EQT: Shifting U.S. Gas Demand and LNG Agreements Will Shape Outlook

The analyst price target for EQT was modestly increased from $63.70 to $64.00. This change reflects analysts’ confidence in the company’s strategic positioning and the improving outlook for U.S. natural gas demand.

Analyst Commentary

Recent research coverage of EQT reflects a mixed but constructive outlook, with both favorable and cautious perspectives emerging from various Wall Street analysts. Price targets have been adjusted in response to evolving market dynamics and company performance projections.

Bullish Takeaways

• Bullish analysts highlight a positive structural trend in U.S. natural gas, citing expected long-term demand growth from LNG exports and increased power needs from datacenters.
• There is consensus that EQT benefits from being a vertically integrated, low-cost natural gas producer with decades of core inventory. This positions the company well for sustained profitability.
• Analysts see EQT’s robust infrastructure and investment-grade balance sheet as enabling strong free cash flow, particularly if gas prices exceed $4. This supports stable upstream and midstream expansion.
• The sector's longer-term bull market outlook continues to attract upgrades and higher price targets. This signals confidence in execution and growth prospects despite recent volatility.

Bearish Takeaways

• Cautious analysts point to minor reductions in price targets due to short-term market fluctuations, such as the summer sell-off and mark-to-market adjustments for future periods like 2026.
• Some believe there is continued execution risk around integration efforts and achieving strategic milestones. They name initiatives such as debt reduction and operational synergies as focal points.
• The need for consistent operational performance and clear capital allocation remains a theme among those who recommend caution, especially given sector volatility and potential changes in natural gas pricing.

What's in the News

• Wells Fargo initiated coverage on EQT Corporation with an Overweight rating and set a $68 price target, citing anticipated structural changes in the U.S. gas market that could benefit equities. The firm noted that rising gas demand from LNG exports and datacenter growth supports the outlook (Wells Fargo).
• EQT’s Board of Directors declared a quarterly cash dividend of $0.165 per share, a five percent increase, payable December 1, 2025 (Key Developments).
• The company provided new sales guidance for the fourth quarter and full year of 2025, expecting total sales volumes of 550 to 600 Bcfe for Q4 and 2,325 to 2,375 Bcfe for the full year, including strategic curtailments (Key Developments).
• EQT secured 1.0 million tonnes per annum of LNG liquefaction capacity through a new 20-year agreement with Commonwealth LNG, further expanding its global market reach (Key Developments).

Valuation Changes

• The consensus analyst price target has risen slightly from $63.70 to $64.00.
• The discount rate decreased fractionally from 6.96% to 6.96%.
• The revenue growth projection is effectively unchanged, moving marginally from 10.71% to 10.71%.
• The net profit margin remains stable at around 33.52%.
• The future P/E ratio has increased slightly from 15.85x to 15.88x.