Why EQT Corporation Rallied Today
The natural gas company missed earnings but announced big supply deals that helped overcome near-term pricing weakness.
Overview
Shares of natural gas driller EQT Corporation (NYSE: EQT) rallied 8.5% in Wednesday's trading.
EQT reported second-quarter earnings today. While revenue and earnings per share actually came in lower than Wall Street analysts expected, the company also increased its production targets for the year while lowering costs. Meanwhile, management also announced big new supply deals that more than offset the earnings shortfall.
Details
In the second quarter, EQT's revenue plunged 29% to $1.81 billion, missing estimates by $30 million, while adjusted (non-GAAP) earnings per share fell a more modest 13% to $0.39. The bulk of the big decline in revenues was due to a much lower gain on derivative contracts, or hedges on natural gas prices. On top of that, the average realized price of natural gas also fell year over year by about 6% to $2.65 per thousand cubic feet (Mcfe).
Source
Originally published at www.fool.com.