EQT rides on rising natural gas demand from AI, data centers and coal retirements, with Appalachian assets positioning it to capture long-term growth.
EQT Corporation EQT is primarily involved in the exploration and production of natural gas, with numerous untapped drilling locations within the highly productive Appalachian Basin in the United States. The company generates part of its earnings through midstream operations and the marketing of natural gas. The fundamentals of the natural gas market are currently in favor of EQT’s operations.
The rapid development of gas-fired power plants, the rise in data centers and the use of artificial intelligence, combined with ongoing coal plant retirements, are expected to boost demand for natural gas in the Appalachian region. EQT estimates that these trends could contribute to nearly 10 billion cubic feet per day (Bcf/d) of incremental gas demand by 2030, while global natural gas demand is expected to grow to approximately 650 Bcf/d by 2050.
The rising power demand from the growth of artificial intelligence and cloud computing infrastructure presents a compelling opportunity for EQT to capitalize on. With 45 gigawatts (GW) of data center capacity under construction in the United States, nearly 12 GW of capacity lies within its core operating footprint. EQT highlights that the location of these data centers and its high-quality resource base will enable it to capture a significant part of this incremental power demand.
EQT is well-positioned to benefit from the structural demand growth in power generation and the expansion of data centers in the United States. The vertical integration of its upstream and midstream operations provides EQT with the flexibility to transport its gas production, allowing it to capture higher margins.
The rise of data centers and higher gas-fired power demand presents an opportunity for Enbridge Inc. ENB to capitalize on. Data centers require a huge amount of electricity, which is driving rapid growth in gas demand. The shift from coal to gas for power generation is increasing gas demand. Enbridgeis expected to gain from the expansion of its natural gas storage facilities.
Baker Hughes $BKR BKR is well-positioned to capitalize on the rapid growth in energy demand from data centers. In response to rising data center demand, the company is actively enhancing its capabilities through organic investments in this domain. With nearly $1 billion in data center-related orders registered in 2025, the company is working toward achieving its $3 billion target over the next three years. The rise in power demand is expected to drive energy-infrastructure investments, which, in turn, will contribute to higher demand for Baker Hughes’ IET offerings.
Shares of EQT have gained 24.1% over the past year compared with the 41% improvement of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, EQT trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 8.38X. This is below the broader industry average of 11.77X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for EQT’s 2026 earnings has witnessed upward revisions over the past seven days.
Image Source: Zacks Investment Research
EQT, ENB and BKR each carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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