EQT Corp reports $184M loss on derivatives

PITTSBURGH, PA - EQT Corporation (NYSE:EQT), a player in the crude petroleum and natural gas industry with a market capitalization of $30.9 billion, disclosed in a recent SEC filing that it expects to report a total loss of $184 million on derivatives for the quarter ending December 31, 2024. According to InvestingPro analysis, the company is currently trading near its 52-week high of $54.85, reflecting strong market performance despite these derivative positions. The Pittsburgh-based company, which operates under the standard industrial classification of crude petroleum and natural gas, announced these preliminary financial results today.

The filing also detailed that EQT anticipates net cash settlements received on derivatives amounting to $181 million for the same period. This includes $180 million from NYMEX natural gas hedge positions and $1 million from basis and liquids hedge positions. Additionally, EQT paid $1 million in premiums for derivatives that settled during the last quarter of 2024. The company’s current ratio of 0.51 indicates tight liquidity management, making these derivative positions particularly significant for investors monitoring risk exposure.

These figures are preliminary and may be subject to adjustments. The final amounts will be confirmed in EQT’s Annual Report on Form 10-K for the year ended December 31, 2024, or in the corresponding earnings release.

The information provided in the SEC filing is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor is it subject to the liability of that section. It should also not be considered incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, unless specifically referenced in such a filing.

EQT Corporation, with its headquarters at 625 Liberty Avenue, has been a significant name in the energy sector, particularly known for its involvement in the exploration and production of natural gas. The company’s financial performance, particularly regarding derivatives, is closely watched by investors as an indicator of its risk management strategies and overall fiscal health. With analyst price targets ranging from $35 to $73 and the next earnings report due on February 18, 2025, InvestingPro subscribers can access detailed analysis and 12 additional exclusive insights about EQT’s financial outlook and market position through comprehensive Pro Research Reports.

This report is based on a press release statement and the company’s recent SEC filing.

In other recent news, EQT Corporation has seen significant developments in their financial and operational performance. JPMorgan maintained its Overweight rating on EQT and increased the price target to $53.00 from the previous $50.00, following EQT’s announcement of expected capital expenditure reductions and production improvements for 2025. This is attributed to the sale of non-operational assets, which is expected to save approximately $75 million, and additional drilling and completion efficiency gains estimated to save around $50 million.

In addition to these developments, EQT has finalized the divestiture of its non-operated assets in Northeast Pennsylvania for approximately $1.25 billion. This move aims to streamline EQT’s operational focus and improve its financial position. Moreover, the company has extended its share repurchase program to 2026, demonstrating its financial strength and commitment to shareholder returns.

On the analyst front, Citi analyst Nicholas Herman recently increased EQT AB (ST:EQTAB)’s stock price target to SEK 340.00, up from SEK 330.00, while maintaining a Neutral stock rating. Furthermore, following discussions with EQT’s CFO, Jeremy Knop, Citi reaffirmed its Buy rating for EQT, reflecting confidence in the expected benefits of EQT’s acquisition of ETRN and the company’s capacity to capitalize on regional growth. Mizuho (NYSE:MFG) also 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. and its successful operational improvements.

These are recent developments that demonstrate EQT’s ongoing commitment to operational efficiency, financial resilience, and shareholder returns.

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