EQT Corp., FCFE 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)
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)
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)
Free cash flow to equity (FCFE)	1,123,672)	187,020)	37,676)	1,379,150)	1,553,757)

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 annual financial data reveals specific trends and fluctuations in key cash flow metrics over the five-year period ending December 31, 2021.

Net cash provided by operating activities: The net cash provided by operating activities experienced notable volatility during the period. Starting at approximately $1.64 billion in 2017, the figure nearly doubled in 2018, reaching about $2.98 billion. However, it declined significantly in the subsequent years, dropping to approximately $1.85 billion in 2019 and further to $1.54 billion in 2020. There was a modest recovery in 2021, with net cash from operations increasing to around $1.66 billion. This pattern suggests strong operational cash generation in 2018, followed by a downturn likely influenced by external or internal factors, with a slight rebound by the end of 2021.
Free cash flow to equity (FCFE): The free cash flow to equity demonstrates a more pronounced fluctuation across the years. Beginning at $1.55 billion in 2017, it declined to approximately $1.38 billion in 2018. Thereafter, there was a steep depreciation in 2019 to a mere $37.7 million and limited recovery in 2020 with $187 million, reflecting significant reductions in cash available to equity holders. In 2021, FCFE improved considerably to $1.12 billion but did not return to the levels observed in 2017 and 2018. These movements indicate substantial variability in free cash flow generation, which may be attributed to changes in capital expenditures, financing activities, or operational efficiency impacting equity cash flows.

Overall, while operating cash flows showed recovery after a downturn, the free cash flow available to equity holders experienced sharper declines and only partial recovery by the latest period. The disparity between operational cash and FCFE trends suggests that factors such as investment and financing decisions have significantly affected the cash flows available to shareholders over the analyzed timeframe.

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EQT Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	367,046,005
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	1,123,672)
FCFE per share	3.06
Current share price (P)	39.10
Valuation Ratio
P/FCFE	12.77
Benchmarks
P/FCFE, Competitors¹
Chevron Corp.	17.05
ConocoPhillips	13.10
Exxon Mobil Corp.	19.57
P/FCFE, Sector
Oil, Gas & Consumable Fuels	26.10
P/FCFE, Industry
Energy	27.00

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

¹ Click competitor name to see calculations.

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

EQT Corp., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
No. shares of common stock outstanding¹	376,023,250	278,854,465	255,454,000	254,762,000	264,473,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	1,123,672)	187,020)	37,676)	1,379,150)	1,553,757)
FCFE per share³	2.99	0.67	0.15	5.41	5.87
Share price^1, 4	21.67	19.17	5.38	18.20	53.34
Valuation Ratio
P/FCFE⁵	7.25	28.58	36.48	3.36	9.08
Benchmarks
P/FCFE, Competitors⁶
Chevron Corp.	32.05	21.61	—	—	—
ConocoPhillips	10.61	497.58	—	—	—
Exxon Mobil Corp.	19.82	13.70	—	—	—
P/FCFE, Sector
Oil, Gas & Consumable Fuels	19.75	18.79	—	—	—
P/FCFE, Industry
Energy	20.81	18.38	—	—	—

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 Data adjusted for splits and stock dividends.

² See details »

³ 2021 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,123,672,000 ÷ 376,023,250 = 2.99

⁴ Closing price as at the filing date of EQT Corp. Annual Report.

⁵ 2021 Calculation
P/FCFE = Share price ÷ FCFE per share
= 21.67 ÷ 2.99 = 7.25

⁶ Click competitor name to see calculations.

The financial data over the five-year period reveal a fluctuating yet ultimately recovering performance pattern in terms of share price, free cash flow to equity (FCFE) per share, and the price to FCFE ratio (P/FCFE).

Share Price: The share price experienced a pronounced decline from $53.34 at the end of 2017 to a low of $5.38 by the end of 2019. This was followed by a notable recovery, reaching $19.17 in 2020 and further increasing to $21.67 in 2021. The initial sharp decline and subsequent partial recovery suggest significant volatility in market valuation during these years.
FCFE per Share: Free cash flow to equity per share decreased marginally from $5.87 in 2017 to $5.41 in 2018, then dropped significantly to $0.15 in 2019. The figure showed improvement in subsequent years, increasing to $0.67 in 2020 and further to $2.99 in 2021. This pattern indicates a deterioration in cash flow generation capacity around 2019, with gradual recovery afterward.
P/FCFE Ratio: The price to FCFE ratio fell sharply from 9.08 in 2017 to 3.36 in 2018, then dramatically increased to 36.48 in 2019, reflecting the sharp decline in FCFE per share during that year while the share price was also low. The ratio marginally declined to 28.58 in 2020 and further to 7.25 in 2021, indicating an improved but still relatively cautious market valuation relative to free cash flow by the end of the period.

Overall, the data depicts a period of financial strain culminating in 2019, followed by continued recovery in both operational cash flow and market valuation through 2021. Despite improvement, the share price and FCFE levels in 2021 had not returned to the highs observed in 2017, yet the P/FCFE ratio suggests a more normalized valuation environment relative to free cash flow compared to the peak distress period.

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EQT Corp. (NYSE:EQT)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical