EQT Corp., FCFF 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)
Net (income) loss attributable to noncontrolling interest	1,246)	(10)	—)	237,410)	349,613)
Net noncash charges	3,183,669)	2,365,699)	3,053,863)	5,102,909)	(209,780)
Changes in other assets and liabilities	(366,708)	139,178)	19,536)	(119,495)	(10,664)
Net cash provided by operating activities	1,662,448)	1,537,701)	1,851,704)	2,976,256)	1,637,698)
Cash paid during the year for interest, net of amount capitalized, net of tax¹	203,931)	149,500)	151,900)	201,460)	173,464)
Capital expenditures	(1,055,128)	(1,042,231)	(1,602,454)	(2,999,037)	(1,559,051)
Capital expenditures for discontinued operations	—)	—)	—)	(732,727)	(380,151)
Free cash flow to the firm (FCFF)	811,251)	644,970)	401,150)	(554,048)	(128,040)

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).

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Net Cash Provided by Operating Activities: Over the five-year period, net cash provided by operating activities showed significant fluctuations. Beginning at approximately 1.64 billion US dollars in 2017, it nearly doubled in 2018 to roughly 2.98 billion. However, the following years saw a decline, dropping to about 1.85 billion in 2019 and further to 1.54 billion in 2020. In 2021, a slight recovery to approximately 1.66 billion was observed. This pattern indicates a peak in operating cash flow in 2018, followed by a downward trend with some stabilization towards the end of the period.
Free Cash Flow to the Firm (FCFF): The FCFF exhibited a marked improvement over the given timeframe. Starting with a negative figure of around -128 million in 2017 and worsening to nearly -554 million in 2018, the firm transitioned into positive territory by 2019 with approximately 401 million. This upward progression continued through 2020 and 2021, reaching 645 million and then 811 million respectively. The shift from negative to positive free cash flow suggests improved financial performance, enhanced operational efficiency, or better capital expenditure management during these years.
Overall Financial Trends and Insights: While operating cash flow experienced volatility and a declining trend after 2018, the steady and substantial increase in free cash flow to the firm underscores an overall enhancement in financial health. The improvement in FCFF despite the lower operating cash inflows in later years could be attributed to reductions in capital expenditures or other financing activities that positively affect free cash flow. The data suggests that the firm may have effectively optimized its capital usage and improved cash-generating capabilities, leading to increased financial flexibility.

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EQT Corp., interest paid, net of tax calculation

US$ in thousands

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR¹	27.30%	23.60%	23.50%	22.80%	8.40%
Interest Paid, Net of Tax
Cash paid during the year for interest, net of amount capitalized, before tax	280,511)	195,681)	198,562)	260,959)	189,371)
Less: Cash paid during the year for interest, net of amount capitalized, tax²	76,580)	46,181)	46,662)	59,499)	15,907)
Cash paid during the year for interest, net of amount capitalized, net of tax	203,931)	149,500)	151,900)	201,460)	173,464)

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 See details »

² 2021 Calculation
Cash paid during the year for interest, net of amount capitalized, tax = Cash paid during the year for interest, net of amount capitalized × EITR
= 280,511 × 27.30% = 76,580

Effective Income Tax Rate (EITR): The effective income tax rate exhibited an upward trend over the five-year period. Starting at 8.4% in 2017, it increased sharply to 22.8% in 2018. Minor subsequent increases were noted, with rates of 23.5% in 2019 and 23.6% in 2020. The highest value was observed in 2021, reaching 27.3%. This progression indicates a steady rise in the tax burden as a percentage of pre-tax earnings, particularly marked between 2017 and 2018, and continuing gradually thereafter.
Cash Paid During the Year for Interest, Net of Amount Capitalized, Net of Tax (in US$ thousands): The cash outflows for interest payments demonstrated some fluctuation over the reviewed period. The amount increased from approximately $173.5 million in 2017 to $201.5 million in 2018, reflecting a significant rise. Subsequently, interest payments decreased notably to around $151.9 million in 2019 and remained relatively stable in 2020 at $149.5 million. In 2021, there was a marked increase again, reaching approximately $203.9 million. These variations suggest changes in debt levels, interest rates, or capitalization policies influencing net interest cash payments during the period.

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EQT Corp., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	19,738,773)
Free cash flow to the firm (FCFF)	811,251)
Valuation Ratio
EV/FCFF	24.33
Benchmarks
EV/FCFF, Competitors¹
Chevron Corp.	18.45
ConocoPhillips	15.79
Exxon Mobil Corp.	15.11
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	13.11
EV/FCFF, Industry
Energy	13.26

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

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

EQT Corp., historical EV/FCFF 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)
Enterprise value (EV)¹	13,535,699)	10,260,386)	6,662,726)	10,130,562)	25,173,003)
Free cash flow to the firm (FCFF)²	811,251)	644,970)	401,150)	(554,048)	(128,040)
Valuation Ratio
EV/FCFF³	16.68	15.91	16.61	—	—
Benchmarks
EV/FCFF, Competitors⁴
Chevron Corp.	13.33	106.63	—	—	—
ConocoPhillips	10.72	92.48	—	—	—
Exxon Mobil Corp.	10.06	—	—	—	—
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	11.15	398.33	—	—	—
EV/FCFF, Industry
Energy	11.54	186.63	—	—	—

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).

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² See details »

³ 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 13,535,699 ÷ 811,251 = 16.68

⁴ Click competitor name to see calculations.

Enterprise Value (EV): The enterprise value exhibited a significant decline from 25,173,003 thousand US dollars in 2017 to 6,662,726 thousand US dollars in 2019. Subsequently, there was a recovery trend observed in 2020 and 2021, with values increasing to 10,260,386 thousand US dollars and 13,535,699 thousand US dollars, respectively. Despite this recovery, the 2021 EV remained notably below the 2017 peak.
Free Cash Flow to the Firm (FCFF): FCFF started with negative values in 2017 and 2018, registering at -128,040 thousand and -554,048 thousand US dollars respectively. This trend reversed in 2019, with FCFF becoming positive at 401,150 thousand US dollars. Positive growth continued through 2020 and 2021, reaching 644,970 thousand and 811,251 thousand US dollars respectively, indicating improving cash flow generation capabilities over the later years.
EV to FCFF Ratio: The EV/FCFF ratio was not provided for the years 2017 and 2018, likely due to negative FCFF values. For 2019 to 2021, the ratio remained relatively stable, around 16.6 to 16.7. This suggests a consistent valuation multiple being applied to the firm's free cash flow despite fluctuations in both enterprise value and cash flow levels.

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EQT Corp. (NYSE:EQT)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical