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EQT (EQT) Financial Strength : 5 (As of Mar. 2024)


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What is EQT Financial Strength?

EQT has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

EQT's Interest Coverage for the quarter that ended in Mar. 2024 was 1.57. EQT's debt to revenue ratio for the quarter that ended in Mar. 2024 was 1.05. As of today, EQT's Altman Z-Score is 1.46.


Competitive Comparison of EQT's Financial Strength

For the Oil & Gas E&P subindustry, EQT's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


EQT's Financial Strength Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, EQT's Financial Strength distribution charts can be found below:

* The bar in red indicates where EQT's Financial Strength falls into.



EQT Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

EQT's Interest Expense for the months ended in Mar. 2024 was $-54 Mil. Its Operating Income for the months ended in Mar. 2024 was $86 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $4,898 Mil.

EQT's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*85.565/-54.371
=1.57

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

EQT's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(606.967 + 4897.774) / 5223.028
=1.05

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

EQT has a Z-score of 1.46, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.46 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


EQT  (NYSE:EQT) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

EQT has the Financial Strength Rank of 5.


EQT Financial Strength Related Terms

Thank you for viewing the detailed overview of EQT's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


EQT (EQT) Business Description

Industry
Traded in Other Exchanges
Address
625 Liberty Avenue, Suite 1700, Pittsburgh, PA, USA, 15222
EQT Corp is an independent natural gas production company with operations focused in the cores of the Marcellus and Utica shales in the Appalachian Basin, located in the Eastern United States. The firm focuses on executing combo-development projects for developing multiwell pads to meet supply needs, with a focus on maximizing operational efficiency, technology, and sustainability. Its main customers include marketers, utilities, and industrial operators in the Appalachian Basin. The company has one reportable segment and its revenue stems from three types of gas reserves: natural gas, natural gas liquids, and crude oil. All of the firm's operating revenue is generated in the U.S., with most revenue flowing from the Marcellus Shale field and through the sale of natural gas.
Executives
Qem Vi, Llc 10 percent owner 800 CAPITAL STREET, SUITE 3600, HOUSTON TX 77002
Q-xcl Holdings I (vi) Investment Partners, Llc 10 percent owner 800 CAPITOL STREET, SUITE 3600, HOUSTON TX 77002
Q-th Appalachia (vi) Investment Partners, Llc 10 percent owner 800 CAPITOL STREET, SUITE 3600, HOUSTON TX 77002
Vanloh S Wil Jr 10 percent owner 1401 MCKINNEY STREET, SUITE 2700, HOUSTON TX 77010
U.s. Bank Trust Company, National Association 10 percent owner 111 SW FIFTH AVENUE, PORTLAND OR 97204
Jeremy Knop officer: CHIEF FINANCIAL OFFICER 625 LIBERTY AVENUE, SUITE 1700, PITTSBURGH PA 15222
Todd James officer: Chief Accounting Officer 625 LIBERTY AVENUE, SUITE 1700, PITTSBURGH PA 15222
Lesley Evancho officer: Chief Human Resources Officer 625 LIBERTY AVENUE, SUITE 1700, PITTSBURGH PA 15222
William E. Jordan officer: EVP and General Counsel 400 WOODCLIFF DRIVE, CANONSBURG PA 15317
Kathryn Jean Jackson director 121 SW SALMON STREET, PORTLAND OR 97204
Frank C. Hu director 625 LIBERTY AVE., SUITE 1700, PITTSBURGH PA 15222
David M. Khani officer: Chief Financial Officer 625 LIBERTY AVE., SUITE 1700, PITTSBURGH PA 15222
Toby Z. Rice director, officer: President & CEO 400 WOODCLIFF DRIVE, CANONSBURG PA 15317
Lydia I Beebe director 13403 NORTHWEST FREEWAY, HOUSTON TX 77040
Kyle Derham officer: Interim Chf Financial Officer 625 LIBERTY AVENUE, SUITE 1700, PITTSBURGH PA 15222

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