EQT Corporation Shares Rise 31.2% on Strong Free Cash Flow and Gas Demand
EQT’s share price climbed 31.2% over the past year, outperforming the sub-industry’s 16.2% gain and outpacing peers like Antero and Range. Strong natural gas demand and $750 million in fourth-quarter free cash flow supported results, while rising $5.4 billion operating expenses and minimal hedges introduce volatility risks.
1. Share Price Performance
Over the past year, EQT’s share price climbed 31.2%, surpassing the sub-industry’s 16.2% gain and outperforming peers like Antero Resources and Range Resources. This outperformance underscores investor confidence in the company’s operations and market positioning within the Appalachian Basin.
2. Demand and Pricing Drivers
EQT is positioned to benefit from rising natural gas demand driven by data center growth, AI developments and coal plant retirements, with incremental demand of nearly 10 Bcf/d expected by 2030. In the fourth quarter, average realized gas prices reached $3.76 per thousand cubic feet, up 16% year-over-year.
3. Cash Flow Strength
The company generated approximately $750 million in fourth-quarter free cash flow and $2.5 billion in cumulative free cash flow during 2025 at an average NYMEX price of $3.40 per Mcf. At current strip pricing, free cash flow is projected to reach $3.5 billion in 2026, supporting shareholder returns and growth opportunities.
4. Risks and Headwinds
EQT plans to hedge only 20% of production beyond the first quarter of 2026, exposing it to price volatility if natural gas prices decline. Operating expenses rose to $5.4 billion in 2025 from $4.6 billion in 2024, while the long-term shift toward renewables poses volume growth challenges.