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Investing.com - Scotiabank maintained its Sector Perform rating and $70.00 price target on EQT Corp. (NYSE:EQT) following the company’s better-than-expected third-quarter 2025 results. The stock, which has delivered an impressive 52% return over the past year, is currently trading near InvestingPro’s Fair Value estimate.
EQT reported strong production, capital expenditure, and free cash flow figures for Q3/25, with the company citing increased operational efficiencies as the primary driver of its performance. The natural gas producer set records for its quarterly completion pace and the most lateral footage drilled and completed in a 24-hour period. With a robust gross profit margin of 75% and revenue growth of 60% over the last twelve months, EQT demonstrates strong operational execution.
The company made minor adjustments to its full-year guidance, maintaining the midpoint of its production forecast despite planning for 10-20 Bcf of price-related shut-ins during Q4/25. EQT also reduced its capital expenditure guidance by $25 million and increased its third-party midstream revenue guidance by $25 million.
EQT reported strong results from its MVP Boost open season and has decided to increase the project size by 20% to 0.6 Bcf/d, with expectations of realizing approximately three times EBITDA build multiple on the project. Additionally, the company increased its base dividend by approximately 5% to $0.66 per share.
Scotiabank identified several potential catalysts for EQT, including continued Equitrans synergy capture, debt reduction toward the $5-7 billion long-term target, ongoing gathering system optimization, and further development of direct supply deals. InvestingPro analysis reveals 13 additional investment tips for EQT, along with comprehensive financial metrics available in the Pro Research Report, helping investors make more informed decisions about this natural gas producer.
In other recent news, EQT Corporation reported its third-quarter financial results, revealing a revenue of $1.68 billion, which fell short of analyst estimates of $1.83 billion. However, the company posted an adjusted earnings per share (EPS) of $0.52, surpassing the consensus estimate of $0.41. This performance was supported by record low operating costs, which came in at $1.00 per Mcfe, 7% below the midpoint of guidance. EQT’s sales volume reached 634 Bcfe, aligning with the higher end of their guidance range. Despite the revenue miss, the company’s operational efficiency played a key role in offsetting the shortfall. These developments come as EQT continues to focus on optimizing its operational costs. Analyst firms have noted the company’s ability to maintain strong operational metrics even amidst revenue challenges.
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