Has EQT's Midstream Push Paved the Way for a Resilient Business Model?

EQT Corporation EQT generates the majority of its revenues by producing and selling natural gas, natural gas liquids (NGLs) and oil. The business model of the prominent natural gas producer in the United States is highly exposed to the volatility in natural gas prices since its core business is involved in the extraction and selling of commodities. EQT’s assets are spread across the Appalachian Basin, a key energy region that includes one of the richest natural gas reserves in the world, the Marcellus Shale spanning Ohio, Pennsylvania and West Virginia.

LNG exports are expected to rise in the coming days, as predicted by the U.S. Energy Information Administration (“EIA”) in its short-term energy outlook. This growth indicates a global transition toward cleaner energy fuels and is expected to lead to an increase in natural gas prices. The trend is highlighted by the fact that the natural gas spot price is expected to rise from $3.53 per million British thermal unit (MMBtu) in 2025 to $3.85 per MMBtu in 2027, according to EIA data, suggesting a favorable pricing environment for prominent natural gas producers.

EQT also generates a portion of its revenues from its midstream business, in which it rents its midstream assets to shippers who pay fees for the booked spaces. These stable fee-based revenues generate predictable cash flow and support EQT's integrated business model. Its midstream infrastructure acts as a strategic hedge to manage price volatility — to which EQT’s revenues are exposed due to commodity sales — giving it an edge over its peers.

EQT and CNX Have an Advantage Over AR

CNX Resources Corporation CNX and Antero Resources Corporation AR are two other upstream players involved in natural gas extraction. CNX and AR are capitalizing on high natural gas prices through their active extraction operations. While both companies focus on extraction, CNX holds an advantage over AR through its integrated midstream and upstream operations, similar to EQT. Midstream operations enable CNX and EQT to generate more diversified revenue streams compared to AR's upstream focus.

EQT’s Price Performance, Valuation & Estimates

EQT shares have gained 17.3% over the past year compared with the 32.8% return of the composite stocks belonging to the industry.

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From a valuation standpoint, EQT trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 8.48X. This is below the broader industry average of 12.47X.

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The Zacks Consensus Estimate for the first quarter of 2026 has seen upward revisions over the past seven days. For the second quarter and full-year 2026, estimates for EQT’s earnings have seen downward revisions.

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EQT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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