| Will EQT Corp (EQT) Disappoint Earnings Estimates in Q1? - Analyst Blog | |
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EQT Corp. EQT is expected to report first-quarter 2015 earnings on Apr 23, before the market opens.
In the last quarter, the company’s earnings of 96 cents per share beat the Zacks Consensus Estimate of 69 cents. The quarter's results also increased 146% from the year-ago earnings of 39 cents per share. Let’s see how things are shaping up prior to the announcement.
Factors Likely to Affect Earnings
EQT is a low-cost producer with a strategic midstream presence. The company's superior cost structure and above-average growth may ease concerns about struggling natural gas prices. With an increasing reserve structure and a higher number of Marcellus wells likely to be drilled in the next five years, we believe that the company will exhibit industry-leading organic growth momentum during the first quarter.
The revised capital budget of $1.85 billion for EQT production lowers drilling of Marcellus and Permian wells by 59 and 5, respectively. However, with 168 wells waiting completion and 23 well waiting on the pipeline, the company is well positioned to deliver on its original production growth outlook of 1.6 billion cubic feet equivalent (Bcfe) per day by the end of 2015. Despite lowering of its 2015 capital budget to $2.05 billion from $2.5 billion, the company maintained its earlier production target of 575–600 Bcfe. EQT is expected to continue delivering consistent production growth in both the first quarter and full-year 2015 on the back of its E&P segment.
However, EQT remains highly exposed to volatile natural gas fundamentals and weak commodity prices, which might lead it to perform below our expectations.
EQT’s various multilateral drilling programs across its oil and gas fields face operational headwinds like rising service costs, completion delays and equipment failures. These may have an adversely effect on the company’s earnings.
Currently, EQT is drilling its first Pennsylvania Utica well in Greene County. The company faced higher-than-expected pressure during the initial phase of the drilling. A higher horsepower rig was then called to salvage the situation. This has unnecessarily delayed the drilling to quite an extent. Any more of such issues are likely to affect the company’s earnings going forward.
Earnings Whispers
Our proven model does not conclusively show that EQT Corp. is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here, as you will see below.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is currently pegged at -17.19%. The Most Accurate estimate for EQT Corp. stands at 53 cents while the Zacks Consensus Estimate is pegged higher at 64 cents.
Zacks Rank: EQT Corp. carries a Zacks Rank #3 (Hold). Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP, the company’s ESP of -17.19% makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Ranks #4 and 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Here are some other companies from the energy sector that, according to our model, have the right combination of elements to post an earnings beat this quarter:
Marathon Petroleum Corporation MPC has Earnings ESP of +1.77% and a Zacks Rank #1 (Strong Buy).
Kinder Morgan Inc. KMI has Earnings ESP of +5.00% and a Zacks Rank #3.
Chesapeake Energy Corporation CHK has Earnings ESP of +200.00% and a Zacks Rank #3. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CHESAPEAKE ENGY (CHK): Free Stock Analysis Report EQT CORP (EQT): Free Stock Analysis Report KINDER MORGAN (KMI): Free Stock Analysis Report MARATHON PETROL (MPC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Chesapeake Energy Corporation
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EN DÉVELOPPEMENT |
CODE : CHK |
ISIN : US1651671075 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Chesapeake Energy est une société de production minière basée aux Etats-Unis D'Amerique. Chesapeake Energy est en développement de projets de gaz et de pétrole en USA. Son principal projet en développement est DEEP BOSSIER en USA. Chesapeake Energy est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 82,5 milliards US$ (77,0 milliards €). La valeur de son action a atteint son plus bas niveau récent le 13 mars 2020 à 0,12 US$, et son plus haut niveau récent le 18 novembre 2022 à 99,94 US$. Chesapeake Energy possède 909 242 558 actions en circulation. |