Understanding EQT’s Recent Stock Performance



EQT’s stock performance

EQT Corporation (EQT) stock has been one of the better-performing stocks this year, although the stock has seen a bit of downward momentum. EQT has fallen ~4% YTD (year-to-date), compared with the ~15% fall seen by the Energy Select Sector SPDR ETF (XLE) during the same period.

During the same period, natural gas prices (UNG) (UGAZ) have fallen 11%, while crude oil prices (DBO) (UCO) have fallen ~12% YTD. The SPDR S&P 500 ETF (SPY) has gained 8.5% YTD.

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EQT’s stock saw upward traction after the news hit that activist hedge fund Jana Partners was trying to prevent EQT’s (EQT) $6.7 billion acquisition of Rice Energy (RICE). After the news that there could be obstacles, EQT’s stock rose ~4%—in stark contrast to the announcement in June that EQT was looking to acquire RICE. EQT’s stock fell 10% after the latter announcement.

Jana Partners wants EQT to abandon its acquisition, and it also wants the company to isolate its natural gas midstream assets from its exploration and production business.

EQT aims to save $600 million in general and administrative expenses after the Rice Energy (RICE) acquisition. It expects its total synergies after the transaction to reach $2.5 billion and sees the purchase as significantly accretive in the first year.

EQT announces dividend

On July 12, 2017, EQT declared a quarterly cash dividend of $0.03 per share, payable to its shareholders on September 1, 2017. Its trailing-12-month dividend payments total $0.12 per share, translating to a trailing yield of ~20%.

Next, we’ll check out the analysts’ latest recommendations for EQT stock.


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