| News

Larger text Larger text Smaller text Smaller text | Order Photo Reprints

EQT notches 40 percent hike in quarterly profit

Email Newsletters

Sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

Daily Photo Galleries

By Timothy Puko
Thursday, April 25, 2013, 8:12 a.m.

EQT Corp.'s stock hit a five-year high on Thursday as the company announced record production and a nearly 40 percent increase in profit during the first three months of 2013.

Downtown-based EQT earned $100.3 million, or 66 cents per share, compared with $72 million, or 48 cents per share, in the same period a year ago. Revenue rose to $558.7 million from $450 million a year ago.

The company's stock jumped $5.38, or nearly 8 percent, to close at $73.96 per share.

“Great results,” Neal Dingmann, an analyst with SunTrust Robinson Humphrey Inc. said, beginning the question-answer period of the company's earnings call. “You guys continue to have just great results ... particularly in the Marcellus.”

With more wells coming online, the company doubled its gas production from Marcellus shale compared to a year ago on nearly unchanged exploration and production costs of $28.6 million. EQT produced 54.5 billion cubic feet of gas from 276 Marcellus wells. Nearly 70 percent of its gas production comes from the shale formation.

The company finished pipelines ahead of schedule and had wells that produced 4 percent more than expected. Some wells in Greene County stretch more than 7,000 feet sideways underground, as part of well pads producing around 100 million cubic feet per day, CEO David L. Porges said.

Beyond the Marcellus, EQT is drilling wells in other Appalachian shale formations. The company has cash on hand to spend and company officials are confident it can “support growth of more than 20 percent for several years,” Porges said.

To do that, EQT is trying to consolidate around its Marcellus shale drilling business. On Thursday, its officials claimed they're one step closer to a big milestone in that effort.

EQT wants to sell its utility arm to Peoples Natural Gas Co. in a $720 million deal and said Wednesday the Federal Trade Commission is giving the companies permission to proceed.

The FTC had raised anti-competition concerns about the deal in 2009. This month it let an April 22 deadline pass without asking for more information from the companies, which EQT said it views as a sign the commission isn't objecting.

“You will have a lot of incremental cash coming in the door,” said Holly Stewart, an analyst at Howard Weil Inc. “It's a high-class problem to have.”

Timothy Puko is a Trib Total Media staff writer. Reach him at 412-320-7991 or

Subscribe today! Click here for our subscription offers.



Show commenting policy

Most-Read Stories

  1. Police charge New Florence man in St. Clair officer’s killing
  2. Penn State coach fires offensive coordinator
  3. Travelers advised to arrive 2 hours early for flights from Pittsburgh International Airport
  4. New Kensington man killed in North Buffalo crash
  5. Police officer fatally shot in New Florence; suspect in custody
  6. Indiana Twp. liver transplant recipient, 2, takes steps toward normal life
  7. Four downs: Steelers might still be Adams’ best bet
  8. Aliquippa wins 16th WPIAL title, ends South Fayette’s 44-game winning streak
  9. Zatkoff’s, Malkin’s heroics not enough as Oilers down Penguins in shootout
  10. Thomas Jefferson uses defense, running game to capture WPIAL title
  11. As historic breakup nears, Alcoa works to redefine its ‘advantage’