Shares of natural gas production company EQT Corp. (EQT) have gained 34.8% over the past six months. However, EQT’s recent fourth-quarter performance fell short of the Street’s estimates on its bottom-line front.
Higher sales volumes helped EQT increase revenue 207% year-over-year to $3.84 billion. The figure was better than analysts’ estimates by $2.35 billion. Earnings per share at $0.41, on the other hand, missed consensus by $0.12.
Notably, the average realized price per mcfe (thousand Cubic feet equivalent) at $2.68 registered year-over-year growth of 16.5%.
With these developments in mind, let us take a look at the changes in EQT’s key risk factors that investors should know.
According to the TipRanks Risk Factors tool, EQT Corp’s top risk category is Production, contributing 15 of the total 38 risks identified for the stock, compared to a sector average of 9 Production risk factors.
In its recent report, the company has added one key risk factor under the Production risk category.
EQT highlighted that its primary business entails exploration, production, and sale of hydrocarbons (primarily, natural gas). As a result, its performance hinges upon the market prices of natural gas and to a lesser extent natural gas liquids (NGLs) and oil. Prices of these commodities have been historically volatile and the company expects this volatility to continue.
These prices are impacted by a number of factors that are outside of EQT’s control. If future movements of prices of natural gas, NGLs, and oil are substantially different than EQT’s estimates, then the company’s plans and strategies could see an adverse impact.
Hedge Fund Activity
According to TipRanks data, the Wall Street’s top hedge funds have increased holdings in EQT Corp by 1.3 million shares in the last quarter, indicating a very positive hedge fund confidence signal in the stock based on activities of 13 hedge funds.
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