6. EQT Corporation (NYSE:EQT)
Upside Potential as of July 7: 33.65%
Next on our list of the Most Promising Energy Stocks is EQT Corporation (NYSE:EQT). It is a premier, vertically integrated American natural gas company with production and midstream operations focused in the Appalachian Basin.
On July 2, Jefferies analyst Lloyd Byrne trimmed the firm’s price objective on EQT Corporation (NYSE:EQT) from $77 to $75, but kept a ‘Buy’ rating on the shares. The revised target still indicates an upside of almost 45% from the current levels, and comes as part of a preview ahead of the company’s upcoming Q2 report on July 21.
Jefferies expects EQT to deliver an EBITDA of $1.13 billion in the second quarter, falling just short of the Wall Street estimates of $1.19 billion.
EQT Corporation (NYSE:EQT) generated a record high free cash flow of over $1.8 billion in the first quarter, as it delivered sales volumes above the high end of guidance into peak winter pricing. At the same time, the company’s cash operating expenses and capital costs came in below the low end of guidance due to improved efficiencies.
Aside from paying dividends, the natural gas firm used this cash to bolster its balance sheet and retire more than $1.7 billion of senior notes. EQT remains confident in achieving its net-debt target of $5 billion by year-end.
Eagle Capital Management, an investment management company, stated the following regarding EQT Corporation (NYSE:EQT) in its Q1 2026 investor letter:
“EQT Corporation (NYSE:EQT) is the largest pure play U.S. natural gas producer. The company has long– teens in the lived assets, with decades of inventory. It also has a low– cost structure due to its enviable position in the Marcellus shale and captive pipeline assets. Management has an excellent track record of making wise strategic and capital allocation decisions. Despite selling a commodity product, EQT is a high quality business with operating margins exceeding those of 80 90% of S&P 500 companies. Natural gas in the U.S. trades at a wide discount to global prices. The combination of the inflection in U.S. electricity demand, LNG export growth, and disruption in the Middle East may narrow this discount over the next 5 10 years. We expect EPS growth in the mid teens.”
While we acknowledge the potential of EQT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EQT and that has 100x upside potential, check out our report about the cheapest AI stock.
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