EQT (EQT) AI Stock Analysis

• Market Cap: $31.12B
• Dividend Yield: 1.21%
• Average Volume (3M): 8.30M
• Price to Earnings (P/E): 116.2
• Beta (1Y): 1.11
• Revenue Growth: 3.00%
• EPS Growth: -90.88%
• Country: US
• Employees: 881
• Sector: Energy
• Sector Strength: 74
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.41
• Shares Outstanding: 597,441,000
• 10 Day Avg. Volume: 7,180,197
• 30 Day Avg. Volume: 8,304,499
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.05
• Price to Cash Flow (P/CF): 10.40
• P/FCF Ratio: 38.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $56.06
• Price Target Upside: 21.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

EQT's overall score reflects its strong operational performance and financial stability, supported by robust technical indicators and positive earnings call sentiment. However, high valuation metrics and challenges in cash flow growth slightly temper the outlook. The strategic corporate event adds a positive nuance, indicating proactive financial management.

Positive Factors

Debt Management

EQT continues to prioritize debt reduction, targeting $7.5bn and $5bn long term, creating more financial flexibility.

Operational Efficiency

EQT's strong well productivity and ability to accelerate production during times of price dislocation have positively impacted its performance.

Strategic Contracts

EQT is in active talks with power companies and data centers to secure 10-20 year firm gas supply contracts, which could enable sustainable, demand-driven growth decoupled from gas price volatility.

Negative Factors

Operational Adjustments

EQT planning to drop from 3 to 2 frac crews at the end of its first quarter, which is several months ahead of its prior plan.

Share Repurchase

EQT did not repurchase any shares under its $2B authorization, with $1.4B still remaining.

EQT Business Overview & Revenue Model

Company Description

EQT Corporation operates as a natural gas production company in the United States. The company produces natural gas, natural gas liquids (NGLs), including ethane, propane, isobutane, butane, and natural gasoline. As of December 31, 2021, it had 25.0 trillion cubic feet of proved natural gas, NGLs, and crude oil reserves across approximately 2.0 million gross acres, including 1.7 million gross acres in the Marcellus play. The company was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

EQT 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 in recent periods highlight areas of potential concern. The company's low leverage supports financial stability, positioning it well for industry challenges, though attention to cash flow management is advised.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 46.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQT, the sentiment is Negative. The current price of 46.11 is below the 20-day moving average (MA) of 51.81, below the 50-day MA of 51.20, and above the 200-day MA of 41.74, indicating a neutral trend. The MACD of 0.95 indicates Negative momentum. The RSI at 59.70 is Neutral, neither overbought nor oversold. The STOCH value of 51.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQT.

EQT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTRA	79 Outperform	$20.91B	18.20	8.56%	3.11%	-3.92%	-29.44%
EQT	76 Outperform	$31.12B	116.22	1.30%	1.21%	3.00%	-90.88%
DVN	74 Outperform	$21.52B	7.27	21.77%	3.77%	3.00%	-21.63%
CQP	68 Neutral	$31.09B	15.02	117.38%	5.06%	-9.93%	-50.50%
Sector *	58 Neutral	$9.12B	5.24	-7.59%	7.51%	0.53%	-65.25%
RRC	56 Neutral	$9.19B	34.87	6.88%	0.87%	-7.57%	-69.25%
CNX	54 Neutral	$4.60B	9.01	-2.14%	―	-4.26%	-105.72%

EQT Corporate Events

EQT Extends Exchange Offers Deadline to March 28, 2025

On March 24, 2025, EQT Corporation announced an extension of the expiration date for its previously declared Exchange Offers and Consent Solicitations related to EQM Midstream Partners’ outstanding notes. The extension moves the deadline to March 28, 2025, and includes a waiver of the consent threshold condition, allowing for the adoption of proposed amendments to the notes’ indentures. This strategic move aims to streamline EQM’s financial structure by eliminating restrictive covenants and certain default events, potentially enhancing operational flexibility and financial stability.

EQT Appoints New Board Chair Amid Leadership Transition

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.

EQT Unveils 2025 Short-Term Incentive Plan

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.