The Bull Case For EQT (EQT) Could Change Following 20-Year LNG Export Deal With NextDecade

• EQT Corporation recently announced a 20-year Sale and Purchase Agreement with NextDecade Corporation, securing 1.5 million tons of annual liquefaction capacity at the Rio Grande LNG export facility in Texas and supporting its entry into international gas markets.
• This development comes as demand for off-grid natural gas from data centers is growing, positioning EQT to benefit as technology firms seek reliable energy sources beyond traditional power grids.
• We will assess how EQT's long-term LNG export agreement enhances its resilience and growth outlook in the context of surging data center demand.

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EQT Investment Narrative Recap

To be an EQT shareholder, you need to believe that rising demand for natural gas driven by AI and data center growth can offset long-term decarbonization risks and keep the company’s Appalachian assets competitive. The new 20-year LNG export deal with NextDecade provides more predictable international revenue potential, but current challenges, like reliance on short-term data center-driven demand and regulatory cost risks, remain key near-term factors; this latest news is supportive but not a material near-term catalyst.

Among recent announcements, EQT’s 20-year liquefaction agreement with Commonwealth LNG stands out, mirroring the NextDecade deal in both duration and international reach. These multi-decade export commitments are central to EQT’s catalyst: securing steady, global demand at favorable prices that could help buffer the company against volatile domestic markets and shifting regulatory environments.

By contrast, investors should also be aware of risks from ...

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

EQT's narrative projects $9.8 billion in revenue and $3.8 billion in earnings by 2028. This requires 11.3% yearly revenue growth and a $2.7 billion increase in earnings from the current $1.1 billion.

Uncover how EQT's forecasts yield a $62.12 fair value, a 22% upside to its current price.

Exploring Other Perspectives

Fair value estimates from the Simply Wall St Community range from US$47.87 to US$100.67 across 5 different analyses. With expanding LNG contracts raising earnings visibility, you can see how varied expectations shape debate around EQT’s long-term upside.

Explore 5 other fair value estimates on EQT - why the stock might be worth 6% less 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 4 key rewards 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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