Summary
EQT Corporation reported a net loss attributable to EQT Corporation of $44.8 million for the nine months ended September 30, 2019, a significant improvement from the $1.6 billion net loss in the same period of 2018. This improvement was driven by a substantial reduction in impairment charges related to the 2018 Divestitures, which significantly impacted the prior year's results. Despite increased operating revenues year-over-year for the nine-month period, a substantial unrealized loss on the investment in Equitrans Midstream Corporation and higher proxy, transaction, and reorganization costs weighed on the bottom line in the current period. The company is undergoing a business transformation under new leadership aimed at lowering operating costs and increasing free cash flow generation through improved efficiency and technology adoption. Financially, EQT Corporation saw a decrease in net cash provided by operating activities for the nine months ended September 30, 2019, primarily due to cash provided by discontinued operations in the prior year. Investing activities showed a significant reduction in cash used, largely due to lower capital expenditures reflecting a strategic shift towards capital efficiency. The company's liquidity remains supported by its credit facility and a new term loan, although it is actively managing its debt and plans to dispose of its retained shares in Equitrans Midstream to further reduce debt. Investors should monitor the execution of the transformation plan and its impact on cost savings and cash flow generation, as well as the ongoing volatility in natural gas prices.
Financial Highlights
50 data points| Revenue | $769.63M |
| Cost of Revenue | $437.94M |
| Gross Profit | $331.69M |
| SG&A Expenses | $79.38M |
| Operating Expenses | $1.11B |
| Operating Income | -$161.53M |
| Interest Expense | $47.71M |
| Net Income | -$361.03M |
| EPS (Basic) | $-1.41 |
| EPS (Diluted) | $-1.41 |
| Shares Outstanding (Basic) | 255.24M |
| Shares Outstanding (Diluted) | 255.24M |
Key Highlights
- 1EQT reported a net loss of $44.8 million for the nine months ended September 30, 2019, a significant improvement from a $1.6 billion loss in the same period of 2018, largely due to reduced impairment charges.
- 2Total operating revenues for the nine months increased slightly to $3.4 billion from $3.3 billion in the prior year, driven by an increase in sales volumes.
- 3The company recorded a substantial unrealized loss of $276.8 million on its investment in Equitrans Midstream Corporation during the first nine months of 2019.
- 4Selling, general and administrative expenses increased significantly for both the three-month and nine-month periods, primarily due to higher royalty and litigation reserves and severance costs related to workforce reductions and strategic alignment initiatives.
- 5Capital expenditures decreased by 50% to $1.4 billion for the nine months ended September 30, 2019, reflecting a strategic shift towards capital efficiency.
- 6Net cash provided by operating activities decreased to $1.6 billion from $2.4 billion in the prior year, impacted by prior period discontinued operations and lower cash operating revenues relative to expenses.
- 7The company settled a significant legal claim related to royalty underpayments and trespass for $54 million, with $51 million paid in October 2019.