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EQT Corp EQT

Morningstar Rating
$36.83 −0.38 (1.02%)
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Company Report

EQT: Initiating Coverage With No-Moat Rating; Slightly Overvalued

We have initiated coverage of EQT with a $36 fair value estimate and a no-moat rating. Currently, EQT is a stand-alone natural gas producer in the Appalachian region and has not been able to generate consistent returns above its cost of capital. We do not believe that it will be able to do so going forward, either. Equitrans is a midstream company that gathers and processes molecules and then moves them out of the basin toward consumers. In March, EQT announced that it would purchase Equitrans in an all-stock transaction. This is a natural acquisition, since the vast majority of business for Equitrans is servicing EQT's operations and it was spun out of EQT several years ago. We rate Equitrans as having a narrow moat as a stand-alone company . However, the way that exploration and production companies account for their midstream operations is to report them as savings on cost of goods sold and not revenue-generating assets.

Price vs Fair Value

EQT is trading at a 755% premium.
Price
$36.83
Fair Value
$41.00
Uncertainty
High
1-Star Price
$33.80
5-Star Price
$24.90
Economic Moat
Pdc
Capital Allocation
Qzwczypq

Bulls Say, Bears Say

Bulls

The artificial intelligence and data center boon to energy demand in the northeast and mid-Atlantic could boost local gas demand and improve margins, as the cost of local delivery is far lower.

Bears

While its acreage inventory is multidecade, EQT’s expected breakeven price for gas is significantly higher than that of peers. This dynamic could make it uneconomic for EQT to extract gas if its competitors prove more lower-cost acreage.

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News

Trading Information

Previous Close Price
$37.21
Day Range
$36.5237.39
52-Week Range
$32.0745.23
Bid/Ask
$36.86 / $37.55
Market Cap
$16.26 Bil
Volume/Avg
1,027 / 6.4 Mil

Key Statistics

Price/Earnings (Normalized)
25.76
Price/Sales
3.46
Dividend Yield (Trailing)
1.69%
Dividend Yield (Forward)
1.71%
Total Yield
1.69%

Company Profile

EQT Corp is an independent natural gas production company with operations focused in the Marcellus and Utica shale plays in the Appalachian Basin. At year-end 2023, EQT’s proven reserves totaled 27.6 trillion cubic feet equivalent, with net production of 5.79 billion cubic feet equivalent per day. Natural gas accounted for 94% of production.
Sector
Energy
Industry
Oil & Gas E&P
Stock Style Box
Mid Core
Total Number of Employees
881

Competitors

Valuation

Metric
EQT
EOG
AR
Price/Earnings (Normalized)
25.7611.13326.91
Price/Book Value
1.072.661.41
Price/Sales
3.463.292.42
Price/Cash Flow
6.256.7010.91
Price/Earnings
EQT
EOG
AR

Financial Strength

Metric
EQT
EOG
AR
Quick Ratio
0.501.870.26
Current Ratio
0.882.320.29
Interest Coverage
3.8862.852.25
Quick Ratio
EQT
EOG
AR

Profitability

Metric
EQT
EOG
AR
Return on Assets (Normalized)
2.69%16.00%1.37%
Return on Equity (Normalized)
4.70%25.23%2.70%
Return on Invested Capital (Normalized)
4.47%21.58%2.46%
Return on Assets
EQT
EOG
AR
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Oil & Gas E&P Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ConocoPhillips
COP
LgtsymwyxPywmql$133.4 Bil
EOG Resources Inc
EOG
FhgvyvwbvXrlcw$76.2 Bil
Occidental Petroleum Corp
OXY
YnccszltvZkckn$55.0 Bil
Hess Corp
HES
GvbhvpvchkMxfxry$46.4 Bil
Diamondback Energy Inc
FANG
VtjhngttfzGpdlcz$37.6 Bil
Devon Energy Corp
DVN
YgygbfxkdYlxvhww$30.2 Bil
Marathon Oil Corp
MRO
KssxvpxFqc$16.1 Bil
APA Corp
APA
GkgnbvnkhBbd$11.7 Bil
Antero Resources Corp
AR
HtftsvfzrYmtms$9.9 Bil

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