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EQT

EQT NYSE:EQT Stock Report

Last Price

US$41.75

Market Cap

US$15.4b

7D

6.0%

1Y

94.4%

Updated

03 Oct, 2022

Data

Company Financials +
EQT fundamental analysis
Snowflake Score
Valuation5/6
Future Growth5/6
Past Performance0/6
Financial Health2/6
Dividends1/6

EQT Stock Overview

EQT Corporation operates as a natural gas production company in the United States.

EQT Competitors

Price History & Performance

Summary of all time highs, changes and price drops for EQT
Historical stock prices
Current Share PriceUS$41.75
52 Week HighUS$51.97
52 Week LowUS$17.95
Beta1.13
1 Month Change-11.70%
3 Month Change29.58%
1 Year Change94.37%
3 Year Change327.33%
5 Year Change-33.63%
Change since IPO510.98%

Recent News & Updates

Oct 04

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.

Sep 08
We Think EQT (NYSE:EQT) Has A Fair Chunk Of Debt

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...

Shareholder Returns

EQTUS Oil and GasUS Market
7D6.0%10.3%1.0%
1Y94.4%36.4%-20.0%

Return vs Industry: EQT exceeded the US Oil and Gas industry which returned 32% over the past year.

Return vs Market: EQT exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is EQT's price volatile compared to industry and market?
EQT volatility
EQT Average Weekly Movement7.9%
Oil and Gas Industry Average Movement8.0%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
1878693Toby Ricehttps://www.eqt.com

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

How do EQT's earnings and revenue compare to its market cap?
EQT fundamental statistics
Market CapUS$15.42b
Earnings (TTM)-US$809.76m
Revenue (TTM)US$10.36b

1.5x

P/S Ratio

-19.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EQT income statement (TTM)
RevenueUS$10.36b
Cost of RevenueUS$2.24b
Gross ProfitUS$8.11b
Other ExpensesUS$8.92b
Earnings-US$809.76m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-2.19
Gross Margin78.33%
Net Profit Margin-7.82%
Debt/Equity Ratio55.5%

How did EQT perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

-17%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is EQT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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.

EQT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2x
Enterprise Value/EBITDA12.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does EQT's PS Ratio compare to its peers?

EQT PS Ratio vs Peers
The above table shows the PS ratio for EQT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.3x
CTRA Coterra Energy
3x-11.4%US$21.8b
FANG Diamondback Energy
2.7x-12.5%US$27.7b
APA APA
1.1x-6.2%US$12.2b
MRO Marathon Oil
2.4x-10.5%US$16.9b
EQT EQT
1.5x11.9%US$15.4b

Price-To-Sales vs Peers: EQT is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (2.3x).


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 good value based on its Price-To-Sales Ratio (1.5x) compared to the US Oil and Gas industry average (1.5x)


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.

EQT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio4.4x

Price-To-Sales vs Fair Ratio: EQT is good value based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (4.4x).


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 ($41.75) is trading below our estimate of fair value ($159.74)

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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Future Growth

How is EQT forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


44.9%

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 (7.7% 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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Past Performance

How has EQT performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-35.6%

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 (184.6%).


Return on Equity

High ROE: EQT has a negative Return on Equity (-8.84%), as it is currently unprofitable.


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Financial Health

How is EQT's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • 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.


Balance Sheet


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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Dividend

What is EQT current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.44%

Current Dividend Yield

Dividend Yield vs Market

EQT Dividend Yield vs Market
How does EQT dividend yield compare to the market?
SegmentDividend Yield
Company (EQT)1.4%
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.6%
Industry Average (Oil and Gas)4.8%
Analyst forecast in 3 Years (EQT)1.5%

Notable Dividend: EQT's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.67%).

High Dividend: EQT's dividend (1.44%) is low compared to the top 25% of dividend payers in the US market (4.75%).


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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Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Toby Rice (40 yo)

3.25yrs

Tenure

US$16,919,763

Compensation

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
How has Toby Rice's remuneration changed compared to EQT's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

-US$810m

Mar 31 2022n/an/a

-US$3b

Dec 31 2021US$17mUS$1

-US$1b

Sep 30 2021n/an/a

-US$3b

Jun 30 2021n/an/a

-US$2b

Mar 31 2021n/an/a

-US$837m

Dec 31 2020US$8mUS$1

-US$967m

Sep 30 2020n/an/a

-US$2b

Jun 30 2020n/an/a

-US$2b

Mar 31 2020n/an/a

-US$2b

Dec 31 2019US$1US$1

-US$1b

Compensation vs Market: Toby's total compensation ($USD16.92M) is about average for companies of similar size in the US market ($USD13.04M).

Compensation vs Earnings: Toby's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: EQT's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: EQT's board of directors are considered experienced (3.3 years average tenure).


Ownership

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

NYSE:EQT Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
03 May 22SellUS$489,789Kathryn JacksonIndividual11,568US$42.34

Ownership Breakdown

What is the ownership structure of EQT?
Owner TypeNumber of SharesOwnership Percentage
State or Government155,9040.04%
Individual Insiders1,489,4140.4%
General Public11,410,9923.1%
Institutions356,383,44496.5%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 68.17% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
16.61%
BlackRock, Inc.
61,361,123$2.6b-3.94%0.06%
8.59%
The Vanguard Group, Inc.
31,745,155$1.3b-1.36%0.03%
6.38%
FMR LLC
23,575,713$984.3m-5.11%0.09%
5.45%
Capital Research and Management Company
20,143,471$841.0m39.42%0.06%
3.9%
BNY Mellon Asset Management
14,394,312$601.0m-21.66%0.14%
3.6%
State Street Global Advisors, Inc.
13,284,259$554.6m-6.42%0.03%
2.9%
ClearBridge Investments, LLC
10,722,172$447.7m-3.54%0.41%
2.04%
Third Point LLC
7,525,000$314.2m-15.92%5.21%
1.75%
Soroban Capital Partners LP
6,469,016$270.1m-0.48%2.47%
1.72%
Lone Pine Capital LLC
6,352,146$265.2m0%2.37%
1.6%
PointState Capital LP
5,918,176$247.1m24.44%8.54%
1.49%
Two Sigma Investments, LP
5,504,805$229.8m41.27%0.83%
1.2%
Renaissance Technologies LLC
4,450,902$185.8m-30.72%0.23%
1.13%
Geode Capital Management, LLC
4,179,989$174.5m7.03%0.02%
1.13%
Two Sigma Advisers, LP
4,177,600$174.4m130.48%0.5%
1.11%
Dimensional Fund Advisors LP
4,115,033$171.8m-21.24%0.04%
1.02%
Managed Account Advisors LLC
3,755,677$156.8m-20.6%0.04%
0.97%
Rokos Capital Management LLP
3,573,366$149.2m0%11.68%
0.93%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
3,448,864$144.0m7.05%0.05%
0.81%
Antipodes Partners Ltd.
2,989,289$124.8m-46.72%5.26%
0.79%
Charles Schwab Investment Management, Inc.
2,919,267$121.9m-2.51%0.03%
0.78%
Northern Trust Global Investments
2,882,708$120.4m29.57%0.02%
0.77%
Appaloosa Management L.P.
2,850,000$119.0m-27.57%7.4%
0.77%
Key Group Holdings (Cayman), Ltd.
2,829,040$118.1m-6.94%8.4%
0.72%
AllianceBernstein L.P.
2,674,698$111.7m338.96%0.05%

Company Information

EQT Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: EQT Corporation
  • Ticker: EQT
  • Exchange: NYSE
  • Founded: 1878
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Implied Market Cap: US$15.424b
  • Shares outstanding: 369.44m
  • Website: https://www.eqt.com

Number of Employees


Location

  • EQT Corporation
  • 625 Liberty Avenue
  • Suite 1700
  • Pittsburgh
  • Pennsylvania
  • 15222-3111
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQ6DB (Deutsche Boerse AG)YesCommon StockDEEURMar 1964
EQTNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1964
EQ6XTRA (XETRA Trading Platform)YesCommon StockDEEURMar 1964
0IDULSE (London Stock Exchange)YesCommon StockGBUSDMar 1964
EQT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 1964

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.