EQT Corp (EQT) Update - July 22

[dan_s]

EQT closed yesterday at $20.47. The share price is up 61% YTD. My valuation is $36.00.

EQT is the largest natural gas producer in the U.S. and with gas prices taking off this "gasser" has a lot more upside.
Since July 1st five energy sector analyst have published fresh reports on EQT
> Muzuho Securities 7/13/2021 rates it a BUY with a price target of $33.00
> RBC Capital 7/12/2021 rates it a BUY with a price target of $28.00
> JP Morgan 7/8/2021 rates it a HOLD with a price target of $26.00
> Wells Fargo 7/7/2021 rates it a BUY with a price target of $27.00
> Truist Financial 7/1/2021 rates it a BUY with a price target of $28.00

EQT is going to announce 2nd quarter results on August 4th and based on my forecast model they should easily beat First Call's EPS forecast for the quarter of just $0.03/share. With NYMEX strip prices for the next three quarters much higher than what I used in my forecast, EQT should generate record profits in 2H 2021 and 2022.

EQT is in the process of closing the acquisition of Alta Resources, which will increase their production by approximately a Bcfe per day putting them on pace to exit this year with production over 5.7 Bcfe per day.

EQT is still trading below book value and their year-end 2021 reserve report is going to make the share price look silly. I expect EQT to get a lot of upgrades after they announce Q2 results and updated guidance.