Summary
EQT Corporation's first quarter 2019 results, filed on April 25, 2019, show a significant turnaround from the prior year, with a net income of $190.7 million compared to a net loss of $1.4 billion in Q1 2018. This dramatic improvement is largely attributed to the absence of a substantial impairment charge recorded in the first quarter of 2018. Total operating revenues decreased by 12.9% to $1.14 billion, primarily due to a substantial loss on derivatives not designated as hedges in Q1 2019 versus a gain in Q1 2018, and lower net marketing services and other revenue. However, sales of natural gas, oil, and NGLs saw a modest increase of 3.7% due to a 7% rise in sales volumes, driven by production from recent drilling programs, partially offset by the 2018 divestitures. From an operational perspective, EQT Corporation reported increased gathering and transmission expenses, influenced by higher sales volumes and expanded pipeline capacity. Conversely, processing, LOE, and production taxes decreased due to the impact of the 2018 divestitures and lower NGL sales volumes. The company also announced a tentative settlement for a gas royalty class action lawsuit, agreeing to pay $53.5 million, which will resolve claims for the class period of 2009-2017 upon court approval. EQT is focusing on cost reduction, operational efficiency, and returning capital to shareholders in its 2019 outlook, planning capital expenditures of approximately $1.5 billion for reserve development.
Financial Highlights
50 data points| Revenue | $1.27B |
| Cost of Revenue | $439.25M |
| Gross Profit | $832.37M |
| SG&A Expenses | $48.98M |
| Operating Expenses | $967.72M |
| Operating Income | $175.46M |
| Interest Expense | $56.57M |
| Net Income | $190.69M |
| EPS (Basic) | $0.75 |
| EPS (Diluted) | $0.75 |
| Shares Outstanding (Basic) | 254.88M |
| Shares Outstanding (Diluted) | 255.23M |
Key Highlights
- 1Reported a net income of $190.7 million for Q1 2019, a significant improvement from a net loss of $1.4 billion in Q1 2018, largely due to the absence of a large impairment charge from the prior year.
- 2Total operating revenues decreased by 12.9% to $1.14 billion in Q1 2019, impacted by a $132 million loss on derivatives not designated as hedges compared to a $62.6 million gain in Q1 2018.
- 3Sales of natural gas, oil, and NGLs increased by 3.7% to $1.27 billion, driven by a 7% increase in sales volumes, partially offset by 2018 divestitures.
- 4Invested $370.3 million in investing activities in Q1 2019, a decrease from $849.4 million in Q1 2018, reflecting lower capital expenditures.
- 5Announced a tentative settlement of $53.5 million for a gas royalty class action lawsuit, subject to court approval.
- 6Repurchased 3,621 shares for tax purposes related to restricted stock vesting in January 2019.
- 7Maintained investment-grade credit ratings from Moody's (Baa3) and S&P (BBB-), both with a Stable outlook.