EQT, Viper Energy Shares Decline Amid Gas Price Volatility And Capital Discipline Focus

Shares of EQT Corporation EQT and Viper Energy Inc. VNOM are trading lower potentially reflecting broader concerns around natural gas price volatility and investor focus on capital discipline.

What To Know: Goldman Sachs analyst Neil Mehta reiterated a bullish stance on EQT, citing its relative upside compared to peers and continued progress on deleveraging.

He noted that as the company reduces debt, it increases its ability to return capital to shareholders. With natural gas prices characterized by volatility this year, Mehta highlighted the importance of downside mitigation while maintaining upside optionality.

Looking ahead, Goldman Sachs continues to assume a mid-cycle Henry Hub gas price of $3.75 per MMBtu from 2026 onward, supported by strong secular demand growth.

The firm also expects WTI crude prices to remain in the $70-$75 per barrel range for the next several years. Mehta pointed to upcoming catalysts in the natural gas market, particularly the expected ramp-up in LNG export capacity in 2025, as key drivers for future demand. Additionally, he mentioned that winter weather has tightened U.S. gas balances, further influencing the market.

On the oil-focused side, Viper Energy remains an attractive option for exposure to capital returns, according to Goldman Sachs. Mehta highlighted VNOM's concentrated Permian acreage, strong management team under Diamondback Energy and improved visibility into operations compared to mineral and royalty interest peers. He emphasized that in a range-bound oil price environment, investors will continue to prioritize return of capital, cost efficiency and operational execution quality.

Price Action: EQT shares were down 2.6% at $52.37 and Viper Energy shares were down 2% at $50.07 at the time of writing, according to Benzinga Pro.

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