EQT Swings to Q1 Loss

Pittsburgh-based EQT, the largest natural gas producer in the US, reported May 7 a Q1 2020 net loss of $167mn, reversing a $191mn profit in the comparable period a year ago. Adjusted pre-tax earnings fell to $468mn from $710mn.

The company attributed to decrease to, among other things, a loss on its investment in Equitrans Midstream, a loss on the exchange of long-lived assets and increased impairment charges. But unlike many US and Canadian operating companies, EQT refrained from blaming its loss on either the Covid-19 pandemic or the crude price war launched in March by Russia, Saudi Arabia and other Opec+ combatants.

“To date, the company has experienced limited operational impacts as a result of the Covid-19 work from home restrictions or Covid-19 directly,” it said. “Similarly, the Company expects to have limited direct operational impacts from the Opec oil price war.”

Nor has it felt much impact from the global oversupply of oil and natural gas liquids stemming from the demand destruction caused by Covid-19 measures: it has limited direct exposure to crude oil and NGL market forces, since 95% of its production is natural gas.

Sales volumes in Q1 were unchanged at about 4.2bn ft³ equivalent/day.