Summary
EQT Corporation reported a significant financial turnaround in the six months ended June 30, 2017, compared to the same period in 2016. The company shifted from a net loss of $253.0 million to a net income of $205.1 million, with diluted EPS improving from a loss of $1.56 to $1.18. This improvement was driven by a substantial increase in total operating revenues, up from $672.6 million to $1,588.4 million, largely due to a significant positive swing in 'Gain (loss) on derivatives not designated as hedges' and higher sales of natural gas, oil, and NGLs. Operationally, EQT Production saw a strong rebound, with operating income improving dramatically from a loss of $453.2 million to income of $310.2 million. This was bolstered by higher average realized prices and increased sales volumes, alongside favorable shifts in derivative instrument valuations. The company also continued to invest heavily in its assets, with capital expenditures for the six months rising to $1.56 billion from $813.0 million in the prior year, including significant acquisitions and continued development in the Marcellus play. A major development during the period was the announcement of the proposed merger with Rice Energy Inc. on June 19, 2017, valued at approximately $6.7 billion. This strategic move is expected to further consolidate EQT's position in the Appalachian Basin and is anticipated to close in the fourth quarter of 2017. The company maintained a strong balance sheet, with total assets growing to $15.7 billion and equity increasing, despite increased debt related to ongoing operations and the pending acquisition.
Financial Highlights
49 data points| Revenue | $631.10M |
| Cost of Revenue | $134.82M |
| Gross Profit | $496.28M |
| SG&A Expenses | $52.67M |
| Operating Expenses | $498.62M |
| Operating Income | $47.76M |
| Interest Expense | $44.08M |
| Net Income | $41.13M |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.24 |
| Shares Outstanding (Basic) | 173.46M |
| Shares Outstanding (Diluted) | 173.58M |
Key Highlights
- 1EQT Corp. reported a significant profit for the six months ended June 30, 2017, a substantial improvement from a net loss in the same period of 2016. Net income attributable to EQT Corporation was $205.1 million, compared to a net loss of $253.0 million in the prior year.
- 2Total operating revenues more than doubled, reaching $1.59 billion for the first six months of 2017, up from $672.6 million in the first six months of 2016, largely driven by gains on derivatives and increased sales of natural gas, oil, and NGLs.
- 3The EQT Production segment saw a remarkable turnaround, moving from an operating loss of $453.2 million in the first half of 2016 to an operating income of $310.2 million in the first half of 2017.
- 4Capital expenditures increased significantly to $1.56 billion for the six months ended June 30, 2017, compared to $813.0 million in the prior year, reflecting substantial investments in acquisitions and ongoing development.
- 5On June 19, 2017, EQT announced a major strategic move: an agreement to merge with Rice Energy Inc. for approximately $6.7 billion, expected to close in Q4 2017.
- 6The company's average realized price for natural gas and liquids increased by 33.8% to $3.17 per Mcfe for the six months ended June 30, 2017, compared to $2.37 per Mcfe in the prior year.
- 7Total assets grew to $15.7 billion as of June 30, 2017, while total liabilities remained relatively stable, indicating a strong balance sheet position prior to the proposed Rice merger.