S&P raises EQT

S&P said it raised EQT Corp.’s issuer and issue-level ratings to BB+ from BB, following the completion of its acquisition of Alta Resources Development LLC's upstream and midstream subsidiaries for about $2.95 billion.

“The acquisition of Alta further enhances EQT's scale and improves its diversification within the Marcellus Shale. We expect EQT's production to increase to about 5.6 billion cubic feet equivalent per day in 2022 with the acquisition of Alta. Additionally, we expect the acquisition to increase EQT's already large reserve base and further strengthen EQT's position as the largest producer in the Marcellus Shale,” the agency said in a press release.

Given revised prices for Henry Hub natural gas prices for 2021 and 2022, S&P said it forecasts EQT’s funds from operations to debt to average about 40% for 2021, increasing to 50%-55% in 2022 and debt to EBITDA to average 2x-2.5x in 2021 and improve to 1.5x-2x in 2022.

The outlook is positive.

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