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EQT CEO Foresees Low Natural Gas Prices, Demand Growth in 2024

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EQT Corporation (EQT - Free Report) CEO Toby Rice shared his outlook on natural gas prices during the Gastech energy conference. He noted that U.S. natural gas prices are likely to remain below $3 per million British thermal units (mmBtu) in the near term. This would be an aftermath of prices hitting multi-year lows earlier in 2024, prompting EQT, the largest natural gas producer in the country, to curtail production by 1 billion cubic feet per day (bcfd), per a Reuters report. Several other shale gas producers followed suit, reducing output to avoid oversupply.

EQT Expects an Ease in Production Cuts

Despite the current price environment, Rice expressed optimism for 2024, predicting an ease in production curtailments as the demand for U.S. liquefied natural gas (LNG) exports rises. EQT has secured agreements with LNG developers like Texas LNG and Commonwealth LNG, positioning itself to capitalize on the growing global need for natural gas. The company expects this demand to boost prices and stabilize production levels.

EQT CEO Stresses the Need for Market-Driven Solutions

Rice emphasized the growing significance of natural gas, especially for LNG exports and power generation, stating that the United States must allow market forces to determine the energy mix. He criticized political interference for (supposedly) hindering natural gas development, calling for a return to a system where the most affordable, reliable and clean energy can reach the market without political barriers.

Despite the short-term pressures, EQT remains focused on long-term growth driven by increasing demand for natural gas, particularly from the LNG sector. Rice reiterated that market-driven solutions are key to ensuring energy reliability and affordability in the future.

EQT’s Zacks Rank & Key Picks

Currently, EQT carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like TechnipFMC plc (FTI - Free Report) , Core Laboratories Inc. (CLB - Free Report) and VAALCO Energy, Inc. (EGY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.

The Zacks Consensus Estimate for FTI’s 2024 EPS is pegged at $1.34. The company has a Zacks Style Score of B for Value and A for Growth. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.

Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.

The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.

The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.

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