Overview
Stephens has increased its price target on EQT Corp. to $71 from $70 and retained an Overweight recommendation, following the company’s fourth-quarter 2025 results. According to InvestingPro data, EQT shares are trading near their 52-week high of $62.23, while the mean analyst target implies further upside.
Fourth-quarter and full-year 2025 results
EQT reported fourth-quarter 2025 results that outpaced consensus estimates in several key metrics. Production came in 3% above expectations, cash flow per share exceeded estimates by 10%, and free cash flow beat consensus by 22%. Capital expenditures for the quarter were 4% below consensus.
For the full year, EQT generated $2.65 billion in free cash flow, a result roughly $500 million higher than the cumulative consensus for 2025. That level of cash generation corresponds to a free cash flow yield of about 7%, which the company and observers cite as supporting a strong shareholder yield and a run of consecutive dividend increases over the past four years.
Operational efficiency and cost trends
Well costs per foot declined by $130 in 2025, a reduction of 13% versus the prior period. The company attributed the unit-cost improvement to faster drilling and completion activity that improved capital efficiency in the fourth quarter.
InvestingPro characterizes EQT’s financial health as "GOOD," with particularly high scores in price momentum and growth metrics.
2026 guidance and capital allocation
EQT’s guidance for first-quarter 2026 and for the full year 2026 showed production targets that are modestly below consensus - 1% below for Q1 and 3% below for the full year - while capital expenditure guidance was above estimates by 4% for the first quarter and 3% for the full year.
The company set aside approximately $610 million for high-return growth projects, some of which are expected to increase EBITDA without adding to production volumes. Management also expects net debt to fall below its long-term target of $5 billion by the end of 2026.
Derivative activity, hedges and compensation plan
In additional disclosures, EQT said it expects a $114 million gain from derivatives for Q4 2025, and anticipates net cash settlements on derivatives to total $35 million. The company also called attention to $44 million in net cash settlements associated with NYMEX natural gas hedge positions.
The Management Development and Compensation Committee approved the 2026 Short-Term Incentive Plan, under which executives and employees will be eligible for annual bonuses tied to specific performance goals.
Analyst commentary and other corporate activity
In separate analyst notes, Stephens is also reported to have lowered a previous price target for EQT to $68 while maintaining an Overweight rating and observing that the firm’s production estimates are slightly above company guidance. UBS reiterated a Buy rating with a $76 price target ahead of EQT’s fourth-quarter earnings report.
In a different line of business, EQT Life Sciences co-led a 2ef51 million funding round for Exciva intended to advance an Alzheimer’s therapy into Phase 2 clinical trials, joining several other investment partners in the financing.
Summary
EQT beat consensus on several 2025 operating and cash metrics, drove material cost reductions per foot drilled, and produced strong free cash flow that supports shareholder returns. Guidance for 2026 showed slightly lower production versus consensus and somewhat higher capex, while the company plans targeted investment in projects expected to lift EBITDA. The company also disclosed derivative gains, hedge settlements and a new short-term incentive plan for 2026. Analyst notes after the report were mixed, with price-target movement in both directions across firms.