EQT, Commonwealth Enter Into a 15-year Tolling LNG Agreement
EQT Corporation (EQT) announced a 15-year tolling agreement to supply 1 million tons per year of liquefied natural gas (LNG) to the planned Commonwealth LNG facility in Louisiana.
Commonwealth LNG is currently in the process of developing an LNG export terminal project, with a projected capacity of 9.3 million tons per year, on the Calcasieu River in the Gulf of Mexico. The final terms of the EQT deal are pending a final investment decision, anticipated in the first quarter of 2024 with first cargo deliveries anticipated in 2027.
According to EQT president and CEO Toby Rice, the tolling agreement provides the company with the crucial flexibility to directly supply natural gas to end users on a global scale. By diversifying the company’s production to international markets, EQT aims to optimize its exposure while effectively mitigating potential downside risks. This signifies a fundamental shift in the traditional LNG market dynamics, offering a more streamlined and efficient means of distribution.
EQT's natural gas production achieved an impressive 20% year-on-year reduction in Scope 1 and Scope 2 greenhouse gas emissions. This aligns seamlessly with Commonwealth LNG's vision of setting new industry standards for environmental responsibility. By accessing EQT's low-emission natural gas resources, Commonwealth LNG is well poised to achieve its goal of becoming a leader in environmental standards within the LNG sector.
Zacks Rank & Key Picks
Currently, EQT carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy sector are USA Compression Partners, LP USAC, currently sporting a Zacks Rank #1 (Strong Buy), and Global Partners GLP and Core Laboratories Inc CLB, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
USA Compression Partners is one of the largest independent natural gas compression service providers across the United States in terms of fleet horsepower. USAC has witnessed an upward earnings estimate revision for 2024 in the past 30 days.
Global Partners is a Delaware limited partnership, formed by affiliates of the Slifka family. The partnership owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. GLP is one of the largest wholesale distributors of distillates. It has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 60 days.
Core Laboratories’ strong presence in the emerging shale plays and its global footprint will provide for steady growth rates going forward. CLB’s technology-heavy portfolio of proprietary products and services gives it the opportunity to optimize production from new and existing fields. Core Labs has witnessed an upward earnings estimate revision for 2024 in the past 60 days.
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