EQT

EQT Corporation

Industrial/Transportation


Presented:10/27/2014
Price:$86.65
Cap:$13.10B
Current Price:$36.28
Cap:$16.02B

Presented

Date10/27/2014
Price$86.65
Market Cap$13.10B
Ent Value$16.72B
P/E Ratio32.18x
Book Value$30.23
Div Yield0.1%
Shares O/S151.51M
Ave Daily Vol1,370,000
Short Int3.20%

Current

Price$36.28
Market Cap$16.02B
EQT Corporation, together with its subsidiaries, operates as a natural gas company in the United States. It operates in two segments, EQT Production and EQT Midstream. The EQT Production segment explores for, as well as develops and produces natural gas, natural gas liquids (NGLs), and crude oil in the Appalachian Basin. As of December 31, 2013, it had 8.3 trillion cubic feet of proved natural gas, NGLs, and crude oil reserves across approximately 3.6 million gross acres, including approximately 580,000 gross acres in the Marcellus play. The EQT Midstream segment provides natural gas gathering, transmission, and storage services for the company’s produced gas, as well as for independent third parties in the Appalachian Basin. This segment owns and operates approximately 9,450 miles of gathering lines and 218 compressor stations. EQT Corporation was founded in 1925 and is headquartered in Pittsburgh, Pennsylvania.

Publicly traded companies mentioned herein: EQT Corporation (EQT), Range Resources (RRC), EQT Midstream Partners LP (EQM), Anadarko Petroleum Corporation (APC), Western Gas Equity Partners LP (WGP), Western Gas Partners LP (WES)

Highlights

While EQT Corporation (EQT) has some issues and is exposed to falling gas prices, the presenter is long the stock and thinks the risk/ reward is favorable in the high $80s. There are a few potential catalysts that could unlock value for shareholders, and from a relative value perspective EQT is an attractive asset. For example, EQT’s enterprise value is not much greater than Range’s (RRC), yet it has a $7+ billion midstream business, so investors are not paying much for an E&P that should generate solid EBITDA in 2015 (even with gas at $3.50).

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Idea Discussion

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