Sector: Energy | Focus: Oil & Gas Exploration & Production
HQ: Pittsburgh, Pennsylvania
Financial Risks
EQT faces risks from commodity price volatility (natural gas and NGLs), potentially impacting development plans, customer creditworthiness, and operational costs. Regulatory challenges, including permitting delays and litigation, threaten project timelines and costs. Significant debt levels, including covenants and cross-default provisions, limit operating flexibility and could lead to defaults. Competition from other energy sources and companies pose a risk to demand for EQT's services. The age of some assets increases maintenance and repair costs and potential operational disruptions.
Financial Upside
EQT's acquisition of Equitrans Midstream expands its integrated natural gas operations, creating a larger, more vertically integrated company. The Mountain Valley Pipeline (MVP) in-service date and associated firm capacity commitments offer potential revenue increases and cost reductions. Divestiture of non-operated assets in Northeast Pennsylvania could generate substantial cash proceeds for debt repayment. Favorable cash settled derivatives and higher NGL prices contribute to positive revenue trends.
