EQT: Lower gas price offset higher production revenues in 2012 - Beckley, Bluefield & Lewisburg News, Weather, Sports

EQT: Lower gas price offset higher production revenues in 2012

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The lower price of natural gas in 2012 generally offset revenues from higher production volumes, EQT Corp. announced Jan. 24.

The Pittsburgh-based company, the third-largest gas producer in West Virginia in 2011, announced 2012 net income of $183 million, compared to $480 million in 2011. Extraordinary items affected those numbers in both years, the company said: negatively by $62 million in 2012 and positively by $238 million in 2011.

Adjusted earnings per diluted share were $1.49 in 2012, down from $2.19 in 2011.

The company logged record production sales volumes of 259 billion cubic feet equivalent in 2012, 33 percent higher than 2011 volumes, as well as record Marcellus sales volumes of 151 Bcfe, up 85 percent from 2011.

Operating revenues were $1.7 million higher in 2012 than in 2011, but the increase in production, gathering and transmission volumes was nearly offset by a 31 percent lower price for gas, as well as lower storage and marketing revenues. Expenses increased in 2012 by an amount consistent with the growth in produced volumes and midstream throughput.

Year-end proved reserves were up by 12 percent to 6.0 trillion cubic feet equivalent.

In the fourth quarter of 2012, EQT's operating income was $151 million, a 13 percent decrease from the same quarter of 2011.

Higher net operating revenues from an increase in production, gathering and transmission volumes was more than offset by lower commodity prices, lower storage, marketing and other net revenues, and higher costs related to the increased volumes.

Fourth quarter 2012 net income was $48 million, compared to $91 million in 2011.

The 2012 results were negatively impacted by items totaling $39 million, including a $23 million charge for the termination of an interest rate hedge, $4.5 million in expenses related to the pending sale of Equitable Gas, and a $4.4 million lease impairment. Fourth quarter 2012 adjusted EPS was $0.48, down from $0.59 in 2011.

EQT Corp. shares trade on the New York Stock Exchange under the symbol EQT.