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EQT (EQT)
NYSE:EQT

EQT (EQT) AI Stock Analysis

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EQ

EQT

(NYSE:EQT)

Rating:76Outperform
Price Target:
$63.00
▲(14.80%Upside)
EQT's overall stock score is driven primarily by its strong financial performance and positive earnings call outcomes, reflecting robust revenue and cash flow growth. The technical analysis supports a stable trend, though the high P/E ratio signals potential overvaluation. Corporate events present mixed implications but are generally less impactful.
Positive Factors
Hedging Strategy
EQT's opportunistic hedging strategy aims to enhance margins and preserve upside while maintaining flexibility.
Strategic Growth Projects
Strategic growth projects, such as the MVP expansion, may add significant value depending on opportunities.
Vertical Integration
EQT's vertical integration enhances efficiency and lowers maintenance capital, creating future value opportunities.
Negative Factors
Pipeline Capacity Challenges
EQT faces commercial and political challenges in expanding pipeline capacity out of Appalachia.
Production Guidance
The production guidance for the second quarter fell short of expectations with higher capital expenditure than initially estimated.
Production Levels
EQT anticipates a slightly lower production level due to tactical curtailments in response to weak pricing.

EQT (EQT) vs. SPDR S&P 500 ETF (SPY)

EQT Business Overview & Revenue Model

Company DescriptionEQT Corporation is a leading independent natural gas production company in the United States. Headquartered in Pittsburgh, Pennsylvania, EQT is one of the largest producers of natural gas in the Appalachian Basin, with operations primarily focused on the Marcellus and Utica Shales. The company is committed to being a low-cost operator and delivering sustainable energy solutions.
How the Company Makes MoneyEQT makes money primarily through the exploration, production, and sale of natural gas. The company generates revenue by extracting natural gas from its extensive reserves in the Appalachian Basin and selling it to utilities, industrial users, and other energy companies. EQT's business model focuses on maintaining operational efficiency and reducing production costs to maximize profit margins. Additionally, the company benefits from strategic pipeline infrastructure that facilitates the efficient transportation of natural gas to market. EQT also engages in hedging strategies to manage price volatility and secure stable cash flows. Revenue growth is supported by factors such as increasing demand for natural gas, advances in drilling technology, and strategic acquisitions that expand its asset base.

EQT Earnings Call Summary

Earnings Call Date:Apr 22, 2025
(Q1-2025)
|
% Change Since: 13.32%|
Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment Positive
The earnings call highlighted EQT's strong financial performance, strategic acquisitions, and effective cost management. However, the company faces challenges related to market volatility and reliance on future in-basin demand growth. Despite these challenges, the sentiment leans positive due to the significant financial achievements and strategic positioning for future growth.
Q1-2025 Updates
Positive Updates
Record-Breaking Financial Performance
The first quarter of 2025 was the strongest in recent company history, with production at the high end of guidance and over $1 billion in free cash flow generated.
Strategic Acquisition of Olympus Energy
EQT announced the acquisition of Olympus Energy's upstream and midstream assets for $1.8 billion, expected to deliver a 4% to 8% accretion in free cash flow per share over the next three years.
Successful Cost Management
Operating expenses and capital spending were below the low end of guidance, contributing to significant free cash flow generation.
Enhanced Production Outlook
EQT raised its full-year production outlook by 25 Bcfe and lowered the midpoint of 2025 capital spending guidance by $25 million.
Strong Balance Sheet Deleveraging
Net debt decreased from $9.1 billion at the end of 2024 to $8.1 billion, with a plan to reach $5 billion by mid-2026.
Negative Updates
Market Volatility and Price Uncertainty
EQT faces uncertainty in production growth from the Haynesville and Permian basins, potentially impacting the ability to meet future demand.
Dependence on In-Basin Demand Growth
The company's growth strategy is heavily reliant on the development of in-basin demand, particularly from power projects and data centers, which are still in discussion phases.
Company Guidance
In the EQT Q1 2025 earnings call, the company reported its strongest financial results in recent history, largely driven by strategic production management and market conditions. Production surged by 300 million cubic feet per day, leading to a free cash flow of over $1 billion with natural gas prices averaging $3.65 per million Btu. This performance represents nearly twice the consensus free cash flow estimates of the nearest competitor. EQT also announced a $1.8 billion acquisition of Olympus Energy, expected to enhance free cash flow per share by 4% to 8% over the next three years. The acquisition includes a 90,000 net acre position with a production capacity of 500 million cubic feet per day. The company continues to capture synergies from the Equitrans acquisition, achieving $360 million in annual savings, and has raised its full-year production outlook by 25 Bcfe while lowering capital spending by $25 million. Pro forma for the Olympus transaction, EQT forecasts year-end 2025 net debt of approximately $7 billion, with a net debt to adjusted EBITDA ratio decreasing by 0.1 times. The company is also exploring in-basin demand opportunities, including discussions with multiple power projects, which could support sustainable production growth linked to end-user demand. EQT's strategic initiatives position it to capitalize on local demand growth and improve through-cycle free cash flow generation, while maintaining a strong balance sheet and operational flexibility.

EQT Financial Statement Overview

Summary
EQT demonstrates solid financial health with strong revenue and cash flow growth, efficient cost management, and a stable balance sheet. The company is well-positioned in the industry, showing resilience against sector volatility. While rising debt levels and slight operational challenges should be monitored, overall financial stability and liquidity remain robust.
Income Statement
78
Positive
EQT has shown a positive trend in revenue growth, with a TTM (Trailing-Twelve-Months) revenue of $5.66 billion, up from $5.22 billion in the previous year. The gross profit margin is strong at approximately 54.6%, reflecting efficient cost management. The net profit margin improved significantly to 7.82% in the TTM period, demonstrating enhanced profitability. However, there was a slight decline in EBIT margin, indicating potential operational challenges.
Balance Sheet
72
Positive
The company's balance sheet exhibits a stable equity base with stockholders' equity at $20.72 billion. The debt-to-equity ratio of approximately 0.41 suggests moderate leverage, which is manageable. The equity ratio of 52.2% indicates a solid equity position relative to total assets, providing a cushion against financial volatility. However, the increase in total debt warrants monitoring to ensure continued financial stability.
Cash Flow
85
Very Positive
EQT shows robust cash flow generation with TTM operating cash flow of $3.41 billion and free cash flow of $1.19 billion. The free cash flow growth rate is impressive at over 108%, underscoring strong cash generation capabilities. The operating cash flow to net income ratio stands at 7.71, reflecting efficient conversion of income into cash. These factors contribute to a strong cash flow position, reinforcing liquidity.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.34B5.22B5.07B12.14B6.84B2.66B
Gross Profit3.11B2.68B3.08B8.06B3.00B-626.98M
EBITDA3.35B2.88B4.06B4.25B396.92M450.12M
Net Income369.23M230.58M1.74B1.77B-1.15B-967.18M
Balance Sheet
Total Assets39.70B39.83B25.29B22.67B21.61B18.11B
Cash, Cash Equivalents and Short-Term Investments281.76M202.09M80.98M1.46B113.96M18.21M
Total Debt8.39B9.37B5.84B5.71B5.51B4.95B
Total Liabilities15.30B15.55B10.50B11.46B11.56B8.85B
Stockholders Equity20.72B20.60B14.77B11.17B10.03B9.26B
Cash Flow
Free Cash Flow1.19B573.26M1.16B2.04B607.32M495.47M
Operating Cash Flow3.41B2.83B3.18B3.47B1.66B1.54B
Investing Cash Flow-1.55B-1.58B-4.31B-1.42B-2.07B-1.56B
Financing Cash Flow-2.23B-1.13B-242.86M-699.13M506.05M31.71M

EQT Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price54.88
Price Trends
50DMA
55.62
Negative
100DMA
53.01
Positive
200DMA
48.14
Positive
Market Momentum
MACD
-0.04
Positive
RSI
42.96
Neutral
STOCH
18.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQT, the sentiment is Neutral. The current price of 54.88 is below the 20-day moving average (MA) of 57.13, below the 50-day MA of 55.62, and above the 200-day MA of 48.14, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 18.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EQT.

EQT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DVDVN
79
Outperform
$22.42B7.9520.88%2.75%12.06%-16.37%
EQEQT
76
Outperform
$34.22B94.602.06%1.15%39.56%-59.84%
76
Outperform
$18.94B14.499.40%3.49%10.33%-0.13%
68
Neutral
$15.27B10.036.34%5.16%4.13%-66.99%
RRRRC
66
Neutral
$9.19B34.466.96%0.94%11.88%-43.44%
CNCNX
64
Neutral
$4.69B9.01-7.30%22.23%-130.65%
CQCQP
60
Neutral
$26.84B13.26124.29%5.95%3.94%9.35%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EQT
EQT
54.88
18.25
49.82%
CTRA
Coterra Energy
25.14
-0.95
-3.64%
CQP
Cheniere Energy Partners
54.90
6.50
13.43%
CNX
CNX Resources
32.56
6.56
25.23%
DVN
Devon Energy
34.59
-10.38
-23.08%
RRC
Range Resources
37.47
3.71
10.99%

EQT Corporate Events

Private Placements and FinancingM&A Transactions
EQT Completes Olympus Energy Acquisition with Stock Issuance
Neutral
Jul 1, 2025

On June 30, 2025, EQT Corporation secured an extension of its Revolving Credit Agreement’s maturity date from July 23, 2029, to July 23, 2030. This extension, effective July 23, 2025, was granted by the lenders involved in the agreement, which includes PNC Bank and other financial institutions. The terms of the agreement remain unchanged, and the lenders may continue to engage in various financial activities with EQT. On July 1, 2025, EQT issued 25,229,166 shares of its common stock as partial consideration for the Olympus Energy Acquisition. This acquisition involved purchasing oil and gas properties and related assets from Olympus Energy LLC and its affiliates, with the transaction also including approximately $440 million in cash.

The most recent analyst rating on (EQT) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on EQT stock, see the EQT Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
EQT Executive Vice President Resigns for New Role
Negative
Jun 4, 2025

On May 30, 2025, Robert R. Wingo informed EQT Corporation of his decision to resign as Executive Vice President Corporate Ventures & Midstream to pursue a position at another company. His resignation will be effective on June 20, 2025, potentially impacting EQT’s operations and strategic ventures in the corporate and midstream sectors.

The most recent analyst rating on (EQT) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on EQT stock, see the EQT Stock Forecast page.

Executive/Board ChangesShareholder Meetings
EQT Shareholders Approve 2025 Employee Stock Plan
Neutral
Apr 17, 2025

At the Annual Meeting of Shareholders held on April 16, 2025, EQT Corporation’s shareholders approved the 2025 Employee Stock Purchase Plan, which allows employees to purchase company stock at a discounted rate starting in 2026. Additionally, an amendment to the company’s bylaws was approved to provide officer exculpation under Pennsylvania law. The meeting also saw the election of directors, approval of executive compensation, and ratification of Ernst & Young LLP as the independent auditor for 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 05, 2025