EQT Stock Overview
EQT Corporation operates as a natural gas production company in the United States.
No risks detected for EQT from our risk checks.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$45.34|
|52 Week High||US$51.97|
|52 Week Low||US$17.95|
|1 Month Change||-4.10%|
|3 Month Change||31.27%|
|1 Year Change||116.01%|
|3 Year Change||385.96%|
|5 Year Change||-28.15%|
|Change since IPO||563.51%|
Recent News & Updates
EQT: So Much To Be Compelled About Here
Summary Natural gas price has fallen leading investors to be anxious. As the market becomes incredibly short-term oriented, I lay out a bull case that explains why natural gas prices will remain elevated, through strong demand. The only detraction from EQT's bull case is that its balance sheet still carries a fair amount of debt. Nevertheless, I believe that looking out to next year, paying 3x its free cash flow already takes into consideration a lot of negativity. Investment Thesis EQT (EQT) is a fast-growing natural company that the market isn't fully pricing in. Why? Because the market has become very jittery of late. Here, I lay out a bull case that paying approximately 3x next year's free cash flows is a very attractive valuation. The one detraction from this bull case is that EQT's balance sheet remains in the way of its full throttled capital returns program. But even with that in mind, I believe that EQT is a compelling investment. Here's why. A Very Jittery Market The best time to buy commodity companies? When the multiples are extended. That adage has worked a charm over the previous cycles, particularly in the past decade. Why would it be any different today? Given that line of reasoning, investors are looking for any reason to take profits off the table from their energy stocks. In fact, we've been fully indoctrinated to believe that we can somehow do away with burning fossil fuels. And that alternatives are on the way! And that once we get past the very near-term, namely this winter, our demand for natural gas will tail off and replacements are on the way. At this line of thinking I take a pause. How in the world are we going to find a clean, reliable, available, and affordable replacement to heat our homes? Well, that takes coal out of the equation since it's neither clean nor affordable right now. And what about its use in agriculture? After all, nitrogen fertilizer is made from natural gas, via the production of ammonia. We can hardly produce ammonia from other sources at scale. Unless the need to feed a growing global population isn't ''a necessity''. Or what about making plastics? That's crude oil and natural gas, both as feedstocks and energy. Even for making the hailed wind turbines, that's made from aluminum, which requires natural gas in its production. Natural gas usage is a lot more pervasive than Wall Street believes. So, yes, the market is jittery, and investors are looking for any reason to take profits off the table, but I don't believe that the spot market has got this one right. Trading Economics As I write, we can see that natural gas prices have substantially sold off in the past few weeks. Investors believe that since we have enough in storage to overcome this winter, therefore everything is solved. After all, the market right is unwilling to imagine we'll require natural gas more than 1 year from now. However, I contend that's not the right way to think about this investment. But before getting to excited, here is a detraction from the bull case. Robust Capital Allocation Program EQT Q2 presentation The one aspect that makes me slightly less bullish on EQT is that the business still has a fair amount of debt. However one seeks to frame it, the fact is that EQT holds approximately $5 billion of net debt as of Q2 2022. Yes, that figure will come down significantly in the coming quarters, But given that other natural gas players already have their balance sheets in a strong position and are today returning significant sums back to shareholders, EQT is still having to pay favor to its debt holders. Its net debt balance will change in the coming quarters, but for a market that is constantly asking ''what have you done for me lately'', that's a minor detraction from the bull case. EQT Valuation -- Priced at Approximately 3x Next Year's Free Cash Flow Now, let's get to the core of the bull case. EQT Q2 presentation During EQT's Q2 earnings call, management stated, As an illustration of the resiliency of our forward outlook, if NYMEX retraced to approximately $3 per MMBtu in 2023, we would still expect to generate approximately $1.6 billion of free cash flow next year or a 10% free cash flow yield. Conversely, if natural gas averaged $7 per MMBtu level, we would expect to generate almost $6 billion of free cash flow in 2023 or nearly a 40% free cash flow yield.
We Think EQT (NYSE:EQT) Has A Fair Chunk Of Debt
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...
|EQT||US Oil and Gas||US Market|
Return vs Industry: EQT exceeded the US Oil and Gas industry which returned 41.2% over the past year.
Return vs Market: EQT exceeded the US Market which returned -18.2% over the past year.
|EQT Average Weekly Movement||8.0%|
|Oil and Gas Industry Average Movement||8.0%|
|Market Average Movement||7.0%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.9%|
Stable Share Price: EQT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: EQT's weekly volatility (8%) has been stable over the past year.
About the Company
EQT Corporation operates as a natural gas production company in the United States. The company produces natural gas, natural gas liquids (NGLs), including ethane, propane, isobutane, butane, and natural gasoline. As of December 31, 2021, it had 25.0 trillion cubic feet of proved natural gas, NGLs, and crude oil reserves across approximately 2.0 million gross acres, including 1.7 million gross acres in the Marcellus play.
EQT Fundamentals Summary
|EQT fundamental statistics|
Is EQT overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|EQT income statement (TTM)|
|Cost of Revenue||US$2.24b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||-2.19|
|Net Profit Margin||-7.82%|
How did EQT perform over the long term?See historical performance and comparison
1.3%Current Dividend Yield
Is EQT undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for EQT?
Other financial metrics that can be useful for relative valuation.
|What is EQT's n/a Ratio?|
Price to Sales Ratio vs Peers
How does EQT's PS Ratio compare to its peers?
|EQT PS Ratio vs Peers|
|Company||PS||Estimated Growth||Market Cap|
CTRA Coterra Energy
FANG Diamondback Energy
MRO Marathon Oil
Price-To-Sales vs Peers: EQT is good value based on its Price-To-Sales Ratio (1.6x) compared to the peer average (2.4x).
Price to Earnings Ratio vs Industry
How does EQT's PE Ratio compare vs other companies in the US Oil and Gas Industry?
Price-To-Sales vs Industry: EQT is expensive based on its Price-To-Sales Ratio (1.6x) compared to the US Oil and Gas industry average (1.6x)
Price to Sales Ratio vs Fair Ratio
What is EQT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PS Ratio||1.6x|
|Fair PS Ratio||4.5x|
Price-To-Sales vs Fair Ratio: EQT is good value based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (4.5x).
Share Price vs Fair Value
What is the Fair Price of EQT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: EQT ($45.34) is trading below our estimate of fair value ($159.29)
Significantly Below Fair Value: EQT is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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How is EQT forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Future Growth Score5/6
Future Growth Score 5/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: EQT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: EQT is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: EQT is expected to become profitable in the next 3 years.
Revenue vs Market: EQT's revenue (11.9% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: EQT's revenue (11.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: EQT's Return on Equity is forecast to be high in 3 years time (31.2%)
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How has EQT performed over the past 5 years?
Past Performance Score0/6
Past Performance Score 0/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: EQT is currently unprofitable.
Growing Profit Margin: EQT is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: EQT is unprofitable, and losses have increased over the past 5 years at a rate of 35.6% per year.
Accelerating Growth: Unable to compare EQT's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: EQT is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (178.8%).
Return on Equity
High ROE: EQT has a negative Return on Equity (-8.84%), as it is currently unprofitable.
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How is EQT's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: EQT's short term assets ($4.1B) do not cover its short term liabilities ($7.2B).
Long Term Liabilities: EQT's short term assets ($4.1B) do not cover its long term liabilities ($6.3B).
Debt to Equity History and Analysis
Debt Level: EQT's net debt to equity ratio (55%) is considered high.
Reducing Debt: EQT's debt to equity ratio has increased from 35.1% to 55.5% over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable EQT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: EQT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 62.7% per year.
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What is EQT current dividend yield, its reliability and sustainability?
Dividend Score 1/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|EQT Dividend Yield vs Market|
|Market Bottom 25% (US)||1.6%|
|Market Top 25% (US)||4.5%|
|Industry Average (Oil and Gas)||4.5%|
|Analyst forecast in 3 Years (EQT)||1.3%|
Notable Dividend: EQT's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).
High Dividend: EQT's dividend (1.32%) is low compared to the top 25% of dividend payers in the US market (4.53%).
Stability and Growth of Payments
Stable Dividend: EQT's dividend payments have been volatile in the past 10 years.
Growing Dividend: EQT's dividend payments have fallen over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: EQT is paying a dividend but the company is unprofitable.
Cash Payout to Shareholders
Cash Flow Coverage: With its low cash payout ratio (18.4%), EQT's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Toby Rice (40 yo)
Mr. Toby Z. Rice serves as Director of WATT Fuel Cell Corporation since February 2022. He serves as the President, Chief Executive Officer and Director of EQT Corporation since July 10, 2019. He has been P...
CEO Compensation Analysis
|Toby Rice's Compensation vs EQT Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$17m||US$1|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$8m||US$1|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$1||US$1|
Compensation vs Market: Toby's total compensation ($USD16.92M) is above average for companies of similar size in the US market ($USD13.00M).
Compensation vs Earnings: Toby's compensation has increased whilst the company is unprofitable.
Experienced Management: EQT's management team is considered experienced (3.3 years average tenure).
Experienced Board: EQT's board of directors are considered experienced (3.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|03 May 22||SellUS$489,789||Kathryn Jackson||Individual||11,568||US$42.34|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||155,904||0.04%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
EQT Corporation's employee growth, exchange listings and data sources
- Name: EQT Corporation
- Ticker: EQT
- Exchange: NYSE
- Founded: 1878
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Implied Market Cap: US$16.750b
- Shares outstanding: 369.44m
- Website: https://www.eqt.com
Number of Employees
- EQT Corporation
- 625 Liberty Avenue
- Suite 1700
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|EQ6||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Mar 1964|
|EQT||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Mar 1964|
|EQ6||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Mar 1964|
|0IDU||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Mar 1964|
|EQT *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Mar 1964|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/05 00:00|
|End of Day Share Price||2022/10/05 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.