Why EQT Stock Bumped Higher Today

A strong beat on the profitability front was the news pushing EQT's (NYSE: EQT) stock upward on Wednesday. That was the highlight of the natural gas producer's fourth-quarter report, and it helped its stock land in positive territory with a nearly 1% gain on the day. That topped the S&P 500 index's 0.2% increase.

Fourth-quarter falls

EQT unveiled its fourth-quarter and full-year results after the closing bell Tuesday. The company's revenue for the quarter was $1.62 billion, a 20% year-over-year drop. GAAP net income also dropped by 17% to land at $418 million.

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The result was a mixed quarter for the natural gas producer. On average, analysts tracking the stock had been modeling for $1.8 billion in revenue, but only $0.50 per share for net income. Instead, it booked net income of $0.69 per diluted share.

During the quarter, the company's sales volume rose by 7% to 605 billion cubic feet of natural gas equivalent (Bcfe). Its average realized selling price also headed north by 8% to $3.01 per thousand cubic feet equivalent. The combination of these rises meant a 20% improvement in EQT's sales of natural gas, natural gas liquids, and oil. The tally for this was $1.64 billion.

However, the gains were offset by a more than $183 million loss in derivatives. The company booked a nearly $672 million gain on derivatives in the prior-year period.

Production guidance adjusted

In another positive move, EQT raised its production guidance for 2025 by 125 Bcfe. That brought its new guidance for the year to a range of 2,175 Bcfe to 2,275 Bcfe. Management expects that its free cash flow will land at $2.6 billion this year, and $3.3 billion in 2026.

The bottom-line beat was heartening for EQT investors, and their optimism about the stock appears justified. As long as natural gas demand doesn't drop significantly, the company should be able to hit its new targets.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends EQT. The Motley Fool has a disclosure policy.