EQT Corp (EQT) Valuation Update - Oct 27

[dan_s]

At the time of this post EQT was trading for $39.33.

"In the last 3 months, 13 ranked analysts set 12-month price targets for EQT. The average price target among the analysts is $61.62. The 13 price targets range from $50 to $85. The two price targets updated since EQT released Q3 results are $73 and $85."

I've decided to leave my valuation at $67.
> Q3 came in below my forecast and some operational issues will persist into Q4.
> Q4 results could be in a wide range depending on when the THQ Acquisitions close in Q4, which will add ~800,000 Bcfepd at closing.
> EQT had a lot of crappy hedges in 2022 and they still are going to generate ~$3.8 billion of operating cash flow this year. FCF s/b over $2.2 billion.
> In 2023 operating cash flow should jump to over $8 billion and FCF should be over $1 billion per quarter.
> Obviously, natural gas prices will have a BIG IMPACT on EQT going forward.

My updated forecast/valuation model will be posted to the EPG website late today.