Stock Analysis on Net
Stock Analysis on Net

EQT Corp. (NYSE:EQT)

This company has been moved to the archive! The financial data has not been updated since October 27, 2022.

Common-Size Income Statement 

EQT Corp., common-size consolidated income statement

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12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Sales of natural gas, natural gas liquids and oil 100.00 100.00 100.00 100.00 100.00
Gain (loss) on derivatives not designated as hedges -55.48 15.10 16.26 -3.80 14.71
Net marketing services and other 0.52 0.31 0.22 0.87 1.87
Operating revenues 45.04% 115.42% 116.49% 97.07% 116.58%
Transportation and processing -28.54 -64.55 -46.23 -36.14 -43.93
Production -3.31 -5.86 -4.06 -4.17 -6.84
Exploration -0.36 -0.21 -0.19 -0.14 -0.66
Selling, general and administrative -2.89 -6.59 -4.50 -4.95 -7.88
Depreciation and depletion -24.64 -52.58 -40.58 -33.42 -36.62
Amortization of intangible assets 0.00 -0.98 -0.95 -0.88 -0.20
Gain (loss) on sale/exchange of long-lived assets 0.31 -3.80 -30.02 -57.71 0.00
Impairment of intangible and other assets 0.00 -1.31 -0.41 0.00 0.00
Impairment of goodwill 0.00 0.00 0.00 -11.30 0.00
Impairment and expiration of leases -4.58 -11.57 -14.68 -5.96 -0.28
Transactions -0.84 -0.44 0.00 -0.56 -5.74
Reorganization, including severance and contract terminations -0.11 -0.21 -2.58 0.00 0.00
Changes in legal reserves, including settlements -0.08 -0.43 -2.17 -1.10 0.00
Proxy 0.00 0.00 -0.51 0.00 0.00
Other operating expenses -1.03% -1.08% -5.26% -1.66% -5.74%
Operating expenses -65.04% -148.53% -146.87% -156.34% -102.17%
Operating income (loss) -20.00% -33.12% -30.39% -59.27% 14.42%
Gain on Equitrans Share Exchange 0.00 7.06 0.00 0.00 0.00
Income (loss) from investments 1.06 -11.87 -8.89 -1.54 0.00
Dividend and other income (expense) 0.28 1.34 2.41 0.15 -0.11
Loss on debt extinguishment -0.14 -0.96 0.00 0.00 -0.48
Interest expense -4.54 -10.23 -5.27 -4.88 -6.34
Income (loss) from continuing operations before income taxes -23.35% -47.77% -42.13% -65.54% 7.49%
Income tax benefit 6.38 11.28 9.91 14.83 44.82
Income (loss) from continuing operations -16.97% -36.49% -32.22% -50.71% 52.31%
Income from discontinued operations, net of tax 0.00 0.00 0.00 7.96 17.77
Net income (loss) -16.97% -36.49% -32.22% -42.75% 70.08%
Net (income) loss attributable to noncontrolling interest -0.02 0.00 0.00 -5.06 -13.19
Net income (loss) attributable to EQT Corporation -16.99% -36.49% -32.22% -47.80% 56.90%

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).

Sales and Revenue Trends
The sales of natural gas, natural gas liquids, and oil consistently represent 100% throughout the analyzed periods, serving as a stable baseline. Operating revenues fluctuate notably, with a peak at 116.58% in 2017, a drop to 97.07% in 2018, recovery to 116.49% in 2019, then a slight decrease to 115.42% in 2020, followed by a sharp decline to 45.04% in 2021. This indicates revenue volatility that could be linked to market conditions or operational factors.
Derivative Gains and Losses
Gain (loss) on derivatives not designated as hedges shows significant volatility. It was positive at 14.71% in 2017, turned negative at -3.8% in 2018, rebounded to positive values above 15% in 2019 and 2020, and then sharply dropped to negative -55.48% in 2021. This suggests considerable exposure to derivative instrument risk or market fluctuations in that year.
Operating Expenses
Operating expenses as a percentage of sales are consistently high, ranging from -102.17% in 2017 to an extreme of -156.34% in 2018 and consistently remaining above -140% until 2020, before improving significantly to -65.04% in 2021. This trend shows exceptionally high costs relative to sales, with a notable easing in 2021 potentially indicating cost control efforts or changes in cost structure.
Cost Components
Key cost components such as transportation and processing, production, selling/general/administrative, and depreciation/depletion follow general patterns of volatility with some improvement in 2021. Transportation and processing costs decrease in magnitude in 2021 (-28.54%) compared to prior years where values as low as -64.55% were recorded. Depreciation and depletion costs decrease substantially from -52.58% in 2020 to -24.64% in 2021, suggesting asset write-downs or reduced depreciable base. Production expenses remain small but generally decreasing over time.
Asset Impairments and Related Charges
There are notable impairments and asset-related charges including goodwill, intangible assets, and leases. Goodwill impairment occurred only in 2018 (-11.3%). Impairments and expirations of leases are significant in 2019 (-14.68%) and 2020 (-11.57%), then improve in 2021 (-4.58%), indicating restructuring or asset rationalization. Gains/losses on sale/exchange of long-lived assets show large negative values in 2018 and 2019 but improve by 2021, which might reflect divestitures or asset portfolio adjustments.
Operating Income and Profitability
Operating income shows a sharp decline from 14.42% in 2017 to sizeable losses in subsequent years, with -59.27% in 2018 and losses persisting through 2021 (-20%). Income from continuing operations mirrors this trend with declining profitability and losses each year. Net income attributable to the parent company follows a similar pattern, with significant losses from 2018 onward, although less severe in 2021 (-16.99%).
Other Income and Expenses
Income from investments is negative in three of five years, with the largest loss in 2020 (-11.87%), reflecting potential investment difficulties. Interest expense fluctuates, with the lowest level in 2021 (-4.54%) compared to -10.23% in 2020, signaling possible debt restructuring or changes in financing costs. Loss on debt extinguishment is relatively small and sporadic.
Tax and Income Tax Benefit
Income tax benefit decreases steadily from 44.82% in 2017 to 6.38% in 2021, consistent with declining income and profitability. The presence of tax benefits suggests utilization of net operating losses or tax credits during periods of losses.
Special Items
The gain on Equitrans share exchange appears only once in 2020 at 7.06%, providing a positive, albeit isolated, impact on operating revenues.
Summary of Financial Health
The data reflects a period marked by volatility in revenues and substantial operating losses after 2017. Cost management improves somewhat in 2021, but the company continues to face challenges such as significant impairments, derivative losses, and investment write-downs. Overall, the trend suggests a need for strategic adjustment to stabilize operations and improve profitability.