Analysis of Debt
Total Debt (Carrying Amount)
EQT Corp., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The analysis of the annual debt data reveals several notable trends over the five-year period.
- Current portion of debt
- There is considerable volatility in the current portion of debt. Beginning at 12.4 million in 2017, it surged dramatically to 704.4 million in 2018, then plummeted back to 16.2 million in 2019. In 2020, it rose again substantially to 154.2 million, and by 2021 it reached its highest point in the series at 954.9 million. This fluctuation indicates significant year-to-year changes in short-term debt obligations, possibly linked to refinancing activities or debt restructuring.
- Credit facility borrowings
- This category shows a declining trend initially, from 1.295 billion in 2017 down to 294 million in 2019. It then slightly increased to 300 million in 2020 before disappearing entirely in 2021, suggesting the facility was either fully repaid or replaced by other forms of borrowing.
- Term Loan Facility borrowings
- Data for this category appears only for 2019 with a value of 999.4 million, indicating the possible initiation or recording of this liability during that year. No other years report figures, which may suggest it was a one-time or short-lived financing facility.
- Senior notes
- Senior notes represent the largest component of debt and exhibit relative stability over the period. Starting at approximately 4.58 billion in 2017, this amount declined to about 3.88 billion by 2018 and remained steady through 2019. Subsequently, the balance increased to 4.37 billion in 2020 and further to 4.44 billion in 2021, indicating renewed issuance or reduced repayments.
- Note payable to EQM Midstream Partners, LP
- This liability shows a steady decline from 114.7 million in 2017 down to 94.3 million in 2021, suggesting consistent repayments or amortization over time.
- Total debt (carrying amount)
- Total debt peaks at approximately 6.0 billion in 2017, then declines gradually over the next three years to roughly 4.93 billion in 2020. In 2021, total debt rebounds to about 5.49 billion. This pattern aligns with the movement in senior notes and current portion of debt, reflecting a general reduction followed by partial recovery in overall borrowing levels.
Overall, the data suggest active management of debt structure, with significant fluctuations in short-term liabilities and shifts among borrowing types. The dominant role of senior notes as a stable funding source is evident, while other debt categories reflect strategic refinancings and repayments. The marked increase in short-term debt in 2021 may warrant further investigation into the company’s liquidity strategy or upcoming debt maturities.
Total Debt (Fair Value)
| Dec 31, 2021 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Total debt (fair value) | 6,572,606) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.20 |
Based on: 10-K (reporting date: 2021-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 5.50%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.00% | 576,969) | 17,309) | |
| 7.42% | 10,327) | 766) | |
| 6.63% | 1,133,000) | 75,061) | |
| 8.40% | 854,985) | 71,819) | |
| 3.13% | 516,265) | 16,133) | |
| 7.75% | 138,504) | 10,734) | |
| 3.90% | 1,344,688) | 52,443) | |
| 5.00% | 389,428) | 19,471) | |
| 7.50% | 966,983) | 72,524) | |
| 3.63% | 523,620) | 18,981) | |
| Total | 6,454,769) | 355,242) | |
| 5.50% | |||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 355,242 ÷ 6,454,769 = 5.50%