On Monday, Citi reaffirmed its Buy rating and $51.00 stock price target for EQT Corp. (NYSE:EQT (ST:EQTAB)), following discussions with the company's CFO, Jeremy Knop. The meetings last week brought to light several key points, including a growing acknowledgment of the benefits stemming from EQT's acquisition of ETRN. This transaction is anticipated to yield not only midstream outperformance in 2024 but also operational synergies.
The conversations also revealed a shift in perspective regarding regional growth. The question is no longer about whether it will occur but rather the extent of it, with EQT recognized for its capacity to capitalize on this expansion due to its extensive inventory of low-cost resources.
Another focal point was EQT's interest in pursuing further direct sales to utilities. The company is open to such deals, particularly those that offer a netback linked to the spark spread. However, agreements tied to Henry Hub are expected to command a premium to ensure the capture of upside potential.
Citi's commentary underscores a strengthening consensus around the multiple aspects supporting a positive long-term outlook for EQT. The firm's sustained Buy rating reflects confidence in EQT's strategic positioning and future performance.
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