EQT (EQT) Retires 2027 Notes: Reassessing Valuation After Balance Sheet Cleanup and LNG Growth Plans

EQT (EQT) just moved to retire all of its 7.5% Senior Notes due 2027, a roughly $496 million slug of debt, tightening its balance sheet at a moment when natural gas dynamics are shifting in its favor.

See our latest analysis for EQT.

That debt clean-up comes after a busy stretch for EQT, from exiting its Kodiak Gas Services stake to boosting financial flexibility ahead of expected LNG demand growth. The stock’s roughly 14% year to date share price return sits alongside a powerful five year total shareholder return above 300%, suggesting momentum remains constructive rather than exhausted.

If EQT’s move has you thinking more broadly about energy exposure, this could be a good moment to explore aerospace and defense stocks as another corner of the market where shifting global priorities are driving capital flows.

With EQT trading about 20% below consensus targets despite robust cash flows and LNG optionality, investors face a key question: is this still an overlooked value play, or has the market already priced in the next leg of growth?

Most Popular Narrative Narrative: 15.8% Undervalued

With EQT last closing at $53.87 against a narrative fair value of $64, the storyline leans toward meaningful upside if its cash flow path materializes.

Accelerating U.S. LNG export capacity coupled with delays in global competing projects and tightening U.S. supply supports structurally higher U.S. natural gas price floors through the decade, which, when paired with EQT's low-cost structure, should drive robust earnings and margin expansion as legacy contracts roll and new export-linked pricing is realized.

Read the complete narrative.

Want to see what happens when ambitious revenue growth, surging margins, and a future premium earnings multiple are wired into one gas heavyweight's roadmap? Unlock the full narrative.

Result: Fair Value of $64 (UNDERVALUED)

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

However, faster decarbonization policies or tougher methane regulations could pressure long term gas demand, squeezing EQT’s margins and undermining today’s upbeat valuation.

Find out about the key risks to this EQT narrative.

Another Angle on Valuation

On earnings, EQT looks less like a clear bargain. It trades at about 18.9 times earnings versus 12.8 times for the wider US oil and gas group and 15 times for peers, even though our fair ratio sits higher at 22.2 times. Is the premium justified or just adding downside risk?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own EQT Narrative

If you see the numbers differently or would rather stress test the assumptions yourself, you can build a personalized EQT storyline in under three minutes: Do it your way.

A great starting point for your EQT research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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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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