EQT to supply natural gas for Homer City’s 4.4 gigawatt facility

INDIANA COUNTY, Pa. - Homer City Redevelopment (HCR) announced on Tuesday an agreement with EQT Corporation (NYSE:EQT), a $36 billion market cap natural gas producer with impressive 39% revenue growth over the last twelve months, to supply natural gas for its 4.4 gigawatt facility at the Homer City Energy Campus, a project that will power AI and high-performance computing data centers. According to InvestingPro data, EQT has demonstrated strong financial performance with a 61% return over the past year.

Under the agreement, EQT will serve as HCR’s exclusive partner to source and supply up to 665,000 MMBTUs of natural gas daily, making it one of the largest single-site natural gas transactions in North American history, according to the company’s press release. EQT’s strong market position is reflected in its stock trading near its 52-week high, with InvestingPro analysis showing the company operates with moderate debt levels and maintains healthy profit margins of 68%.

The facility, currently under construction on a 3,200-acre site in Pennsylvania, is expected to begin power production in 2027. The project represents a transformation of what was previously Pennsylvania’s largest coal-burning power plant.

"This agreement ensures long-term energy security for the data center campus, while demonstrating our commitment to powering the future with Pennsylvania gas, Pennsylvania power and ultimately, Pennsylvania data centers," said Corey Hessen, CEO of Homer City Redevelopment.

The arrangement will provide gas supply redundancy through access to both the Texas Eastern Transmission and Eastern Gas Transmission and Storage pipeline systems.

Financing for the project is led by Knighthead Capital Management, which has maintained equity positions in Homer City for nearly eight years.

GE Vernova will provide seven 7HA.02 natural gas turbines for the facility, with initial deliveries scheduled to begin in 2026. Kiewit Power Constructors Co. is handling construction of the project.

The Homer City Energy Campus development was first announced on April 2, 2025, as part of a plan to convert the former generating station into a power and data infrastructure hub. Want deeper insights into EQT’s financial health and growth potential? InvestingPro subscribers get access to 13 additional ProTips and comprehensive analysis through the Pro Research Report, helping investors make more informed decisions.

In other recent news, EQT Corporation has announced a significant gain in its derivatives for the second quarter, expecting a total of $720 million. This financial update also includes net cash settlements paid on derivatives amounting to $101 million. Meanwhile, Jefferies has raised its price target for EQT to $70, citing the acquisition of Olympus Energy and favorable first-quarter results. The acquisition is expected to enhance EQT’s growth prospects, as reflected in Jefferies’ updated estimates for the company. UBS has maintained its Buy rating and a $64 price target, noting a strong EBITDA outlook with a slight increase in its Q2 2025 estimate to approximately $1.14 billion. In another development, EQT has secured a major natural gas supply deal for a power plant conversion project in Western Pennsylvania, aligning with its growth strategy. Citi has reiterated its Buy rating on the company, emphasizing the project’s potential despite its lengthy development timeline. Additionally, Mizuho has reinstated coverage on EQT with an Outperform rating, highlighting the company’s potential to benefit from trends in LNG exports and increased power demand.

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