Summary
EQT Corporation reported a net loss of $66.6 million, or $0.18 per diluted share, for the third quarter of 2023, a significant swing from the $891.4 million net income, or $2.19 per diluted share, reported in the same period of 2022. This decline was primarily driven by lower natural gas and NGL prices, which reduced sales revenue. The company also experienced a considerable year-over-year decrease in total operating revenues, largely due to lower sales of natural gas, NGLs, and oil, which were down 74.8% for the quarter. However, a significant gain on derivatives in the current quarter, compared to a loss in the prior year, partially offset the revenue decline. For the six-month period, EQT reported net income of $1,151.9 million, a substantial improvement from the $624.7 million net loss in the first half of 2022, largely due to favorable derivative impacts and the absence of a significant contract asset impairment seen in the prior year. Operationally, EQT saw a decrease in total sales volume by 6.1% for the three months ended June 30, 2023, compared to the prior year, attributed to natural well decline, fewer wells turned-in-line in 2022 due to supply chain constraints, and delays in non-operated wells. The company maintained its planned capital expenditure range for 2023, focusing on reserve development, and provided sales volume guidance for the year. Despite the quarterly loss, the company highlighted its liquidity position and compliance with debt covenants, with plans to continue returning capital to shareholders through dividends and share repurchases.
Financial Highlights
48 data points| Revenue | $848.33M |
| Cost of Revenue | $523.16M |
| Gross Profit | $325.16M |
| SG&A Expenses | $60.16M |
| Operating Expenses | $1.05B |
| Operating Income | -$34.99M |
| Interest Expense | $39.88M |
| Net Income | -$66.63M |
| EPS (Basic) | $-0.18 |
| EPS (Diluted) | $-0.18 |
| Shares Outstanding (Basic) | 361.98M |
| Shares Outstanding (Diluted) | 361.98M |
Key Highlights
- 1EQT Corp. reported a net loss of $66.6 million for Q3 2023, compared to a net income of $891.4 million in Q3 2022.
- 2Total operating revenues decreased by 59.7% to $1.02 billion in Q3 2023 compared to $2.53 billion in Q3 2022.
- 3Sales of natural gas, NGLs, and oil significantly decreased by 74.8% to $848.3 million in Q3 2023.
- 4A gain on derivatives of $164.4 million was recognized in Q3 2023, a substantial improvement from a loss of $845.1 million in Q3 2022.
- 5Total sales volume for the quarter decreased by 6.1% year-over-year.
- 6The company's cash flow from operations for the six months ended June 30, 2023, increased to $2.1 billion from $1.25 billion in the prior year, driven by derivative settlements and working capital changes.
- 7EQT Corp. maintained its full-year 2023 capital expenditure guidance of $1.7 billion to $1.9 billion.