EQT Corp. (EQT) Valuation Update - July 25
Posted: Thu Jul 25, 2024 6:50 pm
EQT closed today at $34.38.
I have updated my forecast/valuation model for Q2 actual results and their updated guidance.
My valuation of EQT is reduced by $5 to $43 per share, primarily due to lower than expected Q2 results and lower forecast realized natural gas prices in 2H 2024 and 2025. I have increased my forecast for higher NGL prices. < EQT is a Strong Buy at the current share price.
EQT's Q3 production mix is approximately 94% natural gas, 5.6% NGLs and 0.4% crude oil. It is a large-cap "Gasser" with over 5.8 Bcfpd of current production. If U.S. natural gas prices do go over $3.50/mcf, EQT has a lot of upside for shareholders.
With more pipeline access, EQT should ramp up production to over 6.4 Bcfepd in 2025.
EQT is a solid company that I believe is a good investment for those of you that want more exposure to U.S. natural gas prices. It is just going to take time for the U.S. natural gas market to tighten up.
TipRanks: "In the last 3 months, 15 ranked analysts set 12-month price targets for EQT. The average price target among the analysts is $44.47. The 15 price targets range from $32 to $55 per share."
The U.S. currently has a surplus of natural gas, but it is definitely not a "glut". As I have posted here numerous times, several more large LNG export facilities will be coming on line soon that should tighten up U.S. natural gas supply/demand.
EQT closed the merger with Equitran Midstream (ETRN) mid-July, which should significantly increase their operating cash flow in 2H 2024.
I have updated my forecast/valuation model for Q2 actual results and their updated guidance.
My valuation of EQT is reduced by $5 to $43 per share, primarily due to lower than expected Q2 results and lower forecast realized natural gas prices in 2H 2024 and 2025. I have increased my forecast for higher NGL prices. < EQT is a Strong Buy at the current share price.
EQT's Q3 production mix is approximately 94% natural gas, 5.6% NGLs and 0.4% crude oil. It is a large-cap "Gasser" with over 5.8 Bcfpd of current production. If U.S. natural gas prices do go over $3.50/mcf, EQT has a lot of upside for shareholders.
With more pipeline access, EQT should ramp up production to over 6.4 Bcfepd in 2025.
EQT is a solid company that I believe is a good investment for those of you that want more exposure to U.S. natural gas prices. It is just going to take time for the U.S. natural gas market to tighten up.
TipRanks: "In the last 3 months, 15 ranked analysts set 12-month price targets for EQT. The average price target among the analysts is $44.47. The 15 price targets range from $32 to $55 per share."
The U.S. currently has a surplus of natural gas, but it is definitely not a "glut". As I have posted here numerous times, several more large LNG export facilities will be coming on line soon that should tighten up U.S. natural gas supply/demand.
EQT closed the merger with Equitran Midstream (ETRN) mid-July, which should significantly increase their operating cash flow in 2H 2024.