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EQT Corp Beats Profit Estimates on Gas Surge
18 Feb
Summary
- EQT Corp surpassed Wall Street's profit expectations for the fourth quarter.
- Higher natural gas prices and increased sales volumes significantly boosted earnings.
- Data centers and LNG exports are driving strong demand for U.S. natural gas.
EQT Corp, a U.S.-based energy firm, announced it surpassed Wall Street's earnings estimates for the fourth quarter. This financial achievement was primarily attributed to a favorable market environment characterized by higher natural gas prices and increased sales volumes.
The energy sector is experiencing robust demand for natural gas. This is largely propelled by the growing needs of power-intensive data centers and a significant rise in liquefied natural gas (LNG) exports from the United States.
U.S. natural gas futures saw a sequential increase of over 11% during the fourth quarter. This rise followed two previous quarters of declining prices, signaling a rebound driven by heightened demand and greater pipeline throughput.
During the quarter, EQT Corp reported an average realized price of $3.44 per thousand cubic feet equivalent (Mcfe) for natural gas, a 14.3% increase compared to the same period last year. Total quarterly sales volume also saw a slight uptick, rising to 608,994 million cubic feet equivalent (MMcfe) from 605,183 MMcfe year-over-year.
Consequently, the company posted an adjusted profit of 90 cents per share for the quarter ending December 31, exceeding the average analyst estimate of 74 cents per share.
