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Jun 30, 2023
EQT Q2 2023 Earnings Report
EQT's financial performance declined compared to the previous year due to lower realized prices, though drilling and completion efficiencies improved and debt was reduced.
Key Takeaways
EQT's second quarter results showed a net loss, driven by lower natural gas prices, despite increased production efficiency and debt reduction. The company is progressing with the Tug Hill and XcL Midstream acquisition and advancing its LNG strategy.
Second quarter production was 471 Bcfe, aligning with guidance.
The company retired $800 million of debt, bringing the total debt reduction to $1.9 billion since December 2021.
EQT achieved record drilling performance and improved completion efficiency by 20 percent year-over-year.
A Heads of Agreement (HOA) was signed for tolling at Lake Charles LNG for 1 million tons per annum.
EQT
EQT
EQT Revenue by Segment
Revenue by Segment
Natural gas sales Revenue
CapyFin.comNGLs sales Revenue
CapyFin.comOil sales Revenue
CapyFin.com Forward Guidance
EQT maintains its full year 2023 total sales volume expectation of 1,900 – 2,000 Bcfe and capital expenditures expectation of $1,700 – $1,900 million.
Positive Outlook
- Maintains expectation of 1,900 - 2,000 Bcfe total sales volume for 2023.
- Maintains expectation of $1,700 - $1,900 million capital expenditures for 2023.
- Plans to turn-in-line 26 – 38 net wells during the third quarter of 2023.
- Expects liquids sales volume, excluding ethane, to be 8,900 – 9,300 Mbbl for full year 2023.
- Expects ethane sales volume to be 6,000 – 6,200 Mbbl for full year 2023.
Challenges Ahead
- All guidance items exclude the impact of the pending Acquisition.
- Average differential for full year 2023 is expected to be ($0.60) – ($0.35) per Mcf.
- Gathering per unit operating costs are expected to be $0.65 – $0.67 per Mcfe for full year 2023.
- Transmission per unit operating costs are expected to be $0.33 – $0.35 per Mcfe for full year 2023.
- SG&A per unit operating costs are expected to be $0.12 – $0.14 per Mcfe for full year 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income