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EQT Corporation (EQT)

Company Dividend Discount ModelIndustry: Oil & Gas Exploration & ProductionSector: Energy

Valuation Snapshot

Stable Growth$68.57 - $181.89$104.84
Multi-Stage$46.77 - $51.11$48.90
Blended Fair Value$76.87
Current Price$54.43
Upside41.23%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS60.51%33.47%0.540.370.330.000.010.050.050.030.030.03
YoY Growth--43.02%12.13%0.00%-100.00%-75.00%-2.29%50.65%3.33%10.08%0.57%
Dividend Yield--1.00%1.01%1.05%0.00%0.07%0.71%0.25%0.13%0.10%0.08%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)1,780.54
(-) Cash Dividends Paid (M)380.64
(=) Cash Retained (M)1,399.90
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)356.11222.57133.54
Cash Retained (M)1,399.901,399.901,399.90
(-) Cash Required (M)-356.11-222.57-133.54
(=) Excess Retained (M)1,043.791,177.341,266.36
(/) Shares Outstanding (M)609.15609.15609.15
(=) Excess Retained per Share1.711.932.08
LTM Dividend per Share0.620.620.62
(+) Excess Retained per Share1.711.932.08
(=) Adjusted Dividend2.342.562.70
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$68.57$104.84$181.89
Upside / Downside25.97%92.62%234.17%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)1,780.541,896.282,019.542,150.812,290.612,439.502,512.68
Payout Ratio21.38%35.10%48.83%62.55%76.28%90.00%92.50%
Projected Dividends (M)380.64665.64986.071,345.351,747.172,195.552,324.23

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)604.40610.13615.85
Year 2 PV (M)812.98828.47844.10
Year 3 PV (M)1,007.151,036.061,065.52
Year 4 PV (M)1,187.631,233.301,280.28
Year 5 PV (M)1,355.111,420.561,488.52
PV of Terminal Value (M)23,524.6124,660.8525,840.59
Equity Value (M)28,491.8729,789.3731,134.86
Shares Outstanding (M)609.15609.15609.15
Fair Value$46.77$48.90$51.11
Upside / Downside-14.07%-10.15%-6.10%

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