Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-03551 | |
Entity Registrant Name | EQT CORPORATION | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 25-0464690 | |
Entity Address, Street | 625 Liberty Avenue | |
Entity Address, Suite | Suite 1700 | |
Entity Address, City or Town | Pittsburgh | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15222 | |
City Area Code | 412 | |
Local Phone Number | 553-5700 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | EQT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 369,956,790 | |
Entity Central Index Key | 0000033213 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
STATEMENTS OF CONDENSED CONSOLI
STATEMENTS OF CONDENSED CONSOLIDATED OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating revenues: | ||||
Sales of natural gas, natural gas liquids and oil | $ 3,365,211 | $ 1,077,904 | $ 5,851,835 | $ 2,208,855 |
Loss on derivatives | (845,095) | (1,345,532) | (3,922,732) | (1,534,345) |
Total operating revenues | 2,527,508 | (260,116) | 1,948,398 | 689,807 |
Operating expenses: | ||||
Transportation and processing | 539,704 | 464,016 | 1,055,808 | 909,800 |
Production | 82,556 | 47,546 | 153,568 | 94,776 |
Exploration | 1,741 | 1,779 | 2,513 | 2,728 |
Selling, general and administrative | 59,276 | 49,853 | 128,372 | 94,859 |
Depreciation and depletion | 429,143 | 380,288 | 851,241 | 757,404 |
Gain on sale/exchange of long-lived assets | (981) | (16,816) | (2,190) | (18,023) |
Impairment of contract asset | 0 | 0 | 184,945 | 0 |
Impairment and expiration of leases | 47,048 | 25,634 | 77,039 | 42,391 |
Other operating expenses | 7,120 | 5,225 | 23,467 | 14,668 |
Total operating expenses | 1,165,607 | 957,525 | 2,474,763 | 1,898,603 |
Operating income (loss) | 1,361,901 | (1,217,641) | (526,365) | (1,208,796) |
(Income) loss from investments | (3,577) | (11,829) | 17,208 | (23,677) |
Dividend and other income | (7,313) | (3,765) | (10,909) | (7,069) |
Loss on debt extinguishment | 104,348 | 5,332 | 111,271 | 9,756 |
Interest expense | 65,985 | 72,254 | 133,887 | 142,727 |
Income (loss) before income taxes | 1,202,458 | (1,279,633) | (777,822) | (1,330,533) |
Income tax expense (benefit) | 308,234 | (346,311) | (157,463) | (359,270) |
Net income (loss) | 894,224 | (933,322) | (620,359) | (971,263) |
Less: Net income (loss) attributable to noncontrolling interests | 2,863 | (62) | 4,328 | (576) |
Net income (loss) attributable to EQT Corporation | $ 891,361 | $ (933,260) | $ (624,687) | $ (970,687) |
Income (loss) per share of common stock attributable to EQT Corporation: | ||||
Weighted average common stock outstanding - Basic (in shares) | 369,866 | 279,156 | 372,023 | 278,996 |
Net income (loss) - Basic (in dollars per share) | $ 2.41 | $ (3.34) | $ (1.68) | $ (3.48) |
Weighted average common stock outstanding - Diluted (in shares) | 407,303 | 279,156 | 372,023 | 278,996 |
Net income (loss) - Diluted (in dollars per share) | $ 2.19 | $ (3.34) | $ (1.68) | $ (3.48) |
Sales of natural gas, natural gas liquids and oil | ||||
Operating revenues: | ||||
Sales of natural gas, natural gas liquids and oil | $ 3,365,211 | $ 1,077,904 | $ 5,851,835 | $ 2,208,855 |
Net marketing services and other | ||||
Operating revenues: | ||||
Net marketing services and other | $ 7,392 | $ 7,512 | $ 19,295 | $ 15,297 |
STATEMENTS OF CONDENSED CONSO_2
STATEMENTS OF CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 894,224 | $ (933,322) | $ (620,359) | $ (971,263) |
Other comprehensive income, net of tax: | ||||
Other postretirement benefits liability adjustment, net of tax expense: $21, $27, $41 and $54 | 64 | 81 | 127 | 161 |
Comprehensive income (loss) | 894,288 | (933,241) | (620,232) | (971,102) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 2,863 | (62) | 4,328 | (576) |
Comprehensive income (loss) attributable to EQT Corporation | $ 891,425 | $ (933,179) | $ (624,560) | $ (970,526) |
STATEMENTS OF CONDENSED CONSO_3
STATEMENTS OF CONDENSED CONSOLIDATED COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Other post-retirement benefits liability adjustment, tax expense | $ 21 | $ 27 | $ 41 | $ 54 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 43,745 | $ 113,963 |
Accounts receivable (less provision for doubtful accounts: $475 and $321) | 2,058,953 | 1,438,031 |
Derivative instruments, at fair value | 1,409,199 | 543,337 |
Prepaid expenses and other | 573,732 | 191,435 |
Total current assets | 4,085,629 | 2,286,766 |
Property, plant and equipment | 26,640,549 | 26,016,092 |
Less: Accumulated depreciation and depletion | 8,438,478 | 7,597,172 |
Net property, plant and equipment | 18,202,071 | 18,418,920 |
Contract asset | 29,250 | 410,000 |
Other assets | 304,714 | 491,702 |
Total assets | 22,621,664 | 21,607,388 |
Current liabilities: | ||
Current portion of debt | 440,900 | 1,060,970 |
Accounts payable | 1,700,406 | 1,339,251 |
Derivative instruments, at fair value | 4,568,003 | 2,413,608 |
Other current liabilities | 480,438 | 372,412 |
Total current liabilities | 7,189,747 | 5,186,241 |
Credit facility borrowings | 100,000 | 0 |
Senior notes | 4,409,727 | 4,435,782 |
Note payable to EQM Midstream Partners, LP | 91,442 | 94,320 |
Deferred income taxes | 742,670 | 907,306 |
Other liabilities and credits | 997,988 | 1,012,740 |
Total liabilities | 13,531,574 | 11,636,389 |
Equity: | ||
Common stock, no par value, shares authorized: 640,000, shares issued: 369,912 and 377,432 | 9,948,646 | 10,071,820 |
Treasury stock, shares at cost: 192 and 1,033 | (2,848) | (18,046) |
Accumulated deficit | (880,127) | (94,400) |
Accumulated other comprehensive loss | (4,484) | (4,611) |
Total common shareholders' equity | 9,061,187 | 9,954,763 |
Noncontrolling interest in consolidated subsidiaries | 28,903 | 16,236 |
Total equity | 9,090,090 | 9,970,999 |
Total liabilities and equity | $ 22,621,664 | $ 21,607,388 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Provision for doubtful accounts | $ 475 | $ 321 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized shares (in shares) | 640,000,000 | 640,000,000 |
Common stock, shares issued (in shares) | 369,912,000 | 377,432,000 |
Treasury stock, shares at cost (in shares) | 192,000 | 1,033,000 |
STATEMENTS OF CONDENSED CONSO_4
STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (620,359) | $ (971,263) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Deferred income tax benefit | (164,677) | (359,229) |
Depreciation and depletion | 851,241 | 757,404 |
Impairments of long-lived assets and gain on sale/exchange of long-lived assets | 259,794 | 24,368 |
Loss (income) from investments | 17,208 | (23,677) |
Loss on debt extinguishment | 111,271 | 9,756 |
Share-based compensation expense | 21,558 | 13,515 |
Amortization, accretion and other | 31,256 | 12,739 |
Loss on derivatives | 3,922,732 | 1,534,345 |
Net cash settlements paid on derivatives | (2,639,271) | (109,581) |
Net premiums received on derivative instruments | 14,073 | 3,654 |
Changes in other assets and liabilities: | ||
Accounts receivable | (626,620) | (99,564) |
Accounts payable | 360,208 | 111,191 |
Other current assets | (190,358) | (422,618) |
Other items, net | (96,416) | (37,646) |
Net cash provided by operating activities | 1,251,640 | 443,394 |
Cash flows from investing activities: | ||
Capital expenditures | (684,972) | (470,259) |
Cash paid for acquisitions | 0 | (209,764) |
Proceeds from sale/exchange of assets | 2,414 | 0 |
Proceeds from sale of investment shares | 189,249 | 0 |
Other investing activities | (14,376) | 5,125 |
Net cash used in investing activities | (507,685) | (674,898) |
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 6,237,000 | 2,686,000 |
Repayment of credit facility borrowings | (6,137,000) | (2,986,000) |
Proceeds from issuance of debt | 0 | 1,000,000 |
Debt issuance costs | (9,154) | (19,713) |
Repayment and retirement of debt | (576,640) | (127,691) |
Premiums paid on debt extinguishment | (15,128) | (9,599) |
Dividends paid | (93,272) | 0 |
Cash paid for taxes related to net settlement of share-based incentive awards | (13,742) | (2,683) |
Proceeds from exercises under employee compensation plans | 13,882 | 0 |
Repurchase and retirement of common stock | (216,491) | 0 |
(Distribution to) contribution from noncontrolling interest | (2,894) | 3,750 |
Other financing activities | (734) | 0 |
Net cash (used in) provided by financing activities | (814,173) | 544,064 |
Net change in cash and cash equivalents | (70,218) | 312,560 |
Cash and cash equivalents at beginning of period | 113,963 | 18,210 |
Cash and cash equivalents at end of period | $ 43,745 | $ 330,770 |
STATEMENTS OF CONDENSED CONSO_5
STATEMENTS OF CONDENSED CONSOLIDATED EQUITY (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Noncontrolling Interest in Consolidated Subsidiaries | |
Beginning balance (in shares) at Dec. 31, 2020 | 278,345 | ||||||
Beginning balance at Dec. 31, 2020 | $ 9,174,952 | $ 8,145,539 | $ (29,348) | $ 1,056,626 | $ (5,355) | [1] | $ 7,490 |
Comprehensive income (loss), net of tax: | |||||||
Net income (loss) | (971,263) | (970,687) | (576) | ||||
Other post-retirement benefits liability adjustment, net of tax expense | 161 | 161 | [1] | ||||
Share-based compensation plans (in shares) | 513 | ||||||
Share-based compensation plans | 13,332 | $ 4,068 | 9,264 | ||||
Contribution from noncontrolling interest | 3,750 | 3,750 | |||||
Convertible Notes settlements (Note 6) | 0 | ||||||
Ending balance (in shares) at Jun. 30, 2021 | 278,858 | ||||||
Ending balance at Jun. 30, 2021 | 8,220,932 | $ 8,149,607 | (20,084) | 85,939 | (5,194) | [1] | 10,664 |
Beginning balance (in shares) at Mar. 31, 2021 | 278,781 | ||||||
Beginning balance at Mar. 31, 2021 | 9,145,679 | $ 8,142,498 | (21,469) | 1,019,199 | (5,275) | [2] | 10,726 |
Comprehensive income (loss), net of tax: | |||||||
Net income (loss) | (933,322) | (933,260) | (62) | ||||
Other post-retirement benefits liability adjustment, net of tax expense | 81 | 81 | [2] | ||||
Share-based compensation plans (in shares) | 77 | ||||||
Share-based compensation plans | 8,494 | $ 7,109 | 1,385 | ||||
Ending balance (in shares) at Jun. 30, 2021 | 278,858 | ||||||
Ending balance at Jun. 30, 2021 | 8,220,932 | $ 8,149,607 | (20,084) | 85,939 | (5,194) | [1] | 10,664 |
Beginning balance (in shares) at Dec. 31, 2021 | 376,399 | ||||||
Beginning balance at Dec. 31, 2021 | 9,970,999 | $ 10,071,820 | (18,046) | (94,400) | (4,611) | [1] | 16,236 |
Comprehensive income (loss), net of tax: | |||||||
Net income (loss) | (620,359) | (624,687) | 4,328 | ||||
Other post-retirement benefits liability adjustment, net of tax expense | 127 | 127 | [1] | ||||
Dividends | (93,272) | (93,272) | |||||
Share-based compensation plans (in shares) | 1,852 | ||||||
Share-based compensation plans | 24,246 | $ 9,048 | 15,198 | ||||
Convertible Notes settlements (Note 6) (in shares) | 2 | ||||||
Convertible Notes settlements (Note 6) | 38 | $ 38 | |||||
Repurchase and retirement of common stock (in shares) | (8,533) | ||||||
Repurchase and retirement of common stock | (200,028) | $ (132,260) | (67,768) | ||||
Distribution to noncontrolling interest | (2,894) | (2,894) | |||||
Other | 11,233 | 11,233 | |||||
Ending balance (in shares) at Jun. 30, 2022 | 369,720 | ||||||
Ending balance at Jun. 30, 2022 | 9,090,090 | $ 9,948,646 | (2,848) | (880,127) | (4,484) | [1] | 28,903 |
Beginning balance (in shares) at Mar. 31, 2022 | 369,074 | ||||||
Beginning balance at Mar. 31, 2022 | 8,206,033 | $ 9,921,348 | (2,848) | (1,725,279) | (4,548) | [2] | 17,360 |
Comprehensive income (loss), net of tax: | |||||||
Net income (loss) | 894,224 | 891,361 | 2,863 | ||||
Other post-retirement benefits liability adjustment, net of tax expense | 64 | 64 | [2] | ||||
Dividends | (46,209) | (46,209) | |||||
Share-based compensation plans (in shares) | 645 | ||||||
Share-based compensation plans | 27,268 | $ 27,268 | |||||
Convertible Notes settlements (Note 6) (in shares) | 1 | ||||||
Convertible Notes settlements (Note 6) | 30 | $ 30 | |||||
Distribution to noncontrolling interest | (2,553) | (2,553) | |||||
Other | 11,233 | 11,233 | |||||
Ending balance (in shares) at Jun. 30, 2022 | 369,720 | ||||||
Ending balance at Jun. 30, 2022 | $ 9,090,090 | $ 9,948,646 | $ (2,848) | $ (880,127) | $ (4,484) | [1] | $ 28,903 |
[1]Amounts included in accumulated other comprehensive loss are related to other postretirement benefits liability adjustments, net of tax, which are attributable to net actuarial losses and net prior service costs.[2]Amounts included in accumulated other comprehensive loss are related to other postretirement benefits liability adjustments, net of tax, which are attributable to net actuarial losses and net prior service costs. |
STATEMENTS OF CONDENSED CONSO_6
STATEMENTS OF CONDENSED CONSOLIDATED EQUITY (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Other post-retirement benefits liability adjustment, tax expense | $ 21 | $ 27 | $ 41 | $ 54 |
Dividends (in dollars per share) | $ 0.125 | $ 0.25 | ||
Common stock, authorized shares (in shares) | 640,000,000 | 640,000,000 | 640,000,000 | 640,000,000 |
Preferred stock authorized (in shares) | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 |
Preferred stock issued (in shares) | 0 | 0 | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 | 0 | 0 |
Financial Statements
Financial Statements | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statements | Financial Statements The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with United States generally accepted accounting principles (GAAP) for interim financial information and with the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and notes required by GAAP for complete financial statements. In the opinion of management, these statements include all adjustments (consisting of only normal recurring accruals, unless otherwise disclosed in this Quarterly Report on Form 10-Q) necessary for a fair presentation of the financial position of EQT Corporation and subsidiaries as of June 30, 2022 and December 31, 2021, the results of its operations and equity for the three and six month periods ended June 30, 2022 and 2021 and its cash flows for the six month periods ended June 30, 2022 and 2021. Certain previously reported amounts have been reclassified to conform to the current year presentation. In this Quarterly Report on Form 10-Q, references to "EQT," "EQT Corporation" and "the Company" refer collectively to EQT Corporation and its consolidated subsidiaries. These financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. Recently Issued Accounting Standards In August 2020, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2020-06, Debt with Conversion and Other Options and Derivatives and Hedging: Accounting for Convertible Instruments and Contracts in an Entity's Own Equity . This ASU simplifies accounting for convertible instruments by removing certain separation models for convertible instruments. For convertible instruments with conversion features that are not accounted for as derivatives under Accounting Standards Codification 815 or that do not result in substantial premiums accounted for as paid-in capital, the convertible instrument's embedded conversion features are no longer separated from the host contract. Consequently, and as long as no other feature requires bifurcation and recognition as a derivative, the convertible instrument is accounted for as a single liability measured at its amortized cost. Under ASU 2020-06, entities are required to use the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS). The if-converted method assumes share settlement of the instrument, which increases the number of potentially dilutive securities used to calculate diluted EPS. This ASU also adds several new disclosure requirements. The Company adopted this ASU effective as of January 1, 2022 using the full retrospective method of adoption. The following tables present the impact of the adoption of ASU 2020-06 on the Company's previously reported historical results. See Note 6 for discussion of the Convertible Notes (defined in Note 6). Three Months Ended June 30, 2021 As Reported ASU 2020-06 Adoption Adjustment As Adjusted (Thousands, except per share amounts) Interest expense $ 76,986 $ (4,732) $ 72,254 Income tax benefit (347,846) 1,535 (346,311) Net loss (936,519) 3,197 (933,322) Less: Net loss attributable to noncontrolling interest (62) — (62) Net loss attributable to EQT Corporation $ (936,457) $ 3,197 $ (933,260) Basic and diluted: Weighted average common stock outstanding (a) 279,156 — 279,156 Loss per share of common stock attributable to EQT Corporation $ (3.35) $ 0.01 $ (3.34) (a) For the three months ended June 30, 2021, diluted weighted average common stock outstanding did not change because the potentially dilutive securities had an anti-dilutive effect on loss per share. Six Months Ended June 30, 2021 As Reported ASU 2020-06 Adoption Adjustment As Adjusted (Thousands, except per share amounts) Interest expense $ 152,085 $ (9,358) $ 142,727 Income tax benefit (362,340) 3,070 (359,270) Net loss (977,551) 6,288 (971,263) Less: Net loss attributable to noncontrolling interest (576) — (576) Net loss attributable to EQT Corporation $ (976,975) $ 6,288 $ (970,687) Basic and diluted: Weighted average common stock outstanding (a) 278,996 — 278,996 Loss per share of common stock attributable to EQT Corporation $ (3.50) $ 0.02 $ (3.48) (a) For the six months ended June 30, 2021, diluted weighted average common stock outstanding did not change because the potentially dilutive securities had an anti-dilutive effect on loss per share. December 31, 2021 As Reported ASU 2020-06 Adoption Adjustment As Adjusted (Thousands) Current portion of debt (a) $ 954,900 $ 106,070 $ 1,060,970 Deferred income taxes 938,612 (31,306) 907,306 Common stock, no par value 10,167,963 (96,143) 10,071,820 Accumulated deficit (115,779) 21,379 (94,400) (a) Pursuant to the terms of the Convertible Notes indenture, a sale price condition for conversion of the Convertible Notes was satisfied as of December 31, 2021, and, accordingly, holders of the Convertible Notes were permitted to convert any of their Convertible Notes at their option at any time during the three months ended March 31, 2022, subject to all terms and conditions set forth in the Convertible Notes indenture. Therefore, as of December 31, 2021, the net carrying value of the Convertible Notes was included in current portion of debt in the Consolidated Balance Sheet. Certain line items in the Statement of Condensed Consolidated Cash Flows for the six months ended June 30, 2021 were adjusted to reflect the impact of the adoption of ASU 2020-06; however, the adoption did not impact cash and did not change net cash provided by operating, investing or financing activities. Supplemental Cash Flow Information . The following table summarizes net cash paid for interest and income taxes and non-cash activity included in the Statements of Condensed Consolidated Cash Flows. Six Months Ended June 30, 2022 2021 (Thousands) Cash paid during the period for: Interest, net of amount capitalized $ 133,269 $ 127,082 Income taxes, net 6,415 21,768 Non-cash activity during the period for: Increase in asset retirement costs and obligations $ 10,245 $ 1,943 Capitalization of non-cash equity share-based compensation 2,550 2,499 Increase in right-of-use assets and lease liabilities, net 819 1,091 Issuance of common stock for Convertible Notes settlements (see Note 6) 38 — |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Under the Company's natural gas, natural gas liquids (NGLs) and oil sales contracts, the Company generally considers the delivery of each unit (MMBtu or Bbl) to be a separate performance obligation that is satisfied upon delivery. These contracts typically require payment within 25 days of the end of the calendar month in which the commodity is delivered. A significant number of these contracts contain variable consideration because the payment terms refer to market prices at future delivery dates. In these situations, the Company has not identified a standalone selling price because the terms of the variable payments relate specifically to the Company's efforts to satisfy the performance obligations. Other contracts, such as fixed price contracts or contracts with a fixed differential to New York Mercantile Exchange (NYMEX) or index prices, contain fixed consideration. The fixed consideration is allocated to each performance obligation on a relative standalone selling price basis, which requires judgment from management. For these contracts, the Company generally concludes that the fixed price or fixed differentials in the contracts are representative of the standalone selling price. Based on management's judgment, the performance obligations for the sale of natural gas, NGLs and oil are satisfied at a point in time because the customer obtains control and legal title of the asset when the natural gas, NGLs or oil is delivered to the designated sales point. The sales of natural gas, NGLs and oil presented in the Statements of Condensed Consolidated Operations represent the Company's share of revenues net of royalties and exclude revenue interests owned by others. When selling natural gas, NGLs and oil on behalf of royalty or working interest owners, the Company acts as an agent and, thus, reports the revenue on a net basis. For contracts with customers where the Company's performance obligations had been satisfied and an unconditional right to consideration existed as of the balance sheet date, the Company recorded amounts due from contracts with customers of $1,558.1 million and $1,093.9 million in accounts receivable in the Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2021, respectively. The table below provides disaggregated information on the Company's revenues. Certain other revenue contracts are outside the scope of ASU 2014-09, Revenue from Contracts with Customers . These contracts are reported in net marketing services and other in the Statements of Condensed Consolidated Operations. Derivative contracts are also outside the scope of ASU 2014-09. Three Months Ended Six Months Ended 2022 2021 2022 2021 (Thousands) Revenues from contracts with customers: Natural gas sales $ 3,175,155 $ 953,385 $ 5,464,520 $ 1,966,465 NGLs sales 167,849 102,361 341,352 202,618 Oil sales 22,207 22,158 45,963 39,772 Total revenues from contracts with customers $ 3,365,211 $ 1,077,904 $ 5,851,835 $ 2,208,855 Other sources of revenue: Loss on derivatives (845,095) (1,345,532) (3,922,732) (1,534,345) Net marketing services and other 7,392 7,512 19,295 15,297 Total operating revenues $ 2,527,508 $ (260,116) $ 1,948,398 $ 689,807 The following table summarizes the transaction price allocated to the Company's remaining performance obligations on all contracts with fixed consideration as of June 30, 2022. Amounts shown exclude contracts that qualified for the exception to the relative standalone selling price method as of June 30, 2022. 2022 (a) 2023 Total (Thousands) Natural gas sales $ 12,148 $ 10,747 $ 22,895 (a) July 1 through December 31. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company's primary market risk exposure is the volatility of future prices for natural gas and NGLs, which can affect the Company's operating results. The Company uses derivative commodity instruments to hedge its cash flows from sales of produced natural gas and NGLs. The overall objective of the Company's hedging program is to protect cash flows from undue exposure to the risk of changing commodity prices. The derivative commodity instruments used by the Company are primarily swap, collar and option agreements. These agreements may require payments to, or receipt of payments from, counterparties based on the differential between two prices for the commodity. The Company uses these agreements to hedge its NYMEX and basis exposure. The Company may also use other contractual agreements when executing its commodity hedging strategy. The Company typically enters into over the counter (OTC) derivative commodity instruments with financial institutions, and the creditworthiness of all counterparties is regularly monitored. The Company does not designate any of its derivative instruments as cash flow hedges; therefore, all changes in fair value of the Company's derivative instruments are recognized in operating revenues in loss on derivatives in the Statements of Condensed Consolidated Operations. Because the Company does not designate any of its derivative instruments as cash flow hedges, the Company has changed the references to "derivatives not designated as hedges" to "derivatives" throughout the Condensed Consolidated Financial Statements as of and for the three and six months ended June 30, 2022. The Company recognizes all derivative instruments as either assets or liabilities at fair value on a gross basis. These derivative instruments are reported as either current assets or current liabilities due to their highly liquid nature. The Company can net settle its derivative instruments at any time. Contracts that result in physical delivery of a commodity expected to be sold by the Company in the normal course of business are generally designated as normal sales and are exempt from derivative accounting. Contracts that result in the physical receipt or delivery of a commodity but are not designated or do not meet all of the criteria to qualify for the normal purchase and normal sale scope exception are subject to derivative accounting. The Company's OTC derivative instruments generally require settlement in cash. The Company also enters into exchange traded derivative commodity instruments that are generally settled with offsetting positions. Settlements of derivative commodity instruments are reported as a component of cash flows from operating activities in the Statements of Condensed Consolidated Cash Flows. With respect to the derivative commodity instruments held by the Company, the Company hedged portions of its expected sales of production and portions of its basis exposure covering approximately 2,227 billion cubic feet (Bcf) of natural gas and 1,830 thousand barrels (Mbbl) of NGLs as of June 30, 2022 and 2,184 Bcf of natural gas and 3,055 Mbbl of NGLs as of December 31, 2021. The open positions at both June 30, 2022 and December 31, 2021 had maturities extending through December 2027. Certain of the Company's OTC derivative instrument contracts provide that, if the Company's credit rating assigned by Moody's Investors Service, Inc. (Moody's), S&P Global Ratings (S&P) or Fitch Ratings Service (Fitch) is below the agreed-upon credit rating threshold (typically, below investment grade) and if the associated derivative liability exceeds the agreed-upon dollar threshold for such credit rating, the counterparty to such contract can require the Company to deposit collateral. Similarly, if such counterparty's credit rating assigned by Moody's, S&P or Fitch is below the agreed-upon credit rating threshold and if the associated derivative liability exceeds the agreed-upon dollar threshold for such credit rating, the Company can require the counterparty to deposit collateral with the Company. Such collateral can be up to 100% of the derivative liability. Investment grade refers to the quality of a company's credit as assessed by one or more credit rating agencies. To be considered investment grade, a company must be rated "Baa3" or higher by Moody's, "BBB–" or higher by S&P and "BBB–" or higher by Fitch. Anything below these ratings is considered non-investment grade. As of June 30, 2022, the Company's senior notes were rated "Ba1" by Moody's, "BBB–" by S&P and "BBB–" by Fitch. When the net fair value of any of the Company's OTC derivative instrument contracts represents a liability to the Company that is in excess of the agreed-upon dollar threshold for the Company's then-applicable credit rating, the counterparty has the right to require the Company to remit funds as a margin deposit in an amount equal to the portion of the derivative liability that is in excess of the dollar threshold amount. The Company records these deposits as a current asset in the Condensed Consolidated Balance Sheets. As of June 30, 2022 and December 31, 2021, the aggregate fair value of all OTC derivative instruments with credit rating risk-related contingent features that were in a net liability position was $465.0 million and $594.9 million, respectively, for which the Company deposited and recorded current assets of $238.0 million and $0.1 million, respectively. When the net fair value of any of the Company's OTC derivative instrument contracts represents an asset to the Company that is in excess of the agreed-upon dollar threshold for the counterparty's then-applicable credit rating, the Company has the right to require the counterparty to remit funds as a margin deposit in an amount equal to the portion of the derivative asset that is in excess of the dollar threshold amount. The Company records these deposits as a current liability in the Condensed Consolidated Balance Sheets. As of both June 30, 2022 and December 31, 2021, there were no such deposits recorded in the Condensed Consolidated Balance Sheets. When the Company enters into exchange traded natural gas contracts, exchanges may require the Company to remit funds to the corresponding broker as good-faith deposits to guard against the risks associated with changing market conditions. The Company is required to make such deposits based on an established initial margin requirement and the net liability position, if any, of the fair value of the associated contracts. The Company records these deposits as a current asset in the Condensed Consolidated Balance Sheets. When the fair value of such contracts is in a net asset position, the broker may remit funds to the Company. The Company records these deposits as a current liability in the Condensed Consolidated Balance Sheets. The initial margin requirements are established by the exchanges based on the price, volatility and the time to expiration of the contract. The margin requirements are subject to change at the exchanges' discretion. As of June 30, 2022 and December 31, 2021, the Company recorded $109.4 million and $147.7 million, respectively, of such deposits as current assets in the Condensed Consolidated Balance Sheets. The Company has netting agreements with financial institutions and its brokers that permit net settlement of gross commodity derivative assets against gross commodity derivative liabilities. The table below summarizes the impact of netting agreements and margin deposits on gross derivative assets and liabilities. Gross derivative instruments recorded in the Condensed Consolidated Balance Sheets Derivative instruments subject to Margin requirements with counterparties Net derivative instruments (Thousands) June 30, 2022 Asset derivative instruments, at fair value $ 1,409,199 $ (1,363,094) $ — $ 46,105 Liability derivative instruments, at fair value 4,568,003 (1,363,094) (347,426) 2,857,483 December 31, 2021 Asset derivative instruments, at fair value $ 543,337 $ (468,266) $ — $ 75,071 Liability derivative instruments, at fair value 2,413,608 (468,266) (147,773) 1,797,569 The Consolidated GGA (defined in Note 8) executed in connection with the Equitrans Share Exchange (defined in Note 8) provides for additional cash bonus payments (the Henry Hub Cash Bonus) payable by the Company during the period beginning on the first day of the quarter in which the Mountain Valley Pipeline is placed in service and ending on the earlier of 36 months thereafter or December 31, 2024. Such payments are conditioned upon the quarterly average of the NYMEX Henry Hub natural gas settlement price exceeding certain price thresholds. As of June 30, 2022 and December 31, 2021, the derivative liability related to the Henry Hub Cash Bonus had a fair value of approximately $53 million and $111 million, respectively. The fair value of the derivative liability related to the Henry Hub Cash Bonus is based on significant inputs that are interpolated from observable market data and, as such, is a Level 2 fair value measurement. See Note 4 for a description of the fair value hierarchy. During the second quarter of 2020, the Company closed a transaction to sell certain non-strategic assets located in Pennsylvania and West Virginia (the 2020 Divestiture), the purchase and sale agreement for which, among other things, provides for additional cash bonus payments (the Contingent Consideration) payable to the Company of up to $20 million, conditioned upon the three-month average of the NYMEX Henry Hub natural gas settlement price relative to stated floor and target price thresholds beginning on August 31, 2020 and ending on November 30, 2022. As of June 30, 2022 and December 31, 2021, the derivative asset related to the Contingent Consideration had a fair value of approximately $3.9 million and $8.2 million, respectively. During the six months ended June 30, 2022 and 2021, the Company received cash from the Contingent Consideration of $4.5 million and $0.6 million, respectively. Changes in fair value are recorded in gain on sale/exchange of long-lived assets in the Statements of Condensed Consolidated Operations. The fair value of the derivative asset related to the Contingent Consideration is based on significant inputs that are interpolated from observable market data and, as such, is a Level 2 fair value measurement. See Note 4 for a description of the fair value hierarchy. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company records its financial instruments, which are principally derivative instruments, at fair value in the Condensed Consolidated Balance Sheets. The Company estimates the fair value of its financial instruments using quoted market prices when available. If quoted market prices are not available, the fair value is based on models that use market-based parameters, including forward curves, discount rates, volatilities and nonperformance risk, as inputs. Nonperformance risk considers the effect of the Company's credit standing on the fair value of liabilities and the effect of the counterparty's credit standing on the fair value of assets. The Company estimates nonperformance risk by analyzing publicly available market information, including a comparison of the yield on debt instruments with credit ratings similar to the Company's or counterparty's credit rating and the yield on a risk-free instrument. The Company has categorized its assets and liabilities recorded at fair value into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Assets and liabilities that use Level 2 inputs primarily include the Company's swap, collar and option agreements. Exchange traded commodity swaps have Level 1 inputs. The fair value of the commodity swaps with Level 2 inputs is based on standard industry income approach models that use significant observable inputs, including, but not limited to, NYMEX natural gas forward curves, LIBOR-based discount rates, basis forward curves and NGLs forward curves. The Company's collars and options are valued using standard industry income approach option models. The significant observable inputs used by the option pricing models include NYMEX forward curves, natural gas volatilities and LIBOR-based discount rates. The table below summarizes assets and liabilities measured at fair value on a recurring basis. Gross derivative instruments recorded in the Condensed Consolidated Balance Sheets Fair value measurements at reporting date using: Quoted prices in active Significant other observable inputs Significant unobservable inputs (Thousands) June 30, 2022 Asset derivative instruments, at fair value $ 1,409,199 $ 297,009 $ 1,112,190 $ — Liability derivative instruments, at fair value 4,568,003 222,871 4,345,132 — December 31, 2021 Asset derivative instruments, at fair value $ 543,337 $ 66,833 $ 476,504 $ — Liability derivative instruments, at fair value 2,413,608 126,053 2,287,555 — The carrying values of cash equivalents, accounts receivable and accounts payable approximate fair value due to their short-term maturities. The December 31, 2021 carrying value of the Company's investment in Equitrans Midstream Corporation (Equitrans Midstream) approximates fair value as Equitrans Midstream is a publicly traded company. In April 2022, the Company sold the remaining balance of its Equitrans Midstream common stock for net proceeds of approximately $189 million. The carrying value of borrowings under the Company's credit facility approximates fair value as the interest rate is based on prevailing market rates. The Company considered all of these fair values to be Level 1 fair value measurements. The Company has an investment in a fund (the Investment Fund) that invests in companies developing technology and operating solutions for exploration and production companies. The investment is valued using, as a practical expedient, the net asset value provided in the financial statements received from fund managers. The Company estimates the fair value of its senior notes using established fair value methodology. Because not all of the Company's senior notes are actively traded, their fair value is a Level 2 fair value measurement. As of June 30, 2022 and December 31, 2021, the Company's senior notes had a fair value of approximately $5.4 billion and $6.5 billion, respectively, and a carrying value of approximately $4.8 billion and $5.5 billion, respectively, inclusive of any current portion. The fair value of the Company's note payable to EQM Midstream Partners, LP (EQM) is estimated using an income approach model with a market-based discount rate and is a Level 3 fair value measurement. As of June 30, 2022 and December 31, 2021, the Company's note payable to EQM had a fair value of approximately $102 million and $118 million, respectively, and a carrying value of approximately $97 million and $100 million, respectively, inclusive of any current portion. See Note 6 for further discussion of the Company's debt. The Company recognizes transfers between Levels as of the actual date of the event or change in circumstances that caused the transfer. There were no transfers between Levels 1, 2 and 3 during the periods presented. See Note 3 for a discussion of the fair value measurement of the derivative liability recorded in connection with the Equitrans Share Exchange and the embedded derivative recorded in connection with the 2020 Divestiture. See Note 8 for a discussion of the fair value measurement of the contract asset. See Note 1 to the Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 for a discussion of the fair value measurement of the Company's oil and gas properties and other long-lived assets, including impairment and expiration of leases. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the six months ended June 30, 2022 and 2021, the Company calculated the provision for income taxes for interim periods by applying an estimate of the annual effective tax rate for the full fiscal year to "ordinary" income or loss (pre-tax income or loss excluding unusual or infrequently occurring items) for the period. There were no material changes to the Company's methodology for determining unrecognized tax benefits during the six months ended June 30, 2022. The Company recorded income tax benefit at an effective tax rate of 20.2% and 27.0% for the six months ended June 30, 2022 and 2021, respectively. The Company's effective tax rate for the six months ended June 30, 2022 was lower compared to the U.S. federal statutory rate due primarily to nondeductible repurchase premiums on the Convertible Notes, partly offset by state taxes, including valuation allowances limiting certain state tax benefits. The Company's effective tax rate for the six months ended June 30, 2021 was higher compared to the U.S. federal statutory rate due primarily to state taxes, including valuation allowances limiting certain state tax benefits and West Virginia tax legislation enacted on April 13, 2021 that changed the way taxable income is apportioned to West Virginia for tax years beginning on or after January 1, 2022. On July 8, 2022, the Pennsylvania General Assembly enacted House Bill 1342, which reduces the corporate net income tax rate from 9.99% to 8.99% in 2023 and continues to reduce that rate by 0.5% per year beginning in 2024 and ending at 4.99% in 2031 and thereafter. The Company is evaluating the impact this change in law will have on the Company's consolidated financial statements. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The table below summarizes the Company's outstanding debt. June 30, 2022 December 31, 2021 Principal Value Carrying Value (a) Principal Value Carrying Value (a) (Thousands) Credit Facility expiring June 28, 2027 $ 100,000 $ 100,000 $ — $ — Senior notes: 3.00% notes due October 1, 2022 — — 568,823 567,909 7.42% series B notes due 2023 10,000 10,000 10,000 10,000 6.625% notes due February 1, 2025 (b) 995,315 990,848 1,000,000 994,643 1.75% convertible notes due May 1, 2026 434,856 425,225 499,991 487,543 3.125% notes due May 15, 2026 497,694 491,661 500,000 493,157 7.75% debentures due July 15, 2026 115,000 112,970 115,000 112,721 3.90% notes due October 1, 2027 1,250,000 1,243,919 1,250,000 1,243,340 5.00% notes due January 15, 2029 349,565 344,771 350,000 344,835 7.500% notes due February 1, 2030 (b) 737,650 732,498 750,000 744,417 3.625% notes due May 15, 2031 500,000 493,060 500,000 492,669 Note payable to EQM 97,117 97,117 99,838 99,838 Total debt 5,087,197 5,042,069 5,643,652 5,591,072 Less: Current portion of debt (c) 450,531 440,900 1,074,332 1,060,970 Long-term debt $ 4,636,666 $ 4,601,169 $ 4,569,320 $ 4,530,102 (a) For the Company's credit facility and note payable to EQM, the principal value represents the carrying value. For all other debt, the principal value less the unamortized debt issuance costs and debt discounts represents the carrying value. (b) Interest rates for this tranche of the Company's senior notes fluctuate based on changes to the credit ratings assigned to the Company's senior notes by Moody's, S&P and Fitch. Interest rates on the Company's other outstanding senior notes do not fluctuate based on changes to the credit ratings assigned to its senior notes by Moody's, S&P and Fitch. (c) As of June 30, 2022, the current portion of debt includes the 7.42% series B notes, the 1.75% convertible notes (described below) and a portion of the note payable to EQM. As of December 31, 2021, the current portion of debt includes the 3.00% notes, the 1.75% convertible notes and a portion of the note payable to EQM. Debt repayments . The Company redeemed or repurchased the following debt during the six months ended June 30, 2022. Debt Tranche Principal (a) Premiums/(Discounts) (a) Accrued but Unpaid Interest Total Cost (Thousands) 3.00% notes due October 1, 2022 $ 568,823 $ 5,546 $ 7,150 $ 581,519 6.625% notes due February 1, 2025 4,685 142 130 4,957 1.75% convertible notes due May 1, 2026 65,096 101,879 186 167,161 3.125% notes due May 15, 2026 2,306 (143) 10 2,173 5.00% notes due January 15, 2029 435 (15) 10 430 7.500% notes due February 1, 2030 12,350 877 387 13,614 (a) Of the total principal repurchased and premiums recorded during the six months ended June 30, 2022, approximately $80 million and $94 million, respectively, were accrued but not yet paid as of June 30, 2022 due to the timing of settlements. The Company redeemed or repurchased the following debt during the period beginning July 1, 2022 and ending July 26, 2022. Debt Tranche Principal Premiums/(Discounts) Accrued but Unpaid Interest Total Cost (Thousands) 6.625% notes due February 1, 2025 $ 79,721 $ 2,904 $ 2,491 $ 85,116 1.75% convertible notes due May 1, 2026 20,000 26,027 64 46,091 3.125% notes due May 15, 2026 34,340 (1,907) 177 32,610 3.90% notes due October 1, 2027 15,567 (643) 188 15,112 5.00% notes due January 15, 2029 13,111 (430) 185 12,866 7.500% notes due February 1, 2030 7,650 551 253 8,454 3.625% notes due May 15, 2031 4,835 (601) 28 4,262 Credit facility . The Company has a $2.5 billion credit facility. On June 28, 2022, the Company entered into the Third Amended and Restated Credit Agreement (the Third Amendment) with the lenders party thereto and PNC Bank, National Association, as administrative agent, swing line lender and L/C issuer, amending and restating the Second Amended and Restated Credit Agreement, dated as of July 31, 2017 (the Credit Agreement). The Third Amendment, among other things, (i) extends the maturity date of the commitments and loans under the Credit Agreement to June 28, 2027 and provides at the Company's option two one-year extensions thereafter, subject to the approval of the lenders, (ii) allows for commitment increases of up to $500 million, subject to the agreement of the Company and new or existing lenders and (iii) allows for Base Rate Loans, Term SOFR Rate Loans and Swing Line Loans (each defined in the Third Amendment). The Company had approximately $208 million and $440 million of letters of credit outstanding under its credit facility as of June 30, 2022 and December 31, 2021, respectively. Under the Company's credit facility, for the three months ended June 30, 2022 and 2021, the maximum amount of outstanding borrowings was $1,300 million and $578 million, respectively, the average daily balances were approximately $844 million and $236 million, respectively, and interest was incurred at a weighted average annual interest rate of 2.3% and 2.1%, respectively. Under the Company's credit facility, for the six months ended June 30, 2022 and 2021, the maximum amount of outstanding borrowings was $1,300 million and $890 million, respectively, the average daily balances were approximately $576 million and $188 million, respectively, and interest was incurred at a weighted average annual interest rate of 2.2% and 2.1%, respectively. 3.125% senior notes and 3.625% senior notes. On May 17, 2021, the Company issued $500 million aggregate principal amount of 3.125% senior notes due May 15, 2026 and $500 million aggregate principal amount of 3.625% senior notes due May 15, 2031. After deducting offering costs of $15.6 million, net proceeds from the sale of the notes of $984.4 million were used to partly fund the Alta Acquisition (defined in Note 9). The covenants of the 3.125% senior notes and 3.625% senior notes are consistent with the Company's existing senior unsecured notes; however, the 3.125% senior notes and 3.625% senior notes include an offer to repurchase provision applicable upon the occurrence of certain change of control events specified in the applicable indentures. Convertible Notes . In April 2020, the Company issued $500 million aggregate principal amount of 1.75% convertible senior notes (the Convertible Notes) due May 1, 2026 unless earlier redeemed, repurchased or converted. Holders of the Convertible Notes may convert their Convertible Notes at their option at any time prior to the close of business on January 30, 2026 under the following circumstances: • during any quarter as long as the last reported price of EQT common stock for at least 20 trading days (consecutive or otherwise) during the period of 30 consecutive trading days ending on the last trading day of the immediately preceding quarter is greater than or equal to 130% of the conversion price on each such trading day (the Sale Price Condition); • during the five-business-day period after any five-consecutive-trading-day period (the measurement period) in which the trading price per $1,000 principal amount of the Convertible Notes for each trading day of the measurement period is less than 98% of the product of the last reported price of EQT common stock and the conversion rate for the Convertible Notes on each such trading day; • if the Company calls any or all of the Convertible Notes for redemption at any time prior to the close of business on the second scheduled trading day immediately preceding such redemption date; and • upon the occurrence of certain corporate events set forth in the Convertible Notes indenture. On or after February 1, 2026, holders of the Convertible Notes may convert their Convertible Notes at their option at any time until the close of business on the second scheduled trading date immediately preceding May 1, 2026. The Company may not redeem the Convertible Notes prior to May 5, 2023. On or after May 5, 2023 and prior to February 1, 2026, the Company may redeem for cash all or any portion of the Convertible Notes at its option at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed plus accrued and unpaid interest up to the redemption date as long as the last reported price per share of EQT common stock has been at least 130% of the conversion price in effect for at least 20 trading days (consecutive or otherwise) during any 30-consecutive-trading-day period ending on the trading day immediately preceding the date on which the Company delivers notice of redemption. A sinking fund is not provided for the Convertible Notes. The initial conversion rate for the Convertible Notes was 66.6667 shares of EQT common stock per $1,000 principal amount of the Convertible Notes, which was equivalent to an initial conversion price of $15.00 per share of EQT common stock. The initial conversion price represents a premium of 20% to the $12.50 per share closing price of EQT common stock on April 23, 2020. The conversion rate is subject to adjustment under certain circumstances. In addition, following certain corporate events that occur prior to May 1, 2026 or if the Company delivers notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Convertible Notes in connection with such corporate event or notice of redemption. As a result of the cash dividend the Company paid on its common stock in the first quarter of 2022, effective February 11, 2022, the conversion rate for the Convertible Notes was adjusted to 67.0535 shares of EQT common stock per $1,000 principal amount of the Convertible Notes. As a result of the cash dividend the Company paid on its common stock in the second quarter of 2022, effective May 10, 2022, the conversion rate for the Convertible Notes was adjusted to 67.2836 shares of EQT common stock per $1,000 principal amount of the Convertible Notes. Future dividend payments by the Company will result in further adjustments to the conversion rate per share of EQT common stock. The Sale Price Condition for conversion of the Convertible Notes was satisfied as of December 31, 2021, March 31, 2022 and June 30, 2022, and, accordingly, holders of the Convertible Notes are permitted to convert any of their Convertible Notes at their option at any time beginning on January 1, 2022 and continuing until September 30, 2022, subject to the terms and conditions set forth in the Convertible Notes indenture. Therefore, as of December 31, 2021 and June 30, 2022, the net carrying value of the Convertible Notes was included in current portion of debt on the Condensed Consolidated Balance Sheets. The following table summarizes Convertible Notes conversion right exercises from issuance through July 22, 2022. The Company elected to settle all such conversions by issuing to the converting holders shares of EQT common stock. Settlement Month Principal Converted Shares Issued Average Conversion Price (Thousands) September 2021 $ 9 599 $ 19.64 March 2022 8 536 33.65 April 2022 26 1,742 34.78 July 2022 5 335 36.91 Upon conversion of the remaining outstanding Convertible Notes, the Company may satisfy its conversion obligation by paying and/or delivering at the Company's election, in the manner and subject to the terms and conditions provided in the Convertible Notes indenture, cash, shares of EQT common stock or a combination thereof. The Company intends to use a combined settlement approach to satisfy its obligation by paying or delivering to holders of the Convertible Notes cash equal to the principal amount of the obligation and EQT common stock for amounts that exceed the principal amount of the obligation. In connection with the Convertible Notes offering, the Company entered into privately negotiated capped call transactions (the Capped Call Transactions), the purpose of which is to reduce the potential dilution to EQT common stock upon conversion of the Convertible Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of such obligation, with such reduction and offset subject to a cap. The Capped Call Transactions have an initial strike price of $15.00 per share of EQT common stock and an initial capped price of $18.75 per share of EQT common stock, each of which are subject to certain customary adjustments, including adjustments as a result of the Company paying a dividend on its common stock. The Capped Call Transactions are separate from the Convertible Notes. The Capped Call Transactions were recorded in shareholders' equity and were not accounted for as derivatives. The cost to purchase the Capped Call Transactions of $32.5 million was recorded as a reduction to equity and will not be remeasured. Based on the closing stock price of EQT common stock of $34.40 on June 30, 2022 and excluding the impact of the Capped Call Transactions, the if-converted value of the Convertible Notes exceeded the principal amount by $572 million. The table below summarizes the net carrying value and fair value of the Convertible Notes. June 30, 2022 December 31, 2021 (Thousands) Principal $ 434,856 $ 499,991 Less: Unamortized debt issuance costs 9,631 12,448 Net carrying value of Convertible Notes $ 425,225 $ 487,543 Fair value of Convertible Notes (a) $ 1,036,292 $ 854,985 (a) The fair value is a Level 2 fair value measurement. See Note 4. The table below summarizes the components of interest expense related to the Convertible Notes. The effective interest rate for the Convertible Notes is 2.4%. Three Months Ended Six Months Ended 2022 2021 2022 2021 (Thousands) Contractual interest expense $ 2,183 $ 2,187 $ 4,370 $ 4,375 Amortization of issuance costs 687 672 1,371 1,341 Total Convertible Notes interest expense $ 2,870 $ 2,859 $ 5,741 $ 5,716 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share In periods when the Company reports a net loss, all options, restricted stock, performance awards and stock appreciation rights are excluded from the calculation of diluted weighted average shares outstanding because of their anti-dilutive effect on loss per share. As a result, for the six months ended June 30, 2022 and the three and six months ended June 30, 2021, all such securities were excluded from potentially dilutive securities because of their anti-dilutive effect on loss per share. Such securities for the six months ended June 30, 2022 were 6,855,482, and such securities for the three and six months ended June 30, 2021 were 7,679,584 and 7,712,354, respectively. For the three months ended June 30, 2022, such potentially dilutive securities included in the calculation of diluted earnings per share were 4,132,337. Additionally, the Company uses the if-converted method to calculate the impact of the Convertible Notes on diluted earnings (loss) per share. For the six months ended June 30, 2022 and the three and six months ended June 30, 2021, all such if-converted securities were excluded from potentially dilutive securities because of their anti-dilutive effect on loss per share. Such securities for the six months ended June 30, 2022 were approximately 33.4 million, and such securities for both the three and six months ended June 30, 2021 were approximately 33.3 million. For the three months ended June 30, 2022, such potentially dilutive securities included in the calculation of diluted earnings per share were 33.3 million. See Notes 1 and 6 for further discussion of the Convertible Notes. |
Impairment of Contract Asset
Impairment of Contract Asset | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Impairment of Contract Asset | Impairment of Contract Asset During the first quarter of 2020, the Company sold to Equitrans Midstream approximately 50% of the Company's then-owned equity interest in Equitrans Midstream in exchange for a combination of cash and rate relief under certain of the Company's gathering contracts with an affiliate of Equitrans Midstream (the Equitrans Share Exchange). The rate relief was effected through the execution of a consolidated gas gathering and compression agreement entered into between the Company and an affiliate of Equitrans Midstream (the Consolidated GGA). In addition, because the Mountain Valley Pipeline was not in service by January 1, 2022, the Consolidated GGA provides the Company with the option to forgo a portion of the gathering fee relief that would otherwise be applicable following the Mountain Valley Pipeline in-service date in exchange for a cash payment to the Company of approximately $196 million (the Cash Payment Option). On July 8, 2022, the Company delivered notice to Equitrans Midstream that it had elected to exercise the Cash Payment Option. On the closing date of the Equitrans Share Exchange, the Company recorded in the Condensed Consolidated Balance Sheet a contract asset of $410 million representing the estimated fair value of the rate relief inclusive of the Cash Payment Option. During the first quarter of 2022, the Company identified indicators that the carrying value of the contract asset may not be fully recoverable, including increased uncertainty of the estimated timing of completion of the Mountain Valley Pipeline due to recent court rulings. As a result of the Company's impairment evaluation, the Company recognized impairment of $184.9 million in the Statement of Condensed Consolidated Operations. The impairment reduced the carrying value of the contract asset to its estimated fair value as of March 31, 2022 of $225 million, of which $196 million was attributable to the Cash Payment Option provided by the Consolidated GGA and presented in prepaid expenses and other in the Condensed Consolidated Balance Sheet and $29 million was attributable to the residual rate relief realizable upon the in-service date of the Mountain Valley Pipeline and presented in contract asset in the Condensed Consolidated Balance Sheet. The fair value of the contract asset was based on significant inputs that are not observable in the market and, as such, is a Level 3 fair value measurement. See Note 4 for a description of the fair value hierarchy. Key assumptions used in the fair value calculation included the following: (i) a probability-weighted estimate of the in-service date of the Mountain Valley Pipeline; (ii) an estimate of the potential exercise and timing of the Cash Payment Option; (iii) an estimated production volume forecast and (iv) a market-based weighted average cost of capital. |
Alta Acquisition
Alta Acquisition | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Alta Acquisition | Alta Acquisition On July 21, 2021, the Company completed its acquisition (the Alta Acquisition) of Alta Marcellus Development, LLC and ARD Operating, LLC and subsidiaries (together, the Alta Target Entities), pursuant to that certain Membership Interest Purchase Agreement, dated May 5, 2021 (the Alta Purchase Agreement), by and among the Company, EQT Acquisition HoldCo LLC (a wholly-owned indirect subsidiary of the Company), Alta Resources Development, LLC (Alta Resources) and the Alta Target Entities. The Alta Target Entities collectively held all of Alta Resources' upstream and midstream assets and liabilities. The purchase price for the Alta Acquisition consisted of approximately $1.0 billion in cash and 98,789,388 shares of EQT common stock, as adjusted pursuant to customary closing purchase price adjustments set forth in the Alta Purchase Agreement. The Alta Purchase Agreement has an effective date of January 1, 2021. As a result of the Alta Acquisition, the Company acquired approximately 300,000 net Northeast Marcellus acres, approximately 1.0 Bcfe per day of current net production, approximately 300 miles of midstream gathering systems, approximately 100 miles of a freshwater system and a firm transportation portfolio to premium demand markets. The Company completed the purchase price allocation for the Alta Acquisition during the second quarter of 2022, at which time the value of the assets acquired and liabilities assumed were revised. The purchase accounting adjustments recorded in 2022 were not material. Unaudited Pro Forma Information . The table below summarizes the Company's results as though the Alta Acquisition had been completed on January 1, 2021. Certain of Alta Resources' historical amounts were reclassified to conform to the Company's financial presentation of operations. The following unaudited pro forma information is provided for informational purposes only and does not represent what consolidated results of operations would have been had the Alta Acquisition occurred on January 1, 2021 nor are they necessarily indicative of future consolidated results of operations. Three Months Ended Six Months Ended (Thousands, except per share amounts) Pro forma sales of natural gas, NGLs and oil $ 1,254,006 $ 2,598,753 Pro forma loss on derivatives (1,475,430) (1,650,581) Pro forma net marketing services and other 10,051 20,654 Pro forma total operating revenues $ (211,373) $ 968,826 Pro forma net loss $ (1,009,899) $ (976,368) Pro forma net loss attributable to noncontrolling interests (62) (576) Pro forma net loss attributable to EQT Corporation $ (1,009,837) $ (975,792) Pro forma loss per share (basic and diluted) $ (3.62) $ (3.50) |
Financial Statements (Policies)
Financial Statements (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In August 2020, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2020-06, Debt with Conversion and Other Options and Derivatives and Hedging: Accounting for Convertible Instruments and Contracts in an Entity's Own Equity . This ASU simplifies accounting for convertible instruments by removing certain separation models for convertible instruments. For convertible instruments with conversion features that are not accounted for as derivatives under Accounting Standards Codification 815 or that do not result in substantial premiums accounted for as paid-in capital, the convertible instrument's embedded conversion features are no longer separated from the host contract. Consequently, and as long as no other feature requires bifurcation and recognition as a derivative, the convertible instrument is accounted for as a single liability measured at its amortized cost. Under ASU 2020-06, entities are required to use the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS). The if-converted method assumes share settlement of the instrument, which increases the number of potentially dilutive securities used to calculate diluted EPS. This ASU also adds several new disclosure requirements. The Company adopted this ASU effective as of January 1, 2022 using the full retrospective method of adoption. The following tables present the impact of the adoption of ASU 2020-06 on the Company's previously reported historical results. See Note 6 for discussion of the Convertible Notes (defined in Note 6). Three Months Ended June 30, 2021 As Reported ASU 2020-06 Adoption Adjustment As Adjusted (Thousands, except per share amounts) Interest expense $ 76,986 $ (4,732) $ 72,254 Income tax benefit (347,846) 1,535 (346,311) Net loss (936,519) 3,197 (933,322) Less: Net loss attributable to noncontrolling interest (62) — (62) Net loss attributable to EQT Corporation $ (936,457) $ 3,197 $ (933,260) Basic and diluted: Weighted average common stock outstanding (a) 279,156 — 279,156 Loss per share of common stock attributable to EQT Corporation $ (3.35) $ 0.01 $ (3.34) (a) For the three months ended June 30, 2021, diluted weighted average common stock outstanding did not change because the potentially dilutive securities had an anti-dilutive effect on loss per share. Six Months Ended June 30, 2021 As Reported ASU 2020-06 Adoption Adjustment As Adjusted (Thousands, except per share amounts) Interest expense $ 152,085 $ (9,358) $ 142,727 Income tax benefit (362,340) 3,070 (359,270) Net loss (977,551) 6,288 (971,263) Less: Net loss attributable to noncontrolling interest (576) — (576) Net loss attributable to EQT Corporation $ (976,975) $ 6,288 $ (970,687) Basic and diluted: Weighted average common stock outstanding (a) 278,996 — 278,996 Loss per share of common stock attributable to EQT Corporation $ (3.50) $ 0.02 $ (3.48) (a) For the six months ended June 30, 2021, diluted weighted average common stock outstanding did not change because the potentially dilutive securities had an anti-dilutive effect on loss per share. December 31, 2021 As Reported ASU 2020-06 Adoption Adjustment As Adjusted (Thousands) Current portion of debt (a) $ 954,900 $ 106,070 $ 1,060,970 Deferred income taxes 938,612 (31,306) 907,306 Common stock, no par value 10,167,963 (96,143) 10,071,820 Accumulated deficit (115,779) 21,379 (94,400) (a) Pursuant to the terms of the Convertible Notes indenture, a sale price condition for conversion of the Convertible Notes was satisfied as of December 31, 2021, and, accordingly, holders of the Convertible Notes were permitted to convert any of their Convertible Notes at their option at any time during the three months ended March 31, 2022, subject to all terms and conditions set forth in the Convertible Notes indenture. Therefore, as of December 31, 2021, the net carrying value of the Convertible Notes was included in current portion of debt in the Consolidated Balance Sheet. Certain line items in the Statement of Condensed Consolidated Cash Flows for the six months ended June 30, 2021 were adjusted to reflect the impact of the adoption of ASU 2020-06; however, the adoption did not impact cash and did not change net cash provided by operating, investing or financing activities. |
Financial Statements (Tables)
Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounting Standards Update and Change in Accounting Principle | The Company adopted this ASU effective as of January 1, 2022 using the full retrospective method of adoption. The following tables present the impact of the adoption of ASU 2020-06 on the Company's previously reported historical results. See Note 6 for discussion of the Convertible Notes (defined in Note 6). Three Months Ended June 30, 2021 As Reported ASU 2020-06 Adoption Adjustment As Adjusted (Thousands, except per share amounts) Interest expense $ 76,986 $ (4,732) $ 72,254 Income tax benefit (347,846) 1,535 (346,311) Net loss (936,519) 3,197 (933,322) Less: Net loss attributable to noncontrolling interest (62) — (62) Net loss attributable to EQT Corporation $ (936,457) $ 3,197 $ (933,260) Basic and diluted: Weighted average common stock outstanding (a) 279,156 — 279,156 Loss per share of common stock attributable to EQT Corporation $ (3.35) $ 0.01 $ (3.34) (a) For the three months ended June 30, 2021, diluted weighted average common stock outstanding did not change because the potentially dilutive securities had an anti-dilutive effect on loss per share. Six Months Ended June 30, 2021 As Reported ASU 2020-06 Adoption Adjustment As Adjusted (Thousands, except per share amounts) Interest expense $ 152,085 $ (9,358) $ 142,727 Income tax benefit (362,340) 3,070 (359,270) Net loss (977,551) 6,288 (971,263) Less: Net loss attributable to noncontrolling interest (576) — (576) Net loss attributable to EQT Corporation $ (976,975) $ 6,288 $ (970,687) Basic and diluted: Weighted average common stock outstanding (a) 278,996 — 278,996 Loss per share of common stock attributable to EQT Corporation $ (3.50) $ 0.02 $ (3.48) (a) For the six months ended June 30, 2021, diluted weighted average common stock outstanding did not change because the potentially dilutive securities had an anti-dilutive effect on loss per share. December 31, 2021 As Reported ASU 2020-06 Adoption Adjustment As Adjusted (Thousands) Current portion of debt (a) $ 954,900 $ 106,070 $ 1,060,970 Deferred income taxes 938,612 (31,306) 907,306 Common stock, no par value 10,167,963 (96,143) 10,071,820 Accumulated deficit (115,779) 21,379 (94,400) (a) Pursuant to the terms of the Convertible Notes indenture, a sale price condition for conversion of the Convertible Notes was satisfied as of December 31, 2021, and, accordingly, holders of the Convertible Notes were permitted to convert any of their Convertible Notes at their option at any time during the three months ended March 31, 2022, subject to all terms and conditions set forth in the Convertible Notes indenture. Therefore, as of December 31, 2021, the net carrying value of the Convertible Notes was included in current portion of debt in the Consolidated Balance Sheet. |
Schedule of Cash Flow, Supplemental Disclosures | The following table summarizes net cash paid for interest and income taxes and non-cash activity included in the Statements of Condensed Consolidated Cash Flows. Six Months Ended June 30, 2022 2021 (Thousands) Cash paid during the period for: Interest, net of amount capitalized $ 133,269 $ 127,082 Income taxes, net 6,415 21,768 Non-cash activity during the period for: Increase in asset retirement costs and obligations $ 10,245 $ 1,943 Capitalization of non-cash equity share-based compensation 2,550 2,499 Increase in right-of-use assets and lease liabilities, net 819 1,091 Issuance of common stock for Convertible Notes settlements (see Note 6) 38 — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The table below provides disaggregated information on the Company's revenues. Certain other revenue contracts are outside the scope of ASU 2014-09, Revenue from Contracts with Customers . These contracts are reported in net marketing services and other in the Statements of Condensed Consolidated Operations. Derivative contracts are also outside the scope of ASU 2014-09. Three Months Ended Six Months Ended 2022 2021 2022 2021 (Thousands) Revenues from contracts with customers: Natural gas sales $ 3,175,155 $ 953,385 $ 5,464,520 $ 1,966,465 NGLs sales 167,849 102,361 341,352 202,618 Oil sales 22,207 22,158 45,963 39,772 Total revenues from contracts with customers $ 3,365,211 $ 1,077,904 $ 5,851,835 $ 2,208,855 Other sources of revenue: Loss on derivatives (845,095) (1,345,532) (3,922,732) (1,534,345) Net marketing services and other 7,392 7,512 19,295 15,297 Total operating revenues $ 2,527,508 $ (260,116) $ 1,948,398 $ 689,807 |
Summary of Transaction Price Allocation | The following table summarizes the transaction price allocated to the Company's remaining performance obligations on all contracts with fixed consideration as of June 30, 2022. Amounts shown exclude contracts that qualified for the exception to the relative standalone selling price method as of June 30, 2022. 2022 (a) 2023 Total (Thousands) Natural gas sales $ 12,148 $ 10,747 $ 22,895 (a) July 1 through December 31. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Offsetting Assets | The table below summarizes the impact of netting agreements and margin deposits on gross derivative assets and liabilities. Gross derivative instruments recorded in the Condensed Consolidated Balance Sheets Derivative instruments subject to Margin requirements with counterparties Net derivative instruments (Thousands) June 30, 2022 Asset derivative instruments, at fair value $ 1,409,199 $ (1,363,094) $ — $ 46,105 Liability derivative instruments, at fair value 4,568,003 (1,363,094) (347,426) 2,857,483 December 31, 2021 Asset derivative instruments, at fair value $ 543,337 $ (468,266) $ — $ 75,071 Liability derivative instruments, at fair value 2,413,608 (468,266) (147,773) 1,797,569 |
Offsetting Liabilities | The table below summarizes the impact of netting agreements and margin deposits on gross derivative assets and liabilities. Gross derivative instruments recorded in the Condensed Consolidated Balance Sheets Derivative instruments subject to Margin requirements with counterparties Net derivative instruments (Thousands) June 30, 2022 Asset derivative instruments, at fair value $ 1,409,199 $ (1,363,094) $ — $ 46,105 Liability derivative instruments, at fair value 4,568,003 (1,363,094) (347,426) 2,857,483 December 31, 2021 Asset derivative instruments, at fair value $ 543,337 $ (468,266) $ — $ 75,071 Liability derivative instruments, at fair value 2,413,608 (468,266) (147,773) 1,797,569 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The table below summarizes assets and liabilities measured at fair value on a recurring basis. Gross derivative instruments recorded in the Condensed Consolidated Balance Sheets Fair value measurements at reporting date using: Quoted prices in active Significant other observable inputs Significant unobservable inputs (Thousands) June 30, 2022 Asset derivative instruments, at fair value $ 1,409,199 $ 297,009 $ 1,112,190 $ — Liability derivative instruments, at fair value 4,568,003 222,871 4,345,132 — December 31, 2021 Asset derivative instruments, at fair value $ 543,337 $ 66,833 $ 476,504 $ — Liability derivative instruments, at fair value 2,413,608 126,053 2,287,555 — |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | The table below summarizes the Company's outstanding debt. June 30, 2022 December 31, 2021 Principal Value Carrying Value (a) Principal Value Carrying Value (a) (Thousands) Credit Facility expiring June 28, 2027 $ 100,000 $ 100,000 $ — $ — Senior notes: 3.00% notes due October 1, 2022 — — 568,823 567,909 7.42% series B notes due 2023 10,000 10,000 10,000 10,000 6.625% notes due February 1, 2025 (b) 995,315 990,848 1,000,000 994,643 1.75% convertible notes due May 1, 2026 434,856 425,225 499,991 487,543 3.125% notes due May 15, 2026 497,694 491,661 500,000 493,157 7.75% debentures due July 15, 2026 115,000 112,970 115,000 112,721 3.90% notes due October 1, 2027 1,250,000 1,243,919 1,250,000 1,243,340 5.00% notes due January 15, 2029 349,565 344,771 350,000 344,835 7.500% notes due February 1, 2030 (b) 737,650 732,498 750,000 744,417 3.625% notes due May 15, 2031 500,000 493,060 500,000 492,669 Note payable to EQM 97,117 97,117 99,838 99,838 Total debt 5,087,197 5,042,069 5,643,652 5,591,072 Less: Current portion of debt (c) 450,531 440,900 1,074,332 1,060,970 Long-term debt $ 4,636,666 $ 4,601,169 $ 4,569,320 $ 4,530,102 (a) For the Company's credit facility and note payable to EQM, the principal value represents the carrying value. For all other debt, the principal value less the unamortized debt issuance costs and debt discounts represents the carrying value. (b) Interest rates for this tranche of the Company's senior notes fluctuate based on changes to the credit ratings assigned to the Company's senior notes by Moody's, S&P and Fitch. Interest rates on the Company's other outstanding senior notes do not fluctuate based on changes to the credit ratings assigned to its senior notes by Moody's, S&P and Fitch. (c) As of June 30, 2022, the current portion of debt includes the 7.42% series B notes, the 1.75% convertible notes (described below) and a portion of the note payable to EQM. As of December 31, 2021, the current portion of debt includes the 3.00% notes, the 1.75% convertible notes and a portion of the note payable to EQM. |
Schedule of Debt Instrument Redemption | The Company redeemed or repurchased the following debt during the six months ended June 30, 2022. Debt Tranche Principal (a) Premiums/(Discounts) (a) Accrued but Unpaid Interest Total Cost (Thousands) 3.00% notes due October 1, 2022 $ 568,823 $ 5,546 $ 7,150 $ 581,519 6.625% notes due February 1, 2025 4,685 142 130 4,957 1.75% convertible notes due May 1, 2026 65,096 101,879 186 167,161 3.125% notes due May 15, 2026 2,306 (143) 10 2,173 5.00% notes due January 15, 2029 435 (15) 10 430 7.500% notes due February 1, 2030 12,350 877 387 13,614 (a) Of the total principal repurchased and premiums recorded during the six months ended June 30, 2022, approximately $80 million and $94 million, respectively, were accrued but not yet paid as of June 30, 2022 due to the timing of settlements. The Company redeemed or repurchased the following debt during the period beginning July 1, 2022 and ending July 26, 2022. Debt Tranche Principal Premiums/(Discounts) Accrued but Unpaid Interest Total Cost (Thousands) 6.625% notes due February 1, 2025 $ 79,721 $ 2,904 $ 2,491 $ 85,116 1.75% convertible notes due May 1, 2026 20,000 26,027 64 46,091 3.125% notes due May 15, 2026 34,340 (1,907) 177 32,610 3.90% notes due October 1, 2027 15,567 (643) 188 15,112 5.00% notes due January 15, 2029 13,111 (430) 185 12,866 7.500% notes due February 1, 2030 7,650 551 253 8,454 3.625% notes due May 15, 2031 4,835 (601) 28 4,262 |
Schedule of Convertible Debt | The following table summarizes Convertible Notes conversion right exercises from issuance through July 22, 2022. The Company elected to settle all such conversions by issuing to the converting holders shares of EQT common stock. Settlement Month Principal Converted Shares Issued Average Conversion Price (Thousands) September 2021 $ 9 599 $ 19.64 March 2022 8 536 33.65 April 2022 26 1,742 34.78 July 2022 5 335 36.91 The table below summarizes the net carrying value and fair value of the Convertible Notes. June 30, 2022 December 31, 2021 (Thousands) Principal $ 434,856 $ 499,991 Less: Unamortized debt issuance costs 9,631 12,448 Net carrying value of Convertible Notes $ 425,225 $ 487,543 Fair value of Convertible Notes (a) $ 1,036,292 $ 854,985 (a) The fair value is a Level 2 fair value measurement. See Note 4. The table below summarizes the components of interest expense related to the Convertible Notes. The effective interest rate for the Convertible Notes is 2.4%. Three Months Ended Six Months Ended 2022 2021 2022 2021 (Thousands) Contractual interest expense $ 2,183 $ 2,187 $ 4,370 $ 4,375 Amortization of issuance costs 687 672 1,371 1,341 Total Convertible Notes interest expense $ 2,870 $ 2,859 $ 5,741 $ 5,716 |
Alta Acquisition (Tables)
Alta Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Unaudited Pro Forma Information | The following unaudited pro forma information is provided for informational purposes only and does not represent what consolidated results of operations would have been had the Alta Acquisition occurred on January 1, 2021 nor are they necessarily indicative of future consolidated results of operations. Three Months Ended Six Months Ended (Thousands, except per share amounts) Pro forma sales of natural gas, NGLs and oil $ 1,254,006 $ 2,598,753 Pro forma loss on derivatives (1,475,430) (1,650,581) Pro forma net marketing services and other 10,051 20,654 Pro forma total operating revenues $ (211,373) $ 968,826 Pro forma net loss $ (1,009,899) $ (976,368) Pro forma net loss attributable to noncontrolling interests (62) (576) Pro forma net loss attributable to EQT Corporation $ (1,009,837) $ (975,792) Pro forma loss per share (basic and diluted) $ (3.62) $ (3.50) |
Financial Statements - Schedule
Financial Statements - Schedule of Accounting Standards Update and Change in Accounting Principle (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Interest expense | $ 65,985 | $ 72,254 | $ 133,887 | $ 142,727 | |
Income tax expense (benefit) | 308,234 | (346,311) | (157,463) | (359,270) | |
Net income (loss) | 894,224 | (933,322) | (620,359) | (971,263) | |
Less: Net income (loss) attributable to noncontrolling interests | 2,863 | (62) | 4,328 | (576) | |
Net income (loss) attributable to EQT Corporation | $ 891,361 | $ (933,260) | $ (624,687) | $ (970,687) | |
Basic and diluted: | |||||
Weighted average common stock outstanding - Basic (in shares) | 369,866 | 279,156 | 372,023 | 278,996 | |
Weighted average common stock outstanding - Diluted (in shares) | 407,303 | 279,156 | 372,023 | 278,996 | |
Loss per share of common stock attributable to EQT Corporation - Basic (in dollars per share) | $ 2.41 | $ (3.34) | $ (1.68) | $ (3.48) | |
Loss per share of common stock attributable to EQT Corporation - Diluted (in dollars per share) | $ 2.19 | $ (3.34) | $ (1.68) | $ (3.48) | |
Current portion of debt | $ 440,900 | $ 440,900 | $ 1,060,970 | ||
Deferred income taxes | 742,670 | 742,670 | 907,306 | ||
Common stock, no par value | 9,948,646 | 9,948,646 | 10,071,820 | ||
Accumulated deficit | $ (880,127) | $ (880,127) | (94,400) | ||
As Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Interest expense | $ 76,986 | $ 152,085 | |||
Income tax expense (benefit) | (347,846) | (362,340) | |||
Net income (loss) | (936,519) | (977,551) | |||
Less: Net income (loss) attributable to noncontrolling interests | (62) | (576) | |||
Net income (loss) attributable to EQT Corporation | $ (936,457) | $ (976,975) | |||
Basic and diluted: | |||||
Weighted average common stock outstanding - Basic (in shares) | 279,156 | 278,996 | |||
Weighted average common stock outstanding - Diluted (in shares) | 279,156 | 278,996 | |||
Loss per share of common stock attributable to EQT Corporation - Basic (in dollars per share) | $ (3.35) | $ (3.50) | |||
Loss per share of common stock attributable to EQT Corporation - Diluted (in dollars per share) | $ (3.35) | $ (3.50) | |||
Current portion of debt | 954,900 | ||||
Deferred income taxes | 938,612 | ||||
Common stock, no par value | 10,167,963 | ||||
Accumulated deficit | (115,779) | ||||
ASU 2020-06 Adoption Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Interest expense | $ (4,732) | $ (9,358) | |||
Income tax expense (benefit) | 1,535 | 3,070 | |||
Net income (loss) | 3,197 | 6,288 | |||
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | |||
Net income (loss) attributable to EQT Corporation | $ 3,197 | $ 6,288 | |||
Basic and diluted: | |||||
Weighted average common stock outstanding - Basic (in shares) | 0 | 0 | |||
Weighted average common stock outstanding - Diluted (in shares) | 0 | 0 | |||
Loss per share of common stock attributable to EQT Corporation - Basic (in dollars per share) | $ 0.01 | $ 0.02 | |||
Loss per share of common stock attributable to EQT Corporation - Diluted (in dollars per share) | $ 0.01 | $ 0.02 | |||
Current portion of debt | 106,070 | ||||
Deferred income taxes | (31,306) | ||||
Common stock, no par value | (96,143) | ||||
Accumulated deficit | $ 21,379 |
Financial Statements - Schedu_2
Financial Statements - Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash paid during the period for: | |||
Interest, net of amount capitalized | $ 133,269 | $ 127,082 | |
Income taxes, net | 6,415 | 21,768 | |
Non-cash activity during the period for: | |||
Increase in asset retirement costs and obligations | 10,245 | 1,943 | |
Capitalization of non-cash equity share-based compensation | 2,550 | 2,499 | |
Increase in right-of-use assets and lease liabilities, net | 819 | 1,091 | |
Issuance of common stock for Convertible Notes settlements (see Note 6) | $ 30 | $ 38 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue | ||
Amounts due from contracts with customers | $ 1,558.1 | $ 1,093.9 |
Natural Gas, Oil, and NGLs Sales | ||
Disaggregation of Revenue | ||
Number of days in which payment is required | 25 days |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue | ||||
Total revenues from contracts with customers | $ 3,365,211 | $ 1,077,904 | $ 5,851,835 | $ 2,208,855 |
Loss on derivatives | (845,095) | (1,345,532) | (3,922,732) | (1,534,345) |
Total operating revenues | 2,527,508 | (260,116) | 1,948,398 | 689,807 |
Natural gas sales | ||||
Disaggregation of Revenue | ||||
Total revenues from contracts with customers | 3,175,155 | 953,385 | 5,464,520 | 1,966,465 |
NGLs sales | ||||
Disaggregation of Revenue | ||||
Total revenues from contracts with customers | 167,849 | 102,361 | 341,352 | 202,618 |
Oil sales | ||||
Disaggregation of Revenue | ||||
Total revenues from contracts with customers | 22,207 | 22,158 | 45,963 | 39,772 |
Net marketing services and other | ||||
Disaggregation of Revenue | ||||
Net marketing services and other | $ 7,392 | $ 7,512 | $ 19,295 | $ 15,297 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Remaining Performance Obligations (Details) - Natural gas sales $ in Thousands | Jun. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 22,895 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 12,148 |
Remaining performance obligation, expected timing of satisfaction, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 10,747 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) Bcf | Jun. 30, 2022 USD ($) MBbls | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) Bcf | Dec. 31, 2021 USD ($) MBbls | Jun. 30, 2020 USD ($) | |
Derivative Instruments, Gain (Loss) | ||||||||
Maximum additional collateral as percentage of derivative liability | 100% | |||||||
Aggregate fair value of derivative instruments with credit-risk related contingencies | $ 465,000,000 | $ 465,000,000 | $ 465,000,000 | $ 465,000,000 | $ 594,900,000 | $ 594,900,000 | ||
Collateral posted | 238,000,000 | 238,000,000 | 238,000,000 | 238,000,000 | 100,000 | 100,000 | ||
Derivative instruments, at fair value | 1,409,199,000 | 1,409,199,000 | 1,409,199,000 | 1,409,199,000 | 543,337,000 | 543,337,000 | ||
Disposal Group, Not Discontinued Operations | 2020 Divestiture | ||||||||
Derivative Instruments, Gain (Loss) | ||||||||
Potential contingent consideration | $ 20,000,000 | |||||||
Derivative instruments, at fair value | 3,900,000 | 3,900,000 | 3,900,000 | 3,900,000 | 8,200,000 | 8,200,000 | ||
Contingent consideration received | 4,500,000 | $ 600,000 | ||||||
OTC Derivative Instrument Contracts | ||||||||
Derivative Instruments, Gain (Loss) | ||||||||
Aggregate fair value of derivative instruments with credit-risk related contingencies | 0 | 0 | 0 | 0 | 0 | 0 | ||
Commodity derivatives | ||||||||
Derivative Instruments, Gain (Loss) | ||||||||
Derivative instruments, at fair value | 1,409,199,000 | 1,409,199,000 | 1,409,199,000 | 1,409,199,000 | 543,337,000 | 543,337,000 | ||
Henry hub cash bonus | ||||||||
Derivative Instruments, Gain (Loss) | ||||||||
Derivative liability | 53,000,000 | 53,000,000 | 53,000,000 | 53,000,000 | 111,000,000 | 111,000,000 | ||
Exchange traded natural gas contracts | ||||||||
Derivative Instruments, Gain (Loss) | ||||||||
Collateral posted | $ 109,400,000 | $ 109,400,000 | $ 109,400,000 | $ 109,400,000 | $ 147,700,000 | $ 147,700,000 | ||
Cash flow hedging | Commodity derivatives | ||||||||
Derivative Instruments, Gain (Loss) | ||||||||
Volume of derivative instruments (in Bcf, Mbbls) | 2,227 | 1,830 | 2,184 | 3,055 |
Derivative Instruments - Impact
Derivative Instruments - Impact of Netting Agreements and Margin Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Asset derivative instruments, at fair value | ||
Gross derivative instruments recorded in the Condensed Consolidated Balance Sheets | $ 1,409,199 | $ 543,337 |
Liability derivative instruments, at fair value | ||
Gross derivative instruments recorded in the Condensed Consolidated Balance Sheets | 4,568,003 | 2,413,608 |
Commodity derivatives | ||
Asset derivative instruments, at fair value | ||
Gross derivative instruments recorded in the Condensed Consolidated Balance Sheets | 1,409,199 | 543,337 |
Derivative instruments subject to master netting agreements | (1,363,094) | (468,266) |
Margin requirements with counterparties | 0 | 0 |
Net derivative instruments | 46,105 | 75,071 |
Liability derivative instruments, at fair value | ||
Gross derivative instruments recorded in the Condensed Consolidated Balance Sheets | 4,568,003 | 2,413,608 |
Derivative instruments subject to master netting agreements | (1,363,094) | (468,266) |
Margin requirements with counterparties | (347,426) | (147,773) |
Net derivative instruments | $ 2,857,483 | $ 1,797,569 |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivative Instrument Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Asset derivative instruments, at fair value | $ 1,409,199 | $ 543,337 |
Derivative instruments, at fair value | 4,568,003 | 2,413,608 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Asset derivative instruments, at fair value | 297,009 | 66,833 |
Derivative instruments, at fair value | 222,871 | 126,053 |
Recurring | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Asset derivative instruments, at fair value | 1,112,190 | 476,504 |
Derivative instruments, at fair value | 4,345,132 | 2,287,555 |
Recurring | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Asset derivative instruments, at fair value | 0 | 0 |
Derivative instruments, at fair value | 0 | 0 |
Recurring | Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Asset derivative instruments, at fair value | 1,409,199 | 543,337 |
Derivative instruments, at fair value | $ 4,568,003 | $ 2,413,608 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Apr. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Proceeds from sale of investment shares | $ 189,249 | $ 0 | ||
Net carrying value of Convertible Notes | 5,042,069 | $ 5,591,072 | ||
Equitrans Midstream | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Proceeds from sale of investment shares | $ 189,000 | |||
Note payable to EQM | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Net carrying value of Convertible Notes | 97,000 | 100,000 | ||
Estimated fair value of long-term debt | 102,000 | 118,000 | ||
Senior Notes | Significant other observable inputs (Level 2) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||||
Carrying value of total debt | 5,400,000 | 6,500,000 | ||
Net carrying value of Convertible Notes | $ 4,800,000 | $ 5,500,000 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax | 20.20% | 27% |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | May 17, 2021 | Apr. 30, 2020 |
Debt Instrument [Line Items] | ||||
Principal Value | $ 5,087,197 | $ 5,643,652 | ||
Long-Term Debt, Total | 5,042,069 | 5,591,072 | ||
Less: Current portion of debt, principal value | 450,531 | 1,074,332 | ||
Less: Current portion of debt, carrying value | 440,900 | 1,060,970 | ||
Total long-term debt, principal value | 4,636,666 | 4,569,320 | ||
Total long-term debt, carrying value | 4,601,169 | 4,530,102 | ||
Credit Facility expiring June 28, 2027 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Principal Value | 100,000 | 0 | ||
Long-Term Debt, Total | 100,000 | 0 | ||
3.00% notes due October 1, 2022 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Value | 0 | 568,823 | ||
Long-Term Debt, Total | $ 0 | $ 567,909 | ||
Interest rate, stated percentage | 300% | 3% | ||
7.42% series B notes due 2023 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Value | $ 10,000 | $ 10,000 | ||
Long-Term Debt, Total | $ 10,000 | 10,000 | ||
Interest rate, stated percentage | 742% | |||
6.625% notes due February 1, 2025 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Value | $ 995,315 | 1,000,000 | ||
Long-Term Debt, Total | $ 990,848 | 994,643 | ||
Interest rate, stated percentage | 662.50% | |||
1.75% convertible notes due May 1, 2026 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Value | $ 434,856 | 499,991 | $ 500,000 | |
Long-Term Debt, Total | $ 425,225 | $ 487,543 | ||
Interest rate, stated percentage | 175% | 1.75% | 1.75% | |
3.125% notes due May 15, 2026 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Value | $ 497,694 | $ 500,000 | $ 500,000 | |
Long-Term Debt, Total | $ 491,661 | 493,157 | ||
Interest rate, stated percentage | 312.50% | 3.125% | ||
7.75% debentures due July 15, 2026 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Value | $ 115,000 | 115,000 | ||
Long-Term Debt, Total | $ 112,970 | 112,721 | ||
Interest rate, stated percentage | 775% | |||
3.90% notes due October 1, 2027 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Value | $ 1,250,000 | 1,250,000 | ||
Long-Term Debt, Total | $ 1,243,919 | 1,243,340 | ||
Interest rate, stated percentage | 390% | |||
5.00% notes due January 15, 2029 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Value | $ 349,565 | 350,000 | ||
Long-Term Debt, Total | $ 344,771 | 344,835 | ||
Interest rate, stated percentage | 500% | |||
7.500% notes due February 1, 2030 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Value | $ 737,650 | 750,000 | ||
Long-Term Debt, Total | $ 732,498 | 744,417 | ||
Interest rate, stated percentage | 750% | |||
3.625% notes due May 15, 2031 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal Value | $ 500,000 | 500,000 | $ 500,000 | |
Long-Term Debt, Total | $ 493,060 | 492,669 | ||
Interest rate, stated percentage | 362.50% | 3.625% | ||
Note payable to EQM | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Total | $ 97,000 | 100,000 | ||
Note payable to EQM | Note payable to EQM | ||||
Debt Instrument [Line Items] | ||||
Principal Value | 97,117 | 99,838 | ||
Long-Term Debt, Total | $ 97,117 | $ 99,838 |
Debt - Debt Instrument Redempti
Debt - Debt Instrument Redemption (Details) - Senior Notes - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Jul. 26, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | May 17, 2021 | Apr. 30, 2020 | |
Accrued but not yet paid | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 80,000 | ||||
Premiums/(Discounts) | $ 94,000 | ||||
3.00% notes due October 1, 2022 | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 300% | 3% | |||
Principal | $ 568,823 | ||||
Premiums/(Discounts) | 5,546 | ||||
Accrued but Unpaid Interest | 7,150 | ||||
Total Cost | $ 581,519 | ||||
6.625% notes due February 1, 2025 | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 662.50% | ||||
Principal | $ 4,685 | ||||
Premiums/(Discounts) | 142 | ||||
Accrued but Unpaid Interest | 130 | ||||
Total Cost | $ 4,957 | ||||
6.625% notes due February 1, 2025 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 79,721 | ||||
Premiums/(Discounts) | 2,904 | ||||
Accrued but Unpaid Interest | 2,491 | ||||
Total Cost | 85,116 | ||||
1.75% convertible notes due May 1, 2026 | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 175% | 1.75% | 1.75% | ||
Principal | $ 65,096 | ||||
Premiums/(Discounts) | 101,879 | ||||
Accrued but Unpaid Interest | 186 | ||||
Total Cost | $ 167,161 | ||||
1.75% convertible notes due May 1, 2026 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Principal | 20,000 | ||||
Premiums/(Discounts) | 26,027 | ||||
Accrued but Unpaid Interest | 64 | ||||
Total Cost | 46,091 | ||||
3.125% notes due May 15, 2026 | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 312.50% | 3.125% | |||
Principal | $ 2,306 | ||||
Premiums/(Discounts) | (143) | ||||
Accrued but Unpaid Interest | 10 | ||||
Total Cost | $ 2,173 | ||||
3.125% notes due May 15, 2026 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Principal | 34,340 | ||||
Premiums/(Discounts) | (1,907) | ||||
Accrued but Unpaid Interest | 177 | ||||
Total Cost | 32,610 | ||||
3.90% notes due October 1, 2027 | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 390% | ||||
3.90% notes due October 1, 2027 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Principal | 15,567 | ||||
Premiums/(Discounts) | (643) | ||||
Accrued but Unpaid Interest | 188 | ||||
Total Cost | 15,112 | ||||
5.00% notes due January 15, 2029 | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 500% | ||||
Principal | $ 435 | ||||
Premiums/(Discounts) | (15) | ||||
Accrued but Unpaid Interest | 10 | ||||
Total Cost | $ 430 | ||||
5.00% notes due January 15, 2029 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Principal | 13,111 | ||||
Premiums/(Discounts) | (430) | ||||
Accrued but Unpaid Interest | 185 | ||||
Total Cost | 12,866 | ||||
7.500% notes due February 1, 2030 | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 750% | ||||
Principal | $ 12,350 | ||||
Premiums/(Discounts) | 877 | ||||
Accrued but Unpaid Interest | 387 | ||||
Total Cost | $ 13,614 | ||||
7.500% notes due February 1, 2030 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Principal | 7,650 | ||||
Premiums/(Discounts) | 551 | ||||
Accrued but Unpaid Interest | 253 | ||||
Total Cost | 8,454 | ||||
3.625% notes due May 15, 2031 | |||||
Debt Instrument [Line Items] | |||||
Interest rate, stated percentage | 362.50% | 3.625% | |||
3.625% notes due May 15, 2031 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Principal | 4,835 | ||||
Premiums/(Discounts) | (601) | ||||
Accrued but Unpaid Interest | 28 | ||||
Total Cost | $ 4,262 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jun. 28, 2022 USD ($) extension | May 17, 2021 USD ($) | Apr. 23, 2020 $ / shares | Apr. 30, 2020 USD ($) d $ / shares | Jun. 30, 2022 USD ($) $ / shares | Mar. 31, 2022 | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Line of Credit Facility | |||||||||||
Principal | $ 5,087,197 | $ 5,087,197 | $ 5,087,197 | $ 5,643,652 | |||||||
Redemption price, percentage | 100% | ||||||||||
Convertible note, measurement period trading days | d | 5 | ||||||||||
Convertible notes, measurement period consecutive trading days | d | 5 | ||||||||||
Strike price (in dollars per share) | $ / shares | $ 15 | ||||||||||
Capped price (in dollars per share) | $ / shares | $ 18.75 | ||||||||||
Payment of debt premium charges | $ 32,500 | ||||||||||
Closing stock price (in dollars per share) | $ / shares | $ 34.40 | $ 34.40 | $ 34.40 | ||||||||
3.125% notes due May 15, 2026 | Senior Notes | |||||||||||
Line of Credit Facility | |||||||||||
Interest rate, stated percentage | 3.125% | 312.50% | 312.50% | 312.50% | |||||||
Principal | $ 500,000 | $ 497,694 | $ 497,694 | $ 497,694 | 500,000 | ||||||
3.625% notes due May 15, 2031 | Senior Notes | |||||||||||
Line of Credit Facility | |||||||||||
Interest rate, stated percentage | 3.625% | 362.50% | 362.50% | 362.50% | |||||||
Principal | $ 500,000 | $ 500,000 | $ 500,000 | $ 500,000 | $ 500,000 | ||||||
3.125% Senior Notes and 3.625% Senior Notes | Senior Notes | |||||||||||
Line of Credit Facility | |||||||||||
Offering cost | 15,600 | ||||||||||
Proceeds from debt | $ 984,400 | ||||||||||
1.75% convertible notes due May 1, 2026 | Senior Notes | |||||||||||
Line of Credit Facility | |||||||||||
Interest rate, stated percentage | 1.75% | 175% | 175% | 175% | 1.75% | ||||||
Principal | $ 500,000 | $ 434,856 | $ 434,856 | $ 434,856 | $ 499,991 | ||||||
Convertible notes, trading days | d | 20 | ||||||||||
Convertible notes, consecutive trading days | d | 30 | ||||||||||
Redemption price, percentage | 130% | ||||||||||
Minimum trigger price as percentage | 98% | ||||||||||
Convertible notes, conversion ratio | 0.066667 | 0.0672836 | 0.0670535 | ||||||||
Initial conversion price (in dollars per share) | $ / shares | $ 15 | ||||||||||
Conversion premium, percent | 20% | ||||||||||
Convertible closing price (in dollars per share) | $ / shares | $ 12.50 | ||||||||||
If-converted value | 572,000 | ||||||||||
Credit Facility | EQT 2.5 Billion Facility | |||||||||||
Line of Credit Facility | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 2,500,000 | 2,500,000 | 2,500,000 | ||||||||
Letters of credit outstanding under revolving credit facility | $ 208,000 | 208,000 | 208,000 | $ 440,000 | |||||||
Maximum amount of outstanding short-term loans at any time during the period | 1,300,000 | $ 578,000 | 1,300,000 | $ 890,000 | |||||||
Average daily balance of short-term loans outstanding during the period | $ 844,000 | $ 236,000 | $ 576,000 | $ 188,000 | |||||||
Weighted average interest rates of average daily balance of short-term loans | 2.30% | 2.10% | 2.20% | 2.10% | |||||||
Credit Facility | PNC Bank, National Association | |||||||||||
Line of Credit Facility | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 500,000 | ||||||||||
Number of extensions | extension | 2 | ||||||||||
Extension term | 1 year |
Debt - Summary of EQT common St
Debt - Summary of EQT common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | |||
Jul. 22, 2022 | Apr. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | |
September 2021 | ||||
Line of Credit Facility | ||||
Principal Converted | $ 9 | |||
Shares Issued (in shares) | 599 | |||
Average Conversion Price (in USD per share) | $ 19.64 | |||
March 2022 | ||||
Line of Credit Facility | ||||
Principal Converted | $ 8 | |||
Shares Issued (in shares) | 536 | |||
Average Conversion Price (in USD per share) | $ 33.65 | |||
April 2022 | ||||
Line of Credit Facility | ||||
Principal Converted | $ 26 | |||
Shares Issued (in shares) | 1,742 | |||
Average Conversion Price (in USD per share) | $ 34.78 | |||
July 2022 | Subsequent Event | ||||
Line of Credit Facility | ||||
Principal Converted | $ 5 | |||
Shares Issued (in shares) | 335 | |||
Average Conversion Price (in USD per share) | $ 36.91 |
Debt - Summary of Net Carrying
Debt - Summary of Net Carrying Amount of Convertible Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Apr. 30, 2020 |
Line of Credit Facility | |||
Principal | $ 5,087,197 | $ 5,643,652 | |
Net carrying value of Convertible Notes | 5,042,069 | 5,591,072 | |
1.75% convertible notes due May 1, 2026 | Senior Notes | |||
Line of Credit Facility | |||
Principal | 434,856 | 499,991 | $ 500,000 |
Less: Unamortized debt issuance costs | 9,631 | 12,448 | |
Net carrying value of Convertible Notes | 425,225 | 487,543 | |
Fair value of Convertible Notes | $ 1,036,292 | $ 854,985 |
Debt - Convertible Debt Notes (
Debt - Convertible Debt Notes (Details) - 1.75% convertible notes due May 1, 2026 - Senior Notes - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Line of Credit Facility | ||||
Effective interest rate | 2.40% | 2.40% | ||
Contractual interest expense | $ 2,183 | $ 2,187 | $ 4,370 | $ 4,375 |
Amortization of issuance costs | 687 | 672 | 1,371 | 1,341 |
Total Convertible Notes interest expense | $ 2,870 | $ 2,859 | $ 5,741 | $ 5,716 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Potentially dilutive securities included in the calculation of diluted earnings (in shares) | 4,132,337 | |||
Potentially dilutive securities included in the calculation of diluted earnings (in shares) | 33,300,000 | |||
Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Shares excluded from potentially dilutive securities (in shares) | 7,679,584 | 6,855,482 | 7,712,354 | |
Convertible notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Shares excluded from potentially dilutive securities (in shares) | 33,300,000 | 33,400,000 | 33,300,000 |
Impairment of Contract Asset (D
Impairment of Contract Asset (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2020 | |
Noncontrolling Interest [Line Items] | |||||||
Cash payment option value for contract asset | $ 196,000 | $ 196,000 | |||||
Contract asset | $ 29,250 | $ 29,250 | 29,000 | $ 410,000 | $ 410,000 | ||
Impairment of contract asset | $ 0 | $ 0 | $ 184,945 | $ 0 | |||
Fair value of contract asset | $ 225,000 | ||||||
Equitrans Midstream | |||||||
Noncontrolling Interest [Line Items] | |||||||
Percentage of equity interest sold | 50% |
Alta Acquisition - Narrative (D
Alta Acquisition - Narrative (Details) a in Thousands, $ in Thousands | 6 Months Ended | ||
Jul. 21, 2021 USD ($) MMcfe / d a mi shares | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Business Acquisition [Line Items] | |||
Cash paid for acquisitions | $ | $ 0 | $ 209,764 | |
Alta Acquisition | |||
Business Acquisition [Line Items] | |||
Cash paid for acquisitions | $ | $ 1,000,000 | ||
Equity interest issued or issuable, number of shares (in shares) | shares | 98,789,388 | ||
Acres acquired from asset acquisition | a | 300 | ||
Units produced per day | MMcfe / d | 1,000 | ||
Miles of midstream gathering systems acquired | mi | 300 | ||
Miles acquired of freshwater system | mi | 100 |
Alta Acquisition - Unaudited Pr
Alta Acquisition - Unaudited Pro Forma Information (Details) - Alta Acquisition - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||
Pro forma sales of natural gas, NGLs and oil | $ 1,254,006 | $ 2,598,753 |
Pro forma loss on derivatives | (1,475,430) | (1,650,581) |
Pro forma net marketing services and other | 10,051 | 20,654 |
Pro forma total operating revenues | (211,373) | 968,826 |
Pro forma net loss | (1,009,899) | (976,368) |
Pro forma net loss attributable to noncontrolling interests | (62) | (576) |
Pro forma net loss attributable to EQT Corporation | $ (1,009,837) | $ (975,792) |
Pro forma income per share (basic) (in dollars per share) | $ (3.62) | $ (3.50) |
Pro forma income per share (diluted) (in dollars per share) | $ (3.62) | $ (3.50) |