EVA is registered trademark of Stern Stewart.

Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

EQT Corp., economic profit calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net operating profit after taxes (NOPAT)¹	(1,348,798)	(908,089)	(1,339,125)	(2,332,609)	408,113)
Cost of capital²	10.10%	9.66%	5.49%	9.16%	11.69%
Invested capital³	16,527,021)	15,621,670)	16,653,426)	18,393,800)	26,508,072)

Economic profit⁴	(3,018,552)	(2,416,794)	(2,253,971)	(4,017,141)	(2,691,791)

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).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2021 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= -1,348,798 – 10.10% × 16,527,021 = -3,018,552

Download chart

Item	Description	The company
Economic profit	Economic profit is a measure of corporate performance computed by taking the spread between the return on invested capital and the cost of capital, and multiplying by the invested capital.	EQT Corp. economic profit decreased from 2019 to 2020 and from 2020 to 2021.

EQT Corp., NOPAT calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss) attributable to EQT Corporation	(1,155,759)	(967,166)	(1,221,695)	(2,244,568)	1,508,529)
Deferred income tax expense (benefit)¹	(433,608)	(155,840)	(275,063)	(137,000)	(1,094,083)
Increase (decrease) in provision for doubtful accounts²	(5,918)	(622)	(1,787)	868)	—)
Increase (decrease) in equity equivalents³	(439,526)	(156,462)	(276,850)	(136,132)	(1,094,083)
Interest expense	308,903)	271,200)	199,851)	228,958)	167,971)
Interest expense, operating lease liability⁴	1,529)	1,647)	1,947)	4,514)	9,209)
Adjusted interest expense	310,432)	272,847)	201,798)	233,472)	177,180)
Tax benefit of interest expense⁵	(65,191)	(57,298)	(42,377)	(49,029)	(62,013)
Adjusted interest expense, after taxes⁶	245,241)	215,549)	159,420)	184,443)	115,167)
(Income) loss from discontinued operations, net of tax⁷	—)	—)	—)	(373,762)	(471,113)
Net income (loss) attributable to noncontrolling interest	1,246)	(10)	—)	237,410)	349,613)
Net operating profit after taxes (NOPAT)	(1,348,798)	(908,089)	(1,339,125)	(2,332,609)	408,113)

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).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in provision for doubtful accounts.

³ Addition of increase (decrease) in equity equivalents to net income (loss) attributable to EQT Corporation.

⁴ 2021 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 52,712 × 2.90% = 1,529

⁵ 2021 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 310,432 × 21.00% = 65,191

⁶ Addition of after taxes interest expense to net income (loss) attributable to EQT Corporation.

⁷ Elimination of discontinued operations.

Download chart

Item	Description	The company
NOPAT	Net operating profit after taxes is income from operations, but after removement of taxes calculated on cash basis that are relevant to operating income.	EQT Corp. NOPAT increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

EQT Corp., cash operating taxes calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Income tax benefit	(434,175)	(298,858)	(375,776)	(696,511)	(1,188,416)
Less: Deferred income tax expense (benefit)	(433,608)	(155,840)	(275,063)	(137,000)	(1,094,083)
Add: Tax savings from interest expense	65,191)	57,298)	42,377)	49,029)	62,013)
Cash operating taxes	64,624)	(85,720)	(58,336)	(510,482)	(32,320)

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).

Download chart

Item	Description	The company
Cash operating taxes	Cash operating taxes are estimated by adjusting income tax expense for changes in deferred taxes and tax benefit from the interest deduction.	EQT Corp. cash operating taxes decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

EQT Corp., invested capital calculation (financing approach)

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)
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)
Operating lease liability¹	52,712)	49,913)	58,985)	100,755)	195,930)
Total reported debt & leases	5,537,714)	4,975,379)	5,351,964)	5,598,136)	6,193,259)
Common shareholders’ equity	10,029,527)	9,255,240)	9,803,588)	10,958,229)	13,319,618)
Net deferred tax (assets) liabilities²	938,612)	1,371,967)	1,485,814)	1,823,381)	1,889,962)
Provision for doubtful accounts³	321)	6,239)	6,861)	8,648)	7,780)
Equity equivalents⁴	938,933)	1,378,206)	1,492,675)	1,832,029)	1,897,742)
Accumulated other comprehensive (income) loss, net of tax⁵	4,611)	5,355)	5,199)	5,406)	2,458)
Noncontrolling interest in consolidated subsidiaries	16,236)	7,490)	—)	—)	5,094,995)
Adjusted common shareholders’ equity	10,989,307)	10,646,291)	11,301,462)	12,795,664)	20,314,813)
Invested capital	16,527,021)	15,621,670)	16,653,426)	18,393,800)	26,508,072)

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).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of equity equivalents to common shareholders’ equity.

⁵ Removal of accumulated other comprehensive income.

Download chart

Item	Description	The company
Invested capital	Capital is an approximation of the economic book value of all cash invested in going-concern business activities.	EQT Corp. invested capital decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

EQT Corp., cost of capital calculations

Dec 31, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	8,148,424)	8,148,424)	÷	14,773,742)	=	0.55	0.55	×	14.80%	=	8.16%
Debt³	6,572,606)	6,572,606)	÷	14,773,742)	=	0.44	0.44	×	5.50% × (1 – 21.00%)	=	1.93%
Operating lease liability⁴	52,712)	52,712)	÷	14,773,742)	=	0.00	0.00	×	2.90% × (1 – 21.00%)	=	0.01%
Total:	14,773,742)					1.00					10.10%

Based on: 10-K (reporting date: 2021-12-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	5,345,640)	5,345,640)	÷	10,983,612)	=	0.49	0.49	×	14.80%	=	7.20%
Debt³	5,588,059)	5,588,059)	÷	10,983,612)	=	0.51	0.51	×	6.08% × (1 – 21.00%)	=	2.44%
Operating lease liability⁴	49,913)	49,913)	÷	10,983,612)	=	0.00	0.00	×	3.30% × (1 – 21.00%)	=	0.01%
Total:	10,983,612)					1.00					9.66%

Based on: 10-K (reporting date: 2020-12-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2019

	Capital (fair value)¹	Weights					Cost of capital
Equity²	1,374,343)	1,374,343)	÷	6,418,757)	=	0.21	0.21	×	14.80%	=	3.17%
Debt³	4,985,429)	4,985,429)	÷	6,418,757)	=	0.78	0.78	×	3.75% × (1 – 21.00%)	=	2.30%
Operating lease liability⁴	58,985)	58,985)	÷	6,418,757)	=	0.01	0.01	×	3.30% × (1 – 21.00%)	=	0.02%
Total:	6,418,757)					1.00					5.49%

Based on: 10-K (reporting date: 2019-12-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2018

	Capital (fair value)¹	Weights					Cost of capital
Equity²	4,636,668)	4,636,668)	÷	9,290,850)	=	0.50	0.50	×	14.80%	=	7.39%
Debt³	4,553,427)	4,553,427)	÷	9,290,850)	=	0.49	0.49	×	4.48% × (1 – 21.00%)	=	1.73%
Operating lease liability⁴	100,755)	100,755)	÷	9,290,850)	=	0.01	0.01	×	4.48% × (1 – 21.00%)	=	0.04%
Total:	9,290,850)					1.00					9.16%

Based on: 10-K (reporting date: 2018-12-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Dec 31, 2017

	Capital (fair value)¹	Weights					Cost of capital
Equity²	14,106,990)	14,106,990)	÷	19,175,750)	=	0.74	0.74	×	14.80%	=	10.89%
Debt³	4,872,831)	4,872,831)	÷	19,175,750)	=	0.25	0.25	×	4.70% × (1 – 35.00%)	=	0.78%
Operating lease liability⁴	195,930)	195,930)	÷	19,175,750)	=	0.01	0.01	×	4.70% × (1 – 35.00%)	=	0.03%
Total:	19,175,750)					1.00					11.69%

Based on: 10-K (reporting date: 2017-12-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

EQT Corp., economic spread ratio calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Economic profit¹	(3,018,552)	(2,416,794)	(2,253,971)	(4,017,141)	(2,691,791)
Invested capital²	16,527,021)	15,621,670)	16,653,426)	18,393,800)	26,508,072)
Performance Ratio
Economic spread ratio³	-18.26%	-15.47%	-13.53%	-21.84%	-10.15%
Benchmarks
Economic Spread Ratio, Competitors⁴
Chevron Corp.	-3.16%	-17.34%	-12.61%	—	—
ConocoPhillips	-0.34%	-19.00%	-0.35%	—	—
Exxon Mobil Corp.	0.36%	-22.90%	-5.72%	—	—
Marathon Petroleum Corp.	-2.24%	-26.27%	-3.05%	—	—
Occidental Petroleum Corp.	-4.47%	-33.52%	-10.60%	—	—
Valero Energy Corp.	-0.97%	-16.81%	-3.11%	—	—

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).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2021 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -3,018,552 ÷ 16,527,021 = -18.26%

⁴ Click competitor name to see calculations.

Download chart

Performance ratio	Description	The company
Economic spread ratio	The ratio of economic profit to invested capital, also equal to the difference between return on invested capital (ROIC) and cost of capital.	EQT Corp. economic spread ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

EQT Corp., economic profit margin calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in thousands)
Economic profit¹	(3,018,552)	(2,416,794)	(2,253,971)	(4,017,141)	(2,691,791)
Sales of natural gas, natural gas liquids and oil	6,804,020)	2,650,299)	3,791,414)	4,695,519)	2,651,318)
Performance Ratio
Economic profit margin²	-44.36%	-91.19%	-59.45%	-85.55%	-101.53%
Benchmarks
Economic Profit Margin, Competitors³
Chevron Corp.	-3.94%	-36.21%	-17.64%	—	—
ConocoPhillips	-0.56%	-51.45%	-0.62%	—	—
Exxon Mobil Corp.	0.35%	-35.12%	-6.80%	—	—
Marathon Petroleum Corp.	-1.19%	-26.42%	-2.02%	—	—
Occidental Petroleum Corp.	-10.00%	-119.08%	-43.75%	—	—
Valero Energy Corp.	-0.38%	-10.61%	-1.17%	—	—

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).

¹ Economic profit. See details »

² 2021 Calculation
Economic profit margin = 100 × Economic profit ÷ Sales of natural gas, natural gas liquids and oil
= 100 × -3,018,552 ÷ 6,804,020 = -44.36%

³ Click competitor name to see calculations.

Download chart

Performance ratio	Description	The company
Economic profit margin	The ratio of economic profit to sales. It is the company profit margin covering income efficiency and asset management. Economic profit margin is not biased in favor of capital-intensive business models, because any added capital is a cost to the economic profit margin.	EQT Corp. economic profit margin deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

EQT Corp. (NYSE:EQT)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin