AI needs more power. Stephanie Link is buying this natural gas stock while it's cheap
AI data centers are driving demand for power, and natural gas could be a big beneficiary.
TL;DR
- EQT Corporation is the largest U.S. natural gas producer with a substantial presence in the Appalachian Basin.
- The company benefits from a vertically integrated business model including pipelines, storage, and processing infrastructure.
- Growing demand for power from AI and data centers is expected to benefit natural gas producers.
- Rising liquefied natural gas (LNG) exports also contribute to increased demand for natural gas.
- EQT employs a 'combo-development' strategy to enhance drilling efficiency and reduce costs.
- The stock is trading at an attractive valuation, with a price-to-earnings ratio of 13 and a price-to-cash flow ratio of 5.8.
- EQT maintains a healthy financial position with a net debt to EBITDA of less than one.