EQT narrowly topped earnings estimates and met revenue expectations with its second-quarter results Wednesday. EQT stock, which had dropped during the day continued to decline after the market closed Wednesday.
EQT Earnings
Estimates: Analysts forecasted EPS of 77 cents on $1.6 billion in sales for the second quarter.
Results: Revenue increased 61% to $1.6 billion in the second-quarter. EQT saw its earnings per share soar more than 1000% to 83 cents.
Outlook: The company reported that its capital spending in Q2 had increased 52% to $376 million. Based on EQT's inflation forecasts it expects its capital expenditures for 2022 to be $1.4-$1.5 billion. This is increased from its forecast of $1.3-$1.45 billon in the first-quarter. EQT maintained its full-year guidance with an adjusted EBITDA of $3.8- $4 billion.
"We had a solid operational quarter, with material gains in completion efficiency despite a continued tight oilfield service backdrop," CEO Toby Rice stated in a press release.
EQT stock fell 0.37% to 45.40 on Wednesday. The stock continued to drop after the market closed.
The company, headquartered in Pittsburgh, also focuses its natural gas production operations in the Marcellus and Utica shales which are located in the Appalachian Basin. This area extends from the Adirondack Mountains in New York to central Alabama. EQT missed earnings estimates in the first-quarter with EPS of 81 cents and $1.57 billion in sales.
EQT ranks fifth among oil & natural gas stocks in the integrated energy industry group. It has a 99 Composite Rating and a 99 Relative Strength Rating. The company has an EPS Rating is 78.
Oil And Gas Prices Diverge
EQT's Q2 results comes after natural gas industry peer Range Resources beat earnings estimates Monday, as the natural gas producer reported a 429% earnings increase while its sale rose more than 100%. RRC stock ended Monday up more than 7% before increasing early Tuesday.
Quarterly reports from these natural gas producers comes as natural gas and crude oil prices have begun to noticeably diverge, with the former rising and the latter pulling back from recent highs. The price of natural gas has increased amid rising demand in Europe and the U.S. Natural gas stocks generally fell late last week, despite natural gas prices reaching five-week highs. Meanwhile, crude oil dropped to test technical lows.
U.S. natural gas prices briefly hit $9.7 per million British thermal units Tuesday, marking a new 14-year high. On Wednesday prices retreated 3.4%.
U.S. crude oil prices settled just above $94 late last week, extending losses for a third straight session. However, oil has rebounded this week and on Wednesday increased 3.3% to around$98 per barrel.
Russia's Gazprom also announced Monday that it would reduce gas flows through the Nord Stream pipeline, which connects Russia's gas fields with Europe.
The Nord Stream pipeline will be flowing at 20% capacity as of Wednesday, according to Gazprom. In June, Gazprom had announced that supply from the Nord Stream pipeline would be limited by 40%.
Natural Gas Stocks: Range Resources Earnings
Estimates: Wall Street predicted earnings per share of $1.21 and $958 million in sales.
Results: RRC reported an increase in revenue of 131% to $1.06 billion in revenue. EPS also ballooned 429% to $1.27 for the second-quarter.
Range Resources' Q2 capital spending was $127 million, approximately 27% of the 2022 budget. The company added that drilling and completion spending was $119 million. Total capital expenditures in 2022 have been $244 million. However, RRC expects capital spending to decline in second half of 2022. The company maintains that its full-fiscal year capital spending guidance of $460 million-$480 million.
"In the midst of a global energy crisis, the need for oil and gas production from the United States is more important than ever. In order for U.S. supply to meet growing domestic and global demand, however, there must be support for the required infrastructure, including permit approvals and construction of pipelines, compression, processing facilities and LNG export terminals. Range is well positioned to serve and benefit from this call on American natural gas supply given our access to multiple domestic and international markets for natural gas and NGLs and, more importantly, our multi-decade core inventory life in Appalachia," CEO Jeff Ventura said in a statement.
RRC stock increased 1.78% to 33.69 during Wednesday's market trading. On Tuesday, the stock closed up 4%.
Range Resources, which is based in Fort Worth, is a leading U.S. natural gas producer with its main operations in Pennsylvania. It targets the Marcellus, Utica and Upper Devonian shale formations. The Marcellus shale is currently the largest natural gas field in the country.
RRC ranks 11th in the oil & natural gas stocks in U.S. exploration and production industry group. stock has a Composite Rating of 98. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock's performance over the last 52 weeks holds up against all the other stocks in IBD's database. Its EPS rating is 79.
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