EQT (EQT) Is Up 7.0% After Securing Major AI Data Center Gas Supply Deal – Has The Bull Case Changed?

• EQT Corporation recently announced an agreement to become the exclusive natural gas supplier for the Homer City Energy Campus, a major 4.4-gigawatt data center and power project in Pennsylvania, underpinning what is considered one of the largest single-site natural gas purchases in North American history.
• This development positions EQT as a central enabler of infrastructure supporting advanced computing while increasing long-term demand for its natural gas production.
• We'll explore how providing fuel to a massive AI-focused energy campus could influence EQT’s previously established investment narrative.

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EQT Investment Narrative Recap

To be an EQT shareholder, you must believe in the company's ability to capture regional demand growth and monetize major partnerships like the Homer City Energy Campus project, all while managing exposure to volatile gas prices and integrating acquisitions without overstressing cash flows. The Homer City deal directly supports EQT's most important short-term catalyst, in-basin gas demand from large-scale power and data projects, while also adding potential risks if these long-cycle developments face delays or underperform; however, the project's long timeline means immediate financial impact may be limited.

Among EQT’s recent announcements, the affirmation of a quarterly cash dividend at US$0.1575 per share signals confidence in near-term cash generation and shareholder returns, despite capital demands from growth initiatives such as Homer City that may affect liquidity and future dividends if market conditions shift unexpectedly.

But in contrast to this sense of progress, investors should be aware of what happens if cash flows come under pressure from ...

Read the full narrative on EQT (it's free!)

EQT's narrative projects $9.0 billion revenue and $3.4 billion earnings by 2028. This requires 13.4% yearly revenue growth and an increase of approximately $3.0 billion in earnings from the current $369.2 million.

Uncover how EQT's forecasts yield a $56.67 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community span US$47.87 to US$119.34 per share, reflecting a broad spectrum of individual outlooks. While perspectives diverge widely, all eyes remain on EQT’s ability to grow in-basin demand through large-scale projects, a factor critical to supporting future performance amid sector uncertainties.

Explore 5 other fair value estimates on EQT - why the stock might be worth over 2x more than the current price!

Build Your Own EQT Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your EQT research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free EQT research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate EQT's overall financial health at a glance.

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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.

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