Here Is Why the Hold Strategy Is Apt for EQT Stock Right Now

Core Insights - EQT Corporation has experienced a significant share price increase of 23.1% over the past year, outperforming the Oils-Energy sector's growth of 7.5% and its peers Antero Resources and Range Resources, which saw increases of 10.4% and 3.4% respectively [1][7]. Group 1: Performance Drivers - Rising demand for natural gas is expected to benefit EQT, driven by the development of gas-fired power plants and data centers in the Appalachian region, potentially adding 10 billion cubic feet per day (Bcf/d) of demand by 2030 [4][7]. - Natural gas prices have increased significantly, with projections indicating an average of $4.30 per million British thermal units (MMBtu) during the winter heating season, a 22% rise from the previous year, which is anticipated to support EQT's earnings growth [5][6]. - EQT has demonstrated strong free cash flow generation, reporting $484 million in free cash flows for the third quarter and over $2.3 billion in cumulative free cash flow from Q4 2024 to nine months of 2025, highlighting its operational and financial strength [6][8]. Group 2: Strategic Considerations - EQT's decision to keep a majority of its natural gas production unhedged for 2026 and beyond could lead to increased exposure to price volatility, which may impact cash flows during significant market fluctuations [9]. - The growing prominence of renewable energy sources poses long-term risks to EQT, as the shift towards sustainability may limit the demand for traditional fossil fuels, potentially affecting volume growth in the future [10][11].