EQT Forecasts 22 Bcf/d Increase in Natural Gas Demand by 2030
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: Fool
- Demand Growth Forecast: Wood Mackenzie estimates that U.S. natural gas demand will rise by 22 billion cubic feet per day by 2030, significantly up from 110 Bcf/d in 2024, driven by strong demand from AI data centers.
- Cost Advantage: As the only large-scale vertically integrated U.S. gas producer, EQT benefits from a low production cost of $2 per MMBtu, well below the current market price of over $3, providing a strategic edge in the industry.
- Strong Free Cash Flow: EQT has generated a cumulative $2.3 billion in free cash flow over the past 12 months, planning to use these funds for debt repayment, share buybacks, and increasing dividends, indicating robust financial health and growth potential.
- Future Growth Potential: Controlling over 1 million acres of low-cost natural gas resources, EQT is projected to generate between $10 billion and $25 billion in free cash flow through 2029, while expanding pipeline projects and LNG export agreements to enhance its market position.
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Analyst Views on EQT
Wall Street analysts forecast EQT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EQT is 65.18 USD with a low forecast of 50.00 USD and a high forecast of 76.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
13 Buy
6 Hold
0 Sell
Moderate Buy
Current: 55.960
Low
50.00
Averages
65.18
High
76.00
Current: 55.960
Low
50.00
Averages
65.18
High
76.00
About EQT
EQT Corporation is a premier, vertically integrated American natural gas company with production and midstream operations focused on the Appalachian Basin. It has operations in Pennsylvania, West Virginia and Ohio. It owns or leases approximately 610,000 net acres in Pennsylvania. Most of the acreage is located in the southwestern region of the state, with the majority located in Greene and Washington Counties. It is developing the Marcellus Shale and Upper Devonian Shale in this area. It also owns or leases 405,000 net acres in West Virginia. Most of the acreage is located in the northwestern region of the state, with the majority located in Doddridge, Marion, Tyler and Wetzel Counties. It owns or leases 65,000 net acres in eastern Ohio and is developing the Utica Shale in Belmont County. It operates Utica wells throughout its Ohio acreage. The Marcellus Shale lies nearly a mile or more beneath the surface throughout much of Ohio, Pennsylvania, New York and West Virginia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
EQT Positioned to Benefit from Surge in AI Demand
- Surging Market Demand: With U.S. data center power demand projected to rise from 62 gigawatts last year to 134 gigawatts by 2030, EQT is signing integrated gas supply and midstream contracts to support large-scale gas power projects, driving the company's growth potential.
- Vertical Integration Advantage: After acquiring Equitrans Midstream, EQT became the only large-scale vertically integrated natural gas producer in the U.S., controlling over 1 million acres of undeveloped core land, ensuring low-cost production capabilities in the Appalachian Basin and enhancing market competitiveness.
- Cash Flow Potential: EQT estimates it can generate between $10 billion and $25 billion in cumulative free cash flow through 2029 at gas prices between $2.75 and $5.00 per MMBtu, providing funding for debt repayment, dividends, and acquisitions, thereby strengthening its financial position.
- Stock Price Upside: Although EQT's stock has seen little movement over the past year, the accelerating demand for gas positions EQT for significant stock price appreciation in the coming years, making it an attractive option for investors looking to capitalize on the AI boom.
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EQT Forecasts 22 Bcf/d Increase in Natural Gas Demand by 2030
- Demand Growth Forecast: Wood Mackenzie estimates that U.S. natural gas demand will rise by 22 billion cubic feet per day by 2030, significantly up from 110 Bcf/d in 2024, driven by strong demand from AI data centers.
- Cost Advantage: As the only large-scale vertically integrated U.S. gas producer, EQT benefits from a low production cost of $2 per MMBtu, well below the current market price of over $3, providing a strategic edge in the industry.
- Strong Free Cash Flow: EQT has generated a cumulative $2.3 billion in free cash flow over the past 12 months, planning to use these funds for debt repayment, share buybacks, and increasing dividends, indicating robust financial health and growth potential.
- Future Growth Potential: Controlling over 1 million acres of low-cost natural gas resources, EQT is projected to generate between $10 billion and $25 billion in free cash flow through 2029, while expanding pipeline projects and LNG export agreements to enhance its market position.
Continue Reading