EQT Corporation (NYSE:EQT) acquired Tug Hill and related midstream assets at a $5.2 billion value implying a 2.7x multiple on 2023 EBITDA (strip), which, according to RBC Capital analysts, is an attractive value and enhances the shareholder proposition.
The acquisition enhances free cash flow generation that amounts to a total of $6 billion (2023) at strip commodity prices. According to the analysts, the company’s comments at its Q2/22 conference call highlighted that acquisitions need to be more compelling than share buybacks and also additive to asset quality.
The analysts raised their price target to $57 from $55 to account for the stronger free cash flow profile and per share accretion.
At CWEB, we are always looking to expand our network of strategic investors and partners. If you're interested in exploring investment opportunities or discussing potential partnerships and serious inquiries. Contact: jacque@cweb.com