EQT may invest in U.S. LNG facility to tap global markets, CEO says (NYSE:EQT)

EQT Corp. (NYSE:EQT) said Thursday it may take an equity stake in a liquefied natural gas export project, as it seeks to capitalize on the booming global demand for LNG with Russian threats sending European gas prices swinging wildly.

“We are currently in discussions with LNG end-users across various geographies and are contemplating equity investment opportunities in LNG export facilities,” CEO Toby Rice said in an earnings conference call.

Current U.S. Henry Hub natural gas prices are elevated from historical levels, but delivered LNG prices in Europe and Asia have surged ~3x higher than a year ago, and EQT would seek to capture the strong margins between domestic feedgas and higher spot prices for cargoes delivered to end-user markets.

“Our ultimate prize that we’re looking for here at EQT is to get exposure to international markets,” Rice said on the call. “One of the ways that we get more flexibility towards accessing those contracts is to take an investment in the LNG facility itself.”

Longer-term supply agreements would allow EQT to directly benefit from higher gas prices overseas while reducing buyers’ exposure to extreme volatility, the CEO said.

EQT shares gained 2.6% in Thursday’s trading after the company missed Q1 earnings by a wide margin but raised full-year free cash flow guidance by 50%.