EQT Corp. (NYSE:EQT)

Goodwill

The goodwill value was reported only in 2017 at 470,849 thousand US dollars, with no subsequent data available for following years.

Non-compete agreements

The recorded value remained stable at 124,100 thousand US dollars from 2017 through 2018 but decreased to 108,689 thousand US dollars in 2019 and was maintained at this level in 2020. Data for 2021 is unavailable.

Accumulated amortization

This item showed a consistent increase in the negative value from -5,400 thousand US dollars in 2017 to -46,767 in 2018, -82,683 in 2019, and -108,689 in 2020, indicating a growing amortization expense over the reported periods.

Intangible assets, net

The net intangible assets declined considerably over time, moving from 118,700 thousand US dollars in 2017 to 77,333 in 2018, then further down to 26,006 thousand US dollars in 2019, with no reported figures subsequently.

Goodwill and intangible assets combined

This combined figure also reflected a significant reduction from 589,549 thousand US dollars in 2017 to 77,333 in 2018 and 26,006 in 2019, with no data presented for later years.

The analysis of the financial data over the five-year period reveals several notable trends in the company's asset base, shareholders' equity, and net income performance, both on a reported and goodwill-adjusted basis.

Total Assets

Reported total assets show a declining trend from 29,522,604 US$ thousands at the end of 2017 to a low of 18,109,469 US$ thousands by the end of 2020, representing a significant reduction. In 2021, total assets recover somewhat, increasing to 21,607,388 US$ thousands. The adjusted total assets mirror this pattern closely, indicating that adjustments for goodwill have relatively little impact on the asset base valuation.

Common Shareholders’ Equity

Reported common shareholders’ equity decreases consistently from 13,319,618 US$ thousands in 2017 to 9,255,240 US$ thousands in 2020, before rising slightly to 10,029,527 US$ thousands in 2021. The adjusted common shareholders’ equity follows the same trajectory, with marginally lower values in 2017 due to adjustments but no differences in subsequent years. This persistent decline until 2020 suggests pressure on equity capital, potentially related to operational challenges or asset impairments, with a modest recovery noted in the final year.

Net Income (Loss) Attributable to EQT Corporation

The company reports positive net income of approximately 1,508,529 US$ thousands in 2017, followed by losses in each subsequent year through 2021. The reported net losses deepen sharply in 2018 to -2,244,568 US$ thousands, before slightly moderating but remaining negative through 2019 (-1,221,695 US$ thousands), 2020 (-967,166 US$ thousands), and 2021 (-1,155,759 US$ thousands). The adjusted net income/loss figures are generally consistent with the reported values, except in 2018, where adjusted losses are less severe (-1,713,757 US$ thousands) than reported. This adjustment suggests that goodwill impairments or related non-operational items significantly affected reported results in 2018. Overall, the persistent losses following 2017 indicate ongoing financial challenges impacting profitability.

In summary, the company experienced a contraction in total assets and shareholders’ equity over the observed period, accompanied by a shift from profitability in 2017 to sustained net losses thereafter. The goodwill adjustments primarily impact the 2018 net income figures, implying a notable impairment or one-time charge that year. The moderate recovery in assets and equity in 2021 might indicate initial stabilization efforts, although profitability remains under pressure.

Net Profit Margin Trends

The reported net profit margin exhibits a sharp decline after 2017, falling from a positive 56.9% to negative values in subsequent years. Specifically, it deteriorated to -47.8% in 2018 and remained negative through 2021, reaching -16.99%. The adjusted net profit margin follows a similar pattern but shows a less severe decline in 2018, at -36.5%. From 2019 onwards, both reported and adjusted margins are identical, suggesting adjustments primarily impacted 2018, yet the overall profitability remains persistently negative after 2017.

Total Asset Turnover Patterns

The total asset turnover ratio fluctuated over the five-year period. It increased significantly from 0.09 in 2017 to 0.23 in 2018, then experienced a slight decrease to 0.20 in 2019, followed by a further decline to 0.15 in 2020. In 2021, the ratio improved substantially to 0.31, indicating enhanced efficiency in asset utilization relative to earlier years. Adjusted and reported figures are identical, implying no goodwill adjustments impacted this measure.

Financial Leverage Developments

Financial leverage decreased from 2.22 in 2017 to around 1.89-1.96 during 2018 to 2020, indicating reduced debt relative to equity or a more conservative capital structure in this interval. However, it increased again to 2.15 by 2021. Adjusted figures are consistent with reported leverage except in 2017, where a small increase from 2.22 to 2.26 was observed, reflecting minor adjustments in asset or equity values due to goodwill.

Return on Equity (ROE) Changes

ROE demonstrated a significant decline from a positive 11.33% in 2017 to a negative 20.48% in 2018. Adjusted ROE mitigated the 2018 loss somewhat to -15.64% but exhibited similar negative trends thereafter. From 2019 through 2021, ROE remained negative but showed slight improvement, moving from -12.46% to -11.52%, indicating ongoing challenges in generating shareholder returns.

Return on Assets (ROA) Evolution

The ROA mirrored ROE trends but at lower magnitudes. After a positive 5.11% in 2017, it dropped sharply to -10.83% in 2018 (reported) and -8.27% (adjusted), then stabilized at negative values near -5.34% to -5.35% for the period 2019 to 2021. This implies reduced profitability relative to total assets, with minor improvement from the 2018 trough but persistence of negative asset returns in later years.

Overall Insights

There is a clear deterioration in profitability metrics starting from 2018, as indicated by net profit margin, ROE, and ROA, which all turned negative after strong positive performance in 2017. Asset efficiency, as measured by total asset turnover, showed some recovery in 2021 following earlier fluctuations. Financial leverage was somewhat reduced during 2018-2020 but rebounded in 2021. The adjustments for goodwill influence marginally moderated some 2018 results, particularly in net profit margin and ROE, but did not substantially alter the negative trend across most profitability indicators. The company appears to have faced sustained profitability challenges despite improved asset turnover and an increment in leverage toward the end of the period analyzed.

Net Income Trends

The reported net income attributable to the company showed a significant decline over the five-year period. Starting with a positive value of approximately 1.51 billion USD in 2017, net income transitioned sharply into negative territory in 2018, with a loss exceeding 2.24 billion USD. The losses persisted in subsequent years, although at somewhat lower magnitudes, with losses of approximately 1.22 billion USD in 2019, 967 million USD in 2020, and 1.16 billion USD in 2021.

The adjusted net income figures follow a similar downward path but demonstrate a slightly less pronounced loss in 2018 due to adjustments applied. The adjustment narrowed the loss from approximately 2.24 billion USD to about 1.71 billion USD in 2018. For the remaining years, adjusted net income aligns with the reported net income, indicating fewer or no adjustments impacting those periods.

Profit Margin Analysis

The reported net profit margin exhibited a pronounced deterioration over the review period. It started at a strong positive margin of 56.9% in 2017, then turned negative in 2018 with a margin of -47.8%. Although negative margins persisted through to 2021, there was some volatility: margins were -32.22% in 2019, worsened slightly to -36.49% in 2020, and improved marginally to -16.99% in 2021.

The adjusted net profit margin again presents a slightly more favorable position for 2018 where adjustments reduce the negative margin to -36.5%. The profit margins for other years remain unchanged between reported and adjusted figures, affirming limited impact of adjustments outside 2018.

Overall Insights

The financial data indicate that the company experienced a strong turnaround from profitability in 2017 to sustained losses in subsequent years through 2021. The largest negative impact is evident in 2018, where adjustments significantly improved the loss figures but did not restore profitability. The persistently negative profit margins suggest ongoing challenges in generating net profits relative to revenue. The slight improvement in profit margin by 2021 may indicate initial signs of stabilization or cost management efforts, although the margin remains deeply negative.

The alignment of adjusted and reported figures from 2019 onward implies that goodwill adjustments or other accounting modifications had a material effect primarily in 2018, which could have been related to one-time events or asset impairments. Overall, the trend points to a period of financial difficulty, with net losses and negative profitability dominating the multi-year performance.

Total Assets

Over the period from 2017 to 2021, total assets exhibited a notable decline followed by a recovery. Reported total assets decreased substantially from approximately 29.5 billion USD at the end of 2017 to around 18.1 billion USD in 2020, representing a reduction of roughly 39 percent over this three-year span. In 2021, however, total assets increased to about 21.6 billion USD, signaling a partial rebound from the prior lows. Adjusted total assets followed an identical pattern, aligning closely with the reported figures, indicating minimal adjustment effects related to goodwill on total asset valuation.

Total Asset Turnover

The total asset turnover ratio displayed significant variability during the same timeframe. In 2017, the turnover was relatively low at 0.09, then rose sharply in 2018 to 0.23, indicating improved efficiency in asset utilization. The ratio then declined to 0.20 in 2019 and further to 0.15 in 2020, reflecting decreased asset productivity amid the asset base contraction. In 2021, there was a substantial recovery with the turnover ratio increasing to 0.31, the highest across the observed periods, suggesting enhanced operational efficiency and potentially stronger revenue generation relative to asset size. The adjusted total asset turnover mirrored these trends identically, confirming consistent performance irrespective of goodwill adjustments.

The data reveals several notable trends in the company's financial position and leverage over the five-year period ending in 2021.

Total Assets

Reported total assets decreased significantly from approximately $29.5 billion at the end of 2017 to about $18.1 billion at the end of 2020, before increasing again to roughly $21.6 billion by the end of 2021. The adjusted total assets mirror this trend closely, indicating that adjustments, likely related to goodwill, did not materially affect the overall asset base figures during these years.

Common Shareholders’ Equity

Reported common shareholders’ equity exhibited a consistent downward trajectory from approximately $13.3 billion in 2017 to about $9.3 billion in 2020. There was a modest recovery in 2021, with equity rising to around $10 billion. Adjusted equity values follow the same declining pattern with similar magnitudes, reinforcing that asset write-downs or goodwill adjustments did not substantially alter equity values.

Financial Leverage

The reported financial leverage ratio declined from 2.22 in 2017 down to a low of 1.89 in 2018. It remained nearly stable with slight increases through 2019 and 2020, moving from 1.92 to 1.96, before rising again more notably to 2.15 in 2021. Adjusted financial leverage closely parallels the reported figures throughout the period, suggesting limited impact from asset adjustments on leverage metrics.

Overall, the company experienced a contraction in its total asset and equity bases through 2020, followed by a partial asset and capital recovery in 2021. The gradual increase in financial leverage in 2021 signals a return to higher reliance on debt relative to equity after a period of deleveraging. The closeness of reported versus adjusted figures across all categories indicates that goodwill adjustments did not materially affect the company's reported financial structure. These trends suggest a phase of asset base and equity reduction, possibly due to divestitures or impairments, accompanied by recent capital strengthening efforts and an increase in leverage.

Net Income (Loss) Trends

The reported net income of the company experienced a significant decline starting in 2018, moving from a positive figure of approximately $1.51 billion in 2017 to consistent losses for the following years. Specifically, losses amounted to around $2.24 billion in 2018, and although the magnitude of losses decreased slightly in 2019, 2020, and 2021, the company remained unprofitable with reported net losses exceeding $900 million annually.

The adjusted net income follows a parallel trend but shows a smaller magnitude of loss in 2018 compared to the reported figures, indicating adjustments related likely to goodwill or other non-recurring items. Despite this adjustment, losses persist through to 2021, reaffirming challenges in profitability over the period.

Shareholders’ Equity Trends

Reported common shareholders’ equity shows a declining trend from approximately $13.32 billion in 2017 to a low of around $9.26 billion in 2020, reflecting a reduction of roughly 30%. A partial recovery occurs in 2021, with equity increasing to approximately $10.03 billion. This pattern indicates a weakening equity base over the majority of the period, possibly due to accumulated losses and other financial pressures.

The adjusted common shareholders’ equity closely tracks the reported equity values, with slight differences noted only in 2017. The adjustment reduces equity to around $12.85 billion that year but aligns with reported equity values from 2018 onward, suggesting adjustments were primarily relevant in the earlier period.

Return on Equity (ROE) Analysis

Reported ROE mirrors the profit/loss trajectory, beginning with a positive return of 11.33% in 2017, and then plunging into negative territory from 2018 onwards, reaching as low as -20.48% in 2018. The negative ROE persists through 2021 without signs of improvement, illustrating consistent shareholder value erosion during these years.

The adjusted ROE metrics indicate a less severe negative return in 2018 (-15.64%) compared to reported data, again hinting at the impact of accounting adjustments. From 2019 forward, adjusted ROE equals the reported figures, reinforcing the ongoing difficulties in achieving profitability and returns above zero.

Overall Observations

The data reveals a pronounced deterioration in financial performance starting in 2018 after a profitable 2017. Both profitability and equity levels declined significantly and remained under pressure through 2021. Adjustments related to goodwill and other factors moderate the reported losses and negative returns somewhat in 2018 but do not fundamentally alter the downward trend.

This persistent negative performance likely reflects structural or operational challenges, resulting in consistent losses and negative shareholder returns over multiple years. The gradual recovery in shareholders’ equity in 2021 may indicate initial steps toward stabilization, but the continued negative ROE underscores ongoing risks and the need for strategic interventions to restore profitability and return metrics.

Net Income (Loss) Trend

The reported net income attributable to the company showed a significant decline from a positive $1,508,529 thousand in 2017 to consistent losses in subsequent years. Specifically, losses worsened to -$2,244,568 thousand in 2018, followed by smaller but still negative results in 2019 (-$1,221,695 thousand), 2020 (-$967,166 thousand), and 2021 (-$1,155,759 thousand). The adjusted net income, which excludes goodwill-related adjustments, follows a similar pattern but shows a moderately mitigated loss in 2018 (-$1,713,757 thousand compared to the reported figure).

Total Assets Trend

Reported total assets decreased markedly from $29,522,604 thousand in 2017 to $20,721,344 thousand in 2018 and further declined to $18,809,227 thousand in 2019. The downward trend continued slightly to $18,113,469 thousand in 2020 before rebounding to $21,607,388 thousand in 2021. Adjusted total assets align closely with the reported figures, except in 2017 where adjusted assets are slightly lower, indicating adjustments related to goodwill or other intangible assets were made primarily in that year.

Return on Assets (ROA) Analysis

The reported ROA demonstrated a sharp decline from a positive 5.11% in 2017 to a negative 10.83% in 2018, reflecting the transition from profit to significant losses. The ROA then improved somewhat but remained negative in the following years: -6.5% in both 2019, -5.34% in 2020, and -5.35% in 2021. Adjusted ROA figures follow a similar trend but show a less severe negative return in 2018 (-8.27%), indicating the impact of asset adjustments heaviest that year. From 2019 onwards, adjusted and reported ROA values are identical, signifying no major adjustments affecting profitability metrics in those years.

Overall Financial Performance Summary

The data reflects a company experiencing substantial financial challenges starting in 2018, with a substantial shift from profitability to consistent net losses. Asset base contraction was pronounced between 2017 and 2020, with a slight recovery in 2021. Profitability ratios corroborate the losses and depreciated asset base, showing negative returns throughout the period after 2017. Adjustments for goodwill moderate some losses and asset valuations primarily in 2017 and 2018 but do not notably change the overall trend of declining financial performance.