EQT

EQT Corporation

Energy


Presented:01/07/2014
Price:$87.79
Cap:$13.20B
Current Price:$36.28
Cap:$16.02B

Presented

Date01/07/2014
Price$87.79
Market Cap$13.20B
Ent Value$16.13B
P/E Ratio31.84x
Book Value$30.23
Div Yield0.2%
Shares O/S150.72M
Ave Daily Vol1,410,000
Short Int2.28%

Current

Price$36.28
Market Cap$16.02B
EQT Corporation, together with its subsidiaries, operates as an integrated energy company in the United States. It operates in three segments: EQT Production, EQT Midstream, and Distribution. The EQT Production segment engages in the exploration, development, and production of natural gas, natural gas liquids, and crude oil in the Appalachian Basin. As of December 31, 2012, it had 6.0 trillion cubic feet of proved reserves across 3.5 million acres. The EQT Midstream segment provides natural gas gathering, processing, transmission, and storage services to the independent third parties in the Appalachian Basin. This segment has approximately 10,300 miles of gathering lines. The Distribution segment distributes and sells natural gas to residential, commercial, and industrial customers in southwestern Pennsylvania, West Virginia, and eastern Kentucky. This segment serves approximately 277,400 customers consisting of 258,500 residential, and 18,900 commercial and industrial customers. EQT Corporation was founded in 1925 and is headquartered in Pittsburgh, Pennsylvania.

Highlights

The presenter is long shares of EQT Corporation (EQT) and believes the company can transition to a pure play midstream operator. The company has the potential to create a lot of value over the next few years by leveraging its midstream infrastructure and ability to drop assets down into EQM, its LP subsidiary. His 12-month $120 price objective is based on the company executing a successful spin-off of the E&P business, and the market ascribing a more suitable multiple to the GP.

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Idea Discussion

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