EQT 1Q17: Production Up 6%, Revenue Up 2,829%

EQT, one of the biggest drillers in the Marcellus/Utica, had quite a ride in 2016. A good ride! In the last 10 months EQT has added 220,000 acres to its Marcellus/Utica portfolio–by buying large tracts from other companies. One of the deals included buying the other company (Trans Energy) lock, stock and barrel (see EQT Buys Trans Energy + 60K Marc/Utica Acres in 2 Deals for $683M). EQT recently turned in its 1Q17 update. While EQT’s production went up by 6% in the first quarter, its net income went through the roof–up 2,829%! In 1Q16 EQT’s net income was $5.6 million. In 1Q17, net income was $164 million. Somebody is doing something right. On the ever-present quarterly earnings call, EQT’s newly-minted CEO, Steve Schlotterbeck, said EQT’s strategy is to consolidate “scattered acreage positions in Appalachia.” According to Steve, the companies that consolidate, “will hold a competitive advantage that will yield higher returns for their shareholders” and “further consolidation within the Marcellus core is the best path to creating a sustained competitive advantage.” Below is EQT’s full 1Q17 update, the latest PowerPoint slide deck, and select comments by Steve from the earnings call…

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