Thursday, integrated energy company EQT Corp. (EQT) reported a slump in profit for the third quarter, as higher revenues from increased production was offset by long-term incentive compensation expense and lower commodity prices.
The Pittsburgh, Pennsylvania-based company's net income for the third quarter plunged to $2.91 million or $0.02 per share from $96.20 million or $0.73 per share in the prior-year quarter. Results for the quarter included a $45.4 million net gain from its production hedges.
Excluding long-term incentive compensation and office relocation expenses, net income for the quarter declined to $28.45 million or $0.22 per share from $41.74 million or $0.32 per share in the year earlier period.
On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.17 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.
Operating revenues for the quarter declined to $218.36 million from $297.83 million last year. Analysts had a consensus revenue estimate of $170.92 million for the quarter.
Segment wise, EQT Production operating revenues for the quarter were down at $91.9 million from a year ago. Sales of produced natural gas increased by 18.5% to 25.2 billions of cubic feet equivalent, or Bcfe, driven by horizontal air drilling in the Huron/Berea play.
EQT Midstream net operating revenues for the quarter rose 23% year-over-year to $87.5 million, while distribution's net operating revenues increased to $25.3 million from $22.4 million last year.
Purchased gas costs for the quarter declined to $13.57 million from $82.11 million in the corresponding quarter last year, while sales of produced natural gas increased 18.5% to 25.2 Bcfe from last quarter.
Operating income for the quarter was $39.93 million, down 75% from $67.43 million a year earlier, reflecting lower commodity prices, while operating expenses for the quarter rose to $178.43 million from $135.10 million in the same quarter last year. Operating cash flow for the quarter dropped to $62.56 million from $205.42 million in the prior-year quarter.
The company also completed its relocation from Pittsburgh's North Shore to an office building located in downtown Pittsburgh, to accommodate its growth, and recognized an accounting charge of $4.1 million related to the move.
For the nine-month period, EQT's net income decreased to $101.55 million or $0.77 per share from $222.11 million or $1.74 per share in the same period last year.
Operating revenues for nine months decreased to $925.80 million from $1.17 billion last year.
EQT is currently trading at $44.27, up $1.97 or 4.66%, on a volume of 1.41 million shares on the NYSE.
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