1 stock I would buy before EQT in 2026

• EQT is a leading gas producer.

• While it has integrated midstream operations, the company still has considerable exposure to commodity price volatility.

• Gas pipeline giant Kinder Morgan has a much lower risk business model.

• 10 stocks we like better than EQT ›

I already own some shares of the natural gas giant. EQT Corp. (NYSE: EQT). I think it is in a strong position to capitalize on growing gas demand in the future from AI data centers and other catalysts. That’s why I would consider increasing my position this year.

However, there is one natural gas stocks I would buy before EQT in 2026: Kinder Morgan (NYSE: KMI). the gas pipeline company It has considerably less direct exposure to commodity prices, making it a much lower risk way to invest in the expected increase in gas demand in the coming years.

EQT Corp is a major natural gas company. It controls a vast gas resource position in the Appalachian Basin. Additionally, it has extensive natural gas infrastructure, including gas gathering lines, gas storage capacity, and long-distance transmission pipelines. Vertical integration of the company brands It is one of the lowest-cost gas producers in the country, with a break-even level of around $2 per MMBtu.

The low operating costs of the gas producer, the expansion of gas pipeline capacity and the strategic agreements to export gas from liquefied natural gas terminals position it to generate strong and growing free cash flow in the coming years. EQT estimates it can produce between $10 billion and more than $25 billion of cumulative free cash flow through 2029 at an average gas price between $2.75 and $5.00 per MMBtu. That will provide the funds to pay the debt, buy back sharesand increase its dividend with a profitability of 1.2%.

EQT Corp is a upstream gas producer with integrated midstream operations. As a result, it still has significant exposure to volatile commodity prices, which it intends to partially mitigate through hedging contracts for a portion of its volumes. Kinder Morgan, on the other hand, is a midstream company with some upstream operations (mainly enhanced oil recovery). Produces much more predictable cash flow. About 69% of its profits come from buy-and-hedge contracts, which eliminate commodity price and volume risk, while another 26% are fee-based and carry minimal volume risk.

In addition to producing much more stable cash flow, Kinder Morgan has more predictable growth. It currently has $9.3 billion in organic expansion projects in its backlog, which it expects to complete through mid-2030. Notable projects include three large-scale gas pipelines that should enter service in the period from 2027 to 2029. Additionally, the company is seeking another $10 billion in natural gas project opportunities that it could approve in the coming months.

Kinder Morgan’s stable cash flow allows it to pay a higher-yielding and constantly increasing dividend. The gas pipeline giant’s payout currently yields 4.3% and expects to achieve its ninth consecutive annual increase in 2026.

Catalysts like AI data centers and new LNG export terminals ought will drive strong demand for gas in the coming years. However, although the volumes willpower increase, the price of gas could be volatile, which could affect EQT’s ability to fully take advantage of the opportunity. That’s why I would buy shares of the more predictable Kinder Morgan to cash in on the gas boom before adding to my position in EQT.

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Matt DiLallo has positions at EQT and Kinder Morgan. The Motley Fool has positions and recommends EQT and Kinder Morgan. The Motley Fool has a disclosure policy.

1 Stock You’d Buy Before EQT in 2026 was originally published by The Motley Fool