Energy Prospectus

At the time of this post EQT was trading for $42.97.
I am updating all of the Sweet 16 forecast/valuation models using my new oil & gas price deck. The big change is that I increased my 2023 natural gas price forecast from $5.00 to $6.50, so I am updating all of the "gassers" first. AR and CRK are already updated.

My valuation of EQT increases by $4 to $67.
TipRanks: "In the last 30 days five highly respected energy sector analyst updated their price target. Note that they all rate it a BUY.
Citigroup 9/21/2022 $60.00 BUY
RBC Capital 9/20/2022 $57.00 BUY
BMO Capital 9/19/2022 $65.00 BUY
Scotiabank 9/19/2022 $71.00 BUY
JP Morgan 9/15/2022 $66.00 BUY

EQT is going to close a significant acquisition in Q4 and they will have an even more significant increase in operating cash flow.
This is why the Wall Street Gang likes EQT.
Operating Cash Flows:
2020A = $1.832 billion ($6.58/share)
2021A = $2.029 billion ($5.39/share)
2022E = $4.874 billion ($12.87/share) with realized ngas prices of only $3.65/mcf
2023E = $9.212 billion ($22.47/share) with realized ngas prices of $5.50/mcf

Everyone knows that EQT's hedges significantly lowered their operating cash flow in 2021 and 2022, but the future is extremely bright for the largest natural gas producer in North America.

My updated forecast model will be posted to the EPG website by noon. Focus on Row 51.

U.S. natural gas heavyweights launch coalition to export more LNG. NGI.
EQT Corp., the largest U.S. natural gas producer, has teamed up with midstreamers TC Energy Corp. and Williams to establish a coalition that will focus on increasing American LNG exports to help displace dirtier fuels abroad and lower greenhouse gas emissions. The Partnership to Address Global Emissions, or PAGE, would help develop and promote policies aimed at developing the infrastructure needed to increase liquefied natural gas production and export it. EQT, TC Energy and Williams are PAGE’s founding members. Think tanks, including the Progressive Policy Institute, trade unions and academia would also serve on an advisory council and provide guidance to the coalition and its members. LNG exports are expected to average 12.7 Bcf/d next year, according to the EIA. Peak U.S. export capacity is also on track to exceed 18 Bcf/d by 2025.