Energy Prospectus

EQT Announces 20 Percent Increase To Quarterly Cash Dividend

PITTSBURGH, July 20, 2022 /PRNewswire/ -- EQT Corporation (NYSE: EQT) today announced that its board of directors declared a quarterly cash dividend of $0.15 per share, payable on September 1, 2022, to shareholders of record at the close of business on August 9, 2022. The increase of the quarterly cash dividend to $0.15 per share ($0.60 per share, annually) represents a 20 percent increase to EQT's regular quarterly cash dividend.

President and CEO Toby Z. Rice stated, "In December, EQT reinstated its base dividend. Today, we are pleased to announce we are increasing it by 20 percent to $0.60 per share on an annualized basis, which highlights our confidence in the sustainability of our business and cash generation. Consistent and reliable long-term base dividend growth is a key tenant of our shareholder return framework, and today's actions underscore our commitment to this strategy."
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EQT is the largest producer of natural gas in the U.S. They are on pace to generate over $3.2 Billion of FCF from operations this year. If HH ngas averages $5.00/MMBtu in 2023, the Company should generate more than $4.5 Billion of FCF next year. In addition to their quarterly dividends, they have and will continue to fund a stock repurchase program. Although they have not made it official, I expect EQT to start paying a variable dividend next year in addition to their fixed base dividend.

At the time of this post, EQT was trading at $41.76.
TipRanks: Since July 11th, seven analysts have updated their price targets for EQT to $47 to $62.

July 17: "Mizuho analyst Vincent Lovaglio (5 Star analyst) lowered the firm's price target on EQT Corporation to $55 from $65 and keeps a Buy rating on the shares. The analyst believes the energy sector, and particularly the exploration and production companies, will be viewed as "increasingly differentiated in their ability to deliver increasing cash return into next year." Despite the risks of a recession, energy companies have prioritized balance sheet strengthening over spending on production growth and should be in better shape to withstand a period of weaker economic activity, Lovaglio tells investors in a research note. The analyst favors natural gas over oil and lowered price targets heading into the Q2 reports."

My current valuation has been adjusted to $62.00.

Based on my forecast, EQT should report Q2 Adjusted Net Income of approximately $1.39/share. This compares to First Call's EPS forecast of $0.79 for Q2. I also expect EQT's operating cash flow per share for Q2 to beat the consensus by a wide margin.