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EQT to Reverse Gas Curtailments Amid Rising Demand and Prices
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EQT Corporation (EQT - Free Report) announced plans to reverse some of the production cuts it implemented earlier this year, starting in October and November. This move comes in response to rising demand and higher natural gas prices, according to a Reuters report.
Earlier in 2024, EQT and other U.S. gas producers scaled back production when natural gas prices dropped to multi-year lows. This price drop was compelled by an unusually mild winter, which led to an oversupply of gas in storage. EQT alone had reduced production by about 1 billion cubic feet per day (bcfd) during the spring of 2024 as part of its strategy to manage low prices. The broader industry saw a reduction of about 2 bcfd. EQT noted that production curtailments are a normal part of its operational response to low market prices.
With natural gas prices and demand on the rise, EQT is preparing to ramp up production. The company plans to ease its production cuts in October, with further increases in November. Industry analysts expect this trend to continue, with production likely to increase further toward the end of 2024 and into 2025, primarily driven by the growing demand for U.S. natural gas exports.
One key factor driving this demand is the expansion of U.S. liquefied natural gas (LNG) capacity. The United States is currently the largest producer and consumer of natural gas and the world’s leading LNG supplier. The seven major U.S. LNG export facilities currently process around 13.8 bcfd of gas for export. The same capacity is projected to rise significantly in the coming years. By 2025, LNG export capacity is expected to grow to 17.8 bcfd, increasing to 19.8 bcfd in 2026, 22.3 bcfd in 2027 and reaching 24.5 bcfd by 2028, as more LNG plants become operational.
EQT produces around 6 bcfd of natural gas, with about 25% of its output destined for the Gulf Coast, where it accesses LNG export facilities in Texas and Louisiana. The company also secured liquefaction service agreements with two LNG export projects under development — Texas LNG and Commonwealth LNG. These agreements will allow EQT to sell LNG directly to buyers and the company is actively pursuing long-term supply deals with potential customers.
Texas LNG is expected to make a final investment decision by 2025, with the first shipments of LNG likely by 2028 or 2029. As U.S. LNG export capacity continues to expand, EQT is positioning itself to take advantage of the growing global demand for natural gas, both now and in the future.
Price Performance
Shares of EQT have outperformed the industry in the past six months. EQT stock has declined 3.3% compared with the industry's 8.2% decline.
TechnipFMC plc (FTI - Free Report) is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.
The Zacks Consensus Estimate for FTI’s 2024 EPS is pegged at $1.34. The company has a Value Score of B and a Growth Score of A. It has witnessed upward earnings estimate revisions for 2025 in the past seven days.
Core Laboratories Inc. (CLB - Free Report) , an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity of the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at 95 cents. The company has a Value and Growth Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
VAALCO Energy, Inc. (EGY - Free Report) is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. With a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at 65 cents. The company has a Value and Momentum Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days.
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EQT to Reverse Gas Curtailments Amid Rising Demand and Prices
EQT Corporation (EQT - Free Report) announced plans to reverse some of the production cuts it implemented earlier this year, starting in October and November. This move comes in response to rising demand and higher natural gas prices, according to a Reuters report.
Earlier in 2024, EQT and other U.S. gas producers scaled back production when natural gas prices dropped to multi-year lows. This price drop was compelled by an unusually mild winter, which led to an oversupply of gas in storage. EQT alone had reduced production by about 1 billion cubic feet per day (bcfd) during the spring of 2024 as part of its strategy to manage low prices. The broader industry saw a reduction of about 2 bcfd. EQT noted that production curtailments are a normal part of its operational response to low market prices.
With natural gas prices and demand on the rise, EQT is preparing to ramp up production. The company plans to ease its production cuts in October, with further increases in November. Industry analysts expect this trend to continue, with production likely to increase further toward the end of 2024 and into 2025, primarily driven by the growing demand for U.S. natural gas exports.
One key factor driving this demand is the expansion of U.S. liquefied natural gas (LNG) capacity. The United States is currently the largest producer and consumer of natural gas and the world’s leading LNG supplier. The seven major U.S. LNG export facilities currently process around 13.8 bcfd of gas for export. The same capacity is projected to rise significantly in the coming years. By 2025, LNG export capacity is expected to grow to 17.8 bcfd, increasing to 19.8 bcfd in 2026, 22.3 bcfd in 2027 and reaching 24.5 bcfd by 2028, as more LNG plants become operational.
EQT produces around 6 bcfd of natural gas, with about 25% of its output destined for the Gulf Coast, where it accesses LNG export facilities in Texas and Louisiana. The company also secured liquefaction service agreements with two LNG export projects under development — Texas LNG and Commonwealth LNG. These agreements will allow EQT to sell LNG directly to buyers and the company is actively pursuing long-term supply deals with potential customers.
Texas LNG is expected to make a final investment decision by 2025, with the first shipments of LNG likely by 2028 or 2029. As U.S. LNG export capacity continues to expand, EQT is positioning itself to take advantage of the growing global demand for natural gas, both now and in the future.
Price Performance
Shares of EQT have outperformed the industry in the past six months. EQT stock has declined 3.3% compared with the industry's 8.2% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, EQT carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked companies mentioned below. Each company presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TechnipFMC plc (FTI - Free Report) is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.
The Zacks Consensus Estimate for FTI’s 2024 EPS is pegged at $1.34. The company has a Value Score of B and a Growth Score of A. It has witnessed upward earnings estimate revisions for 2025 in the past seven days.
Core Laboratories Inc. (CLB - Free Report) , an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity of the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at 95 cents. The company has a Value and Growth Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
VAALCO Energy, Inc. (EGY - Free Report) is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. With a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at 65 cents. The company has a Value and Momentum Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days.