Pritchard Capital Partners Lowers Price Target on EQT Corp. (EQT)
Pritchard Capital Partners is out with a brief research report this morning, where it lowers its estimates and price target on EQT Corp. (NYSE: EQT); the new price target is $63.00.
The PCP analysts said, “Our Q2 and 2010 EPS/CFPS estimates are decreasing to $0.27/$0.86 and $1.55/$4.32 from $0.32/0.95 and $1.64/$4.52 due to a higher diluted share count and lower expected Appalachia basis and BTU premiums to NYMEX. Likewise, our 2011 estimates are changing to $1.87/$5.36 from $1.94/$5.76.”
They added, “Our price target is declining slightly from $64 to $63 on account of the lower expected Appalachian natural gas prices. We are maintaining our ‘Buy’ rating because some of EQT’s Marcellus acreage in Greene County may be the core of the play. The last two wells from this area had 30 day rates of 14 and 15.8 MMcf/d. For the second quarter, we expect the company to report on both an 8,500 ft. lateral and a 4,900 ft lateral well in the same vicinity. Significant results could be a driver.”
EQT Corporation, formerly Equitable Resources, Inc., conducts its business through three business segments: EQT Production, EQT Midstream and Distribution. The company is a natural gas producer in the Appalachian Basin with 4.1 trillion cubic feet of proved reserves across 3.4 million acres as of December 31, 2009.
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