EQT and OVV Update - August 18

[dan_s]

Updated profiles and forecast/valuation models for EQT and OVV have been posted to the EPG website.

Regardless of where oil prices go, these two large-caps have strong Q3 and Q4 results locked in.

[dan_s]

I highly recommend that you all read the EQT profile we sent out this morning. Falling oil prices have close to zero impact on their revenues.

[SergioSays]

Thanks Dan. Regarding EQT, have you seen Rusty Braziel's warning of takeaway capacity constraints hitting the Appalachian mkt in the near future? I see on your EQT report they have basis hedges in place for 2021 to limit App exposure to 15%, but I'm wondering if this could be an issue for EQT in 2022.

https://rbnenergy.com/back-to-zero-appa ... y-capacity

[dan_s]

AR, EQT and RRC all have good marketing teams and lots of takeaway capacity. Also note at the bottom of my forecast model for EQT that I am using what now looks like very conservative gas prices for the winter. The production volumes are from each company's guidance, so should include their estimate of any takeaway capacity issues.