EQT Corp. (EQT) to Reward Shareholders With $1B Repurchase

EQT Corporation EQT recently announced authorization from its board of directors for a $1-billion share repurchase program.

The authority is valid through Dec 31, 2023, and is effective immediately. EQT Corp. added that the stock buyback plan is equivalent to almost 13% of its present market capitalization. EQT Corp. is planning to finance the repurchases through operating cashflows and available working capital.

The board of directors of EQT Corp. has also authorized the reinstatement of the leading independent natural gas producer’s regular quarterly cash dividend. The reinstatement will commence in the first quarter of next year. With the reinstatement, EQT Corp. will reward an annual dividend rate of 50 cents per share, translating into a quarterly dividend of 12.5 cents and a current competitive yield of roughly 2.5%.

EQT Corp. projects the generation of roughly $1.9 billion of free cash flow next year. In a flat $3 per MMBtu of natural gas pricing scenario, the upstream energy firm is anticipating generating $1.6 billion of free cash flow annually through 2026 from 2023. With the picture of free cash flow generation looking bright, EQT Corp. is expecting ample room to reward shareholders with growth in future dividends.

EQT Corp. is also focusing on strengthening its balance sheet. It has revised its long-term leverage target to 1.0x to 1.5x, intending to achieve investment grade metrics. By 2023-end, EQT Corp. plans to lower absolute debt by at least $1.5 billion, which will help it achieve its long-term leverage target.

Overall, the company is expecting its upstream operations, spreading across the cores of the prolific Marcellus and Utica shale plays, to get stronger on mounting demand for cleaner energy.

EQT Corporation Price

EQT Corporation Price

EQT Corporation price | EQT Corporation Quote

Currently, EQT Corp. carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation WLL, Continental Resources, Inc. CLR and Callon Petroleum Company CPE. While Continental Resources carries a Zacks Rank #2 (Buy), Whiting Petroleum and Callon Petroleum sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum is a leading upstream energy company and is the top producer of crude oil in North Dakota. With oil price improving at a healthy pace, Whiting Petroleum expects to continue generating handsome cashflows while maintaining a healthy balance sheet.

Headquartered in Denver, CO, Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Looking at the price chart, WLL has gained 160.9% year to date, outpacing the 107.5% rise of the composite stocks belonging to the industry.

Continental Resources is also a leading upstream energy company, with proven reserves in North Dakota and Oklahoma. The oil inventories of Continental Resources are among the best in the industry.

Headquartered in Oklahoma City, Continental Resources has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Considering the price chart, CLR has gained 170% so far this year, outpacing the 107.5% improvement of the composite stocks belonging to the industry.

Callon Petroleum is also a leading exploration and production company with a strong presence in prolific unconventional resources that comprise Permian Basin and Eagle Ford Shale play.

Callon Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Looking at the price chart, CPE has gained 270.4% year to date, outpacing the 107.5% improvement of the composite stocks belonging to the industry.

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