Lower Natural Gas Prices To Drag EQT's 2Q Results, Analyst Forecasts No Share Repurchases
Portfolio Pulse from Nabaparna Bhattacharya
Stephens analyst Mike Scialla has reiterated an Equal-Weight rating on EQT Corporation with a $36 price target. The analyst has lowered the 2Q CFPS estimate by 44% to $0.79, primarily due to lower projected unhedged realized natural gas and NGL prices. The 2Q23 EBITDA estimate has been updated to $359 million, 7% below Street consensus. No share repurchases are expected during the quarter due to forecasted outspending of $164 million. The Tug Hill acquisition is expected to close near mid-year 2023, pending final SEC approval.
July 13, 2023 | 6:39 pm
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NEGATIVE IMPACT
EQT's 2Q results are expected to be negatively impacted by lower natural gas prices. No share repurchases are expected during the quarter due to forecasted outspending. The Tug Hill acquisition is expected to close near mid-year 2023.
The analyst's lowered 2Q CFPS estimate and the expectation of no share repurchases during the quarter due to forecasted outspending are likely to negatively impact EQT's stock price in the short term. The pending Tug Hill acquisition could also introduce uncertainty.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100