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PITTSBURGH - EQT Corporation (NYSE:EQT) shares gained 2.6% after the natural gas producer reported third-quarter results featuring record low operating costs that helped offset revenue and earnings misses.
The company reported third-quarter revenue of $1.68 billion, below analyst estimates of $1.83 billion, while adjusted EPS came in at $0.52, compared to the consensus of $0.41. Despite the revenue shortfall, EQT delivered strong operational performance with sales volume of 634 Bcfe, toward the high end of guidance, and achieved record low per unit operating costs of $1.00 per Mcfe, 7% below the midpoint of guidance.
Capital expenditures for the quarter totaled $618 million, 10% below the midpoint of guidance, driven by continued efficiency gains and midstream cost optimization. The company generated $484 million in free cash flow attributable to EQT during the quarter.
"Third quarter results built upon EQT’s extensive track record of delivering operational and financial outperformance," said President and CEO Toby Z. Rice. "Production, operating expenses, capital spending and price realizations were all at the favorable end of guidance, highlighting the efficiency gains and tangible synergy capture of our vertically integrated platform."
The company achieved operational integration of all upstream and midstream assets acquired from Olympus Energy just 34 days after closing, the fastest operational transition in EQT’s acquisition history. EQT also set multiple operational records, including the highest pumping hours in a month and the fastest quarterly completion pace.
For the fourth quarter, EQT expects total sales volume of 550-600 Bcfe, which includes the impact of 15-20 Bcfe of strategic curtailments, with total capital expenditures projected at $635-735 million.
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