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

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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EQT Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss)	(1,154,513)	(967,176)	(1,221,695)	(2,007,158)	1,858,142)
Deferred income tax benefit	(433,608)	(155,840)	(275,063)	(510,405)	(1,050,612)
Depreciation and depletion	1,676,702)	1,393,465)	1,538,745)	1,729,739)	1,077,559)
Amortization of intangible assets	—)	26,006)	35,916)	77,374)	10,940)
(Gain)/loss/impairment on sale/exchange of long-lived assets and impairment and expiration of leases	290,711)	442,111)	1,710,122)	2,989,684)	20,327)
Gain on Equitrans Share Exchange	—)	(187,223)	—)	—)	—)
Impairment of goodwill	—)	—)	—)	798,689)	—)
(Income) loss from investments	(71,841)	314,468)	336,993)	72,366)	—)
Loss on debt extinguishment	9,756)	25,435)	—)	—)	12,641)
Share-based compensation expense	28,169)	19,552)	31,233)	25,189)	94,592)
Amortization, accretion and other	66,236)	37,414)	23,296)	(33,039)	(25,934)
(Gain) loss on derivatives not designated as hedges	3,775,042)	(400,214)	(616,634)	178,591)	(390,021)
Cash settlements (paid) received on derivatives not designated as hedges	(2,091,003)	897,190)	246,639)	(225,279)	40,728)
Net premiums (paid) received on derivative instruments	(66,495)	(46,665)	22,616)	—)	—)
Accounts receivable	(699,992)	(36,296)	432,323)	(439,062)	(8,979)
Accounts payable	456,988)	(29,193)	(238,674)	457,113)	(16,680)
Income tax receivable and payable	(23,909)	322,763)	(167,281)	(117,188)	(12,285)
Other current assets	(75,100)	(68,628)	54,776)	(28,256)	—)
Other items, net	(24,695)	(49,468)	(61,608)	7,898)	27,280)
Changes in other assets and liabilities	(366,708)	139,178)	19,536)	(119,495)	(10,664)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	2,816,961)	2,504,877)	3,073,399)	4,983,414)	(220,444)
Net cash provided by operating activities	1,662,448)	1,537,701)	1,851,704)	2,976,256)	1,637,698)
Capital expenditures	(1,055,128)	(1,042,231)	(1,602,454)	(2,999,037)	(1,559,051)
Cash paid for acquisitions, net of cash acquired	(1,030,239)	(691,942)	—)	—)	(2,379,229)
Capital expenditures for discontinued operations	—)	—)	—)	(732,727)	(380,151)
Net sales of trading securities	—)	—)	—)	—)	283,758)
Exploratory dry hole costs	—)	—)	—)	—)	(11,420)
Capital contributions to Mountain Valley Pipeline, LLC	—)	—)	—)	(820,943)	(159,550)
Proceeds from sale of assets	2,452)	126,080)	—)	583,381)	3,573)
Proceeds from sale/exchange of investment shares	24,369)	52,323)	—)	—)	—)
Other investing activities	(14,196)	(30)	1,312)	(9,778)	—)
Net cash used in investing activities	(2,072,742)	(1,555,800)	(1,601,142)	(3,979,104)	(4,202,070)
Net proceeds from issuance of common stock	—)	340,923)	—)	—)	—)
Proceeds from credit facility borrowings	8,086,000)	3,118,250)	2,978,750)	8,637,500)	2,063,000)
Repayment of credit facility borrowings	(8,386,000)	(3,112,250)	(3,484,750)	(8,953,500)	(1,076,500)
Proceeds from issuance of debt	1,000,000)	2,600,000)	1,000,000)	2,500,000)	3,000,000)
Debt issuance costs and Capped Call Transactions	(19,713)	(71,056)	(913)	(40,966)	(41,876)
Repayment and retirement of debt	(154,336)	(2,822,262)	(704,661)	(8,376)	(2,000,000)
Premiums paid on debt extinguishment	(9,599)	(21,132)	—)	—)	(89,363)
Contributions from (distributions to) noncontrolling interest	7,500)	7,500)	—)	(380,651)	(236,123)
Dividends paid	—)	(7,664)	(30,655)	(31,375)	(20,827)
Proceeds and excess tax benefits from awards under employee compensation plans	—)	—)	—)	1,946)	244)
Cash paid for taxes related to net settlement of share-based incentive awards	(3,845)	(596)	(7,224)	(22,647)	(72,116)
Repurchase and retirement of common stock	(12,922)	—)	—)	(538,876)	—)
Repurchase of common stock	—)	—)	—)	(27)	(30)
Contribution to Strike Force Midstream LLC by minority owner, net of distribution	—)	—)	—)	—)	6,738)
Acquisition of 25% of Strike Force Midstream LLC	—)	—)	—)	(175,000)	—)
Net cash transferred at Separation and Distribution	—)	—)	—)	(129,008)	—)
Other financing activities	(1,038)	—)	—)	—)	—)
Net cash provided by (used in) financing activities	506,047)	31,713)	(249,453)	859,020)	1,533,147)
Net change in cash and cash equivalents	95,753)	13,614)	1,109)	(143,828)	(1,031,225)
Cash and cash equivalents at beginning of year	18,210)	4,596)	3,487)	147,315)	1,178,540)
Cash and cash equivalents at end of year	113,963)	18,210)	4,596)	3,487)	147,315)

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).

An analysis of the cash flow profile reveals a significant divergence between reported net income and net cash provided by operating activities. While the company experienced consistent net losses from 2018 through 2021, operating cash flows remained positive throughout the entire period, peaking at approximately 2.98 billion US dollars in 2018. This discrepancy is primarily attributable to substantial non-cash charges, specifically depreciation, depletion, and large-scale impairment charges on long-lived assets.

Operating Cash Flow Dynamics: The capacity to generate cash from operations despite accounting losses is driven by heavy non-cash adjustments. Depreciation and depletion remained a consistent additive factor, ranging between 1.08 billion and 1.73 billion US dollars annually. Significant impairment charges in 2018 and 2019, totaling approximately 2.99 billion and 1.71 billion US dollars respectively, heavily skewed net income downward without impacting actual cash liquidity. Additionally, derivative activities introduced high volatility, most notably in 2021, where a gain of 3.78 billion US dollars was largely offset by cash settlements of 2.09 billion US dollars.
Investing Activities and Capital Allocation: Investing activities consistently resulted in net cash outflows, indicating a period of intensive capital investment and acquisition. Capital expenditures reached a peak in 2018 at approximately 3 billion US dollars, excluding discontinued operations. The strategy included significant inorganic growth, as evidenced by cash paid for acquisitions totaling 2.38 billion US dollars in 2017 and 1.03 billion US dollars in 2021. The company also maintained substantial commitments to infrastructure, such as the Mountain Valley Pipeline, which required 980 million US dollars in contributions between 2017 and 2018.
Financing and Liquidity Management: Financing activities demonstrate a heavy reliance on revolving credit facilities and debt markets to fund capital expenditures and operational gaps. A pattern of high-volume borrowing and repayment is evident; for example, in 2021, credit facility borrowings of 8.09 billion US dollars were almost entirely offset by repayments of 8.39 billion US dollars. Long-term debt issuance provided a steady source of capital, with 1 billion US dollars raised in both 2019 and 2021. The company shifted its shareholder return strategy over time, moving from consistent dividend payments between 2017 and 2020 to a cessation of dividends in 2021.

The overall cash position remained tight throughout the observed period. The company started 2017 with 1.18 billion US dollars in cash and equivalents, which declined sharply to a low of approximately 3.5 million US dollars by the end of 2019. However, a gradual recovery occurred in 2020 and 2021, with the year-end cash balance rising to 114 million US dollars by December 31, 2021. This suggests a transition toward a more stabilized liquidity position following a period of aggressive capital deployment and asset impairment.

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