Stock within Traders Concentration: EQT Corporation (NYSE: EQT)

On 21 Nov 2019, EQT Corporation (NYSE: EQT) changed -1.81% to recent value of $8.67. The stock transacted 4482595 shares during most recent day however it has an average volume of 6106.57K shares. It spotted trading -60.34% off 52-week high price. On the other end, the stock has been noted 0.70% away from the low price over the last 52-weeks.

EQT Corporation (EQT) recently reported financial and operational performance results for the third quarter 2019 and preliminary financial and operational guidance for 2020.

Third Quarter Highlights:

  • Achieved sales volumes of 381 Bcfe or 4.14 Bcfe/d
  • Received an average realized price of $2.47 per Mcfe
  • Capital expenditures of $475M; full-year 2019 guidance reduced by $115M, while maintaining full-year production guidance
  • Executed an asset exchange transaction for 16,000 net mineral acres in West Virginia, solidifying core position for future large-scale development
  • Step change in Marcellus horizontal drilling performance, improving rate of penetration by 50% over the second quarter of 2019

2020 Plan Highlights1:

  • Sales volumes of 1,450 – 1,500 Bcfe, roughly flat to 2019 predictable sales volumes
  • Capital expenditures of $1.30 – $1.40B, a $525M year-over-year reduction, contrast to previous2019 guidance2
  • Adjusted free cash flow (a non-GAAP measure)3of $200 – $300M; 7-11% free cash flow yield (a non-GAAP measure)3,4
  • Expect to reduce well costs, overhead, land and other capital expenditures by 25% relative to legacy costs
  • Executing large-scale combo development: 50% of wells turned-in-line and 80% of wells spud
  • Committed to reducing debt by at least $1.5B by mid-year
  • 87% of 2020 gas production hedged at a weighted average floor price of $2.71 per Dth

In the third quarter 2019, the Company stated a loss from continuing operations of $361M, or $1.41 per diluted share, contrast to a loss from continuing operations for the same period 2018 of $127M, or a loss of $0.49 per diluted share. The increase in the stated loss was attributable primarily to the unrealized loss on the investment in Equitrans Midstream Corporation (Equitrans Midstream), lower operating revenues and higher proxy, transaction and reorganization and other selling, general and administrative (SG&A) costs, partly offset by lower impairment costs as a result of the Company’s divestitures of its Permian and Huron assets in 2018 (the 2018 Divestitures).

Contrast to the same quarter last year, average realized price was 11% lower at $2.47 per Mcfe, due primarily to lower NYMEX prices and liquids sales, partly offset by cash settled derivatives and favorable average differential.

Net cash provided by operating activities reduced by 65% and adjusted free cash flow increased 41%. Adjusted free cash flow for the third quarter 2019 of $(178M) includes the impact of a raise in the royalty and litigation reserve of $37M and $77M of proxy, transaction and reorganization costs.

EQT has a gross margin of 39.80% and an operating margin of -21.30% while its profit margin remained -15.80% for the last 12 months. Its earnings per share (EPS) expected to touch remained -39.40% for this year.  The company has 254.66M of outstanding shares and 252.11M shares were floated in the market. According to the most recent quarter its current ratio was 1 that represents company’s ability to meet its current financial obligations. The price moved ahead of -15.23% from the mean of 20 days, -16.60% from mean of 50 days SMA and performed -44.03% from mean of 200 days price. Company’s performance for the week was -15.91%, -9.88% for month and YTD performance remained -54.10%.

 

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