EQT Corporation (EQT), headquartered in Pittsburgh, Pennsylvania, operates as a natural gas production company. With a market cap of $15.9 billion, EQT is an integrated energy company with an emphasis on Appalachian area natural-gas supply, transmission, and distribution. The company offers natural gas products to wholesale and retail customers.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and EQT perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the oil & gas E&P industry. As a leading natural gas producer, EQT boasts substantial proven reserves of 27.6 trillion cubic feet equivalent and daily net production of 5.8 billion cubic feet equivalent, underscoring its competitive edge in the Appalachian Basin's premier shale plays.
Despite its notable strength, EQT has slipped 21.2% from its 52-week high of $45.23, achieved on Nov. 3, 2023. Over the past three months, EQT stock has declined 7.5%, outperforming the SPDR S&P Oil & Gas Exploration & Production ETF’s (XOP) 8.5% dip during the same time frame.
In the longer term, shares of EQT fell 7.8% on a YTD basis and dipped 7.3% over the past 52 weeks, underperforming XOP’s YTD losses of 1.9% and 6.4% over the last year.
EQT has been trading below its 200-day moving average since mid-June. However, it is trading above its 50-day moving average recently.
EQT's performance has been hindered by several factors, including consistently low natural gas prices due to oversupply, rising interest costs related to its debt, and lower overall revenues despite higher production levels. These challenges were compounded by worries about intensified competition following Chesapeake Energy's proposed merger with Southwestern Energy.
On Aug. 13, EQT shares closed down more than 3% after BMO Capital Markets cut its price target from $45 to $39.
Moreover, on Jul. 23, EQT shares closed down more than 1% after reporting its Q2 earnings results. Its adjusted revenue stood at $1.2 billion, up 19.1% year over year. The company reaffirmed its expectation of 2024 total sales volume of 2,100 to 2,200 Bcfe, and maintained its full-year capital expenditures guidance of $1.95 billion to $2.05 billion range.
In the competitive arena of oil & gas E&P, Diamondback Energy, Inc. (FANG) has taken the lead over EQT, showing resilience with a 19.6% uptick on a YTD basis and solid 23.2% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on EQT’s prospects. The stock has a consensus “Moderate Buy” rating from the 20 analysts covering it, and the mean price target of $42.48 suggests a potential upside of 19.2% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
