EQT Corp (EQT) Price Target Raised - Mar 7

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

EQT Corp (EQT) Price Target Raised - Mar 7

Post by dan_s »

RBC Capital Raised their price target to $50 with an Upside Scenario of $65, here's why:

"At strip commodity prices, we estimate 2023 FCF at $1.3 billion; could
double that in 2024. FCF usage will likely be concentrated on debt
reduction and opportunistic stock buybacks. Buybacks were robust in early
2023, but likely taper as EQT manages its balance sheet ahead of the
Tug Hill closing. We think EQT reaches its ~$3.5 billion target debt level
by early 2024. The combined benefits of lower organic capital spending,
the Tug Hill acquisition, and stronger strip prices, we estimate 2024 FCF
nearly doubles to $2.5+ billion. This should provide significant capacity to
accelerate buybacks and dividends."
Dan Steffens
Energy Prospectus Group
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