EQT Corporation Lifts Q1 Gas Volume View Despite Coronavirus

EQT Corporation EQT recently said that its operations are not getting affected much by the coronavirus pandemic.

Most energy players are bearing the brunt of the virus outbreak since oil price continues to trade in the bearish territory. However, with natural gas contributing mostly to total production volumes, the company has limited exposure to crude, which is safeguarding its business in such uncertain times.

Per the preliminary highlight of the March quarter, the company estimates sales volumes in the band of 380 to 385 billion cubic feet equivalent (Bcfe). Notably, the range stands above the prior guidance of 360-370 Bcfe.

Importantly, the company announced that its has spent lower capital in the March quarter for higher production volumes. This reflects the company’s strong operational efficiencies. In the preliminary highlight, the company estimates capital expenditure in the band of $250 to $270 million, suggesting a 25% drop from the December quarter of 2019.

Considering the pandemic and the possibility that natural gas price will improve, EQT Corporation is planning to get rid of several non-strategic properties for a total sum of roughly $125 million. The company is now in advanced talks over a possible sale. Importantly, the company believes that the combined amount from the asset divestments and incremental free cash inflows from well cost reduction techniques will be sufficient to repay debt, which will mature by 2021, by this year-end.

EQT Corporation Price

 

EQT Corporation Price

EQT Corporation price | EQT Corporation Quote

Headquartered in Pittsburgh, PA, EQT Corporation, a leading natural gas producer, currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy sector includeMontage Resources Corporation MR, Southwestern Energy Company SWN and Comstock Resources, Inc. CRK. While Montage Resources sports a Zacks Rank #1 (Strong Buy), Southwestern Energy and Comstock carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Montage has surpassed the Zacks Consensus Estimate for earnings in all the prior four quarters.

Southwestern Energy has an average positive earnings surprise of 22% for the past four quarters.

Comstock has surpassed the Zacks Consensus Estimate for earnings in the past two reported quarters.

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