EQT

EQT Corp

Energy, Utilities


Presented:03/03/2022
Price:$24.85
Cap:$9.34B
Current Price:$36.28
Cap:$16.02B

Presented

Date03/03/2022
Price$24.85
Market Cap$9.34B
Ent Value$13.84B
P/E RatioN/A
Book Value$26.65
Div Yield0.5%
Shares O/S376.02M
Ave Daily Vol8,058,036
Short Int5.23%

Current

Price$36.28
Market Cap$16.02B
EQT Corp. is a natural gas production company engaged in the supplying, transmitting, and distribution of natural gas. It has operations in the Marcellus and Utica Shales of the Appalachian Basin. The company was founded in 1888 and is headquartered in Pittsburgh, PA.

Publicly traded companies mentioned herein: EQT Corp (EQT)

Highlights

The presenter is long shares of EQT Corp (EQT), the largest natural gas producer in North America which has a $25 share price and a ~$9.5B market cap. His model is based on current strip prices; gas prices are currently elevated but the strip has prices coming down from the current $4.73 listed today to $3.36 in 2025, which represents a more normalized environment. EQT is up less than 10% since June 2021, while the 2023 gas strip has increased by $1.17 over that timeframe. Each penny price increase is equivalent to ~$20MM of FCF, so EQT’s 2023 FCF on the strip has increased by $2.34B in the last 9 months (on a sub-$10B market cap) while the share price is up less than 10%. By 2025, he models $11 of FCF per share, a figure that is almost twice the Street’s $5.67, driven mainly by share repurchases. This 2025 FCF estimate and the current $25 share price equates to a 44% FCF yield, and he has a 3-year price target of $63, representing 150% upside.

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Idea Discussion

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