price for natural gas and liquids increased significantly by 33.1% to $3.50/Mcfe in Q1 2017 compared to Q1 2016.
- 6Cash flow from operating activities increased by $229.9 million to $514.8 million, primarily due to higher operating income and timing of payments.
- 7Capital expenditures for the EQT Production segment significantly increased by 298.0% to $945.5 million, reflecting increased drilling and completion activity and acquisitions.