EQT Steps Up LNG Ambitions With Major Export Deals

If you are keeping an eye on EQT, this week’s big news might have you asking if the stock is changing gears. EQT Corporation has signed two 20-year sale and purchase agreements with Commonwealth LNG and Sempra Infrastructure, securing substantial liquefaction capacity for decades to come. These long-term deals give EQT direct access to global LNG markets from the Gulf Coast, which marks a clear expansion of its export reach. This move could reshape how investors think about the company’s future growth potential and risk profile.

To put these announcements into perspective, EQT has been steadily shaping its international LNG presence, even as the company’s share price experienced choppy performance over the past year. While shares are up 58% in the last twelve months, momentum cooled recently, with a dip of 2% in the past month and a modest 6% increase year to date. Coupled with double-digit revenue and net income growth, as well as a standout five-year return, investors are left to weigh how these new global contracts might influence the company’s valuation equation going forward.

After this past year’s strong run for EQT, the question arises whether the stock is still trading at a discount, or if the market has already priced in this new wave of LNG expansion.

Most Popular Narrative: 20.4% Undervalued

Based on the most widely followed analyst view, EQT is considered to be significantly undervalued at current share price levels, with future growth already triggering strong market debate.

Execution on a $1 billion pipeline of organic, low-risk, fee-based midstream and infrastructure projects with minimum volume commitments and index-plus pricing creates stable, annuity-like cash flows. This lowers business volatility and raises the durability of free cash flow and earnings.

Curious how EQT could see its future cash flows surge and margins expand like never before? The analyst narrative is built on ambitious, quantified growth projections and a future profit multiple that rivals even some of the market's top-rated sectors. Want to unpack which surprising expectations underlie this bold valuation? The details behind this forecast might just challenge what you thought you knew about natural gas stocks.

Result: Fair Value of $63.16 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, an accelerated energy transition or tightening regulations could quickly undermine EQT's bullish outlook. This would make these ambitious growth forecasts less certain.

Find out about the key risks to this EQT narrative.

Another Perspective: Is EQT Really That Cheap?

Looking at a different yardstick, EQT’s price-to-earnings ratio is quite a bit higher than what’s typical in the US oil and gas sector. This suggests the market might be factoring in extra optimism. Which view tells the real story?

Stay updated when valuation signals shift by adding EQT to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own EQT Narrative

If these perspectives do not align with your own, or you prefer diving into the numbers yourself, you can piece together your own EQT outlook in just a few minutes. Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding EQT.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.