EQT is an integrated energy company, with emphasis on Appalachian area natural gas-supply, natural-gas transmission and distribution, and energy-management services for customers throughout the U.S. For the FY ended12/00, revenues rose 59% to $1.65B. Net income rose 54% to $106.2M. Revenues reflect the acquisition of Statoil%s Appalachian properties & higher effective commodity prices. Earnings were partially offset by higher maintenance costs.

March 27, 2001

Equitable Resources supplies and distributes natural gas in the Appalachian region. The company also provides energy-management services throughout the United States. Shares of EQT ran into major resistance in October after two years of solid performance. Since then, EQT has been stuck in the $56-$66 range. On Tuesday, the stock broke out to an all-time high of $67.75 and closed above $66 following six failed attempts in the past two weeks. After five months of consolidation, we believe that EQT could make a substantial move upward as we move closer to earnings season. We are also looking for a possible stock split with EQT’s April earnings release or out of its Annual Shareholder meeting on May 17th. The company currently has enough shares for a split with 80 million shares authorized and 37.26 million shares outstanding and the stock is trading within historic split range. EQT announced a 3:2 split in 1993 when the stock was trading in the $35-$40 range. Going forward, EQT has support at Tuesday’s intra-day low of $65.87 with stronger support at $64.70, Monday’s intra-day low. There is resistance at $67.75 and then the $70 mark. The stock is being added to the S&P Midcap 400 after Friday’s close. The news was announced after the bell on Tuesday so we may see a bit of a pop on Wednesday and a bit of sell-off next week. Traders may consider starting new plays on a bounce off of $65.87 or a breakout above $67.75 on volume greater than 80,000 shares by noon. We plan to set stops at $63.40 to limit potential losses.

Picked on March 27th @ $67.20
Change since picked +0.00
Stop Loss @ $63.40

April 5, 2001

Equitable Resources has set record highs in each of the last three sessions. On Thursday, shares of EQT traded to an all-time high of $74 before pulling back to close at $73.60 on volume of 339,000 shares. The stock has made five consecutive higher highs and three consecutive higher lows, so EQT may continue to rally as we move closer to the earnings release, expected April 20th before the bell. We are looking for a split announcement with the earnings report. Until then, support is Wednesday’s intra-day high of $72.35 with stronger support at $70.83, the 5-dma. Resistance now stands at Thursday’s intra-day high of $74 and then the $76-$77 area. A bounce off of $72.35 or a breakout above $74 on midday volume greater than 150,000 shares may be possible entry points. We have moved our stops up to $70.00 to lock in profits.

Picked on March 27th @ $67.20
Change since picked +6.40
Stop Loss @ $70.00

April 3, 2001

Equitable Resources has posted gains in each of the past three sessions as the energy sector heats up. On Tuesday, shares of EQT hit an all-time high of $70.80 before settling back to close at $70.59 on volume of 406,000 shares. The stock continues to move higher on strong volume thanks to two positive earnings pre-announcements from Dynegy (DYN) and Williams Cos. (WMB). The energy sector has solid momentum build on improving fundamentals, so EQT could be ready to make a string of new highs as we approach its earnings announcement scheduled for April 20th. In the meantime, support is Tuesday’s intra-day low of $68.65 with additional support at $67.23, the 10-dma. Resistance has moved up to Tuesday’s intra-day high of $70.80 and then possibly $73 or $75. Traders should be looking for entry points on a bounce off of $68.65 or a breakout above $70.80 on volume of at least 100,000 shares by noon. We are keeping our stops at $63.40 to limit potential losses.

Picked on March 27th @ $67.20
Change since picked +3.39
Stop Loss @ $63.40

April 1, 2001

Equitable Resources, Inc. got a boost from its addition to the S&P 400 as index funds are required to own the stock after Friday’s closing bell. On Friday, shares of EQT traded as low as $67 before bouncing back to close at its intra-day high of $69 on volume of 1.66 million shares. Volume has been abnormally high over the past three sessions due to the S&P 400 addition and we do not expect the heavy volume to continue for much longer. Unfortunately, EQT may suffer a bit next week as short-term traders playing the addition unwind their positions and sell the stock. However, the S&P 400 is not a high-profile index so the effects should not be too severe. We are looking for a split announcement with the April earnings release or out of its next BoD meeting. The company has enough shares for a split and the stock is trading within previous range. Going forward, support has come in at Friday’s intra-day low of $67 with stronger support at $66.19, the 10-dma. Resistance is now up to Wednesday’s intra-day high of $70.50 and then possibly $72 or $73. A bounce off of $67 or a breakout above $70.50 on midday volume greater than 100,000 shares may be possible entry points. Our stops are holding steady at $63.40.

Picked on March 27th @ $67.20
Change since picked +1.80
Stop Loss @ $63.40