EQT Corporation (NYSE: EQT) today announced third quarter 2013 earnings of $88.3 million, or $0.58 per diluted share; 177% higher than the third quarter 2012 earnings of $31.9 million, or $0.21 per diluted share. Operating cash flow was $232.8 million, 36% higher; and adjusted cash flow per share was $1.92, 68% higher. EQT’s third quarter 2013 operating income was $170.5 million, 98% higher. The non-GAAP financial measures are detailed and reconciled in the Non-GAAP Disclosures section below.
Third Quarter Highlights 2013 vs. 2012:
- Production sales volume was 42% higher
- Marcellus production sales volume was 74% higher
- Production LOE per Mcfe was 17% lower
- Production SG&A per Mcfe was 34% lower
- Midstream gathered volume was 43% higher
- Midstream gathering and compression expense per unit was 29% lower
Earnings per share, adjusted cash flow per share, and operating income were higher due to increased production sales volume, higher commodity prices, increased gathered volume, and increased firm transmission capacity sales and throughput. Net operating revenues increased 42% to $469.3 million; while net operating expenses only increased 23%, to $298.8 million, in support of the Company’s growth.
RESULTS BY BUSINESS
For the third quarter 2013, EQT Production had sales volume of 96.9 Bcfe, an average of 1.0 Bcfe per day, which was a 42% increase over the third quarter 2012. This increase was driven by production from the Marcellus, which averaged 787 MMcfe per day, 74% higher than last year. Natural gas liquids (NGL) volume totaled 1,150 Mbbls, a 35% increase over the same period last year. The Company’s fourth quarter and full-year 2013 sales volume guidance is 97 Bcfe and 366 Bcfe, respectively, which is approximately 42% higher than 2012; and its fourth quarter and full-year 2013 NGL volume guidance is 1,300 Mbbls and 4,875 Mbbls, respectively.