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.

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).

Net income (loss): There is a clear downward trend in net income over the five-year period, starting from a positive $1.86 billion in 2017 to consistent negative values in subsequent years, culminating in a loss of approximately $1.15 billion in 2021. This indicates ongoing profitability challenges.
Deferred income tax benefit: The deferred income tax benefit decreased significantly from over $1 billion in 2017 to a much smaller amount under $0.5 billion by 2021, reflecting reduced tax expense benefits or changes in tax planning strategies over time.
Depreciation and depletion: Depreciation and depletion expenses have generally increased, growing from approximately $1.08 billion in 2017 to about $1.68 billion in 2021, which may indicate growing asset base or increased usage of depreciable assets.
Amortization of intangible assets: This expense peaked in 2018 at nearly $77 million but declined significantly thereafter, reaching zero or an unreported amount by 2021, possibly reflecting the write-off or full amortization of intangible assets.
Impairment and related gains/losses on assets: Significant volatility is noted here; impairments and gains/losses on sale or exchange of long-lived assets were substantial, especially in 2018 (almost $3 billion) and 2019 (over $1.7 billion), then sharply reduced in later years. Goodwill impairment was notable only in 2018.
Income/loss from investments: Investment income/loss displays fluctuations with a positive spike in 2019 and 2020 but turned negative in 2021, suggesting investment performance variability.
Derivative-related gains and losses: Derivative gains and losses not designated as hedges show marked volatility, with both significant gains and losses, including an extraordinary gain of over $3.7 billion in 2021. Related cash settlements follow a similar trend with large inflows and outflows across years.
Working capital changes: Accounts receivable, accounts payable, and income tax receivable/payable fluctuated widely, illustrating unstable working capital conditions. Notably, accounts receivable swung from negative to positive and back, signaling variability in collections or billing.
Operating cash flow: Net cash provided by operating activities remains positive throughout the period but shows a declining trend from nearly $1.64 billion in 2017 to around $1.66 billion in 2021, albeit with fluctuations indicating operational cash generation is stable but under pressure.
Capital expenditures: Capital expenditures spiked in 2018 to around $3 billion, then moderated to approximately $1.06 billion in 2021, pointing to a reduction in investment in fixed assets after a peak spending period.
Investing activities: Net cash used in investing activities shows consistent and significant outflows each year, peaking in 2017 and 2018 in excess of $4 billion, then decreasing but remaining high, reflecting continued investment outlays and asset acquisitions.
Financing activities: The financing cash flows are variable, with net inflows of over $1.5 billion in 2017, followed by a sharp decrease and even net outflows in 2019, then moderate inflows in 2020 and 2021. Debt borrowings and repayments show substantial activity, with large borrowings offset by repayments, evidencing active capital structure management. Share repurchase activity is limited and sporadic.
Cash and cash equivalents: Cash balances decreased sharply in 2018 but remained relatively low and stable afterward, ending 2021 at about $114 million, suggesting limited liquidity reserves relative to the scale of operations.
Overall insights: The overall financial trends point to a company experiencing significant operational and financial challenges over the period, with ongoing net losses, high impairment charges, and volatile investment and derivative results. Capital spending surged mid-period but subsequently declined. Cash flow from operations remained positive but under pressure. The company engaged in active debt management with large borrowings and repayments. Liquidity appears constrained with low cash reserves. The data reflects a complex environment with fluctuating asset values, earnings volatility, and aggressive financing activity.

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EQT Corp. (NYSE:EQT)

Cash Flow Statement