EQT Falls 4% Despite Q2 Earnings Beat Driven by Upstream Operations

EQT Corporation EQT reported robust second-quarter 2025 earnings, backed by its core upstream operations. Despite this, the stock price has lost nearly 4% since its earnings release on July 22. The leading natural gas producer is now undervalued, and its current affordability is reflected in its trailing 12-month enterprise value-to-EBITDA (EV/EBITDA) ratio of 8.47, significantly lower than the industry’s 10.83.EQT’s Upstream BusinessEQT is a leading producer of natural gas in the United States, with a primary focus on the Appalachian region. At its current drilling pace, the natural gas producer has sufficient locations to continue operations for more than three decades. The company expects its drilling and upstream operations to yield consistently good results, particularly during the drilling of new wells. It currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Robust Q2 EarningsEQT reported second-quarter 2025 adjusted earnings from continuing operations of 45 cents per share, which beat the Zacks Consensus Estimate of 44 cents. The bottom line increased from the year-ago reported loss of 8 cents.Adjusted operating revenues increased to $1,599 million from $1,183 million in the prior-year quarter. However, the top line missed the Zacks Consensus Estimate of $1,793 million.The strong quarterly earnings were driven by higher sales volume and increased average realized prices.Q2 Operations FavorableIn the June quarter, EQT produced 568.2 billion cubic feet (Bcfe) of natural gas, higher than 507.5 Bcfe in the prior-year quarter. The production volumes, however, marginally missed our estimate of 569.3 Bcfe.Natural gas contributed about 94% of the total production, amounting to 534.4 Bcf. Although this was slightly below our estimate of 535.3 Bcf, it increased from the previous year's 474.1 Bcf. The year-over-year growth was driven by strong well performance.Also, the upstream player reported an average natural gas price, including cash-settled derivatives, at $2.69 per Mcf, higher than $2.16 in the prior-year quarter.Earnings Update for XOM & CVXTwo other energy giants, Exxon Mobil Corporation XOM and Chevron Corporation CVX, are slated to release second-quarter results on Aug 1, 2025. XOM disclosed in an 8-K filing that it expects earnings to be hurt sequentially by lower oil and natural gas prices. With exploration and production activities contributing mostly to XOM’s bottom line, a weaker commodity pricing environment in the June quarter of this year is a concern.Softer commodity prices are expected to hurt XOM’s upstream business, as the energy giant forecasts that lower oil prices will sequentially decrease its upstream earnings by $800 million to $1.2 billion. A change in gas prices will reduce its upstream profit by $300 million to $700 million. Thus, it can be assumed that ExxonMobil’s second-quarter results are going to take a hit. The Zacks Consensus Estimate for XOM’s earnings for the June quarter is pegged at $1.46 per share, suggesting a decline of almost 32% year over year.Coming to Chevron’s story, the Zacks Consensus Estimate of CVX’s earnings for the second quarter is pegged at $1.66 per share, suggesting a decline of almost 35% year over year.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report EQT Corporation (EQT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks