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EQT (EQT)
NYSE:EQT
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EQT
(NYSE:EQT)79Outperform
Positive Factors
Debt Management
EQT looks set to organically achieve and likely surpass its long-term debt targets, aided by an improving natural gas price outlook.
Financial Performance
EQT delivered a solid beat on volumes and topped EBITDA estimates by approximately 20% on stronger realizations and lower costs.
Negative Factors
Valuation Concerns
Despite positive near-term view, analysts reaffirm Hold rating based on relative valuation.
EQT (EQT) vs. S&P 500 (SPY)
Market Cap
$29.87B
Dividend Yield1.29%
Average Volume (3M)8.88M
Price to Earnings (P/E)111.6
Beta (1Y)1.29
Revenue Growth3.00%
EPS Growth-90.88%
CountryUS
Employees1,461
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)0.41
Shares Outstanding597,441,000
10 Day Avg. Volume10,827,205
30 Day Avg. Volume8,884,258
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.52
Price to Cash Flow (P/CF)9.60
P/FCF Ratio35.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$53.94Price Target Upside7.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
EQT Business Overview & Revenue Model
Company DescriptionEQT Corporation is a leading independent natural gas production company with an emphasis on the Appalachian Basin. The company is primarily engaged in the exploration, development, and production of natural gas, natural gas liquids (NGLs), and crude oil. EQT's core operations are focused on the Marcellus and Utica shale plays, making it one of the largest natural gas producers in the United States. With a commitment to sustainability and efficiency, EQT leverages advanced technologies to optimize resource extraction and reduce environmental impact.
How the Company Makes MoneyEQT Corporation generates revenue primarily through the sale of natural gas, natural gas liquids (NGLs), and crude oil produced from its wells. The company sells its products to a variety of customers, including utilities, industrial users, and gas marketers, who use natural gas for electricity generation, heating, and other industrial processes. EQT's revenue model is heavily influenced by the market prices of natural gas, NGLs, and crude oil, which can fluctuate based on supply and demand dynamics, geopolitical factors, and global economic conditions. Additionally, EQT engages in hedging activities to manage price risks and stabilize cash flows. Strategic partnerships and joint ventures with other energy companies also play a role in expanding its operational capabilities and market reach.
EQT Financial Statement Overview
Summary
EQT demonstrates solid financial health with growing revenues and strong equity positioning. However, declining net profit margins and reduced free cash flow growth highlight areas of potential concern.Income Statement
EQT has shown consistent revenue growth over the years, with a notable increase in total revenue from 2023 to 2024 by approximately 9.9%. The gross profit margin is strong, indicating effective cost management. However, the net profit margin in 2024 is lower compared to the previous year, suggesting increased expenses or other financial pressures. The absence of EBITDA data for 2024 limits a comprehensive margin analysis.75
Positive
Balance Sheet
The company has a robust equity position with minimal debt, as evidenced by a debt-to-equity ratio near zero in 2024. This reflects a strong balance sheet with a high equity ratio of 99.3% in 2024, indicating financial stability and low leverage risk. However, the significant drop in total assets from 2023 to 2024 warrants further investigation.80
Positive
Cash Flow
EQT's operating cash flow remains solid, supporting a healthy free cash flow position. However, the free cash flow decreased substantially from 2023 to 2024, suggesting potential challenges in sustaining cash generation efficiency. The operating cash flow to net income ratio is favorable, but a decline in free cash flow growth rate could impact future financial flexibility.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 5.22B | 5.07B | 12.14B | 6.84B | 2.66B | Gross Profit |
| 2.68B | 3.08B | 8.06B | 3.00B | -626.98M | EBIT |
| 685.30M | 2.31B | 6.04B | 961.84M | -877.67M | EBITDA |
| 2.88B | 4.06B | 4.25B | 396.92M | 450.12M | Net Income Common Stockholders |
| 230.58M | 1.74B | 1.77B | -1.15B | -967.18M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 202.09M | 80.98M | 1.46B | 113.96M | 18.21M | Total Assets |
| 39.83B | 25.29B | 22.67B | 21.61B | 18.11B | Total Debt |
| 9.37B | 5.84B | 5.71B | 5.51B | 4.95B | Net Debt |
| 9.16B | 5.76B | 4.26B | 5.40B | 4.93B | Total Liabilities |
| 15.55B | 10.50B | 11.46B | 11.56B | 8.85B | Stockholders Equity |
| 20.60B | 14.77B | 11.17B | 10.03B | 9.26B |
| Cash Flow | Free Cash Flow | |||
| 573.26M | 1.16B | 2.04B | 607.32M | 495.47M | Operating Cash Flow |
| 2.83B | 3.18B | 3.47B | 1.66B | 1.54B | Investing Cash Flow |
| -1.58B | -4.31B | -1.42B | -2.07B | -1.56B | Financing Cash Flow |
| -1.13B | -242.86M | -699.13M | 506.05M | 31.71M |
EQT Technical Analysis
Positive
50.00
Price Trends
49.68
Positive
45.31
Positive
40.47
Positive
Market Momentum
-0.47
Positive
48.75
Neutral
30.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQT, the sentiment is Positive. The current price of 50 is below the 20-day moving average (MA) of 51.21, above the 50-day MA of 49.68, and above the 200-day MA of 40.47, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 48.75 is Neutral, neither overbought nor oversold. The STOCH value of 30.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EQT.
EQT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $29.87B | 111.56 | 1.12% | 1.29% | 3.00% | -90.88% | |
73 Outperform | $11.36B | 202.33 | 0.81% | ― | -4.22% | -77.20% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% | |
56 Neutral | $9.14B | 34.67 | 6.77% | 0.87% | -7.57% | -69.25% | |
52 Neutral | $3.04B | 16.69 | -14.95% | ― | -11.68% | -123.15% | |
48 Neutral | $4.30B | 9.01 | -2.21% | ― | -4.26% | -105.72% |
* Energy Sector Average
Performance Comparison
EQT
EQT
50.00
13.01
35.17%
CNX
CNX Resources
29.93
8.76
41.38%
RRC
Range Resources
37.86
5.40
16.64%
AR
Antero Resources
36.52
9.65
35.91%
GPOR
Gulfport Energy
171.41
26.71
18.46%
EQT Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -7.03% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Positive
The earnings call presents a strong performance in operational efficiency, strategic acquisition integration, and cash flow generation, with highlighted resilience in reserve base despite challenging price conditions. The company effectively managed debt and increased production guidance for 2025. However, ongoing price volatility and potential future supply constraints present challenges. Overall, the positive aspects significantly outweigh the lowlights, indicating a strong operational and financial performance.Highlights
Record Operational Efficiency
EQT achieved a 20% increase in completed lateral footage per day relative to 2023, allowing the company to drop from three to two frac crews in April 2025 while prioritizing cost savings over production growth.
Equitrans Acquisition Integration
The integration process of Equitrans acquisition is 90% complete, with synergies exceeding expectations, capturing more than $200 million of annualized base synergies, or 85% of forecasted plan.
Strong Free Cash Flow Generation
EQT generated $756 million of net cash provided by operating activities and $588 million of free cash flow during Q4 2024, despite low gas prices.
2025 Production Guidance Increase
EQT initiated a production guidance range of 2175 to 2275 Bcfe for 2025, with a midpoint 125 Bcfe above the preliminary 2025 volume outlook.
Resilient Reserve Base
Despite a drop in SEC price deck from $2.64 to $2.13 per million Btu, EQT's year-end 2024 approved reserves remained essentially unchanged at approximately 26 Tcfe.
Debt Reduction
EQT reduced total and net debt significantly, exiting 2024 with $9.1 billion of net debt compared to $13.7 billion at the end of the previous quarter.
Lowlights
Price Volatility Challenges
EQT faced continued price volatility, with Henry Hub averaging just $2.81 per million Btu during Q4 2024, challenging pricing strategies.
Potential Future Supply Constraints
Concerns about medium-term headwinds with new Permian gas pipelines and Qatar LNG impacting future gas prices, potentially leading to demand destruction.
Company Guidance
During the EQT Q4 2024 Conference Call, significant guidance was provided for 2025, emphasizing operational efficiency and strategic investments. The company announced a production guidance range of 2,175 to 2,275 Bcfe, with a midpoint that is 125 Bcfe above previous outlooks. This is attributed to robust well performance and early benefits from midstream compression investments. EQT aims to maintain production levels with fewer wells and reduced costs, projecting a decrease in average well cost by approximately $70 per foot compared to 2024. The maintenance capital budget is set between $1.95 billion and $2.1 billion, with additional growth projects allocated $350 million to $380 million. The company expects to generate about $2.6 billion of free cash flow in 2025, rising to $3.3 billion in 2026, and $15 billion cumulatively over the next five years. EQT's strategic focus remains on leveraging its integrated platform to capitalize on a bullish natural gas market while maintaining operational momentum and cost efficiencies.EQT Corporate Events
Executive/Board ChangesShareholder Meetings
EQT Appoints New Board Chair Amid Leadership Transition
Neutral
Feb 12, 2025
On February 7 and February 11, 2025, EQT Corporation announced that several members of its Board of Directors, including Janet L. Carrig, James T. McManus II, Anita M. Powers, and Lydia I. Beebe, decided not to seek re-election and will retire following the 2025 Annual Meeting of Shareholders. As part of this transition, Thomas F. Karam was appointed as the new independent Board Chair, effective immediately after the 2025 Annual Meeting. Mr. Karam, who joined EQT’s Board in July 2024 after the acquisition of Equitrans Midstream Corporation, previously served as its CEO and Chairman, marking a significant shift in the company’s governance structure.
Business Operations and Strategy
EQT Unveils 2025 Short-Term Incentive Plan
Neutral
Feb 6, 2025
On February 5, 2025, EQT Corporation’s Board of Directors approved the 2025 Short-Term Incentive Plan (STIP) to provide annual bonus opportunities for executives and eligible employees. The 2025 STIP aims to maintain competitive cash compensation and align employee interests with shareholders and strategic objectives. It introduces new performance metrics such as free cash flow per share and environmental safety intensity, differing from the 2024 STIP, with payments for 2025 services scheduled for 2026.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.