Opinions Joe Terranova
EQT CorporationEQTBUYDec 30, 2024
Joe TerranovaStock price when the opinion was issued
As of Jun 05, 2026. Market Open.
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Second-largest producer of natural gas in the US. Owns all of its infrastructure. Member of the S&P 500, so much easier for the general US investor to own it. He sees it with an 8x multiple, which means $75 target price at $4 gas. Aggressively buying back shares until the day comes when it can add takeaway capacity from Marcellus and grow volumes. Yield is 1.21%.
(Analysts’ price target is $63.84)
Eric NuttallHas momentum and is outperforming the natural gas sector. They generate strong free cash flow. They bought good midstream companies. Are located perfectly--in the Appalachians where there is major data centre demand.
Joe Terranova
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Premium contentOur PAST TOP PICK with EQT has triggered its stop at $40. To remain disciplined, we recommend covering the position at this time. When combined with the previous recommendations, this will result in a net investment gain of 14%.
Premium contentPremium contentPremium contentEnergy has been the worst sector YTD and QTD, but he remains long energy. The fundamentals are in place. Natural gas is up 16% this quarter, though -70% from last year's high, but we seeing a bottoming in, which is why he bought EQT in the low-$30s and is approaching $40 now. Nat gas may be a better trade than crude oil.
Joe TerranovaPremium contentThis US Pennsylvania based natural gas producer recently reported revenue beat analyst expectations by 50% and its revenue is expected to grow another 28% annually for the next three years. It trades at 3x earnings, marginally over book value, and supports a 44% ROE. Cash reserves are growing, while debt is being retired. We recommend a stop-loss at $29.00, looking to achieve $44.50 -- upside potential of 23%. Yield 1.6%
(Analysts’ price target is $44.32)
Nat gas is an opportunity. We're working off existing inventories and excess supply. Also, nat gas feeds the insatiable demand for energy that's used by data centres.