EQT Corp (EQT) Update - Jan 18

[dan_s]

At the time of this post EQT is trading at $22.94. First Call's price target is $31.09.

TipRanks: "In the last 3 months, 9 ranked analysts set 12-month price targets for EQT. The average price target among the analysts is $30.44. Since January 1st, five analysts have updated their price targets to $29, $31, $32, $35 and $35."

I have updated my forecast/valuation model for EQT. My valuation increases by $1 to $37/share.
> EQT is going to report a significant increase in production from Q3 to Q4, due to the closing of the Alta Resources Acquisition on 7/21.
> My 2022 forecast is based on HH ngas prices averaging $3.50/MMbtu. If so, EQT should generate more than $3.5 billion of operating cash flow this year, compared to $2.0 billion in 2021.
> EQT's plans for FCF: Reduced debt by $1.5 billion, fund a $1.0 billion stock repurchase and pay dividends of $0.125/Qtr.
> My valuation will go up if EQT's 2022 guidance confirms my forecast assumptions.
> EQT is the largest natural gas producer in North America.