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- Truist Securities analyst Neal Dingmann lowered the score on EQT Corp EQT to Maintain from Purchase and lowered the worth goal to $28 from $41.
- The analyst believes, given the continued unstable gasoline worth market, EQT will persist in decrease drilling and completions exercise together with an lively choke program, leading to volumes coming in at decrease than the consensus estimate.
- The analyst expects the FCF to be round $1 billion this 12 months in comparison with over $4.3 billion the earlier 12 months, with anticipated enchancment within the coming 12 months. He continues to mission FCF to succeed in over $12 billion in FCF within the interval 2022-2027.
- EQT’s manufacturing is hedged at the next worth this 12 months than the present degree, and under 15% of estimated manufacturing for 2024 is presently hedged, with restricted scope for the addition of stable hedges.
- Truist’s analysis exhibits that EQT’s total effectively knowledge in 2022 is broadly consistent with the seven-year common quantity pushed by its power in moist Marcellus wells. Nonetheless, the analyst notes that total outcomes are considerably under 2021 wells knowledge.
- The analyst expects EQT to witness one of many decrease per share manufacturing progress charges in comparison with its friends in 2023, whereas complete manufacturing to be marginally decrease on a sequential foundation this 12 months.
- Dingmann expects EQT’s Tug Hill acquisition to conclude in late 2023, leading to elevated high-return stock, enhanced infrastructure, and robust 2023 hedges.
- The analyst anticipates FCF yields of 8% in 2023 and 14% in 2024, under its peer estimates (13% and 18%, respectively). Additionally, he tasks an EV/EBITDA a number of of 5.5x in 2023 and 4.6x in 2024, in comparison with its peer estimate of 4.5x in 2023 and three.2x in 2024.
- Value Motion: EQT inventory is down 0.55% at $33.21 through the on the final examine Tuesday.
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