Robert Rapier, an EPM member and a Super Star analyst, told me that his Top Pick for natural gas is EQT. Today I took a hard look at it myself and it is definitely a candidate for our Sweet 16 Growth Portfolio. It is a Large-Cap "gasser" and I want to add more exposure to gas in our Sweet 16 because I am becoming more convinced that natural gas prices will push above $4.00/mmbtu within six months. If you read the newsletter, you know why.
EQT Corporation is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, and transmission. With more than 125 years of experience, EQT continues to be a leader in the use of advanced horizontal drilling technology – designed to minimize the potential impact of drilling-related activities and reduce the overall environmental footprint. Through safe and responsible operations, the Company is committed to meeting the country’s growing demand for clean-burning energy, while continuing to provide a rewarding workplace and enrich the communities where its employees live and work. EQT also owns a 90% limited partner interest in EQT GP Holdings, LP. EQT GP Holdings, LP owns the general partner interest, all of the incentive distribution rights, and a portion of the limited partner interests in EQT Midstream Partners, LP (EQM).
EQT's first quarter production was 1,977,280 Mcfe per day ( 91.8% natural gas, 7.6% NGLs and 0.6% crude oil).
I have posted my forecast for EQT to the EPG website. My initial valuation is $88.90, compared to First Call's price target of $82.90.
Note that my forecast and valuation assume $3.00/mmbtu for Henry Hub gas price in 2017, so there is significant upside to my valuation if gas prices go higher.
EQT Corp. (NYSE: EQT)
EQT Corp. (NYSE: EQT)
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group