EQT misses quarterly profit estimates on weak gas prices, raises production forecast

The 'energy company EQT, based in the United States, missed Wall Street expectations for a?second quarter profit on Tuesday due to lower natural gas prices.

The Middle East conflict sent international benchmark prices soaring, but the U.S. Henry Hub prices were well below historical and previous averages due to record domestic production, storage capacity and comfortable levels.

Natural gas futures were $3.020 for a million British thermal units. This is a 17.5% decrease from the previous year. EQT realized price including hedges fell from $2.81 to $2.65 per thousand cubic feet.

However, the company raised its forecast for full-year production in 2026 to?2.38 billion cubic feet, equivalent to 2,45 tcfe. This is up from 2.28 trillion cubic foot to 2.38 tcfe. The company cited infrastructure investments which are boosting output. In?extended trade, its shares rose 1.6%.

EQT's primary focus is on?exploration of and production of natural gases, with a particular emphasis in the Appalachian Basin spanning Ohio Pennsylvania and West Virginia.

Capital expenditure grew by 20.2%, or $666 million, to $634 billion.

The company expects to sell between?570 and 620 billion cubic feet of gas in the third quarter.

EQT signed a 10-year agreement with U.S. independent energy producer Competitive?Power Ventures for the supply of 325,000 dekatherms of natural gas per day to a?West Virginia facility, with prices linked to PJM markets.

The company has also signed a five-year deal with a large Asian integrated power company to purchase 0.5 million tonnes of LNG per year from Gulf Coast facilities, starting in 2028.

According to data compiled and analyzed by LSEG, the Pittsburgh-based company reported an adjusted profit 'of 39 cents a share?for quarter ended June 30. This compares with the analysts' average expectation of 40 cents a share.

(source: Reuters)