PITTSBURGH - EQT Corporation (NYSE: NYSE:EQT (ST:EQTAB)), a prominent American natural gas producer with a market capitalization of $27.5 billion, has finalized the divestiture of its non-operated assets in Northeast Pennsylvania. The sale to Equinor USA Onshore Properties Inc. and its affiliates culminated in EQT receiving roughly $1.25 billion in cash, subject to closing adjustments. According to InvestingPro data, the company’s stock is currently trading near its 52-week high of $48.02.
The transaction, which involved the relinquishment of specific natural gas holdings, was completed to streamline EQT’s operational focus. The proceeds from the sale were allocated to pay down the company’s existing debts under its revolving credit facility, a strategic move aimed at improving the company’s financial position. This debt reduction is particularly significant given EQT’s total debt of $13.8 billion and current ratio of 0.51, indicating short-term obligations exceed liquid assets.
EQT’s operational strategy is centered on the Appalachian Basin, where it is committed to responsible and efficient development of its natural gas resources. The company emphasizes technological innovation, sustainability, and safety in its production and midstream operations.
This divestiture is part of EQT’s ongoing efforts to optimize its asset portfolio and strengthen its balance sheet. The sale to Equinor, a company with a significant presence in the energy sector, indicates a further consolidation of operations in the natural gas industry.
The information about the asset sale is based on a press release statement from EQT Corporation. The company’s decision to sell these assets reflects its focus on improving operational efficiency and financial resilience. For deeper insights into EQT’s financial health and future prospects, including 12 additional exclusive ProTips and comprehensive valuation analysis, visit InvestingPro. EQT remains dedicated to being a leading operator in the natural gas sector, with an emphasis on environmental responsibility and cost-effective energy production.
In other recent news, EQT Corporation has extended its share repurchase program to 2026, demonstrating its financial strength and dedication to shareholder returns. The company has about $1.4 billion remaining in its share repurchase authorization. Additionally, Citi has reaffirmed its Buy rating for EQT, following discussions with the company’s CFO, Jeremy Knop. This confidence is rooted in the benefits expected from EQT’s acquisition of ETRN and the company’s capacity to capitalize on regional growth.
In a shift of perspective, Mizuho (NYSE:MFG) upgraded EQT’s stock rating from Neutral to Outperform, reflecting the company’s strong position as the second-largest gas producer in the U.S. The company’s recent financial moves, including a joint venture with Blackstone (NYSE:BX) and the sale of NEPA assets, have surpassed asset sales targets set for balance sheet deleveraging.
Bernstein initiated coverage on EQT with a Market Perform rating, emphasizing the company’s substantial inventory and strategic approach to production and transportation. Meanwhile, RBC Capital Markets reinstated coverage on EQT, issuing a "Sector Perform" rating. This follows EQT’s merger with ETRN, transforming it into an integrated Appalachian-focused natural gas company. These developments highlight EQT’s strategic growth and commitment to operational excellence.
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