EQT Corp (EQT) Price Target - Sept 21

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EQT Corp (EQT) Price Target - Sept 21

Post by dan_s »

Note below from RBC Capital this morning
EQT Rating: Outperform
Price Target: 57.00

Adding a Layer of Floor Protection
Our view: EQT provided an updated hedge book that incrementally progresses
toward the planned 60% of production associated with the Tug Hill acquisition. The
company used mostly floors that protect the downside while leaving more upside
optionality to higher commodity prices. There was a $154 million overall cost to add
the floors, i.e., effectively insurance that protects downside to natural gas prices
and cash flow from the acquisition. EQT also sold calls opportunistically, offsetting
some deferred premium costs. Furthermore, EQT priced debt as part of the planned
funding for the acquisition.

At the time of this post EQT was trading at $46.57
Dan Steffens
Energy Prospectus Group
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