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 10, 2001

Equitable Resources has been on fire over the past two weeks, posting gains in eight of the last 10 sessions. On Tuesday, shares of EQT traded in positive territory for the entire session. The stock closed at an all-time high of $75.63 on volume of 170,000 shares. EQT continues to move higher on rising crude oil prices and strong momentum in the energy sector. The stock could hold its upward trend as we move closer to the earnings release on April 20th before the bell. Until then, support is the April 5th intra-day high of $74.00 with stronger support at $73.30, the 5-dma. Resistance was taken out on Tuesday so new resistance may show up at $77.50 or $90. Look for a bounce off of $74.00 or a breakout above $77.50 on midday volume greater than 150,000 shares before starting new plays. We have moved our stops up to $72.45 to lock in profits.

Picked on March 27th @ $67.20
Change since picked +8.43
Stop Loss @ $72.25

April 8, 2001

Equitable Resources fell on profit taking on Friday following three straight all-time highs earlier in the week. Shares of EQT dipped to an intra-day low of $71.80 before bouncing back to a close of $72.45 on volume of 276,000 shares. Despite the pullback, EQT remains in a firm upward trend as we approach its earnings release on April 20th before the bell. We are also looking for a split announcement with the earnings report or out of its annual meeting on May 17th. The stock is currently trading within historic split range and the company has enough shares for a split with 80 million shares authorized and 37.3 million shares issued. In the meantime, support is Friday’s intra-day low of $71.80 with additional support at 70.59, Wednesday’s intra-day low. Resistance is holding steady at Thursday’s intra-day high of $74 and then possibly $76 or $77. Traders may consider starting new plays on a bounce off of $71.80 or a breakout above $74 on volume of at least 150,000 shares by noon. We are keeping our stops at $70.00 to protect gains.

Picked on March 27th @ $67.20
Change since picked +5.25
Stop Loss @ $70.00