Why Is Energy Company EQT Stock Sliding Today?

EQT Corp EQT shares are trading lower after it reported fourth-quarter FY24 adjusted operating revenues of $1.549 billion, missing the consensus of $1.571 billion.

Adjusted EPS of $0.48 missed the consensus of $0.52.

Production stood at 564 Bcfe vs. 459 Bcfe a year ago toward the high-end of guidance driven by continued operational efficiency gains and strong well performance.

The average realized price declined to $2.75/Mcfe from $2.87/Mcfe a year ago.

Operating cash flow stood at $624 million, and free cash flow came in at $236 million.

Adjusted EBITDA rose to $840 million from $679 million a year ago in the quarter.

In the quarter, the company inked a deal with a minority equity partner to acquire their ~34% stake in EQT-operated gathering systems for $205 million.

As of December 31, 2023, the company had no revolving credit facility borrowings, $15 million of letters of credit outstanding under its $2.5 billion revolving credit facility, and a net debt of $5.7 billion.

The company had total proved reserves of 27.6 Tcfe in 2023, up 10% Y/Y, reflecting the Tug Hill and XcL Midstream Acquisition.

Outlook: In 2024, EQT expects sales volume of 2,200 – 2,300 Bcfe and maintenance capital expenditures of $1.950 billion– $2.050 billion.

Also, EQT plans to spend $200 million – $300 million on strategic growth capital expenditures in the year.

In the first quarter of 2024, the company projects a sales volume of 525 Bcfe – 575 Bcfe, including 10 – 15 Bcfe impact from lower sales volume due to non-operated midstream constraints. 

Also Read: EQT Reportedly Eyes $3B Marcellus Shale Selloff – Aiming High For Financial Revival?

Price Action: EQT shares are trading lower by 1.61% at $33.55 premarket on the last check Wednesday.