PITTSBURGH - EQT Corporation (NYSE: NYSE:EQT (ST:EQTAB)), the largest natural gas producer in the United States, reported a narrower loss for the second quarter of 2024, with adjusted earnings per share (EPS) of -$0.08, surpassing analysts' expectations of -$0.19. However, the company's revenue for the quarter stood at $952.51 million, falling below the consensus estimate of $1.1 billion.
The company's sales volume reached 508 billion cubic feet equivalent (Bcfe), outperforming the high-end of its guidance, driven by operational efficiency gains and robust well performance. Despite these achievements, the revenue shortfall led to a modest stock increase of 0.74%, indicating a cautiously optimistic market response.
President and CEO Toby Z. Rice highlighted the quarter's operational outperformance and the company's transformative acquisition of Equitrans Midstream (NYSE:ETRN) Corporation, which positions EQT as a uniquely integrated natural gas business in America. Rice also noted the potential for the recent developments to lead to structurally lower well costs and future maintenance capital requirements.
For the full year 2024, EQT reaffirmed its total sales volume guidance of 2,100 – 2,200 Bcfe, which includes about 180 Bcfe of net production curtailments. The company also maintains its maintenance capital expenditures guidance of $1,950 – $2,050 million and its strategic growth capital expenditures guidance of $200 – $300 million. Post-acquisition, EQT plans to spend an additional $180 – $230 million on Equitrans capital expenditures for the remainder of the year.
EQT's focus on operational efficiency and cost management is reflected in the total per unit operating costs of $1.40 per Mcfe, which is below the low-end of guidance. Additionally, the company has reduced its total debt from $5.8 billion at the end of 2023 to $5.0 billion by the end of the quarter, demonstrating progress in its deleveraging plan.
As EQT continues to evolve and strengthen its position in the natural gas market, investors will closely monitor the company's ability to maintain cost advantages and capitalize on its integrated business model.
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