Group 1: Stock Performance - EQT Corporation's shares have increased by 24.6% over the past six months, outperforming the oil-energy sector's decline of 15.6% and the Zacks S&P 500 composite's decline of 0.9% [1][5] - The company has a market capitalization of $32.3 billion [1] Group 2: Earnings and Revenue Growth - The Zacks Consensus Estimate for EQT's 2025 earnings per share indicates a year-over-year increase of 116.2%, with revenues expected to reach $8.1 billion, suggesting a 32.4% year-over-year improvement [2][5] - Long-term earnings growth is projected at 46.3%, significantly higher than the industry average of 16.9% [2] Group 3: Valuation Metrics - The average price target for EQT shares, based on 21 analysts, is $60.14, indicating an 11.4% upside from the last closing price [3] - EQT's price-to-book ratio stands at 1.36X, which is a deep discount compared to the industry average of 3.28X [5][7] Group 4: Operational Strengths - EQT is the largest natural gas producer in the U.S., focusing on the Appalachian Basin and employing advanced technologies like horizontal drilling [8] - The company has untapped premium oil and natural gas drilling locations, contributing to a positive production outlook [8] Group 5: Acquisition and Financial Performance - EQT's $1.8 billion acquisition of Olympus Energy is expected to yield a 15% unlevered free cash flow yield and a 3.4X adjusted EBITDA multiple over 2025-2027 [9] - In Q1 2025, EQT generated over $1.04 billion in free cash flow, nearly double that of its closest peer, showcasing its strong cost structure and operational efficiency [12] Group 6: Credit Ratings and Debt Management - EQT holds investment-grade credit ratings from S&P and Fitch with a stable outlook [13] - The company is actively working to reduce its debt burden, targeting a long-term debt range of $5-7 billion [13]
EQT Beats Industry While Trading Cheaply: What Investors Should Know