EQT Share Price May Be Undervalued by Up to 25% Due to Long-Term LNG Deal

EQT (EQT) has seen its share price ease recently, but some analysts believe it may be undervalued by as much as 25%. The company's subsidiary was selected to supply liquefied natural gas under a long-term contract running from 2027 to 2036. This deal comes at a time when EQT's share price has shown modest gains, with a 7-day return of 4.35% and a 30-day return of 5.42%. However, the company's one-year total shareholder return is only 0.90%, building on a 5-year return of 147.11%.

The long-term LNG deal positions EQT to capture outsized demand growth from electrification and digital infrastructure in Appalachia, creating predictable revenue and increasing free cash flow. Bulls see this as proof that long-term contracts and solid earnings power are not fully reflected in the current price.

However, bears point to recent share softness and commodity risk as potential concerns. EQT's heavy reliance on natural gas and concentration in the Appalachian Basin leave it exposed if regulation tightens or demand underwhelms.