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PITTSBURGH - EQT Corporation (NYSE:EQT), a $31.7 billion market cap natural gas producer with impressive 74.7% gross margins, has secured 1.0 million tonnes per annum of liquefaction capacity through a 20-year Sale and Purchase Agreement with Commonwealth LNG, the company announced Monday. According to InvestingPro data, EQT has demonstrated strong performance with a 61.6% return over the past year, and analysts expect continued growth in both sales and net income.
The agreement involves Commonwealth’s export facility currently under development near Cameron, Louisiana. Under the terms, EQT will purchase liquefied natural gas on a free-on-board basis at prices indexed to Henry Hub, allowing the company to market and optimize its cargos internationally.
"The signing of this agreement with Commonwealth LNG adds to the momentum we are building in the LNG market," said Toby Z. Rice, President and CEO of EQT, in a press release statement.
This deal expands EQT’s strategy to connect U.S. natural gas supply with global demand. The company now has a diversified LNG export portfolio that provides flexibility to market its own cargos.
Ben Dell, Managing Partner of Kimmeridge and Chairman of Caturus, Commonwealth LNG’s parent company, described the agreement as "a strong endorsement of our integrated natural gas platform."
The agreement will become fully effective upon satisfaction of customary conditions, including a final investment decision on the project.
EQT Corporation is a natural gas producer with operations focused in the Appalachian Basin. The company aims to develop environmentally responsible energy while maintaining operational efficiency and low costs.
In other recent news, EQT Corporation has secured a significant 20-year liquefaction capacity deal with NextDecade Corporation. This agreement involves 1.5 million tonnes per annum from the Rio Grande LNG export facility in Texas. The deal is contingent upon NextDecade making a positive final investment decision on Train 5, which is expected in the fourth quarter of 2025. Additionally, EQT announced that its Chief Information Officer, Richard A. Duran, will take an unpaid sabbatical starting September 2025. During this period, he will remain an employee but will not perform his regular duties, although he will be available for consultation in emergencies. In another development, BofA Securities has raised its price target for EQT to $80, maintaining a Buy rating. This adjustment is based on EQT’s capacity to meet the demands of large datacenters. Meanwhile, Endurance Investment Partners has launched with a focus on energy liquidity, in partnership with Rice Investment Group.
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