EQT Corp. (NYSE: EQT) reported Q1 EPS of $0.83, $0.09 better than the analyst estimate of $0.74. Revenue for the quarter came in at $1.21 billion versus the consensus estimate of $1.21 billion.

• Sales volumes of 383 Bcfe exceeded guidance of 360-380 Bcfe and increased 13%, adjusted for divestitures, from the first quarter 2018
• Full year sales volume guidance raised 10 Bcfe to 1,480 - 1,520 Bcfe while full year capital expenditure guidance remains unchanged at $1.85 - $1.95 billion
• Diluted earnings per share (EPS) and adjusted EPS* increased 113% and 24% to $0.75 and $0.83, respectively, despite a 5% lower average realized price compared to the first quarter of 2018
• Income from continuing operations and adjusted EBITDA* increased 112% and 2% over the first quarter 2018 to $191 million and $710 million, respectively
• Capital expenditures decreased 22% to $476 million while feet of pay turned-in-line increased compared to the first quarter 2018
• Net cash provided by operating activities was $871 million in the first quarter 2019 and $1.4 billion in the last two quarters; adjusted free cash flow* was $171 million in the first quarter 2019 and $306 million in the last two quarters
• Positive operational results included significant improvements in rig and frac crew efficiencies such as:
  • Drilling days per 1,000 feet improved 25% over prior quarter and 32% since November 2018
  • Frac stages per crew increased 30% and non-productive time decreased 70% over the first quarter 2018
• Cash operating expenses per unit decreased 5% over the first quarter 2018
• On-target to achieve $150 million of cost savings in 2019, including $50 million identified as part of the Target 10% Initiative
• Net debt decreased by approximately $500 million since December 31, 2018

Robert J. McNally, president and chief executive officer, said, “Our strong operational performance is demonstrated through our first quarter results. We are achieving the ambitious targets we set in January, as evidenced by our improved financial and operational metrics in the quarter. We have generated over $300 million in adjusted free cash flow over the last two quarters and remain on track to achieve our 2019 free cash flow target.”

McNally added, “We will continue to identify incremental opportunities to operate more efficiently and further reduce costs. EQT is uniquely positioned to be one of the lowest-cost and most efficient operators in the Marcellus basin. Our consolidated core acreage position and long-lived inventory will enable us to increase lateral lengths and spacing, drive down per unit operating and capital costs, and deliver substantial free cash flow for many years to come. With a world-class asset base, a clear and compelling strategic plan, and an experienced, restructured leadership team focused on operational efficiency, we are building on our progress and creating significant long-term value for all EQT shareholders.”

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