EQT Corporation Stock (EQT) Great Growth and Good Value in Q2 2025

EQT Corporation (NYSE: EQT) stands out as a compelling case of explosive growth paired with solid valuation in Q2 2025. After delivering more than doubled revenue and striking EPS improvement year‑over‑year, EQT is drawing investor attention not just as a top U.S. natural gas producer but as a growth opportunity that still offers attractive investment metrics. In this article we will dive into EQT Corporation recent earnings, stock performance & valuation, growth potential, and the risks investor should consider.

About EQT Corporation

Founded in the 1880s as an Appalachian pipeline and field operator, EQT transformed into a major standalone entity over decades, with its modern iteration headquartered in Pittsburgh, Pennsylvania. EQT is a vertically integrated natural gas producer and midstream operator, focused on exploration, production, gathering, and transmission in the Appalachian Basin (Pennsylvania, West Virginia, Ohio). As America’s only large‑scale fully integrated gas producer, EQT owns and operates extensive infrastructure across the Marcellus and Utica Shales, enabling cost efficiency, agility, and scale in gas delivery to marketers, utilities, and industrial customers.

EQT Financial Performance

EQT Corporation delivered an exceptional financial performance in Q2 2025, signaling strong operational execution and accelerating growth. The company reported quarterly revenue of $1.79 billion, marking a 111.47% increase from $850.26 million in Q2 2024. Earnings per share (EPS) also saw a dramatic surge to $1.30, up from just $0.02 in the same quarter last year, highlighting a substantial turnaround in profitability. On a trailing twelve-month (TTM) basis, EQT generated $7.1 billion in revenue, a 60.31% rise compared to $4.43 billion a year earlier. TTM EPS improved to $1.92, representing a 20.64% increase, while free cash flow per share reached $2.80, up 39.3% from $2.01 in Q2 2024. The company’s profitability remains robust, with a gross margin of 74.74%, net profit margin of 16.1%, and free cash flow margin of 23.39%. Furthermore, EQT maintains healthy operational efficiency with a return on assets of 4.02%, return on equity of 6.47%, and a conservative debt-to-equity ratio of 0.33, indicating strong financial discipline.

Over the past five years, EQT's revenue has been growing at a 24.9% CAGR, free cash flow at 30.9%, while net income has fluctuated. Despite the fluctuations, EQT has begun and is projected to grow its business rapidly again in 2025.

EQT Fiscal 2025 Financial Forecast

Looking ahead, analysts forecast 2025 revenue to reach $8.63 billion, a 63.74% increase from 2024’s $5.27 billion, and expect non-GAAP EPS to double to $3.23, up 100.92% from $1.61 in 2024. Reflecting this positive outlook, analysts have issued a Buy rating on EQT stock with an average price target of $63.32, implying a 22% potential upside, while the most optimistic target of $75 suggests an upside of 44.47% from current levels.

EQT Stock Price Performance and Valuation

At the time this article was written, the stock was trading at  $51.91 per share. The stock has gained 52.3% over the past year, far surpassing the S&P 500’s 16.9% increase in the same period. Over the past five years, EQT shares have soared 257.5%, compared to a 95% rise in the S&P 500, reflecting the company’s strong long-term trajectory. 

Despite this impressive appreciation, EQT remains attractively valued. The stock offers a dividend yield of 1.21%, providing additional return for the investor. On a valuation basis, EQT trades at a P/S (TTM) ratio of 4.32, with a forward P/S of 3.77. The non-GAAP P/E (TTM) stands at 21.39, and the forward non-GAAP P/E is a reasonable 16.13. Additionally, its P/FCF (TTM) ratio is 19.5.

Based on Fiscal.ai data, if we look at the valuation since 2022, the forward P/S is above the average, the forward P/E is below the average, while the P/FCF is slightly above the average. The forward P/E indicates that EQT stock may be trading at an undervalued level, as earnings growth is projected to accelerate in the future.

EQT Growth Potential

EQT growth prospect remains robust, driven by several factors.

• Operational Excellence and Production Scale
  EQT delivered an impressive 568Bcfe of sales volume in Q2 2025, reaching the high end of its guidance and marking a 12% increase compared to the previous year. This strong performance is driven by significant improvements in well productivity and advanced compression projects, which are ahead of schedule and under budget. These factors have collectively boosted production by more than 20% above initial targets. Additionally, the integration of Equitrans Midstream assets has played a critical role in enhancing takeaway capacity. This integration has also substantially lowered third-party gathering costs, reducing them from $0.59 to just $0.08 per Mcfe. Together, these operational achievements highlight EQT’s ability to effectively scale production while capturing valuable synergies, ultimately reinforcing its position as a low-cost, efficient operator in the natural gas industry.
• Strategic In-Basin Growth Initiatives
  EQT is committing $1 billion in secured growth capital expenditures through strategic partnerships to supply natural gas to major power and data center projects. Key agreements include the 800 MMcf/d Shippingport Power Station and the 665 MMcf/d Homer City Redevelopment, both scheduled for development starting in 2027–2028 and supported by index-plus volume commitments. These projects exemplify EQT’s focus on capturing long-term demand with strong contractual backing. Additionally, the MVP Boost and MVP Southgate pipeline initiatives will increase takeaway capacity by 500 MMcf/d and 550 MMcf/d, respectively, addressing supply needs in high-demand markets. With its vertically integrated infrastructure, world-class midstream assets, and investment-grade balance sheet, EQT is well-positioned to grow in-basin demand sustainably, while maintaining low execution risk and capitalizing on evolving market opportunities for natural gas delivery and infrastructure expansion.
• Strong Free Cash Flow Generation
  Despite incurring a $134 million net expense related to a securities class action settlement, EQT generated a strong free cash flow of $240 million attributable to the company in Q2 2025. Over the past three quarters, EQT has cumulatively produced approximately $2 billion in free cash flow at an average Henry Hub natural gas price of $3.30 per MMBtu. This robust performance represents about a 40% outperformance compared to consensus free cash flow estimates, underscoring the strength and resilience of EQT’s low-cost operating platform. The company’s ability to consistently generate substantial free cash flow enables it to effectively self-fund its debt reduction efforts and support ongoing growth initiatives. EQT’s disciplined financial management and operational efficiency position it well to withstand market volatility while advancing long-term value creation for shareholders.

Risks to Consider

While EQT stock looks like an investment opportunity, we should be mindful of potential risk.

• Commodity Price Volatility
  EQT’s revenues and profitability are highly sensitive to natural gas price fluctuations influenced by global energy demand, weather, supply disruptions, geopolitical events, and regulatory changes. Since 2020, natural gas prices have become more volatile, experiencing rapid swings between extremes. This increased volatility complicates financial forecasting and capital allocation, making it challenging for EQT to maintain predictable earnings and plan long-term investments amid uncertain market conditions.
• Operational Risks
  Drilling and production carry risks like equipment failures, well blowouts, spills, and natural disasters. These hazards can lead to production stoppages, environmental liabilities, property damage, and reputational harm. Such incidents negatively affect a company's financial performance by causing operational disruptions, increasing costs, triggering regulatory penalties, and damaging stakeholder trust. Managing these risks is crucial to maintaining safe operations and protecting the company’s long-term financial health.
• Regulatory Risks
  EQT operates under extensive regulations concerning environmental protection, methane and greenhouse gas emissions, hydraulic fracturing, and health and safety. Stricter or changing regulations can raise operational costs, cause project delays or restrictions, and necessitate expensive investments in emissions monitoring and reduction technologies. Compliance challenges may impact timelines and profitability, requiring continuous adaptation to evolving regulatory landscapes to maintain safe and sustainable operations.

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Conclusion

EQT Corporation stands out as a strong investment opportunity, combining exceptional earnings growth, solid financial health, and attractive valuation. With over 100% year-over-year revenue growth, rising free cash flow, and a promising outlook supported by analyst forecasts, EQT offers both stability and upside potential. The stock’s significant outperformance of the S&P 500 and reasonable forward valuation metrics make it appealing for long-term investors seeking exposure to the energy sector’s future growth while maintaining a disciplined, profitable foundation.