EQT Corporation (EQT) Stock: Why The Price Increased Today

By Amit Chowdhry ● Feb 10, 2022
  • The stock price of EQT Corporation (NYSE: EQT) increased by 0.79% today. This is why it happened.

The stock price of EQT Corporation (NYSE: EQT) increased by 0.79% today. Investors are responding positively to the company’s financial and operational performance results for the fourth quarter and full-year 2021 as well as financial and operational guidance for 2022.

Q4 Highlights:

— Sales volume of 527 Bcfe

— Total per unit operating costs of $1.26/Mcfe, $0.04/Mcfe below Q4 2020

— Net cash provided by operating activities of $1,171 MM; free cash flow(1) of $422 MM

— Capital expenditures of $323 MM or $0.61/Mcfe

— Announced reinstatement of annual cash dividend of $0.50 per share of EQT common stock

— Announced $1 billion share repurchase program

Full Year 2021 Highlights:

— Sales volume of 1,858 Bcfe

— Total per unit operating costs of $1.28/Mcfe, $0.08/Mcfe below 2020

— Net cash provided by operating activities of $1,662 MM; free cash flow(1) of $935 MM

— Capital expenditures of $1,104 MM or $0.59/Mcfe

— Total proved reserves of 25 Tcfe and total discounted future net cash flows of $17.3 B, increases of 5.2 Tcfe and $13.9 B compared to 2020

— Completed the acquisition and full integration of Alta Resources

— Received credit rating upgrades from Moody’s, S&P and Fitch

— Announced targets to achieve net zero Scope 1 & Scope 2 GHG emissions by or before 2025(2)

2022 Plan Highlights:

— Sales volume of 1,950 – 2,050 Bcfe expected under a maintenance production program

— Capital expenditures of $1.300 – $1.450 B or $0.65 – $0.75/Mcfe

— Free cash flow of $1.400 – $1.750 B; free cash flow yield(1)(3) of 18%-22%

KEY QUOTES:

“In 2021, we further improved our balance sheet, successfully completed the acquisition and integration of Alta Resources, announced ambitious net zero targets and rewarded shareholders by implementing a comprehensive shareholder return program, consisting of a quarterly cash dividend and authorization to repurchase $1 billion of our common stock.”

“We enter 2022 excited about the trajectory of our Company and our role in addressing climate change and supporting global energy equality. Through continued execution of our modern operating model, our Company expects to generate tremendous free cash flow from our deep inventory of core long-lateral inventory, contractually-declining gathering rates and improved capital efficiency. Our share repurchase authorization gives us the opportunity to allocate capital toward an attractive investment opportunity – our own stock. We look forward to advancing our ESG strategy by decreasing our emissions intensity through pneumatic valve replacement and other carbon-negative projects in pursuit of net zero by or before 2025. Lastly, as the benefits of natural gas are recognized both domestically and internationally, we look forward to continuing to demonstrate stewardship and delivering a sustainable energy source that meets the world’s growing energy demands with affordable, reliable and clean natural gas.”

— President and CEO Toby Rice

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.