EQT Corporation (EQT): A Bull Case Theory

We came across a bullish thesis on EQT Corporation on 24K Research’s Substack. In this article, we will summarize the bulls’ thesis on EQT. EQT Corporation's share was trading at $60.50 as of February 20th. EQT’s trailing and forward P/E were 29.35 and 13.50 respectively according to Yahoo Finance.

EQT Corporation (NYSE: EQT) is a leading natural gas producer with a strategic focus on integrating upstream and midstream assets through Equitrans Midstream and Olympus Energy. This vertical integration has lowered EQT’s unlevered free cash flow breakeven to approximately $2.00/MMBtu, the lowest among domestic large-cap peers, insulating the company from regional price volatility and enabling it to capture full value across the energy supply chain.

Positioned at the heart of the Appalachian Basin and “Data Center Alley,” EQT is uniquely situated to meet an estimated 10 Bcf/d of new gas demand from AI-driven infrastructure build-outs through 2030. Revenue quality has improved markedly, with long-term, index-plus supply agreements underpinning stable, annuity-like cash flows, attracting institutional backing from Vanguard, BlackRock, and Wellington Management, which collectively hold over 25% of shares.

EQT’s primary revenue stems from natural gas sales, supplemented by NGLs, crude oil, and midstream services, serving utilities, industrial consumers, energy marketers, and partner midstream companies. Forecasts indicate revenue growth of 21.6% in 2026 to $9.6 billion and earnings growth of 16.6% per annum, reflecting structural resilience and strong cash generation.

The company maintains a tactical hedging program covering approximately 60% of production at floor prices near $3.25/MMBtu, supporting a 10.5% FCF yield even as it transitions from debt reduction to capital return. Risks include potential LNG overcapacity, regulatory delays, and timing of AI-driven demand, but these are largely mitigated by EQT’s peer-leading breakeven and margin of safety.

With debt milestones on track and strong operational positioning, EQT offers a compelling investment opportunity, with a high-conviction entry near $50 and upside toward $65+, combining infrastructure reliability with natural gas upside in a structurally supportive energy environment.

Previously, we covered a bullish thesis on Occidental Petroleum Corporation (OXY) by Magnus Ofstad in May 2025, highlighting OXY’s low-cost Permian operations, diversified business, and carbon capture initiatives despite execution risks. OXY’s stock price has appreciated by 40.56% since our coverage. 24K Research shares a similar view but emphasizes EQT’s integrated upstream-midstream model, low breakeven, and stable, annuity-like cash flows driving reliable growth.

EQT Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 82 hedge fund portfolios held EQT at the end of the third quarter which was 96 in the previous quarter. While we acknowledge the risk and potential of EQT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EQT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.