Stephanie Link buys EQT after the top U.S. gas producer slides 11% and trades at 13 times earnings
The buildout of AI data centers is driving a surge in electricity demand, and natural gas could be a major beneficiary. Shares of EQT, the largest natural gas producer in the U.S., have pulled back 11% recently, leaving the stock at a price-to-earnings ratio of 13 versus a historical average of 34. Last quarter, the company’s capital spending came in 9% below the low end of guidance while production exceeded its outlook, pointing to improved operating efficiency. The U.S. Energy Information Administration expects natural gas output to rise about 15% this year, and EQT accounts for 6% of total U.S. production as a core producer in the Appalachian Basin.