Natgas producer EQT misses quarterly profit estimates on lower prices
Feb 13 (Reuters) - EQT Corp, the largest U.S. natural gas producer, missed fourth-quarter profit estimates on Tuesday, as higher sales volumes were offset by lower gas prices.
U.S. natural gas prices averaged $2.83 per million British thermal units (Btu) during the October-December quarter, down about 51.3% from a year earlier, when demand for the commodity had soared following Russia's invasion of Ukraine.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The prices fell as the gas inventories peaked during the last quarter of 2023 quarter due to record production.
EQT said the average realized prices fell to $2.75 per thousand cubic feet equivalent (mcfe) in the fourth quarter from $2.87 per mcfe a year earlier, while its total sales volumes rose to 564 billions of cubic feet equivalent (bcfe) from 459 bcfe.
The company's drilling efficiency helped generate nearly $880 million of free cash flow in 2023, despite natural gas prices averaging at $2.74 per million Btu, CEO Toby Rice said.
Its per unit operating cost fell 8.3% in the reported quarter from $1.39.
EQT plans to run three to four horizontal rigs in 2024, expecting total sales volume of between 2,200 and 2,300 bcfe for the year.
The Pittsburgh, Pennsylvania-based company posted an adjusted profit of 48 cents per share for the quarter ended Dec. 31, compared with analysts' average estimate of a profit of 53 cents per share, according to LSEG data.
Shares of the company fell 2.5% in extended trading.
Revenue came in at nearly $1.55 billion, compared to estimates of $1.57 billion.
(Reporting by Seher Dareen in Bengaluru; Editing by Shinjini Ganguli)