EQT Corporation (EQT)

Second-largest producer of natural gas in the US. Owns all of its infrastructure. Member of the S&P 500, so much easier for the general US investor to own it. He sees it with an 8x multiple, which means $75 target price at $4 gas. Aggressively buying back shares until the day comes when it can add takeaway capacity from Marcellus and grow volumes. Yield is 1.21%.

Has momentum and is outperforming the natural gas sector. They generate strong free cash flow. They bought good midstream companies. Are located perfectly--in the Appalachians where there is major data centre demand.

His top choice in US pure-play natural gas production. Is up 51% the past 12 months. He likes it even without the new EU trade deal.

There's an awakening in natural gas prices rising to $4. Strong momentum.

Natural gas is enjoying strong demand from data centres and the cold weather. EQT is a big player that reported a beat today with a solid full-year forecast. But what happens after this winter and with Trump's pro-drilling policy?

Nat gas is an opportunity. We're working off existing inventories and excess supply. Also, nat gas feeds the insatiable demand for energy that's used by data centres.

He's bullish natural gas, and EQT is breaking out.

Energy has been the worst sector YTD and QTD, but he remains long energy. The fundamentals are in place. Natural gas is up 16% this quarter, though -70% from last year's high, but we seeing a bottoming in, which is why he bought EQT in the low-$30s and is approaching $40 now. Nat gas may be a better trade than crude oil.

One of the world's largest natural gas producers. Current nat gas prices are weak, but long term they are rising. Any price spike this summer will benefit EQT.

He stopped out of this. The mild winter weather in the U.S. and Europe has meant lower nat gas prices. He expects the price to be in the range of $2-5 going forward. Instead of nat gas, lean towards oil.