eqt-20230331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2023

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM__________ TO__________

COMMISSION FILE NUMBER: 001-03551

EQT CORPORATION

(Exact name of registrant as specified in its charter)


Pennsylvania						25-0464690
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)

625 Liberty Avenue, Suite 1700
Pittsburgh, Pennsylvania						15222
(Address of principal executive offices)						(Zip Code)

(412) 553-5700

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol(s)

Name of each exchange on which registered

Common Stock, no par value

EQT

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 21, 2023, 361,642,666 shares of common stock, no par value, of the registrant were outstanding.

Table of Contents

TABLE OF CONTENTS


		Page No.
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Statements of Condensed Consolidated Operations	3
	Statements of Condensed Consolidated Comprehensive Income (Loss)	4
	Condensed Consolidated Balance Sheets	5
	Statements of Condensed Consolidated Cash Flows	6
	Statements of Condensed Consolidated Equity	7
	Notes to the Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	30

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 6.	Exhibits	33

Signature		34

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

EQT CORPORATION AND SUBSIDIARIES

STATEMENTS OF CONDENSED CONSOLIDATED OPERATIONS (UNAUDITED)


	Three Months Ended March 31,
	2023		2022

	(Thousands, except per share amounts)
Operating revenues:
Sales of natural gas, natural gas liquids and oil	$	1,830,358	$	2,486,624
Gain (loss) on derivatives	824,852		(3,077,637)
Net marketing services and other	5,861		11,903
Total operating revenues	2,661,071		(579,110)
Operating expenses:
Transportation and processing	514,984		516,104
Production	47,940		71,012
Exploration	952		772
Selling, general and administrative	51,894		69,096
Depreciation and depletion	387,685		422,098
Loss (gain) on sale/exchange of long-lived assets	16,528		(1,209)
Impairment of contract asset	—		184,945
Impairment and expiration of leases	10,546		29,991
Other operating expenses	19,662		16,347
Total operating expenses	1,050,191		1,309,156
Operating income (loss)	1,610,880		(1,888,266)
(Income) loss from investments	(4,764)		20,785
Dividend and other income	(175)		(3,596)
(Gain) loss on debt extinguishment	(6,606)		6,923
Interest expense, net	46,546		67,902
Income (loss) before income taxes	1,575,879		(1,980,280)
Income tax expense (benefit)	356,646		(465,697)
Net income (loss)	1,219,233		(1,514,583)
Less: Net income attributable to noncontrolling interests	685		1,465
Net income (loss) attributable to EQT Corporation	$	1,218,548	$	(1,516,048)

Income (loss) per share of common stock attributable to EQT Corporation:
Basic:
Weighted average common stock outstanding	361,462		374,142
Net income (loss) attributable to EQT Corporation	$	3.37	$	(4.05)
Diluted (Note 7):
Weighted average common stock outstanding	393,883		374,142
Net income (loss) attributable to EQT Corporation	$	3.10	$	(4.05)

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

EQT CORPORATION AND SUBSIDIARIES

STATEMENTS OF CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (LOSS) (UNAUDITED)


	Three Months Ended March 31,
	2023		2022

	(Thousands)
Net income (loss)	$	1,219,233	$	(1,514,583)
Other comprehensive income, net of tax:
Other postretirement benefits liability adjustment, net of tax expense: $15 and $20	164		63
Comprehensive income (loss)	1,219,397		(1,514,520)
Less: Comprehensive income attributable to noncontrolling interests	685		1,465
Comprehensive income (loss) attributable to EQT Corporation	$	1,218,712	$	(1,515,985)

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

EQT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)


	March 31, 2023		December 31, 2022

	(Thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	2,127,262	$	1,458,644
Accounts receivable (less provision for doubtful accounts: $457 and $605)	628,132		1,608,089
Derivative instruments, at fair value	978,351		812,371
Prepaid expenses and other	215,809		135,337
Total current assets	3,949,554		4,014,441

Property, plant and equipment	27,831,803		27,393,919
Less: Accumulated depreciation and depletion	9,598,103		9,226,586
Net property, plant and equipment	18,233,700		18,167,333

Other assets	507,200		488,152
Total assets	$	22,690,454	$	22,669,926

LIABILITIES AND EQUITY
Current liabilities:
Current portion of debt	$	413,244	$	422,632
Accounts payable	1,153,258		1,574,610
Derivative instruments, at fair value	805,013		1,393,487
Other current liabilities	292,907		341,491
Total current liabilities	2,664,422		3,732,220


Senior notes	4,971,609		5,167,849
Note payable to EQM Midstream Partners, LP	86,954		88,484
Deferred income taxes	1,880,275		1,442,406
Other liabilities and credits	933,606		1,025,639
Total liabilities	10,536,866		11,456,598

Equity:
Common stock, no par value, shares authorized: 640,000, shares issued: 361,586 and 365,363	9,776,392		9,891,890
Retained earnings	2,338,572		1,283,578
Accumulated other comprehensive loss	(2,830)		(2,994)
Total common shareholders' equity	12,112,134		11,172,474
Noncontrolling interest in consolidated subsidiaries	41,454		40,854
Total equity	12,153,588		11,213,328
Total liabilities and equity	$	22,690,454	$	22,669,926

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

Table of Contents

EQT CORPORATION AND SUBSIDIARIES

STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS (UNAUDITED)


	Three Months Ended March 31,
	2023		2022

	(Thousands)
Cash flows from operating activities:
Net income (loss)	$	1,219,233	$	(1,514,583)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred income tax expense (benefit)	356,618		(473,557)
Depreciation and depletion	387,685		422,098