EQT: 5x Free Cash Flow For This Natural Gas Player Is A Serious Bargain

May 25, 2022 3:49 AM ETEQT Corporation (EQT)28 Comments

Summary

  • With gas prices now closing in on $9 mbtu, EQT is going to make a ton of free cash flow this year and 50% higher in 2023.
  • EQT's balance sheet is one of the best amongst the natural gas players.
  • A discussion of EQT's production hedges for 2023.
  • EQT is priced at less than 5x its 2023 free cash flows. A very cheap valuation.
  • As always, happy to discuss my thesis further in the comments section.
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Oil Refinery And Pipeline

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Investment Thesis

EQT (NYSE:EQT) is a natural gas production company. With natural gas prices moving higher and staying higher for longer, EQT is a strong beneficiary.

There's a lot to like about the company. It has a robust balance sheet, with two

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