As previously reported, Stephens analyst Ben Wyatt downgraded Rice Energy (RICE) to Equal Weight from Overweight, with a $30 price target. The analyst notes that the company reported "strong" Q2 results, and acquired 16.5K net acres in the Marcellus while entering into an agreement to sell 36K Barnett acres and 76 Mmcfepd of production from the Barnett. Since the EQT Corporation (EQT) announcement in June, there has been speculation that the transaction would not close due to Jana's involvement with EQT and its push to dissolve the announced EQT/Rice Energy acquisition, the analyst points out. However, he believes the deal will be completed.

Reports Q1 revenue $1.41B, consensus $1.56B. President and CEO Toby Z. Rice stated, "The strong operational momentum we achieved last year has carried over into 2024, with our drilling team continuing to perform at exceptional levels, and our completions team again setting a new company record for pumping hours in the month of March. We also saw LOE come in below our forecast, as the benefits of our strategic water infrastructure investments are becoming increasingly tangible to shareholders. These factors contributed to free cash flow generation coming in above internal expectations and we exited the quarter in a strong financial position with nearly $650M of cash on the balance sheet."