It has been about a month since the last earnings report for EQT Corporation (EQT). Shares have added about 17.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is EQT due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

EQT's Q3 Earnings Top Estimates

Upstream Business of EQT

EQT Corporation is among the leading upstream energy players producing natural gas, with a solid footprint in the prolific Appalachian Basin. In the United States, it ranks as one of the largest natural gas producers in terms of average daily sales volumes. In the third quarter, the company’s total sales volumes were recorded at 581.4 billion cubic feet equivalent, the majority of which is natural gas.

EQT’s Q3 Results

The natural gas producer reported earnings from continuing operations of 12 cents per share, which beat the Zacks Consensus Estimate of 5 cents. The bottom line was, however, lower than the year-ago quarter’s profit of 30 cents.

Adjusted operating revenues increased to $1.38 billion from $1.19 billion in the prior-year quarter. The top line, however, missed the Zacks Consensus Estimate of $1.43 billion.

The better-than-expected quarterly earnings were driven by higher gas equivalent sales volume, offset partially by lower oil price realizations.

EQT’s Operational Performance

Production

Sales volume increased to 581.4 billion cubic feet equivalent (Bcfe) from the year-ago quarter’s level of 522.7 Bcfe. The reported figure also beat our estimate of 552.7 Bcfe.

Natural gas sales volume was 547.2 Bcf, up from 491.5 Bcf in the year-ago quarter. The figure also beat our estimate of 521.6 Bcf.

The total liquid sales volume was 5,699 thousand barrels (MBbls), up from the year-ago period’s level of 5,205 MBbls.

Commodity Price Realizations

The average realized price was $2.38 per thousand cubic feet of natural gas equivalent (Mcfe), up from the year-ago quarter’s level of $2.28 per Mcfe.

The average natural gas price, including cash-settled derivatives, was $2.23 per Mcf, which increased year over year from $2.14.

The natural gas sales price was $2.27 per Mcf, lower than the year-ago quarter’s reported number of $2.68. Oil price was $61.25 per barrel compared with the year-ago quarter’s figure of $66.75.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.