EQT's Q1 Free Cash Flow Shows Impact of Vertically Integrated Model, Commercial Capabilities, RBC Says

MT Newswires Live04-28 00:27

EQT's (EQT) Q1 free cash flow of $1.8 billion showcases the impact of its vertically integrated model and commercial capabilities, RBC Capital Markets said in a research note.

Q1 FCF allowed EQT to make progress on its debt reduction, retiring more than $1.7 billion of senior notes in the quarter, RBC said on Sunday. The company's total debt and net debt is now at $6 billion and $5.7 billion, respectively, with the $5 billion long term debt target reachable by 2026 in a $2.75/Mcf price environment, according to RBC.

"We think it is possible for EQT to double production over the next decade, and management is progressively working on driving in-basin demand opportunities," RBC said.

RBC maintained its sector perform rating on EQT with a $69 price target.

Price: 59.07, Change: +0.16, Percent Change: +0.27

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