EQT’s Mixed Financial Outlook: Strong Performance Meets Capital Expense Challenges

Analyst David Deckelbaum from TD Cowen maintained a Hold rating on EQT (EQT – Research Report) and keeping the price target at $54.00.

David Deckelbaum’s rating is based on EQT’s strong operational performance in the fourth quarter, where production outpaced expectations and capital expenditure was notably lower than anticipated. Despite this, the guidance for capital expenses in 2025 is slightly above market estimates, which tempers the otherwise positive outlook. EQT’s ability to generate free cash flow is bolstered by a recovering gas market, yet the company’s conservative hedging strategy limits its exposure to potential upside in gas prices.
Moreover, while EQT’s efforts in cost reduction and synergy capture are commendable, leading to decreased maintenance capital requirements, the company still faces challenges in meeting its debt reduction targets. The acknowledgment of successful asset sales and strategic joint ventures indicates positive steps in debt management, but the path to achieving a lower leverage ratio remains a significant factor. Thus, these mixed signals contribute to the Hold rating, reflecting a balanced view of EQT’s financial position and growth prospects.

In another report released on February 13, UBS also maintained a Hold rating on the stock with a $54.00 price target.

Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of EQT in relation to earlier this year.