Wed, Jul 24, 8:19 PM (45 days ago)
EQT Corporation's Q2 2024 financial report highlights mixed performance compared to the same period in 2023. Key points include: 1. **Revenue and Profitability**: Operating revenues decreased by 6.5% year-over-year to $952.5 million, driven by lower gains on derivatives and increased expenses, despite a 4.9% increase in sales of natural gas, NGLs, and oil. Net income attributable to EQT Corporation was $9.5 million ($0.02 per diluted share), a significant improvement from a net loss of $66.6 million in Q2 2023. 2. **Expenses**: Operating expenses rose due to higher production, depreciation, and depletion costs, partly offset by a gain from asset divestiture. Notably, production taxes and lease operating expenses saw substantial increases. 3. **Cash Flow**: Net cash provided by operating activities was $1.48 billion, down from $2.10 billion in the same period last year, mainly due to lower operating revenues and higher operational costs. 4. **Debt and Liquidity**: The company managed its debt effectively, with significant repayments and a new $750 million senior notes issuance. The revolving credit facility was increased to $3.5 billion, providing additional liquidity. 5. **Strategic Moves**: The completion of the Equitrans Midstream Merger is expected to enhance operational synergies and infrastructure connectivity, although integration challenges and additional transaction costs are anticipated. 6. **Market Risks and Future Outlook**: The company remains cautious about commodity price volatility and inflationary pressures, which could impact future operations and financial performance. Strategic curtailments in response to low natural gas prices have been implemented, affecting sales volumes. Overall, EQT Corporation's financial health shows resilience with strategic asset management and liquidity enhancements, but faces challenges from market volatility and integration costs from recent acquisitions.