Yahoo Finance·2026-01-03 15:30Core Insights - EQT Corp is positioned to benefit from increasing natural gas demand driven by AI data centers and other factors, making it a potential investment opportunity [1] - Kinder Morgan is recommended as a preferable investment over EQT due to its lower exposure to commodity price volatility, presenting a lower-risk option for investors [2] Company Overview - EQT Corp is a leading natural gas producer with significant resources in the Appalachian basin and extensive infrastructure, including gathering lines, storage, and transmission pipelines [4] - The company operates with a low breakeven cost of approximately $2 per MMBtu, making it one of the lowest-cost producers in the U.S. [4] Financial Performance - EQT is projected to generate between $10 billion to over $25 billion in cumulative free cash flow through 2029, assuming average gas prices between $2.75 and $5.00 per MMBtu [5] - This cash flow will support debt repayment, share repurchases, and an increase in its 1.2% dividend yield [5] Earnings Stability - EQT has significant exposure to commodity price volatility, which it attempts to manage through hedging contracts [6] - Kinder Morgan, as a midstream company, has a more stable cash flow, with approximately 69% of its earnings derived from take-or-pay and hedging contracts, minimizing commodity price risk [6] Growth Prospects - Kinder Morgan has a backlog of $9.3 billion in organic expansion projects expected to be completed by mid-2030, including three large-scale gas pipelines [7] - The company is also exploring an additional $10 billion in natural gas project opportunities that may be approved soon [8]