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Here's Why EQT Stock is an Attractive Investment Bet Now

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EQT Corporation (EQT - Free Report) has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. So far this year, the stock, carrying a Zacks Rank #2 (Buy), has gained 119.2%, outpacing the 45.2% growth of the composite stocks belonging to the industry.

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What's Favoring the Stock?

The price of natural gas has improved drastically in the past year, aiding the upstream operations of EQT. This is because it has a strong footprint in the cores of the Marcellus Shale play in the Appalachian Basin. Production outlook of the Appalachian natural gas producer seems bright as it has a multi-decade inventory of gas assets.

Of the total GHG emissions reductions in the United States since 2005, the contribution of EQT is roughly 5%. By 2025, the upstream player aims to achieve net zero Scope 1 and Scope 2 emissions.

Apart from accelerating the reduction of its debt load, EQT is focused on generating strong free cashflows and recently increased its base dividend. From 2022 through 2027, EQT aims to generate roughly $22 billion of free cashflow.

Other Stocks to Consider

Other prospective players in the energy space include BP plc (BP - Free Report) , Exxon Mobil Corporation (XOM - Free Report) and Eni SpA (E - Free Report) . All the stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The positive oil price trajectory is a boon for BP’s upstream operations. The favorable oil price scenario and increasing daily oil equivalent production volumes are aiding the energy giant’s bottom line. BP stated that the target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from key new projects has been delivered.

The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. Also, it has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana. Like upstream businesses, ExxonMobil also benefits from its strong refinery utilization.

Eni is expecting the discovery of 700 million barrels of oil equivalent (BoE) of new exploration resources this year, suggesting an improvement from the prior guidance of 600 million BoE. For 2022, Eni is likely to witness earnings growth of 165.9%.


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