EQT's profit for the fourth quarter beats estimates due to higher natural gas prices and sales
EQT's fourth-quarter profit exceeded analysts' estimates on Tuesday as the natural gas company benefited from increased prices and sales.
The natural gas price rose during the first quarter of this year, reaching a peak that has not been seen in two years. This was due to an increase in gas flow to export plants for liquefied gas. Prices were also boosted by the forecast of more cold weather for January, which will increase heating demand.
EQT realized an average price of $3.01 per 1,000 cubic feet equivalent during the third quarter, up 9.5% from the previous year. The total volume of sales was up 7.3% to 605,183 million cubic feet equivalent.
In extended trading, shares of the company rose 1.9%.
EQT plans to reduce its debt, and expects to spend between $1.9 billion and $2.12 million in the current fiscal year. This is lower than the analysts' estimated $2.39 billion.
The company said that its total debt as of December 31, 2009 was $9.3 billion. This debt accumulated after the purchase in July of Equitrans Midstream for $14 billion.
EQT sold a minority stake in some of its gas pipelines to Blackstone for $3.5 billion through a joint-venture last year. Equinor also bought the remaining interest of EQT's non-operated assets in northeast Pennsylvania for $1.25 Billion.
LSEG data shows that EQT reported an adjusted profit per share of 69 cents for the quarter ending December 31. This compares to analysts' average estimates of 49 cents.
(source: Reuters)
