EQT Corporation Announces Redemption of All 1.75% Convertible Senior Notes Due 2026

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EQT ($NYSE:EQT) Corporation, a leading energy producer in the United States, announced that it will be redeeming all of its 1.75% Convertible Senior Notes due in 2026. EQT is a diversified energy company that produces, stores, and transports natural gas, natural gas liquids (NGLs), and oil. It is one of the largest energy producers in the United States, with operations throughout the Appalachian Basin. Its main business activities include natural gas production, midstream operations, and marketing of natural gas and NGLs.

EQT is committed to creating long-term value for its shareholders by providing safe and reliable operations with a focus on environmental sustainability and social responsibility. With the redemption of these notes, EQT will be able to reduce its debt and position itself for continued growth.

Analysis

At GoodWhale, we conducted an analysis of EQT CORPORATION’s financials and found it to be classified as a ‘rhino’ on the Star Chart, indicating a company that has achieved moderate revenue or earnings growth. We anticipate that this type of company may be attractive to investors who are looking for stability and consistent performance. When looking at EQT CORPORATION’s overall financial health, we gave it a score of 6/10. This reflects its strong cashflows and debt management, indicating that the company would be able to safely ride out any crisis without the risk of bankruptcy. In particular, EQT CORPORATION is strong in dividend and growth, and medium in asset and profitability. Therefore, we believe it is an appealing option for investors who are looking for a company that is reliable and capable of delivering good returns. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Eqt Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Eqt Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Eqt Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Eqt Corporation are shown below. More…

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

EQT Corporation is an energy company that operates in natural gas production, transmission, storage and distribution. The company has recently announced its plans to redeem all its outstanding 1.75% Convertible Senior Notes due 2026. This move is a positive step in increasing the financial flexibility of the company and should result in a decrease of the company’s leverage. The redemption of the notes is expected to be funded by cash on hand and recent share repurchases.

The interest rate on the notes was slightly higher than the current rate in the credit markets, allowing the company to take advantage of lower rates and reduce total interest expense. Investors should take note of this move from EQT, as it suggests that the company is taking steps to strengthen its balance sheet and increase its liquidity in order to improve its financial position.