EQT beats quarterly profit estimates on strong natural gas prices, sales volumes

The U.S. energy company EQT Corp. beat Wall Street expectations for the third-quarter profits on Tuesday. This was due to higher natural gas prices as well as sales volumes.

Following the results, shares of the company increased by 1.9% on extended trading.

According to the Energy Information Administration’s Short-Term Energy Outlook, both demand and production of natural gas in the United States are expected to reach record levels by 2025.

Energy sector is benefiting from an increase in natural gas demand, supported by LNG imports. Also, power consumption has increased due to higher temperatures and data center operations.

EQT has also lowered its forecast for the full year sales volume to between 2,325 to 2,375 billion cubic foot equivalent (Bcfe), down from its previous view of 2,300 - 2,400 Bcfe.

The company has raised its liquid sales and ethane sale forecasts to the range of 16400 to 16,700 thousand (Mbbl), and 7150 to 7,300, respectively.

EQT realized an average price of $2.76 for a thousand cubic feet (Mcfe), compared to $2.38 a year earlier.

The total volume of sales for the third quarter was 634 395 million cubic feet (MMcfe) compared to 581 414 MMcfe one year ago.

The total volume of sales is expected to range between 550 Bcfe and 600 Bcfe during the quarters October-December.

EQT's primary focus is on natural gas exploration and production, with a particular emphasis in the Appalachian Basin, which spans Ohio, Pennsylvania, and West Virginia.

The company signed LNG supply agreements with a total of 4.5 million tonnes annually during the third quarter.

Sempra

NextDecade

Commonwealth LNG

Beginning in 2030-2031

According to data compiled and reported by LSEG, the company's adjusted profit for the quarter ending September 30 was 52 cents/share. This is higher than analysts' average estimates of 43 cents/share. Sumit Saha, Bengaluru. Edited by Shreya Biwas.

(source: Reuters)