Summary
EQT Corporation reported a net loss attributable to EQT Corporation of $39.7 million ($0.15 per diluted share) for the third quarter of 2018, a significant decline compared to a net income of $23.3 million ($0.13 per diluted share) in the same period of the previous year. This downturn was largely driven by an $259.3 million impairment/loss on sale of long-lived assets related to the divestiture of non-core Huron Play assets, alongside increased operating expenses, higher interest expense, and increased net income attributable to noncontrolling interests. For the nine-month period ended September 30, 2018, EQT Corporation reported a net loss of $1.6 billion ($6.12 per diluted share), a substantial shift from the net income of $228.5 million ($1.32 per diluted share) in the corresponding period of 2017. This was primarily due to a significant impairment charge of $2.7 billion related to the divestiture of Huron and Permian Play assets, coupled with increased operating expenses and higher interest costs. Despite these losses, the company saw an increase in revenues due to an 84.4% rise in production sales volumes, largely a result of the Rice Merger and increased production from drilling programs, although this was partially offset by divestitures and normal production decline. The company is also progressing with its plan to separate its upstream and midstream businesses into two independent companies, Equitrans Midstream Corporation, with the distribution expected in November 2018.
Financial Highlights
51 data points| Revenue | $1.05B |
| Cost of Revenue | $420.75M |
| Gross Profit | $628.85M |
| SG&A Expenses | $51.82M |
| Operating Expenses | $1.20B |
| Operating Income | -$147.45M |
| Interest Expense | $56.18M |
| Net Income | -$39.69M |
| EPS (Basic) | $-0.15 |
| EPS (Diluted) | $-0.15 |
| Shares Outstanding (Basic) | 259.56M |
| Shares Outstanding (Diluted) | 259.56M |
Key Highlights
- 1EQT Corporation reported a net loss of $39.7 million for the third quarter of 2018, a significant decrease from the net income of $23.3 million in the prior year's third quarter.
- 2The nine-month period ended September 30, 2018, resulted in a net loss of $1.6 billion, a sharp contrast to a net income of $228.5 million in the same period of 2017.
- 3A substantial impairment charge of $2.7 billion was recognized for the nine months ended September 30, 2018, related to the divestiture of Huron and Permian Play assets.
- 4Total operating revenues increased by 75.7% for the three months ended September 30, 2018, reaching $1.16 billion, driven by an 82.5% increase in production sales volumes.
- 5Capital expenditures for the nine months ended September 30, 2018, significantly increased to $2.81 billion, up from $2.08 billion in the prior year, reflecting higher development and midstream infrastructure investments.
- 6The company is actively pursuing a separation of its upstream and midstream businesses into two distinct publicly traded companies, Equitrans Midstream Corporation, with the distribution of shares planned for November 2018.
- 7Interest expense nearly doubled for the nine months ended September 30, 2018, to $240.1 million, primarily due to increased debt from recent financings and acquisitions.