Lower Natural Gas Prices To Drag EQT's 2Q Results, Analyst Forecasts No Share Repurchases

Stephens analyst Mike Scialla reiterated an Equal-Weight rating on EQT Corporation EQT, with a $36 price target.

The company plans to issue its second-quarter financial and operating results after the market close on July 25, 2023.

The analyst lowered the 2Q CFPS estimate by 44% to $0.79, 18% below Street consensus, primarily due to lower projected unhedged realized natural gas and NGL prices.

The analyst updated 2Q23 EBITDA estimate of $359 million (down from $375 million) is 7% below Street consensus. 

Scialla anticipates no share repurchases during the quarter in light of 2Q's forecasted outspending of $164 million. The projected outspend notwithstanding the analyst's 2Q realized hedge gain estimate of $230 million. 

Going ahead, the analyst expects the Tug Hill acquisition, which is waiting on final SEC approval, to close near mid-year 2023. 

For 2Q, the analyst expects revenue to be $799 million, lower than $3.373 billion a year ago.

The company is expected to report Adj. EPS loss of $(0.19), lower than $0.83 a year ago.

EQT is estimated to quit the quarter with cash and equivalents worth $2.127 billion.

Price Action: EQT shares are trading higher by 0.30% to $39.66 on the last check Thursday.