2024-07-24 03:57:34 ET
Summary
- The acquisition of Equitrans Midstream is expected to materially decrease the cost of supply on a per-unit basis.
- EQT announced profitable second quarter results despite industry struggles. The quarter benefitted from a large gain on a sale.
- Mountain Valley Pipeline operation expected to increase the average price received for production by moving Marcellus production to less oversupplied markets.
- Natural gas supply dropping due to weak prices. A reduced rig count should keep the supply dropping until natural gas prices recover.
- Management intends to de-lever by selling some non-operated assets.
EQT ( EQT ) announced its second quarter results. The quality of the management strategy showed when the company posted a small profit while many in the industry were idling production and likely to post much worse results. Additionally, management announced the closing of the acquisition of Equitrans Midstream (ETRN) earlier than expected, which resulted in some unexpected savings. The operation of the Mountain Valley Pipeline promises to get a sizable amount of Marcellus production out of the very oversupplied Marcellus Basin to a market that likely has stronger pricing (lots of markets are not nearly as oversupplied). That could mean an increase in the average price received for production, whether or not natural gas prices begin to recover as much of the industry now expects....
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EQT: This Quarter May Mark A Stock Price And Earnings Bottom