Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

EQT Corp., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Current portion of debt	954,900)	154,161)	16,204)	704,390)	12,406)
Accounts payable	1,339,251)	705,461)	796,438)	1,059,873)	726,433)
Derivative instruments, at fair value	2,413,608)	600,877)	312,696)	336,051)	139,089)
Accrued interest payable	88,614)	91,953)	36,590)	42,998)	41,926)
Accrued taxes other than income	86,755)	44,619)	57,850)	75,978)	62,091)
Current portion of long-term capacity contracts	57,440)	50,504)	34,000)	—)	—)
Accrued incentive compensation	51,224)	33,601)	18,573)	46,937)	72,910)
Current portion of lease liabilities	27,972)	25,004)	29,036)	—)	—)
Accrued severance	3,815)	2,536)	11,769)	8,893)	41,474)
Income tax payable	—)	23,909)	—)	—)	—)
Other accrued liabilities	56,592)	29,785)	32,746)	79,881)	55,875)
Other current liabilities	372,412)	301,911)	220,564)	254,687)	274,276)
Current liabilities of discontinued operations	—)	—)	—)	—)	80,033)
Current liabilities	5,080,171)	1,762,410)	1,345,902)	2,355,001)	1,232,237)
Credit facility borrowings	—)	300,000)	294,000)	800,000)	1,295,000)
Term Loan Facility borrowings	—)	—)	999,353)	—)	—)
Senior notes	4,435,782)	4,371,467)	3,878,366)	3,882,932)	4,575,203)
Note payable to EQM Midstream Partners, LP	94,320)	99,838)	105,056)	110,059)	114,720)
Deferred income taxes	938,612)	1,371,967)	1,485,814)	1,823,381)	1,889,962)
Other liabilities and credits	1,012,740)	945,057)	897,148)	791,742)	752,837)
Noncurrent liabilities of discontinued operations	—)	—)	—)	—)	1,248,032)
Noncurrent liabilities	6,481,454)	7,088,329)	7,659,737)	7,408,114)	9,875,754)
Total liabilities	11,561,625)	8,850,739)	9,005,639)	9,763,115)	11,107,991)
Common stock, no par value	10,167,963)	8,241,684)	7,818,205)	7,828,554)	9,388,903)
Treasury stock, shares at cost	(18,046)	(29,348)	(32,507)	(49,194)	(63,602)
Retained earnings (accumulated deficit)	(115,779)	1,048,259)	2,023,089)	3,184,275)	3,996,775)
Accumulated other comprehensive loss	(4,611)	(5,355)	(5,199)	(5,406)	(2,458)
Common shareholders’ equity	10,029,527)	9,255,240)	9,803,588)	10,958,229)	13,319,618)
Noncontrolling interest in consolidated subsidiaries	16,236)	7,490)	—)	—)	5,094,995)
Total equity	10,045,763)	9,262,730)	9,803,588)	10,958,229)	18,414,613)
Total liabilities and equity	21,607,388)	18,113,469)	18,809,227)	20,721,344)	29,522,604)

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 financial data over the period from 2017 to 2021 reveals several notable trends in the company’s liabilities, equity, and overall financial position.

Current liabilities: There is a significant fluctuation in current liabilities throughout the years. From 2017 to 2018, current liabilities nearly doubled from approximately 1.23 billion USD to 2.36 billion USD, followed by a decrease in 2019 to around 1.35 billion USD. Subsequently, there was an increase reaching 1.76 billion USD in 2020, and a substantial surge to approximately 5.08 billion USD in 2021. The spike in 2021 is primarily driven by increases in the current portion of debt and accounts payable, with derivative instruments at fair value also showing a marked rise.
Noncurrent liabilities: Noncurrent liabilities show a general downward trend over the period. Starting at about 9.88 billion USD in 2017, they decreased to approximately 6.48 billion USD by 2021. This reduction may reflect repayments or reclassification of long-term obligations. Deferred income taxes also steadily declined from nearly 1.89 billion USD in 2017 to approximately 0.94 billion USD in 2021.
Total liabilities: Total liabilities exhibit variability, starting at roughly 11.11 billion USD in 2017, followed by a decrease to 8.85 billion USD in 2020, and then a pronounced rise to over 11.56 billion USD in 2021. The increase in 2021 largely stems from the sharp rise in current liabilities, overshadowing the gradual reduction in noncurrent liabilities.
Equity: Equity experienced a decline from around 18.41 billion USD in 2017 to approximately 9.26 billion USD in 2020, with a recovery to about 10.05 billion USD in 2021. Common stock values decreased until 2019 but increased significantly in 2021, contributing to equity growth. Retained earnings declined consistently over the years, turning negative by 2021, indicating accumulated losses that have impacted shareholders’ equity adversely. Treasury stock values reduced steadily, suggesting repurchases of shares have lessened over the period.
Accounts Payable and Other Current Liabilities: Accounts payable and other accrued liabilities show irregular movements. Accounts payable increased overall, peaking at over 1.33 billion USD in 2021. Other accrued liabilities and other current liabilities fluctuated but ended at higher levels in 2021 than in 2017, suggesting increased short-term obligations.
Derivative Instruments: The fair value of derivative instruments saw a steady increase, particularly notable from 2020 to 2021, where the value jumped dramatically from approximately 601 million USD to 2.41 billion USD, likely indicating increased exposure to market risk or hedging activities.
Debt and Borrowings: There is significant volatility in credit facility borrowings, with high values in 2017 and 2018, then a substantial decline in subsequent years, disappearing from reported data in 2021. Senior notes remained relatively stable, increasing slightly to about 4.44 billion USD in 2021. The term loan facility is recorded only in 2019, suggesting refinancing or restructuring of debt instruments occurred during the period.
Other considerations: Accrued incentive compensation and other accrued liabilities have shown variability but remained generally lower in magnitude compared to major liability items. The presence and subsequent absence of current and noncurrent liabilities related to discontinued operations indicate divestitures or restructuring of certain segments occurred early in the period.

In summary, the company underwent notable shifts in its capital structure between 2017 and 2021, with considerable increases in current liabilities driving a rise in total liabilities in the most recent period. Equity contracted significantly before marginally rebounding, affected by negative retained earnings. The rise in derivative instrument values and fluctuations in debt instruments suggest active management of financial risk and liabilities throughout these years.

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EQT Corp. (NYSE:EQT)

Balance Sheet: Liabilities and Stockholders’ Equity