EQT Corp (EQT) Valuation Update - July 29

[dan_s]

I have updated my forecast/valuation model for EQT's Q2 results and their updated guidance. My current valuation increases by $3 to $65.

At the time of this post, EQT was trading at $43.68.

EQT is the largest natural gas producer in the US with production over 5.2 Bcfpd.
The Company is going to sell a lot more unhedged gas during 2H 2022, so revenues and FCF will be going way up. If you believe natural gas prices will remain over $5.00 next year, then you should add EQT to your portfolio because they should generate over $4 billion of FCF in 2023 is ngas averages $5.00.

EQT doesn't have much production upside until the Mountain Valley Pipeline is completed; their pipeline access is nearly maxed out.

If you live in New York or New England, you should be pissed because EQT could supply a lot of cheap natural gas to your home if your elected officials would stop blocking all pipeline expansions. Instead of burning clean US natural gas lots of New Yorkers burn heating oil or wood pellets to heat their homes each winter. The definition of "Dumb and Dumber".