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EQT’s 3Q15 Earnings Call and Wall Street Ratings

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Jan. 27 2016, Updated 3:57 p.m. ET

EQT’s 3Q15 earnings call

On EQT’s (EQT) 3Q15 earnings call, senior vice president and chief financial officer Philip Conti assured callers that with $1.7 billion in cash and $1.5 billion in revolving credit facility, “we remain in a strong liquidity position to accomplish our goals for the foreseeable future.” Conti also said, “Our current estimate of 2015 EQT operating cash flow is $900 million.” EQT’s management also said that its 2016 capital expenditure will be much lower than 2015.

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EQT’s Utica focus

On EQT’s 3Q15 earnings call, EQT’s chairman, president, and chief executive officer David Porges outlined EQT’s strategy for the Utica Shale. Porges said, “Our initial thoughts are a 10 well to 15-well deep Utica program in 2016 with flexibility to shift capital between Marcellus and Utica as warranted based on our progress.” He said that EQT is very positive about Utica Shale’s production potential. Porges also stated that given the Utica Shale potential, EQT is on the lookout to buy additional acreage around its core Utica acreage.

Wall Street ratings for EQT

Currently, ~71% of Wall Street analysts rate EQT as a “buy,” and ~24% rate it a “hold.” Only ~5% rate the stock a “sell.” The median price target from these recommendations is $74.44, which is ~22% higher than the January 26, 2016, closing price of $61.26.

Based on the median price targets of recommendations from Wall Street analysts, the SPDR S&P 500 ETF (SPY) upstream companies such as Consol Energy (CNX), Murphy Oil (MUR), and Occidental Petroleum (OXY) have potential upsides of ~83%, ~43% and ~19%, respectively, from their January 26, 2016, closing prices.

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