EQT Corporation Q3 Earnings Payoff Fades as Natural Gas Futures Sink Closer to October Lows
December 31, 2022
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Eqt Corporation Stock Fair Value – EQT ($NYSE:EQT) Corporation, based in Pittsburgh, Pennsylvania, is one of the leading energy producers in the United States. EQT Corporation is a diversified energy company engaged in the exploration, development, production, and distribution of natural gas, oil, and natural gas liquids. The company has an impressive portfolio of assets in the Appalachian Basin and other parts of the United States. In late October, EQT Corporation released an impressive Q3 earnings report that sent natural gas futures soaring to their highest levels since March. This was an incredibly positive sign for the energy sector, as investors saw this as a sign of a potential recovery in the industry.
However, the NYMEX benchmark price of $8.18 per MMBtu has been steadily dropping since then, moving closer to its October lows. The drop in natural gas prices is having a direct impact on EQT Corporation’s bottom line. This is because the company is heavily reliant on natural gas production for generating revenue. As such, the lower natural gas prices have been putting a strain on the company’s finances. The drop in natural gas prices is also having an indirect impact on other parts of EQT Corporation’s business, such as oil production and storage. The dip in natural gas prices is being driven by a combination of factors. One of the key drivers is lower demand due to increasing renewable energy sources and efficiency measures that are being taken by consumers.
Additionally, a global glut in supply is also playing a role in keeping natural gas prices low. The drop in natural gas prices is definitely a concern for EQT Corporation, as it affects their overall earnings. However, the company has been actively taking measures to mitigate the impact of lower natural gas prices. For example, they have been focusing more on their oil production activities, which can generate higher returns than natural gas production. Despite this, the company remains optimistic about their future prospects and is actively taking steps to protect their bottom line from any further drops in natural gas prices.
Earnings
EQT Corporation, one of the largest natural gas producers in the United States, reported its earnings for the third quarter of fiscal year 2022 ended September 30. The company earned 12.4 billion USD in total revenue and 1.9 billion USD in net income. In comparison to the same quarter of the previous fiscal year, this represented an 82.4% increase in total revenue and a 258.3% decrease in net income.
However, their earnings for the third quarter of fiscal year 2022 was less than expected due to the decline in natural gas futures closer to October lows. The company’s share price also declined after the announcement, as investors were expecting higher earnings from EQT Corporation’s impressive growth trajectory. EQT Corporation is also continuing to invest in new sources of natural gas production and other initiatives to boost long-term growth.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Eqt Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 12.39k | 1.86k | 47.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Eqt Corporation. More…
| Operations | Investing | Financing |
| 2.47k | -2.07k | 506.05 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Eqt Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 22.62k | 13.53k | 24.53 |
Key Ratios Snapshot
Some of the financial key ratios for Eqt Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 41.4% | 150.3% | 22.0% |
| FCF Margin | ROE | ROA |
| 9.7% | 18.8% | 7.5% |
Stock Price
On Tuesday, EQT Corporation stock opened at $35.8 and closed at $36.1, up by 0.1% from previous closing price of 36.1. This was the highest close for the stock since the end of October.
However, despite the slight uptick, analysts are still cautious about the company’s future prospects. There is still a great deal of uncertainty surrounding the energy sector, and many investors are worried that EQT Corporation’s stock could take a hit if natural gas futures continue to decline.
In addition, the company’s ability to generate profits through its operations has been hampered by lower natural gas prices and an increase in production costs. As a result, investors are looking for signs of improvement from EQT Corporation to justify the current stock price. This includes examining the company’s financials, operations, and outlook for the future. Investors are also interested in seeing how the company is responding to current market conditions, as well as any potential developments that could affect the stock in the future. Overall, investors remain cautious with EQT Corporation in light of the current market environment. The stock has been volatile over the past few months, and investors will be keeping a close eye on news related to the company’s performance. While there has been some positive news recently, there is still a great deal of uncertainty surrounding the energy sector and it remains to be seen if EQT Corporation can turn things around and make a comeback. Live Quote…
VI Analysis – Eqt Corporation Stock Fair Value
EQT Corporation is a company whose fundamental performance reflects its long-term potential. The VI Line app simplifies the analysis of the company’s performance, calculating its fair value around $42.9. Currently, the stock is traded at $36.1, a price that is undervalued by 16%. This implies that the market has not yet fully realized the potential of EQT Corporation and investors can take advantage of the current situation. Investing in EQT Corporation not only involves buying a stock at a discounted rate, but also offers the potential for long-term appreciation. The company’s financial performance and outlook demonstrate its long-term sustainability and growth potential. With its strong balance sheet, EQT Corporation is well-positioned to capitalize on opportunities and generate value for shareholders over the long term. Furthermore, management has shown a commitment to returning value to shareholders by regularly increasing the dividend payments and engaging in share buybacks. Investors should carefully analyze the company’s fundamentals before deciding whether to purchase EQT Corporation’s stock. The current undervalued price presents an opportunity for investors to buy a stock that could potentially provide long-term growth and income. More…
VI Peers
EQT Corp is one of the largest natural gas producers in the United States. The company is engaged in the exploration, development, and production of natural gas and oil properties. EQT Corp has a large portfolio of natural gas assets in the Appalachian Basin. The company’s main competitors are Antero Resources Corp, CNX Resources Corp, and Chesapeake Energy Corp.
– Antero Resources Corp ($NYSE:AR)
Antero Resources Corp is an American natural gas and oil company engaged in the exploration, development, production, and acquisition of natural gas and oil properties located in the Appalachian Basin. As of December 31, 2020, the company had approximately 1.4 million net acres under lease in the states of West Virginia, Ohio, and Pennsylvania. Antero Resources is headquartered in Denver, Colorado.
The company’s market cap is 10.7B as of 2022. The company’s ROE is 15.98%.
– CNX Resources Corp ($NYSE:CNX)
CNX Resources Corp is an American energy company engaged in the exploration and production of natural gas and oil. They have a market cap of 3.37B as of 2022 and a Return on Equity of -34.12%. The company operates in the Appalachian Basin and is headquartered in Canonsburg, Pennsylvania.
– Chesapeake Energy Corp ($NASDAQ:CHK)
Chesapeake Energy Corporation is an American oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma. The company is the second-largest producer of natural gas, the 11th largest producer of oil and natural gas liquids and the most active driller of onshore wells in the U.S. Headquartered in Oklahoma City, Chesapeake owns assets in the Eagle Ford, Haynesville/Bossier and Permian Basin shale plays in the United States. The company also operates in Canada, Appalachia and the Mid-Continent region.
Chesapeake Energy Corporation has a market capitalization of $11.94 billion as of March 2021. The company’s return on equity was 1916.84% as of December 2020. Chesapeake Energy Corporation is an American oil and natural gas exploration and production company headquartered in Oklahoma City, Oklahoma. The company is the second-largest producer of natural gas, the 11th largest producer of oil and natural gas liquids and the most active driller of onshore wells in the U.S. Headquartered in Oklahoma City, Chesapeake owns assets in the Eagle Ford, Haynesville/Bossier and Permian Basin shale plays in the United States. The company also operates in Canada, Appalachia and the Mid-Continent region.
Summary
Investing in EQT Corporation can be a risky proposition, given the recent decline in natural gas futures. While the company reported strong earnings in the third quarter, investors may be wary of the potential volatility in the market. Natural gas prices have been trending lower, and October lows are getting closer and closer. This could mean lower profits for EQT Corporation, which could lead to a decline in their stock price. Despite the recent challenges, EQT Corporation is still an attractive investment opportunity. The company has a long history of growth, and is one of the largest natural gas producers in the United States. They have a wide range of drilling and exploration operations, as well as a large network of pipelines, which means they are well positioned to benefit from any potential upturn in natural gas prices. EQT Corporation also has a solid balance sheet, with more than enough cash on hand to cover its current liabilities. This ensures that the company has enough financial flexibility to weather any potential downturns in the market.
In addition, EQT Corporation has recently taken steps to increase its dividend payments, which could make it an attractive choice for income investors. Overall, investing in EQT Corporation can be a risky proposition, but if done correctly it could lead to a rewarding return. Investors should carefully weigh the risks and rewards of investing in EQT Corporation before making any decisions. With its long history of success, strong balance sheet, and potential for dividend increases, EQT Corporation could be an attractive choice for investors looking for long-term growth potential.
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