Stock Analysis on Net

EQT Corp. (NYSE:EQT)

This company has been moved to the archive! The financial data has not been updated since October 27, 2022.

Analysis of Solvency Ratios 
Quarterly Data

Microsoft Excel

Solvency Ratios (Summary)

EQT Corp., solvency ratios (quarterly data)

Microsoft Excel
Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Debt Ratios
Debt to equity 0.50 0.56 0.62 0.55 0.75 0.66 0.52 0.53 0.53 0.49 0.52 0.54 0.47 0.44 0.45 0.50 0.77 0.73 0.64
Debt to capital 0.33 0.36 0.38 0.35 0.43 0.40 0.34 0.35 0.35 0.33 0.34 0.35 0.32 0.31 0.31 0.33 0.44 0.42 0.39
Debt to assets 0.21 0.22 0.23 0.25 0.27 0.29 0.27 0.27 0.27 0.26 0.27 0.28 0.26 0.24 0.25 0.27 0.30 0.29 0.27
Financial leverage 2.34 2.50 2.66 2.15 2.79 2.29 1.96 1.96 1.99 1.91 1.93 1.92 1.85 1.82 1.83 1.89 2.61 2.48 2.36
Coverage Ratios
Interest coverage 10.08 -2.53 -10.65 -4.14 -11.79 -6.12 -3.18 -3.67 -10.86 -10.30 -8.53 -6.99 -2.54 -1.28 -2.69 -12.44

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).


The analysis of the financial ratios over the presented quarters reveals several key trends related to the company's leverage and ability to service debt.

Debt to Equity
This ratio fluctuates over time, with values ranging from a low of 0.44 to a high of 0.77. After peaking near the end of 2018, the ratio generally decreases toward early 2020 before increasing again in late 2021 to around 0.75, then declining thereafter. This suggests variable reliance on equity relative to debt, with a somewhat cyclical behavior.
Debt to Capital
The debt to capital ratio follows a moderate fluctuating pattern, varying between 0.31 and 0.44. The ratio shows an initial decline from 0.39 in early 2018 to roughly 0.31 by mid-2019, then increases to a peak near late 2021 before gradually trending downward toward late 2022. The movements indicate shifts in the capital structure but remain within a close range.
Debt to Assets
This ratio demonstrates a steady, gradual decline from a high of 0.30 in late 2018 to a low near 0.21 by late 2022. The continuous decrease implies reduced leverage relative to total assets, potentially due to asset growth or debt reduction over time.
Financial Leverage
Financial leverage peaks in late 2018 at 2.61 before dropping significantly to under 2.0 through most of 2019 and 2020. A resurgence occurs in late 2021 with a peak near 2.79, followed by a reduction back toward 2.34 by late 2022. This indicates a period of both increased and decreased reliance on borrowed funds relative to equity.
Interest Coverage
The interest coverage ratio presents substantial volatility and frequent negative values between 2018 and 2022, reflecting difficulties in covering interest expenses from operating earnings. Values dip as low as -12.44, indicating significant recurring losses or insufficient earnings. A notable improvement occurs in the last observed quarter with a positive reading of 10.08, suggesting a turnaround in the company’s ability to cover interest costs.

Overall, the data displays an evolving leverage structure with reductions in debt relative to assets and capital noted over the period. However, fluctuations in debt to equity and financial leverage ratios indicate periodic adjustments in financing approaches. The persistent negative interest coverage ratios for many quarters highlight ongoing challenges in earnings capacity, though the latest period shows encouraging improvement in interest coverage.


Debt Ratios


Coverage Ratios


Debt to Equity

EQT Corp., debt to equity calculation (quarterly data)

Microsoft Excel
Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Current portion of debt 421,987 440,900 493,815 954,900 12,441 399,699 29,291 154,161 33,363 16,309 16,256 16,204 4,916 4,830 704,677 704,390 699,527 699,324
Credit facility borrowings 100,000 26,000 704,000 300,000 300,000 244,500 38,000 294,000 161,000 350,000 800,000 472,000 500,000 1,892,000
Term loan facility borrowings 799,574 999,353 999,239 999,125
Senior notes 4,257,359 4,409,727 4,437,572 4,435,782 5,377,439 4,999,502 4,378,270 4,371,467 4,351,917 4,463,548 4,117,256 3,878,366 3,887,907 3,886,249 3,884,591 3,882,932 7,336,570 7,333,587 5,564,826
Note payable to EQM Midstream Partners, LP 89,973 91,442 92,891 94,320 95,728 97,117 98,487 99,838 101,170 102,483 103,778 105,056 106,333 107,592 108,835 110,059
Total debt 4,769,319 5,042,069 5,050,278 5,485,002 6,189,608 5,496,318 4,806,048 4,925,466 4,730,950 4,620,340 5,036,864 5,292,979 5,159,395 4,997,796 5,048,103 5,497,381 8,508,097 8,532,911 7,456,826
 
Common shareholders’ equity 9,618,962 9,061,187 8,188,673 10,029,527 8,248,460 8,291,758 9,219,640 9,255,240 8,845,809 9,438,827 9,633,878 9,803,588 10,897,625 11,248,475 11,139,588 10,958,229 11,000,175 11,679,283 11,716,322
Solvency Ratio
Debt to equity1 0.50 0.56 0.62 0.55 0.75 0.66 0.52 0.53 0.53 0.49 0.52 0.54 0.47 0.44 0.45 0.50 0.77 0.73 0.64
Benchmarks
Debt to Equity, Competitors2
Chevron Corp. 0.15 0.17 0.20 0.23 0.27 0.32 0.34 0.34 0.26 0.25 0.22
ConocoPhillips 0.35 0.34 0.38 0.44 0.45 0.45 0.46 0.51 0.50 0.48 0.48
Exxon Mobil Corp. 0.24 0.26 0.28 0.28 0.35 0.38 0.40 0.43 0.39 0.39 0.33
Occidental Petroleum Corp. 0.73 0.80 1.06 1.46 1.68 1.97 1.97 1.95 1.94 1.65 1.23

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q3 2022 Calculation
Debt to equity = Total debt ÷ Common shareholders’ equity
= 4,769,319 ÷ 9,618,962 = 0.50

2 Click competitor name to see calculations.


The financial data over the analyzed periods reveals notable fluctuations in total debt, common shareholders’ equity, and the debt-to-equity ratio. These movements provide insight into the company's capital structure and financial leverage trends across multiple quarters.

Total Debt
Total debt exhibited a rising trend from March 2018 through June 2018, peaking around 8.53 billion US dollars. This was followed by a general decline with some fluctuations, reaching a low of approximately 4.76 billion US dollars in September 2022. Notably, the total debt saw a significant decrease starting in late 2018 and has mostly remained below the earlier peak level, indicating efforts toward deleveraging or repayment of debt over time.
Common Shareholders’ Equity
Common shareholders’ equity started around 11.7 billion US dollars in early 2018 and experienced a gradual decline through March 2020, bottoming near 8.8 billion. Subsequently, it showed considerable volatility but with a general upward trend between late 2020 and September 2022, reaching approximately 9.6 billion US dollars. The equity decrease during the earlier periods may reflect asset write-downs or losses, while the later increase suggests recovery or capital injections.
Debt to Equity Ratio
The debt-to-equity ratio mirrored these trends, initially rising from 0.64 to a peak of 0.77 in late 2018, before dropping substantially to 0.44 by mid-2019. It then fluctuated, increasing again to 0.75 by September 2021 and subsequently decreasing toward a ratio near 0.50 by the third quarter of 2022. This pattern indicates changing leverage levels, with a period of lower leverage around mid-2019 followed by higher leverage conditions in 2021, and a subsequent move back towards a more conservative capital structure.

Overall, the company has demonstrated efforts to reduce its total debt from the high levels seen in 2018 while navigating declines and recoveries in shareholders’ equity. The resultant variations in the debt-to-equity ratio reflect adjustments in financing strategy, alternating between leveraging and deleveraging phases. The recent downward trend in the debt-to-equity ratio suggests a shift toward reducing financial risk and maintaining a more balanced capital structure heading into late 2022.


Debt to Capital

EQT Corp., debt to capital calculation (quarterly data)

Microsoft Excel
Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Current portion of debt 421,987 440,900 493,815 954,900 12,441 399,699 29,291 154,161 33,363 16,309 16,256 16,204 4,916 4,830 704,677 704,390 699,527 699,324
Credit facility borrowings 100,000 26,000 704,000 300,000 300,000 244,500 38,000 294,000 161,000 350,000 800,000 472,000 500,000 1,892,000
Term loan facility borrowings 799,574 999,353 999,239 999,125
Senior notes 4,257,359 4,409,727 4,437,572 4,435,782 5,377,439 4,999,502 4,378,270 4,371,467 4,351,917 4,463,548 4,117,256 3,878,366 3,887,907 3,886,249 3,884,591 3,882,932 7,336,570 7,333,587 5,564,826
Note payable to EQM Midstream Partners, LP 89,973 91,442 92,891 94,320 95,728 97,117 98,487 99,838 101,170 102,483 103,778 105,056 106,333 107,592 108,835 110,059
Total debt 4,769,319 5,042,069 5,050,278 5,485,002 6,189,608 5,496,318 4,806,048 4,925,466 4,730,950 4,620,340 5,036,864 5,292,979 5,159,395 4,997,796 5,048,103 5,497,381 8,508,097 8,532,911 7,456,826
Common shareholders’ equity 9,618,962 9,061,187 8,188,673 10,029,527 8,248,460 8,291,758 9,219,640 9,255,240 8,845,809 9,438,827 9,633,878 9,803,588 10,897,625 11,248,475 11,139,588 10,958,229 11,000,175 11,679,283 11,716,322
Total capital 14,388,281 14,103,256 13,238,951 15,514,529 14,438,068 13,788,076 14,025,688 14,180,706 13,576,759 14,059,167 14,670,742 15,096,567 16,057,020 16,246,271 16,187,691 16,455,610 19,508,272 20,212,194 19,173,148
Solvency Ratio
Debt to capital1 0.33 0.36 0.38 0.35 0.43 0.40 0.34 0.35 0.35 0.33 0.34 0.35 0.32 0.31 0.31 0.33 0.44 0.42 0.39
Benchmarks
Debt to Capital, Competitors2
Chevron Corp. 0.13 0.15 0.17 0.18 0.22 0.24 0.26 0.25 0.21 0.20 0.18
ConocoPhillips 0.26 0.25 0.28 0.31 0.31 0.31 0.32 0.34 0.33 0.32 0.32
Exxon Mobil Corp. 0.20 0.21 0.22 0.22 0.26 0.28 0.29 0.30 0.28 0.28 0.25
Occidental Petroleum Corp. 0.42 0.44 0.51 0.59 0.63 0.66 0.66 0.66 0.66 0.62 0.55

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q3 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 4,769,319 ÷ 14,388,281 = 0.33

2 Click competitor name to see calculations.


The analysis of the quarterly financial data reveals several key trends in the company's debt and capital structure over the observed periods.

Total Debt

Total debt exhibits a fluctuating pattern from March 2018 through September 2022. Initially, there is a general increase, peaking around the second and third quarters of 2018, with the highest value at approximately 8.5 billion US dollars. Following this peak, a noticeable decline occurs entering 2019 and continuing into early 2020, with total debt dropping below 5 billion US dollars by March 2020. In the subsequent quarters, debt levels fluctuate moderately, with a slight increase in late 2021, reaching over 6 billion US dollars in the third quarter of 2021 before declining again toward the latter half of 2022, ending near 4.77 billion US dollars.

Total Capital

Total capital also reflects variability but with an overall downward trend from early 2018 to mid-2020, decreasing from approximately 19.2 billion to about 13.6 billion US dollars. After mid-2020, there is a modest recovery and partial rebound in capital, reaching over 15.5 billion US dollars by the fourth quarter of 2021. However, the capital decreases again in early 2022, stabilizing around 14.4 billion US dollars by the third quarter of 2022. The changes suggest shifts in financing structure, likely influenced by capital market conditions and operational strategies.

Debt to Capital Ratio

The debt to capital ratio fluctuates between 0.31 and 0.44 during the reported period. In 2018, this ratio starts around 0.39, increases to 0.44 by the third quarter, but then declines sharply to about 0.33 at the end of the year. Throughout 2019, the ratio remains relatively stable, hovering near 0.31 to 0.35, indicating a consistently moderate proportion of debt compared to total capital. Moving into 2020 and 2021, the ratio experiences slight volatility, with an increase to above 0.40 in mid to late 2021, reflecting a higher leverage point during that period. By 2022, the ratio trends downward again, approaching 0.33 by the third quarter.

Overall, the ratio indicates that the company maintains a moderate leverage profile, with periods of tightening and loosening in debt financing relative to total capital.


Debt to Assets

EQT Corp., debt to assets calculation (quarterly data)

Microsoft Excel
Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Current portion of debt 421,987 440,900 493,815 954,900 12,441 399,699 29,291 154,161 33,363 16,309 16,256 16,204 4,916 4,830 704,677 704,390 699,527 699,324
Credit facility borrowings 100,000 26,000 704,000 300,000 300,000 244,500 38,000 294,000 161,000 350,000 800,000 472,000 500,000 1,892,000
Term loan facility borrowings 799,574 999,353 999,239 999,125
Senior notes 4,257,359 4,409,727 4,437,572 4,435,782 5,377,439 4,999,502 4,378,270 4,371,467 4,351,917 4,463,548 4,117,256 3,878,366 3,887,907 3,886,249 3,884,591 3,882,932 7,336,570 7,333,587 5,564,826
Note payable to EQM Midstream Partners, LP 89,973 91,442 92,891 94,320 95,728 97,117 98,487 99,838 101,170 102,483 103,778 105,056 106,333 107,592 108,835 110,059
Total debt 4,769,319 5,042,069 5,050,278 5,485,002 6,189,608 5,496,318 4,806,048 4,925,466 4,730,950 4,620,340 5,036,864 5,292,979 5,159,395 4,997,796 5,048,103 5,497,381 8,508,097 8,532,911 7,456,826
 
Total assets 22,541,137 22,621,664 21,814,611 21,607,388 23,011,720 18,985,257 18,039,404 18,113,469 17,574,735 18,008,868 18,634,517 18,809,227 20,160,449 20,479,347 20,339,685 20,721,344 28,661,329 28,963,228 27,632,346
Solvency Ratio
Debt to assets1 0.21 0.22 0.23 0.25 0.27 0.29 0.27 0.27 0.27 0.26 0.27 0.28 0.26 0.24 0.25 0.27 0.30 0.29 0.27
Benchmarks
Debt to Assets, Competitors2
Chevron Corp. 0.09 0.10 0.12 0.13 0.16 0.18 0.19 0.18 0.16 0.15 0.14
ConocoPhillips 0.18 0.18 0.20 0.22 0.23 0.23 0.24 0.25 0.24 0.24 0.23
Exxon Mobil Corp. 0.12 0.13 0.13 0.14 0.17 0.18 0.19 0.20 0.19 0.19 0.17
Occidental Petroleum Corp. 0.29 0.30 0.36 0.39 0.42 0.45 0.45 0.45 0.46 0.43 0.38

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q3 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 4,769,319 ÷ 22,541,137 = 0.21

2 Click competitor name to see calculations.


The analysis of the quarterly financial data reveals several important trends related to the company's leverage and asset base over the observed periods.

Total Debt
The total debt levels experienced fluctuations over the years. Initially, debt increased from approximately 7.46 billion USD at the end of Q1 2018 to peak near 8.53 billion USD by mid-2018. Subsequently, the debt declined steadily, reaching around 4.76 billion USD by Q3 2022. A noticeable dip is observed beginning in late 2018, which continued into 2019 and remained relatively stable with minor variations thereafter. Despite some quarterly increases, the overall trend across the four-and-a-half-year period is a reduction in total debt.
Total Assets
Total assets demonstrate considerable variability. Initially standing at approximately 27.63 billion USD in Q1 2018, the asset base dropped sharply by nearly 10 billion USD by the end of 2018. From early 2019 through mid-2020, assets remained in the 17.5 to 20.5 billion USD range, signaling a contraction in the asset base during that period. Starting in late 2020, assets began to recover, rising steadily to exceed 22.5 billion USD by mid-2022, suggesting a rebound or expansion in asset holdings after a period of decline.
Debt to Assets Ratio
The debt to assets ratio ranged between 0.21 and 0.30, reflecting moderate leverage with some volatility. The ratio peaked around 0.30 in late Q3 2018, concurrent with high debt levels and reduced assets. Following this peak, the ratio generally trended downward, indicating an improvement in financial leverage, reaching a low point of 0.21 by Q3 2022. This suggests a gradual strengthening of the company’s balance sheet, with debt decreasing relative to assets.

Overall, the data shows an initial period of elevated debt and asset contraction through 2018, followed by a deleveraging phase marked by debt reduction and asset recovery from 2019 onward. The debt to assets ratio decline reinforces this interpretation, suggesting improved financial stability and potentially enhanced capacity for future growth or risk management.


Financial Leverage

EQT Corp., financial leverage calculation (quarterly data)

Microsoft Excel
Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Total assets 22,541,137 22,621,664 21,814,611 21,607,388 23,011,720 18,985,257 18,039,404 18,113,469 17,574,735 18,008,868 18,634,517 18,809,227 20,160,449 20,479,347 20,339,685 20,721,344 28,661,329 28,963,228 27,632,346
Common shareholders’ equity 9,618,962 9,061,187 8,188,673 10,029,527 8,248,460 8,291,758 9,219,640 9,255,240 8,845,809 9,438,827 9,633,878 9,803,588 10,897,625 11,248,475 11,139,588 10,958,229 11,000,175 11,679,283 11,716,322
Solvency Ratio
Financial leverage1 2.34 2.50 2.66 2.15 2.79 2.29 1.96 1.96 1.99 1.91 1.93 1.92 1.85 1.82 1.83 1.89 2.61 2.48 2.36
Benchmarks
Financial Leverage, Competitors2
Chevron Corp. 1.64 1.68 1.70 1.72 1.77 1.82 1.83 1.82 1.69 1.67 1.64
ConocoPhillips 1.93 1.87 1.90 2.00 1.98 1.93 1.94 2.10 2.05 2.00 2.08
Exxon Mobil Corp. 1.99 2.07 2.10 2.01 2.10 2.13 2.13 2.12 2.02 2.01 1.95
Occidental Petroleum Corp. 2.51 2.67 2.98 3.69 4.01 4.38 4.34 4.31 4.25 3.83 3.25

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q3 2022 Calculation
Financial leverage = Total assets ÷ Common shareholders’ equity
= 22,541,137 ÷ 9,618,962 = 2.34

2 Click competitor name to see calculations.


The analysis of the quarterly financial data reveals several notable trends in the company’s financial position over the observed periods.

Total Assets
The total assets exhibited fluctuations with an initial peak around June 2018 at approximately 28.96 billion US dollars, followed by a significant decline by the end of 2018 to around 20.72 billion US dollars. During 2019 and the first half of 2020, total assets remained relatively stable but lower compared to the earlier peak, oscillating between approximately 18 billion and 20 billion US dollars. A modest recovery is observed starting mid-2021, culminating in a peak near 23 billion US dollars by September 2021, before experiencing a slight decrease again toward the end of the available data in September 2022.
Common Shareholders’ Equity
Common shareholders’ equity showed a downward trend starting from over 11.7 billion US dollars in early 2018 to a trough below 9 billion US dollars by the end of 2020. This decline continued into mid-2021, reaching a minimum of about 8.3 billion US dollars. However, a recovery trend emerged from late 2021 into 2022, with equity rising to nearly 9.6 billion US dollars by the third quarter of 2022. Despite this improvement, equity levels in 2022 remain below the early 2018 figures, indicating some erosion of equity over the time span.
Financial Leverage
The financial leverage ratio fluctuated in the range of approximately 1.8 to 2.8 times during the observed dates. Initially, it increased from 2.36 in early 2018 to a peak of 2.61 by September 2018, then sharply declined to below 2 times by the end of 2018. From 2019 through 2020, leverage ratios were relatively stable, mostly hovering around 1.9 to 2.0. Starting from mid-2021, leverage increased sharply, reaching a high of 2.79 by September 2021 before declining somewhat toward a ratio near 2.3 by late 2022. This pattern suggests a period of increased borrowing or decreased equity relative to assets during mid-2021 followed by some deleveraging.

Overall, the asset base declined substantially in late 2018 and showed moderate recovery post-2020. Shareholders’ equity weakened significantly during the same period but showed signs of recovery starting late 2021. Financial leverage experienced notable volatility but remained within a range that indicates a moderate level of debt usage relative to equity. The changes in leverage correspond with the equity and asset movements, evidencing shifts in the company’s capital structure and possibly reflecting strategic or market-driven financing adjustments over the periods analyzed.


Interest Coverage

EQT Corp., interest coverage calculation (quarterly data)

Microsoft Excel
Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to EQT Corporation 683,670 891,361 (1,516,048) 1,801,333 (1,980,117) (936,457) (40,518) 63,688 (600,640) (263,075) (167,139) (1,176,924) (361,028) 125,566 190,691 (636,687) (39,693) 17,806 (1,585,994)
Add: Net income attributable to noncontrolling interest 3,792 2,863 1,465 1,221 601 (62) (514) (10) (125,286) 103,141 118,540 141,015
Less: Income from discontinued operations, net of tax (163,911) 190,795 213,324 133,554
Add: Income tax expense 152,206 308,234 (465,697) 591,080 (662,915) (347,846) (14,494) (2,920) (225,757) (103,003) 32,822 (366,532) (86,343) 38,865 38,234 (99,788) (71,961) (94,922) (429,840)
Add: Interest expense 60,138 65,985 67,902 76,469 80,349 76,986 75,099 74,286 69,154 65,386 62,374 45,066 47,709 50,503 56,573 57,747 56,180 57,120 57,911
Earnings before interest and tax (EBIT) 899,806 1,268,443 (1,912,378) 2,470,103 (2,562,082) (1,207,379) 19,573 135,044 (757,243) (300,692) (71,943) (1,498,390) (399,662) 214,934 285,498 (640,103) (143,128) (114,780) (1,950,462)
Solvency Ratio
Interest coverage1 10.08 -2.53 -10.65 -4.14 -11.79 -6.12 -3.18 -3.67 -10.86 -10.30 -8.53 -6.99 -2.54 -1.28 -2.69 -12.44
Benchmarks
Interest Coverage, Competitors2
Chevron Corp. 86.49 68.50 44.87 31.39 19.12 8.50 -11.85 -9.69
ConocoPhillips 33.30 28.10 22.60 15.38 9.41 4.77 1.17 -2.90
Exxon Mobil Corp. 88.00 68.10 42.27 33.98 -5.84 -14.48 -20.45 -23.94
Occidental Petroleum Corp. 12.90 9.58 5.07 3.30 1.15 -2.26 -8.10 -10.03

Based on: 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

1 Q3 2022 Calculation
Interest coverage = (EBITQ3 2022 + EBITQ2 2022 + EBITQ1 2022 + EBITQ4 2021) ÷ (Interest expenseQ3 2022 + Interest expenseQ2 2022 + Interest expenseQ1 2022 + Interest expenseQ4 2021)
= (899,806 + 1,268,443 + -1,912,378 + 2,470,103) ÷ (60,138 + 65,985 + 67,902 + 76,469) = 10.08

2 Click competitor name to see calculations.


Earnings before interest and tax (EBIT)
The EBIT values demonstrate significant volatility across the analyzed quarters. Initially, there is a substantial negative EBIT of approximately -1.95 billion US dollars in the first quarter of 2018, followed by a marked improvement and reduction in losses through mid-2018. By the first quarter of 2019, EBIT swings into positive territory, peaking around 285 million US dollars, indicating a short-term recovery. However, this is followed by increasing fluctuations and sharp declines, including a notable downturn in the fourth quarter of 2019 and again in late 2021. There is a pronounced positive surge close to 2.47 billion US dollars at the end of 2021 before EBIT returns to negative figures early in 2022. The pattern reflects cyclical performance with a mixture of intermittent gains and strong negative results.
Interest Expense
Interest expense figures remain relatively stable across the quarters, fluctuating within a narrow range between approximately 45,066 thousand and 80,349 thousand US dollars. There is no significant upward or downward trend, suggesting consistent debt service costs. The values show a slight tendency to increase towards late 2020 and 2021, peaking around 80,349 thousand US dollars, followed by minor declines in the subsequent periods of 2022.
Interest Coverage Ratio
The interest coverage ratio exhibits considerable instability throughout the periods analyzed. Early values are missing, but from the fourth quarter of 2018 forward, the ratio is mostly negative, indicating that EBIT is insufficient to cover interest expenses, thus signaling operating losses relative to interest obligations. The coverage deteriorates sharply in several quarters, including late 2019 and 2021, with ratios reaching as low as approximately -11.79. An exception occurs in the last period analyzed, where the ratio rises sharply to a positive value of 10.08, reflecting a scenario where EBIT exceeds interest expenses by a significant margin. This abrupt change suggests a temporary improvement in operational earnings relative to debt costs.