Exchange: LSE | Sector: Energy | Industry: Oil Gas Energy
Q4 2024
Published: Jun 30, 2024
Earnings Highlights
Revenue of $90.03M up 1% year-over-year
EPS of $0.20 increased by 250% from previous year
Gross margin of 18.9%
Net income of 8.08M
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EQT Corporation (0IDU.L) QQ4 2024 Results Analysis: Resilient Gas Producer Delivers Solid Q4 with Meaningful Free Cash Flow (AUD Currency)
Executive Summary
EQT Corporation posted a robust Q4 2024 performance in AUD-denominated data, highlighting a high-quality gas-focused asset base and strong cash generation. Revenue for the quarter was AUD 89.43 million, with gross profit of AUD 26.68 million and net income of AUD 12.26 million, translating to gross and net margins of approximately 29.8% and 13.7%, respectively. EBITDA for the quarter stood at AUD 26.53 million, yielding an EBITDA margin around 29.7%, underscoring the quality of EQT’s cost structure and asset productivity in a period of favorable natural gas dynamics.
Operating cash flow reached AUD 26.32 million, with free cash flow of AUD 23.23 million, supporting prudent capital allocation and a constructive liquidity profile. The quarter also featured meaningful cash generation against a backdrop of modest capital expenditures, dividend payments of about AUD 12.15 million, and a cash balance reported in the dataset (AUD-denominated presentation is subject to FX translation when cross-referencing other currency blocks).
From a balance-sheet and leverage perspective, the data imply conservative leverage with solid coverage metrics (interested by USD-derived ratios: interest coverage around 6.4x; debt ratio ~0.15; debt-to-equity ~0.20 in the cross-currency data). The company’s ability to sustain positive operating cash flow and free cash flow in Q4 2024 supports an attractive framework for continued capital discipline, potential dividend resilience, and optionality for growth investments in a gas-centric, US-centric asset base. However, the absence of formal forward guidance in the supplied dataset requires investors to monitor evolving gas price dynamics, volume growth, and macro energy-market conditions.
Overall, EQT’s QQ4 2024 results reinforce the company’s positioning as a low-cost, cash-generative natural gas producer with a favorable balance sheet stance and the capacity to fund shareholder returns while maintaining optionality for future upside.
Key Performance Indicators
Revenue
90.03M
QoQ: 1 922.06% | YoY:1 908.50%
Gross Profit
17.04M
18.92% margin
QoQ: 2 514.38% | YoY:3 994.29%
Operating Income
16.95M
QoQ: 2 845.51% | YoY:4 510.57%
Net Income
8.08M
QoQ: 3 311.57% | YoY:5 076.23%
EPS
0.20
QoQ: 34.62% | YoY:250.00%
Revenue Trend
Margin Analysis
Key Insights
Revenue: AUD 89.43 million
Gross profit: AUD 26.68 million
Gross margin: 29.8% (grossProfit / revenue)
Operating income (EBIT): AUD 26.53 million
Operating margin: ~29.7% (operating income / revenue)
Financial Highlights
Revenue and margin metrics (AUD):
- Revenue: AUD 89.43 million
- Gross profit: AUD 26.68 million
- Gross margin: 29.8% (grossProfit / revenue)
- Operating income (EBIT): AUD 26.53 million
- Operating margin: ~29.7% (operating income / revenue)
- Net income: AUD 12.26 million
- Net margin: 13.7% (net income / revenue)
- Earnings per share (EPS): AUD 0.52
- EBITDA: AUD 26.53 million; EBITDA margin: ~29.7%
Cash flow and liquidity (AUD emphasis where available):
- Operating cash flow: AUD 26.32 million
- Free cash flow: AUD 23.23 million
- Net change in cash (quarter): AUD +22.52 million
- Cash and equivalents (end of period): AUD 128.76 million (USD data in dataset also indicates a strong liquidity position; FX-adjusted interpretation should be considered)
- Dividends paid: AUD 12.15 million
Balance sheet and leverage (selected metrics; cross-currency data used for context):
- Debt ratio: ~0.15 (USD-derived metric in dataset)
- Debt to equity: ~0.20 (USD-derived metric in dataset)
- Interest coverage: ~6.4x (USD-derived metric in dataset)
- Net cash/debt posture: Net debt negative in USD metrics, indicating net cash positioning on a comparable basis
Valuation and efficiency indicators (USD data cited for context; AUD presentation may differ due to FX):
- P/E: ~26x
- Price-to-Book: ~2.11x
- Price-to-Free Cash Flows: ~36.5x
- Dividend yield (USD data): ~1.43%
- Free cash flow yield (quarterly): approx. 26% of revenue (indicative quarterly FCF yield; not annualized)
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
90.03M
1 908.50%
1 922.06%
Gross Profit
17.04M
3 994.29%
2 514.38%
Operating Income
16.95M
4 510.57%
2 845.51%
Net Income
8.08M
5 076.23%
3 311.57%
EPS
0.20
250.00%
34.62%
Key Financial Ratios
currentRatio
6.28
grossProfitMargin
18.9%
operatingProfitMargin
18.8%
netProfitMargin
8.98%
returnOnAssets
1.5%
returnOnEquity
2.01%
debtEquityRatio
0.2
operatingCashFlowPerShare
$0.99
freeCashFlowPerShare
$0.87
dividendPayoutRatio
150.4%
priceToBookRatio
2.11
priceEarningsRatio
26.24
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript data not provided in the dataset. Consequently, there are no management quotes or management-commentary blocks to quote verbatim or group by themes. In lieu of transcript-derived quotes, the analysis draws on the reported P/L, cash flow, and balance sheet metrics for QQ4 2024. When the earnings call transcript becomes available, we can extract key themes around strategic priorities (e.g., capital allocation, volume guidance, gas-price hedging, and growth optionality) and pair them with verbatim quotes and context.
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Forward Guidance
Forward-looking guidance is not explicitly stated in the provided dataset. Given the QQ4 2024 performance, the implied trajectory for EQT would hinge on: 1) natural gas price and demand dynamics in the US, 2) volumes from core Marcellus assets and any incremental basins, 3) capital allocation framework (maintain dividend discipline while preserving optionality for growth), and 4) macro energy-market developments including LNG export demand and pipeline/processing commitments. Investors should monitor: (i) quarterly production volumes and their mix between gas and NGLs, (ii) capital expenditure cadence and any material deviations from prior plans, (iii) commodity hedging posture and geographic variability, and (iv) debt maturation and liquidity cushions. Management commentary and quarterly guidance typically address these levers; in the absence of explicit forward targets in the dataset, a prudent monitoring framework would be to track FCF generation relative to capex, any changes in leverage, and the sustainability of the quarterly dividend in relation to cash flow.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0IDU.L Focus
18.92%
18.80%
2.01%
26.24%
0HYI.L
51.80%
14.10%
2.47%
27.73%
0HJI.L
49.50%
23.00%
18.20%
29.05%
0HCR.L
1.00%
1.44%
1.47%
9.57%
0HRZ.L
34.10%
28.80%
3.19%
11.52%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, EQT’s QQ4 2024 results portray a resilient gas-focused producer with solid profitability, cash flow generation, and a conservative leverage profile. The AUD-denominated metrics show a compelling margin profile and meaningful FCF that underpins a constructive long-term investment thesis, particularly if commodity prices remain supportive and volumes trend positively. The absence of formal forward guidance in the dataset introduces some uncertainty; investors should rely on quarterly cadence in production volumes, capex plans, and macro gas-market signals to validate assumptions. Relative to a general energy sector backdrop, EQT’s balance sheet strength and cash generation capability position it well for ongoing capital allocation to dividends and potential growth initiatives, albeit with the standard caveat of commodity price cycles and regulatory risk.
Key Investment Factors
Growth Potential
EQT’s cash-generative gas-centric asset base in the Marcellus region positions the company to benefit from ongoing US natural gas demand and potential LNG export growth. The Q4 2024 EBITDA margin (~29.7%) and net margin (~13.7%) coupled with free cash flow generation provide a platform for incremental capital returns or selective bolt-on growth tied to core gas production. If gas prices remain robust and volumes trend higher, EQT could expand FCF and support a modest to moderate increase in shareholder returns while preserving optionality for growth investments or acquisitions in the US shale framework.
Profitability Risk
Key risk factors include (i) cyclicality of natural gas prices and demand fluctuations, (ii) regulatory and environmental policy changes affecting permitting, drilling, and emissions, (iii) operational risks inherent to shale gas development (well performance, pipeline constraints, compression demands), and (iv) FX exposure given multi-currency data in the dataset and potential cross-border capital allocation decisions. Additionally, high-capex environments or hedging gaps could impact FCF visibility.
Financial Position
Financially, EQT demonstrates a disciplined cash-generation profile with positive operating cash flow and meaningful free cash flow in Q4 2024. Debt metrics in USD-derived data show a conservative leverage profile (low debt ratio and modest interest coverage), supporting liquidity and flexibility. The quarterly free cash flow of AUD 23.23 million against revenue of AUD 89.43 million yields a robust FCF generation rate for the period, suggesting capacity to fund a base dividend and maintain optionality for value-enhancing opportunities.
SWOT Analysis
Strengths
Large, low-cost natural gas asset base with significant scale in the Marcellus region
Strong quarterly EBITDA and net margin profiles indicate high operating efficiency
Positive free cash flow generation supporting shareholder returns and optionality
Solid liquidity position with meaningful cash reserves and ample operating cash flow
Weaknesses
Concentration in natural gas; commodity price sensitivity remains a core risk
Limited diversification beyond gas-focused operations; exposure to regulatory and market-specific shocks
Opportunities
Potential LNG export demand growth and pipeline/infrastructure developments
Capacity to increase shareholder returns through dividends or buybacks with robust FCF
Operational efficiencies and potential cost reductions via continued optimization
Threats
Natural gas price volatility and potential demand shocks
Regulatory changes and environmental compliance costs
Competitive intensity within US shale gas producers and potential supply surges