EQT - EQT: Recent Acquisitions Align With Its Long-Term Growth
2024-02-15 08:49:15 ET
Summary
- EQT's stock price has seen a 7.04% total return since we recommended buy.
- The company has achieved operational advantages through recent acquisitions.
- EQT's ability to convert free cash flow has significantly improved. The cash flow weaknesses in cash flow that emerged in Q3 were quickly turned around in Q4.
Investment Thesis
We reviewed EQT's (EQT) performance since our last coverage by aligning its recent acquisitions with a long-term view both from the company's growth perspective and from a macro/industrial supply/demand dynamics. The financial constraints caused by the closing of the Tug Hill & Xcl deal will prove to be temporary as the company continues to dig into the potential of its assets and the efficiency of its proprietary systems. We recommend a buy at the current price.