Balancing Near-Term Gas Macro Softness with Robust Long-Term Demand Potential; Buy on EQT, Neutral on RRC at $3.50 MMBtu Mid-Cycle

研报英文原文证据摘录

Balancing Near-Term Gas Macro Softness with Robust Long-Term Demand Potential; Buy on EQT, Neutral on RRC at $3.50 MMBtu Mid-Cycle

Equity Research

28 July 2026 | 4:18PM EDT

AMERICAS ENERGY: OIL & GAS - E&P

Balancing Near-Term Gas Macro Softness with Robust Long-Term

Demand Potential; Buy on EQT, Neutral on RRC at $3.50 MMBtu

Mid-Cycle

The Positives. EQT reported 2Q26 production of 6.97 Bcfe/d above consensus Neil Mehta

+1(212)357-4042 | neil.mehta@gs.com

estimates as the company continues to see strong results from its ongoing Goldman Sachs & Co. LLC

compression projects in lowering base declines. We also note EQT’s incremental Jack Cavanagh

power and LNG agreements, which help provide the potential for longer-dated +1(212)902-7206jack.cavanagh@gs.com|

upside to realized natural gas pricing. For RRC, we highlight the company’s raised Goldman Sachs & Co. LLC

Jerry Speicherguidance range for FY2026 NGL and natural gas differentials, and we seek +1(801)744-0758 |

incremental clarity on the outlook for continued realized NGL premiums to Mont jerry.speicher@gs.comGoldman Sachs & Co. LLC

Belvieu pricing in 2027+.

The Challenges. With 2027 strip Henry Hub pricing declining by 14% since the start

of this year, we see the potential for macro headwinds to near-term cash flow

generation and seek further clarity on both companies’ outlook for cost optimization

and return of capital through any continued periods of pressure on natural gas

pricing.

What is Our View? We reiterate our Buy rating on EQT and raise our price target to

$62, implying 19% upside to shares at current levels given EQT’s low cost of supply

from pure-play Appalachian operations and a vertically integrated business model.

We also highlight EQT’s commercial and marketing efforts to improve natural gas