EQT exceeds profit expectations on higher natgas sales and prices
EQT Corp, a U.S. energy company, beat Wall Street expectations for adjusted second-quarter profit on Tuesday. The higher natural gas prices, and increased sales volume, helped to send its shares up by 1.6% during extended trading.
The company has also increased its production forecast for the full year to reflect Olympus' $1.8 billion purchase.
According to the U.S. Energy Information Administration, higher natural gas prices in 2025 compared to last year has supported production levels.
Energy sector is benefiting from the increase in demand for gas due to LNG exports, and increased power consumption because of hotter temperatures.
Toby Rice, CEO of EQT said: "We're seeing tremendous momentum in the demand for natural gas-powered power in basins and data centers. EQT has a unique position to take advantage of this setup."
EQT’s average realized natural gas price jumped 20,6% over the past year to $2.81 for a thousand cubic feet (Mcfe).
The total volume of sales was 568.227 million cubic foot equivalent (MMcfe), up from 507,512 Mcfe one year ago.
The company expects to produce between 2,300 and 2400 billion cubic foot equivalents (Bcfe) per year, up from the previous 2,200-2300 Bcfe.
EQT's primary focus is the exploration and production natural gas in the Appalachian Basin encompassing Ohio, Pennsylvania, and West Virginia.
According to data compiled and reported by LSEG, the company's adjusted profit for the quarter ending June 30 was 45 cents per common share. This is above analysts' average estimates of 41 cents. (Reporting and editing by Devika Syamnath in Bengaluru)
(source: Reuters)
