Why EQT Outshines LNG Exporters

EQT Corp (NYSE: EQT) is the natural gas stock to buy today according to current market trends. Unlike liquefied natural gas (LNG) exporters, EQT benefits from LNG exports without investing in terminals.

LNG exporters build and operate massive facilities to turn natural gas into a liquid for transport on ships. These projects are costly and time-consuming, with Cheniere Energy (NYSE: LNG) having invested $50 billion in developing two LNG export terminals along the U.S. Gulf Coast. In contrast, EQT is the country's only large-scale integrated natural gas producer.

EQT owns significant midstream infrastructure, including an interest in the Mountain Valley Pipeline, which transports gas to premium markets. The company has also signed capacity deals for several LNG export projects, including a 5-year offtake agreement with a large Asian energy company for 0.5 million tons of LNG per year starting in 2028.

While EQT faces natural gas price volatility as a risk factor, its integration and low-cost business model provide peer-leading free cash flow durability. At $2.75 per MMBtu, EQT would generate about $10 billion in cumulative free cash flow through 2030.