EQT Posts Disappointing Q4 Results; Shares Drop 3%

Natural gas production company EQT Corporation (NYSE: EQT) recently reported weaker-than-expected results for the quarter ended December 31, 2021, as earnings missed estimates.

Following the results, shares of the company declined almost 3% to close at $20.86 in Wednesday’s extended trading session.

Revenue & Earnings

EQT’s quarterly operating revenues stood at $3.84 billion, up 207.2% from the same quarter last year. This growth was derived from a 31.4% year-over-year rise witnessed in total sales volume from 401 bcfe to 527 bcfe.

The company’s earnings per share (EPS) at the end of the quarter stood at $0.41, which compares favorably with a loss per share of $0.02 in the same quarter last year. However, the figure failed to surpass the consensus estimate of $0.51 per share.

EQT’s average realized price of $2.68 per mcfe at the end of the quarter denotes a year-over-year rise of 16.5%.

The company’s net cash provided by operating activities for the quarter stood at $1.17 billion, while free cash flow was $422 million.

Outlook

For 2022, EQT expects sales volume in the range of 475 Bcfe to 525 Bcfe in the first quarter and between 1,950 Bcfe and 2,050 Bcfe for full-year 2022. Further, it forecasts free cash flow to be in the range of $1.400 billion and $1.750 billion for full-year 2022.

Management Commentary

The CEO of EQT, Toby Rice, said, “In 2021, we further improved our balance sheet, successfully completed the acquisition and integration of Alta Resources, announced ambitious net zero targets and rewarded shareholders by implementing a comprehensive shareholder return program, consisting of a quarterly cash dividend and authorization to repurchase $1 billion of our common stock. We enter 2022 excited about the trajectory of our Company and our role in addressing climate change and supporting global energy equality.”

Price Target

Consensus among analysts is a Strong Buy based on 7 Buys and 1 Hold. The average EQT stock prediction of $30.88 implies upside potential of 43.6% from current levels. Shares have gained 28.2% over the past year.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on EQT, as 4.8% of portfolios tracked by TipRanks increased their exposure to EQT stock over the past 30 days.

Download the TipRanks mobile app now

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure

Related News:
CVS Reports Strong Q4 Results; Shares Fall 2.6% Pre-Market
Cognizant Renews Contract with Volvo Cars
Doximity Jumps Over 8% on Upbeat Q3 Results