Name: EQT Corp. (NYSE:EQT) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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EQT Corp., consolidated income statement

US$ in thousands

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	6,804,020)	2,650,299)	3,791,414)	4,695,519)	2,651,318)
Gain (loss) on derivatives not designated as hedges	(3,775,042)	400,214)	616,634)	(178,591)	390,021)
Net marketing services and other	35,685)	8,330)	8,436)	40,940)	49,681)
Operating revenues	3,064,663)	3,058,843)	4,416,484)	4,557,868)	3,091,020)
Transportation and processing	(1,942,165)	(1,710,734)	(1,752,752)	(1,697,001)	(1,164,783)
Production	(225,279)	(155,403)	(153,785)	(195,775)	(181,349)
Exploration	(24,403)	(5,484)	(7,223)	(6,765)	(17,565)
Selling, general and administrative	(196,315)	(174,769)	(170,611)	(232,543)	(208,986)
Depreciation and depletion	(1,676,702)	(1,393,465)	(1,538,745)	(1,569,038)	(970,985)
Amortization of intangible assets	—)	(26,006)	(35,916)	(41,367)	(5,400)
Gain (loss) on sale/exchange of long-lived assets	21,124)	(100,729)	(1,138,287)	(2,709,976)	—)
Impairment of intangible and other assets	—)	(34,694)	(15,411)	—)	—)
Impairment of goodwill	—)	—)	—)	(530,811)	—)
Impairment and expiration of leases	(311,835)	(306,688)	(556,424)	(279,708)	(7,552)
Transactions	(57,430)	(11,739)	—)	(26,331)	(152,188)
Reorganization, including severance and contract terminations	(7,458)	(5,448)	(97,702)	—)	—)
Changes in legal reserves, including settlements	(5,175)	(11,350)	(82,395)	(51,677)	—)
Proxy	—)	—)	(19,343)	—)	—)
Other operating expenses	(70,063)	(28,537)	(199,440)	(78,008)	(152,188)
Operating expenses	(4,425,638)	(3,936,509)	(5,568,594)	(7,340,992)	(2,708,808)
Operating income (loss)	(1,360,975)	(877,666)	(1,152,110)	(2,783,124)	382,212)
Gain on Equitrans Share Exchange	—)	187,223)	—)	—)	—)
Income (loss) from investments	71,841)	(314,468)	(336,993)	(72,366)	—)
Dividend and other income (expense)	19,105)	35,512)	91,483)	7,017)	(2,987)
Loss on debt extinguishment	(9,756)	(25,435)	—)	—)	(12,641)
Interest expense	(308,903)	(271,200)	(199,851)	(228,958)	(167,971)
Income (loss) from continuing operations before income taxes	(1,588,688)	(1,266,034)	(1,597,471)	(3,077,431)	198,613)
Income tax benefit	434,175)	298,858)	375,776)	696,511)	1,188,416)
Income (loss) from continuing operations	(1,154,513)	(967,176)	(1,221,695)	(2,380,920)	1,387,029)
Income from discontinued operations, net of tax	—)	—)	—)	373,762)	471,113)
Net income (loss)	(1,154,513)	(967,176)	(1,221,695)	(2,007,158)	1,858,142)
Net (income) loss attributable to noncontrolling interest	(1,246)	10)	—)	(237,410)	(349,613)
Net income (loss) attributable to EQT Corporation	(1,155,759)	(967,166)	(1,221,695)	(2,244,568)	1,508,529)

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).

Financial performance from 2017 to 2021 is characterized by significant volatility in revenue streams and a transition from net profitability to consistent annual losses. While direct sales of natural gas, natural gas liquids, and oil reached a peak of 6.8 billion USD in 2021, the overall operating revenues did not mirror this growth due to the volatile impact of derivative instruments.

Revenue and Derivative Volatility: Operating revenues fluctuated considerably, peaking in 2018 at 4.56 billion USD before stabilizing around 3.06 billion USD in 2020 and 2021. A critical driver of this instability is the gain or loss on derivatives not designated as hedges. This item shifted from a gain of 400 million USD in 2020 to a substantial loss of 3.8 billion USD in 2021, effectively neutralizing the gains achieved from increased commodity sales.
Operating Expense Analysis: There is a clear upward trend in core operational costs. Transportation and processing expenses increased steadily from 1.16 billion USD in 2017 to 1.94 billion USD in 2021. Depreciation and depletion expenses also rose significantly, moving from 971 million USD in 2017 to 1.68 billion USD in 2021, reflecting an expanded asset base or accelerated depletion of reserves.
Non-Recurring Losses and Impairments: The period between 2018 and 2020 was marked by heavy non-cash charges. Specifically, losses on the sale or exchange of long-lived assets were severe in 2018 (2.7 billion USD) and 2019 (1.1 billion USD). Additionally, impairment of goodwill in 2018 (531 million USD) and recurring impairment and expiration of leases, which peaked at 556 million USD in 2019, contributed to the erosion of operating income.
Profitability and Net Income Trends: The company transitioned from a net income of 1.86 billion USD in 2017 to consistent net losses from 2018 through 2021. Operating income has remained negative since 2018, with the most significant operating loss occurring in 2018 at 2.78 billion USD. Net losses attributable to the corporation were partially mitigated by consistent income tax benefits, which ranged from approximately 300 million USD to 700 million USD annually.
Financial Obligations and Interest: A progressive increase in interest expense is observed, rising from 168 million USD in 2017 to 309 million USD in 2021. This trend suggests an increasing debt burden or higher borrowing costs over the five-year analyzed period.

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