EQT Corp. (NYSE:EQT)

The financial data reveals several key trends in the property, plant, and equipment (PP&E) category over the five-year period ending December 31, 2021.

Oil and Gas Producing Properties

This asset category shows a decline from 23.94 billion US dollars in 2017 to 21.32 billion in 2019, followed by a slight recovery to 21.77 billion in 2020 and a significant increase to 25.52 billion in 2021. The initial decline may suggest reduced capital expenditure or asset sales, whereas the sharp increase in 2021 indicates renewed investment or asset additions.

Other Properties

Values in this category dropped substantially from 1.46 billion in 2017 to about 0.33 billion in 2018, staying relatively stable around 0.22 to 0.34 billion until 2020. In 2021, a noticeable increase to nearly 0.49 billion occurred. This pattern indicates volatility with a strong recovery or expansion in the latest year.

Property, Plant and Equipment, at Cost

The total PP&E cost follows a similar trajectory to producing properties, decreasing from approximately 25.40 billion in 2017 to 21.65 billion in 2019, then increasing gradually to 21.99 billion in 2020 and substantially to 26.02 billion in 2021. This aligns with the investment trends seen in core oil and gas properties.

Accumulated Depreciation and Depletion

This figure, recorded as a negative value, consistently increased in absolute terms from -5.67 billion in 2017 to -7.60 billion in 2021. The steady rise reflects ongoing depreciation and resource depletion over time, with an acceleration observed particularly in 2021, indicating both aging assets and possibly higher expense recognition linked to increased asset bases.

Net Property, Plant and Equipment

The net value decreased from 19.73 billion in 2017 to a low of 16.15 billion in 2019, before stabilizing near 16.05 billion in 2020 and then rising again to 18.42 billion in 2021. This pattern mirrors the cost and depreciation trends, where asset additions in 2021 partially offset accumulated depreciation effects, improving net asset values.

Overall, the data depict a company that experienced a decline in property investments and net asset values up to 2019, followed by a stabilization and strong reinvestment phase in 2021. The increased accumulated depreciation aligns with longer asset usage periods and the heightened asset base. The rise in both gross and net PP&E in 2021 suggests a strategic shift toward asset growth and capacity expansion.

The data provides insight into the trends related to the property, plant, and equipment over a five-year period. The average age ratio and estimations concerning useful life, age, and remaining life are key indicators to assess the condition and longevity of the assets.

Average age ratio (%)

The average age ratio exhibited an overall upward trend from 22.31% in 2017 to 29.2% in 2021. This indicates that the assets are aging, with a notable increase each year except for a slight decrease between 2017 and 2018. The most significant increments occur post-2018, suggesting that the asset base is growing older relative to its expected useful life.

Estimated total useful life (in years)

The estimated total useful life shows a declining pattern initially, starting at 26 years in 2017 then decreasing to 14 years in both 2018 and 2019. From 2020 onwards, this figure experiences a modest recovery to 16 years and remains stable through 2021. This suggests a reassessment or recalibration of the asset life estimates occurred after 2017, possibly reflecting changes in asset composition or updated usage expectations.

Estimated age, time elapsed since purchase (in years)

The estimated age of the assets fluctuates somewhat but remains relatively stable, ranging from 3 to 6 years across the periods. Notably, the youngest average age occurs in 2018 at 3 years, which may reflect recent acquisitions or replacements at that time. From 2019 onwards, the age stabilizes around 4 to 5 years with a slight increase at the end of the period.

Estimated remaining life (in years)

The estimated remaining life follows a decreasing trend from 2017 through 2019, dropping from 20 years to 10 years, before showing a mild improvement in 2020 to 12 years and a minor decline again in 2021 to 11 years. This indicates that while the assets are aging, periodic revisions suggest extensions or revaluations of the remaining usable life, which may mitigate concerns about asset obsolescence.

Overall, the data reveal that the company's property, plant, and equipment are aging, as illustrated by the rising average age ratio and estimated ages. Simultaneously, there is variability and adjustments in the total useful life and remaining life estimates, likely reflecting management's assessment of asset conditions and longevity. The reassessment of useful life in recent years impacts the interpretation of aging trends by indicating periodic re-evaluation of asset endurance and potential lifecycle extensions.

Accumulated Depreciation and Depletion

The accumulated depreciation and depletion values initially decreased from approximately 5.67 billion US dollars at the end of 2017 to about 4.76 billion in 2018. Following this decline, the figures rose progressively each year, reaching roughly 7.6 billion US dollars by the end of 2021. This indicates an increasing rate of asset depreciation over the most recent periods despite the initial dip.

Property, Plant, and Equipment at Cost

The cost of property, plant, and equipment experienced a decrease from nearly 25.4 billion US dollars in 2017 to about 21.6 billion in 2019. After 2019, a gradual increase occurred, culminating in a value exceeding 26 billion US dollars by the end of 2021. This suggests that the company's investment or capital expenditures in assets decreased initially but later rebounded to levels surpassing those of 2017.

Average Age Ratio

The average age ratio, representing the average age of the assets as a percentage, demonstrated a consistent upward trend throughout the period analyzed. Beginning at approximately 22.3% in 2017, the ratio increased steadily each year, reaching 29.2% by the conclusion of 2021. This pattern indicates an aging asset base, which may impact maintenance costs and efficiency.

Summary of Trends

Overall, the data reflect a phase of declining asset costs and depreciation from 2017 to 2018/2019, followed by a period of increased capital investment and accelerated depreciation through 2021. The rising average age ratio signals that the asset portfolio is aging, which, combined with the increase in accumulated depreciation, could suggest the need for future asset replacement or modernization initiatives.

Property, plant, and equipment, at cost

The cost of property, plant, and equipment demonstrates a general decline from 2017 to 2019, decreasing from approximately 25.4 billion US dollars to around 21.7 billion US dollars. This downward trend suggests a reduction in asset acquisitions or possible disposals during this period. However, from 2019 onward, there is a noticeable reversal with an increase peaking in 2021 at approximately 26.0 billion US dollars, surpassing the 2017 level. This rise may indicate renewed investments or expansion activities in recent years.

Depreciation and depletion

The depreciation and depletion expense shows variability over the years analyzed. Starting at about 0.97 billion US dollars in 2017, it significantly rises to approximately 1.57 billion US dollars in 2018. This elevated level remains relatively stable through 2019 at around 1.54 billion US dollars, then declines in 2020 to about 1.39 billion US dollars. A resurgence occurs in 2021, reaching the highest value of roughly 1.68 billion US dollars in the timeframe. These fluctuations may correspond to changes in asset base, depreciation policies, or revaluation of assets.

Estimated total useful life

The estimated useful life of property, plant, and equipment exhibits a notable decrease from 26 years in 2017 to 14 years in 2018 and 2019. This reduction indicates a reassessment likely reflecting accelerated depreciation or changes in asset composition. Following this, the useful life estimate increases to 16 years in both 2020 and 2021, suggesting a stabilization or adjustment in asset valuation assumptions.

Overall trends and insights

The period from 2017 to 2021 shows significant shifts in asset cost, depreciation expense, and estimated useful life. The initial decline and later recovery in asset cost denote possible strategic changes in capital expenditures. Concurrently, the depreciation and depletion expense exhibits corresponding volatility, which aligns with changes in the asset base and useful life estimates. The reduction in estimated useful life starting in 2018 implies a shift toward faster asset turnover or recognizing shorter asset economic lifespans. The subsequent increase in 2020 and 2021 may reflect adjustments to these assumptions or investment in longer-lived assets. These patterns collectively indicate active asset management and periodic reassessments of asset valuation and depreciation methodologies during the reviewed timeframe.

Accumulated Depreciation and Depletion

The accumulated depreciation and depletion values exhibit fluctuations over the examined five-year period. Initially, there was a decline from approximately 5.67 billion US dollars in 2017 to about 4.76 billion in 2018, indicating a possible revaluation or asset write-off during that year. Subsequently, the figure increased to nearly 5.50 billion in 2019, continued to rise to approximately 5.94 billion in 2020, and experienced a more pronounced increase to roughly 7.60 billion by the end of 2021. This overall upward trend in later years suggests ongoing asset usage and wear, coupled with potential additions to the asset base that are being depreciated or depleted over time.

Depreciation and Depletion Expense

Depreciation and depletion expenses show variability throughout the period. Starting at nearly 971 million US dollars in 2017, expenses increased sharply in 2018 to around 1.57 billion, indicating greater asset utilization or accelerated depreciation policies that year. The expense slightly decreased to approximately 1.54 billion in 2019, and further reduced to about 1.39 billion in 2020. However, there was a rebound in 2021, with expense levels climbing back to nearly 1.68 billion. This pattern reflects fluctuations in asset consumption rates or changes in the asset portfolio impacting annual depreciation charges.

Time Elapsed Since Purchase

The time elapsed since purchase of the property, plant, and equipment remained relatively stable with minor variations, ranging from three to six years over the five years. A notable decrease from six years in 2017 to three years in 2018 suggests the acquisition of newer assets at that time. Thereafter, it moderately increased again, stabilizing around four to five years through to 2021. This indicates a relatively consistent turnover and aging profile of the asset base, with recent acquisitions influencing the average age of the assets in some periods.

Net Property, Plant, and Equipment

The net property, plant, and equipment values demonstrated a declining trend from 2017 to 2020. The value decreased steadily from approximately 19.7 billion USD in 2017 to around 16.1 billion USD in 2019 and remained relatively stable in 2020 at about 16.05 billion USD. In 2021, there was a notable reversal in the trend, with the net property, plant, and equipment value rising to approximately 18.4 billion USD.

Depreciation and Depletion

The depreciation and depletion expenses showed an overall increase over the given period, with some fluctuations. Starting at roughly 971 million USD in 2017, the expense surged to approximately 1.57 billion USD in 2018. It then slightly decreased to around 1.54 billion USD in 2019 and further declined to about 1.39 billion USD in 2020. In 2021, depreciation and depletion expenses increased again to approximately 1.68 billion USD, reaching the highest level within the examined timeframe.

Estimated Remaining Life

The estimated remaining life of property, plant, and equipment showed a sharp decline from 20 years in 2017 to 11 years in 2018. It then slightly decreased to 10 years in 2019, followed by an increase to 12 years in 2020. In 2021, the estimated remaining life decreased slightly again to 11 years.

Summary Insights

The data indicates a general depreciation in the net asset values over the initial years, followed by a recovery in the final year. The fluctuation in depreciation and depletion expenses, coupled with changes in the estimated remaining life, suggests active asset management and possibly new investments or disposals influencing asset valuation. The reduction in the estimated remaining life early in the period, followed by minor adjustments, may reflect reassessment of asset longevity or changing operational conditions. Overall, the trend points to dynamic changes in asset base and its utilization within the company across the five-year span.