Why Is EQT (EQT) Up 10.1% Since Last Earnings Report?

Core Viewpoint - EQT Corporation reported strong third-quarter earnings, with adjusted earnings per share of 52 cents, surpassing estimates, while revenues increased year-over-year but fell short of consensus expectations [3][4]. Financial Performance - Adjusted operating revenues rose to $1,753 million from $1,383 million year-over-year, although it missed the Zacks Consensus Estimate of $1,804 million [3]. - The company’s adjusted operating cash flow reached $1.22 billion, significantly up from $522 million a year ago, and free cash flow improved to $601 million from a negative $121 million [10]. Production and Sales - Sales volume increased to 634 billion cubic feet equivalent (Bcfe) from 581 Bcfe year-over-year, but it was below the estimate of 638 Bcfe [6]. - Natural gas sales volume was 596 Bcf, up from 547 Bcf, yet it also fell short of the estimate of 604 Bcf [6]. - Total liquid sales volume rose to 6,459 thousand barrels (MBbls) from 5,699 MBbls, exceeding the projection of 5,748 MBbls [6]. Commodity Prices - The average realized price for natural gas equivalent was $2.76 per thousand cubic feet (Mcfe), up from $2.38 year-over-year [7]. - The average natural gas price, including cash-settled derivatives, increased to $2.66 per Mcf from $2.23 [7]. - However, oil prices declined to $49.12 per barrel from $61.25 year-over-year, missing the estimate of $50.07 [8]. Expenses - Total operating expenses decreased to $1.36 billion from $1.57 billion year-over-year [9]. - Gathering expenses fell to 6 cents per Mcfe from 20 cents, and transmission expenses decreased to 40 cents per Mcfe from 43 cents [9]. Dividend Announcement - EQT declared a quarterly cash dividend of 16.50 cents per share for Q3 2025, reflecting a sequential increase of approximately 5%, payable on December 1, 2025 [5]. Capital Expenditures and Balance Sheet - Total capital expenditure was $618 million, up from $558 million year-over-year [11]. - As of September 30, 2025, the company had cash and cash equivalents of $236 million and net debt of $7.98 billion [11]. Guidance - For Q4 2025, EQT expects total sales volume between 550 and 600 Bcfe and has updated its total sales volume forecast for 2025 to 2,325-2,375 Bcfe [12]. - Projected capital expenditures for Q4 are between $635-$735 million, with full-year expectations of $2,300-$2,400 million [12]. Market Sentiment - There has been a downward trend in estimates, with the consensus estimate shifting down by 13.89% [13]. - EQT currently holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [15].