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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on EQT

EQT Corporation's recent performance was negatively impacted by margin pressures and pipeline bottlenecks, which likely weighed on its Q2 earnings. The company's mixed Q2 results, with an EPS beat but revenue miss, also contributed to the stock's decline. Additionally, the recent sell-off in natural gas prices, which is expected to be temporary, has created a buying opportunity for some investors. EQT's acquisition of Equitrans Midstream and a recent bolt-on deal have boosted profitability, but the company's growth prospects are closely tied to natural gas demand and pricing flexibility.

1.c. Company Highlights

2. EQT's Strong Q3 Earnings Reflect Operational Excellence

EQT's third-quarter financial performance was robust, with earnings per share (EPS) of $0.52, significantly beating analyst estimates of $0.3616. The company's free cash flow attributable to EQT was $484 million, net of $21 million of one-time costs associated with the Olympus transaction. This strong cash generation was driven by production near the high end of guidance and operating costs lower than expected, resulting in record-low total cash cost per unit. Revenue growth was substantial, driven by the company's integrated model and operational improvements.

Publication Date: Oct -27

📋 Highlights
  • Free Cash Flow Surge:: EQT generated $484M in Q3 free cash flow (net $21M one-time costs) and $2.3B over four quarters, driven by $3.25/MMBTU gas prices.
  • Olympus Integration Success:: Closed acquisition in 34 days, achieving operational improvements and boosting production near guidance with lower-than-expected costs.
  • Infrastructure Expansion:: MVP Boost expansion increased takeaway capacity to 600,000 dekatherms/day, with oversubscribed open season and high-return growth projects in backlog.
  • Debt Management:: Net debt at $8B (targeting $5B max), supporting $0.66/share base dividend (8% CAGR since 2022) and low equity volatility strategy.
  • LNG Strategy Advancement:: Secured 10% production coverage via offtake agreements, with $4–$4.50/MMBTU breakeven and plans to target post-2027 oversupply for favorable terms.

Operational Highlights and Outlook

EQT's acquisition of Olympus Energy has been successfully integrated, with significant operational improvements achieved since taking control of the assets. The company has made progress with its growth project pipeline, including a successful open season on its MVP boost expansion project. EQT expects to maintain production volumes at a level consistent with its 2025 exit rate in 2026 and anticipates maintenance CapEx in line with 2025, plus the full-year impact of the Olympus acquisition.

Balance Sheet Strength and Capital Allocation

EQT's balance sheet ended the quarter with a net debt balance of just under $8 billion, with a target maximum total debt of $5 billion. The company increased its base dividend by 5% to $0.66 per share on an annualized basis and has grown its base dividend at an approximate 8% compound annual growth rate since 2022. EQT prioritizes converting liability into equity value and reducing equity volatility, aiming to act with conviction during down cycles and pullbacks.

LNG Strategy and Marketing Optimization

EQT has been patient in executing its LNG strategy, signing offtake agreements with major players and targeting to enter into sales agreements and regasification capacity covering a large portion of its LNG exposure. The company's marketing optimization has been strong, with a redeveloped commercial team and 45 people in trading. EQT expects this business to be consistent, especially with volatility in the market.

Valuation and Growth Prospects

With a P/E Ratio of 18.84 and an EV/EBITDA of 7.27, EQT's valuation reflects a reasonable multiple for its earnings and cash flow generation. Analysts estimate next year's revenue growth at 15.2%, indicating a positive outlook for the company's top-line growth. EQT's ROIC of 5.9% and ROE of 8.29% demonstrate a decent return on capital and equity, respectively.

3. NewsRoom

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Here Are Thursday’s Top Wall Street Analyst Research Calls: AutoZone, BXP, Fiserv, Meta Platforms, PayPal, Salesforce, Toast and More

Dec -04

Source:

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5 Energy Stocks That Could Benefit From the Genesis Mission

Dec -04

Source: fool.com

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EQT completes public offering of common stock of Kodiak Gas Services

Dec -02

Source: prnewswire.com

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PGIM Jennison Natural Resources Fund Q3 2025 Contributors And Detractors

Dec -02

Source: seekingalpha.com

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The Next 3 Years Could Make Or Break Portfolios - Here's My Plan

Dec -02

Source: seekingalpha.com

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Here Are Monday’s Top Wall Street Analyst Research Calls: Archer Aviation, Beta Technologies, Carvana, Chevron, MPLX, Toast, Zscaler and More

Dec -01

Source: 247wallst.com

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Financial Survey: EQT (NYSE:EQT) vs. Topaz Resources (OTCMKTS:TOPZ)

Nov -30

Source: defenseworld.net

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EQT Corporation (NYSE:EQT) Given Average Recommendation of “Moderate Buy” by Brokerages

Nov -29

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.74%)

6. Segments

Natural Gas

Expected Growth: 4.78%

EQT Corporation's 4.78% natural gas growth is driven by increasing demand from power generation and industrial sectors, coupled with strategic acquisitions and operational efficiencies. Additionally, favorable weather patterns and rising LNG exports contribute to the growth. Furthermore, EQT's focus on reducing costs and improving well productivity also supports the growth momentum.

Reconciling Items

Expected Growth: 4.65%

EQT Corporation's 4.65% growth is driven by increased natural gas production, strategic acquisitions, and improved operational efficiencies. Additionally, favorable market conditions, including higher realized prices and increased demand, contribute to the growth. Furthermore, the company's focus on cost reduction and capital discipline also supports its growth momentum.

Natural Gas Liquids

Expected Growth: 4.7%

EQT Corporation's 4.7% growth in Natural Gas Liquids is driven by increased production from its Appalachian Basin assets, improved well productivity, and higher realized prices. Additionally, the company's strategic acquisitions and divestitures have optimized its portfolio, leading to increased efficiency and reduced costs.

Oil

Expected Growth: 4.6%

EQT Corporation's 4.6% growth in oil production is driven by increased drilling and completion activities in the Appalachian Basin, improved operational efficiencies, and strategic acquisitions. Additionally, favorable crude oil prices and growing demand for energy also contribute to the growth.

Net Marketing Services and Other

Expected Growth: 4.82%

EQT Corporation's Net Marketing Services and Other segment growth of 4.82% is driven by increased demand for natural gas, expansion of midstream infrastructure, and strategic acquisitions. Additionally, improved operational efficiency, cost savings initiatives, and favorable market conditions contribute to the segment's growth.

7. Detailed Products

Natural Gas

EQT Corporation is a leading producer of natural gas, with operations focused in the Appalachian Basin.

Crude Oil

EQT Corporation also produces crude oil, primarily in the Appalachian Basin.

Natural Gas Liquids (NGLs)

EQT Corporation produces NGLs, including ethane, propane, and butane, as a byproduct of natural gas production.

Midstream Services

EQT Corporation provides midstream services, including gathering, processing, and transmission of natural gas and NGLs.

Water Services

EQT Corporation provides water services, including water recycling and disposal, to support oil and gas operations.

8. EQT Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

EQT Corporation operates in the energy industry, which has a moderate threat of substitutes. While there are alternative energy sources, such as renewable energy, the demand for traditional energy sources is still high.

Bargaining Power Of Customers

EQT Corporation's customers have limited bargaining power due to the company's dominant position in the energy market. The company's large customer base and diversified product offerings also reduce the bargaining power of individual customers.

Bargaining Power Of Suppliers

EQT Corporation's suppliers have a moderate level of bargaining power due to the company's dependence on them for raw materials and services. However, the company's large scale of operations and diversified supply chain mitigate the bargaining power of individual suppliers.

Threat Of New Entrants

The threat of new entrants in the energy industry is low due to the high barriers to entry, including significant capital requirements and regulatory hurdles. EQT Corporation's established position and economies of scale also make it difficult for new entrants to compete.

Intensity Of Rivalry

The energy industry is highly competitive, with many established players competing for market share. EQT Corporation faces intense rivalry from other energy companies, which can lead to pricing pressures and reduced profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.34%
Debt Cost 4.56%
Equity Weight 71.66%
Equity Cost 9.46%
WACC 8.07%
Leverage 39.54%

11. Quality Control: EQT Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
EQT

A-Score: 5.4/10

Value: 5.3

Growth: 3.2

Quality: 6.5

Yield: 2.0

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Range Resources

A-Score: 5.2/10

Value: 5.4

Growth: 3.2

Quality: 6.9

Yield: 1.0

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Antero Resources

A-Score: 5.0/10

Value: 6.6

Growth: 3.9

Quality: 6.0

Yield: 0.0

Momentum: 8.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Comstock Resources

A-Score: 3.9/10

Value: 4.4

Growth: 2.1

Quality: 2.8

Yield: 1.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Southwestern Energy

A-Score: 3.7/10

Value: 5.1

Growth: 1.6

Quality: 4.7

Yield: 3.0

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Kosmos Energy

A-Score: 3.4/10

Value: 9.4

Growth: 5.2

Quality: 3.8

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

60.68$

Current Price

60.68$

Potential

-0.00%

Expected Cash-Flows