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EQT NYSE· EQT Corp
Earnings report Q4 2023

EQT Corporation's Revenue Declines in Latest Quarter

Segments of revenue

In the latest quarter, EQT Corporation reported total operating revenues of $6.91 billion. The breakdown of revenue sources includes sales of natural gas, natural gas liquids, and oil, which amounted to $5.04 billion. Additionally, the company recorded a gain of $1.84 billion on derivatives. Net marketing services and other revenue contributed $25.21 million to the total operating revenues.

Strengths

Despite a decrease in net income compared to the previous year, EQT Corporation demonstrated resilience in its revenue generation. The company's sales of natural gas, natural gas liquids, and oil remained a significant revenue driver, contributing $5.04 billion to the total operating revenues. The gain on derivatives of $1.84 billion also positively impacted the company's financial performance. Management attributed the decrease in net income to decreased sales of natural gas, NGLs, and oil, which was partially offset by the gain on derivatives and decreased income tax expense.

Challenges

EQT Corporation faced challenges in its operating expenses, which amounted to $4.59 billion in the latest quarter. Transportation and processing expenses accounted for the largest portion, totaling $2.16 billion. Production expenses amounted to $254.70 million, while exploration expenses were relatively minimal at $3.33 million. Selling, general, and administrative expenses reached $236.17 million, and depreciation and depletion expenses were $1.73 billion. The company also incurred impairment and expiration of leases expenses of $109.42 million.

Noteworthy

It is worth noting that EQT Corporation's net income attributable to the company for the latest quarter was $1.73 billion, resulting in earnings per diluted share of $4.22. This represents a decrease compared to the previous year's net income of $1.77 billion and earnings per diluted share of $4.38. The decrease in net income was primarily attributed to decreased sales of natural gas, NGLs, and oil, partially offset by the gain on derivatives and decreased income tax expense.

Summary

EQT Corporation faced a decline in revenue in the latest quarter, primarily driven by decreased sales of natural gas, NGLs, and oil. However, the company demonstrated strengths in its revenue generation, particularly through sales of natural gas, NGLs, and oil, as well as gains on derivatives. Despite challenges in operating expenses, EQT Corporation maintained a solid financial position. The decrease in net income was primarily attributed to decreased sales, but the company's management remains optimistic about its performance.

Source documents

Form 10-K  filed on Feb 14, 2024
130 pages scanned

Reference data

Company financials Q4 revenue 1.34B
Analyst estimates Q4 EPS beat by 1.80%
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