EQT Stands Out as Top Natural Gas Stock Amid LNG Market Volatility

EQT Corp (NYSE: EQT) stands out as a top natural gas stock to buy, according to an expert. Unlike LNG exporters, EQT provides exposure to both the LNG market and the AI power megatrend.

LNG projects are expensive to build, with developers often locking in long-term capacity contracts to secure revenue predictability. In contrast, EQT is a large-scale integrated gas producer that owns significant midstream infrastructure, including an interest in the Mountain Valley Pipeline.

EQT has signed LNG contracts and agreements to supply gas to AI power projects, offering upside exposure to growing global gas demand. The company's integration and low-cost business model provide peer-leading free cash flow durability, with EQT generating around $10 billion in cumulative free cash flow through 2030 at a gas price of $2.75 per MMBtu.

The long-term contracts underpinning most LNG export terminals help insulate them from price volatility, but these companies still face risks such as permitting and construction issues. EQT's biggest risk factor is natural gas price volatility, which can impact its profitability, but the company offsets some of this volatility by hedging a portion of its volume.