By Pittsburgh Business Times

EQT Corp. (NYSE:EQT) posted net income of $30 million for the second quarter this year, up from $26.6 million for the same period in 2009. The 20 cent per share calculation remained the same.

The Downtown Pittsburgh-based natural gas supplier, which recently appointed David Porges CEO, reported revenue of $257.5 million, compared with $238 million in the year ago period.

The biggest chunk of the companyâ¿¿s operating income came from its midstream business, which gathers and processes natural gas.

EQT Midstream saw a 70 percent increase in the average sales price of natural gas liquids, which are common in southwestern Pennsylvania gas deposits.

The companyâ¿¿s earnings release stated:
"EQT Productionâ¿¿s sales of produced natural gas consisted of approximately 11% NGLs in the second quarter. EQT Midstream bought the NGLs from EQT Production at natural gas market prices and sold the NGLs at higher NGL market prices, capturing a higher margin to EQT Corporation. EQT Corporation realized an average premium over the NYMEX natural gas price of $1.19 per Mcfe as a result of its liquids rich production; $0.48 per Mcfe is recognized as production revenue and $0.71 per Mcfe as processing net revenue at EQT Midstream."

The earnings report also updated investors on the companyâ¿¿s pursuit of a joint venture with DCP Midstream LLC, a Colorado-based company which is owned equally by Spectra Energy and ConocoPhillips.

The deal, which would ⿿create a natural gas processing and related NGL infrastructure joint venture to serve EQT and third party producers in the Appalachian basin,⿝ should be finalized in the next quarter, the company said.

Copyright 2010 American City Business Journals
Copyright 2010