EQT Corp Overview EQT Corp is an exploration and production company focused on natural gas operations whose financial profile is characterized by large swings in reported earnings alongside materially positive operating cash generation. Financial Strengths The company shows clear strength in cash generation and revenue-per-share expansion: trailing twelve‑month operating cash flow rose to $3.47B a
EQT Corp is an exploration and production company focused on natural gas operations whose financial profile is characterized by large swings in reported earnings alongside materially positive operating cash generation.
The company shows clear strength in cash generation and revenue-per-share expansion: trailing twelve‑month operating cash flow rose to $3.47B as of 2022‑12‑31 (up from roughly $1.2B–$1.5B in earlier years), and revenue per share reached $11.21 (most recent available), with one‑year revenue‑per‑share growth of 34.9%. Cash‑flow dynamics also reflect an improving financing picture — financing cash flow improved from - $699.1M (TTM) to - $367.9M by 2023‑03‑31 — which, together with persistently negative investing cash flow of - $1.42B (TTM), indicates continued reinvestment funded in part by stronger operating cash flow. Revenue & Net Income, EPS Diluted & Revenue per Share and Strategic Capital Allocation.
There are notable areas of concern on the profit and earnings front. Reported profitability has been volatile and recently negative: net income (TTM) was - $1.16B as of 2021‑12‑31 and the most recent quarterly net loss observed was - $66.6M (2023‑06‑30). Per‑share results mirror that instability with diluted EPS at - $2.84 (2021‑12‑31). Margins have swung sharply from historical highs to deep negatives — most recent gross margin was -44.0%, operating margin -61.1% and net margin -49.2% — and return on equity remained negative at -11.5% for the year ended 2021. Profit Margin Trends, Return on Equity (ROE) and Revenue & Net Income.
Key fundamentals to watch going forward are the relationship between operating cash flow and reported net income and how that gap evolves Earnings Quality Analysis and Revenue & Net Income); trends in diluted EPS and revenue per share growth (monitor EPS Diluted & Revenue per Share and Revenue & EPS Growth); margin recovery or further deterioration (see Profit Margin Trends); changes in ROE (Return on Equity); and updates to cash‑flow allocation and financing outflows as capital deployment continues (Strategic Capital Allocation) as well as any new P/E data points.
The foundation of business quality and long-term value creation
EQT Corp's recent quarterly results show pronounced volatility in net income. The most recent quarter in the series (period ended 2023-06-30) reports a net loss of $-66.6M, following a large positive net income of $683.7M in the quarter ended 2022-09-30 and substantial losses in earlier quarters (for example, $-936.5M on 2021-06-30 and $-1.59B on 2018-03-31). These swings indicate several notable inflection points between material positive spikes and deep losses across the 2017–2023 span.
Revenue data in the provided series is less current than net income; the latest revenue entry is for the quarter ended 2019-06-30 at $1.31B. Revenue has also been variable historically, with a high of $2.81B on 2018-12-31 and lower points such as $127.5M on 2016-06-30 and $318.2M on 2018-06-30. The most recent Net Income observed was $-66.6M (period end 2023-06-30) and the most recent Revenue observed in this dataset was $1.31B (period end 2019-06-30).
Why Growth Matters
Consistent revenue and earnings growth are the lifeblood of successful long-term investments. Companies that can grow their top line (revenue) and bottom line (net income) over many years demonstrate they have products or services customers value and are willing to pay for repeatedly.
Revenue Growth shows whether the company is expanding its market reach, gaining market share, or successfully launching new products.Net Income Growth demonstrates the company can convert that revenue into actual profits while managing costs effectively.
Look for steady, sustainable growth rather than erratic spikes. The best businesses compound earnings year after year, creating tremendous value for shareholders over time. Companies that can grow earnings faster than revenue are improving their profitability—a sign of operational excellence and competitive strength.
Year-over-year growth rates for revenue and earnings per share
Reading the Growth Rate Chart
This chart converts the absolute per-share figures into year-over-year percentage changes, making it easy to see whether growth is accelerating, decelerating, or reverting to trend — regardless of the company's absolute size.
Revenue per Share Growth (1-year, split-adjusted) measures how quickly the top line is expanding on a per-share basis. Sustained positive growth signals that the company continues to win customers and grow its addressable market.EPS Diluted Growth (1-year, split-adjusted) measures how quickly earnings are compounding for each shareholder. When EPS growth consistently outpaces revenue growth, operating leverage and margin expansion are at work.
Look for consistency, not just magnitude. A company that reliably grows EPS 10–15% per year is far more valuable than one that alternates between 50% spikes and deep contractions. Negative EPS growth during a period of positive revenue growth is a red flag — costs are rising faster than sales. Quarters where both lines converge near zero or go negative deserve close scrutiny.
How revenue converts to net income for the most recent annual period
Period Information
Report Type: Annual (10-K)
Period: Jan 2018 to Dec 2018
Analyzing long-term margin stability and competitive positioning
EQT Corp's margins show a long period of high gross and positive net margins through the 2009–2017 period, with gross margins commonly in the 74–99% range and net margins often positive (for example, 46.3% in 2011, 23.5% in 2013, and 44.7% in 2017). Beginning in 2016 and into 2018 the company exhibits large volatility and a sharp deterioration: net margin was negative in 2016 (-23.9%), and by the most recent 2018 year-end data all three reported margins are substantially negative.
This trend is mirrored by operating margin moving from 74.2% in 2012 to -61.1% in 2018. The most recent margins are:
Understanding Profit Margins
Between Jan 2018 and Dec 2018, Eqt Corp converts every dollar of revenue through the following stages:
Sustainable competitive advantages reveal themselves through consistently superior profit margins over extended periods. Companies with durable economic moats maintain pricing power and operational efficiency that competitors struggle to match.
A sign of durable competitive advantage is earning sustained higher margins than competitors.Look for margins that remain stable or improve over time, especially during economic downturns. Declining margins may signal increasing competition, pricing pressure, or deteriorating business fundamentals.
Comparing reported earnings to actual cash generation
In the most recent periods, EQT Corp shows a clear divergence between reported earnings and cash generation: trailing twelve‑month operating cash flow rose to $3.47B as of 2022-12-31, while the most recent trailing twelve‑month net income on record is a $1.16B loss as of 2021-12-31. This leaves a substantial gap in the latest data, with operating cash flow materially exceeding reported net income.
Looking further back, net income has been volatile—positive in the early 2010s (e.g., $759.1M in 2011, $437.8M in 2013), peaking at $1.51B in 2017 before swinging to a loss of $2.24B in 2018 and remaining negative at -$1.16B in 2021. Operating cash flow has shown growth over the same span (for example $820.9M in 2012, $1.22B in 2015, $1.54B in 2020, and $3.47B in 2022). The most recent trailing twelve‑month values are: Net Income (TTM) -$1.16B and Operating Cash Flow (TTM) $3.47B.
The Earnings vs. Cash Flow Gap
Reported earnings (Net Income) doesn't always reflect actual cash generation. Companies use accrual accounting, which recognizes revenue when earned and expenses when incurred—not when cash actually changes hands. This creates timing differences and opportunities for accounting discretion that can mask underlying business health.
Net Income (the "earnings" number) can be influenced by non-cash items like depreciation, stock-based compensation, and changes in accounting estimates.Operating Cash Flow, however, shows the actual cash the business generates from its core operations—a harder number to manipulate.
What to Look For
Key Insight: Companies with durable competitive advantages typically show operating cash flow that meets or exceeds net income over time, demonstrating they convert accounting profits into actual cash that can be returned to shareholders or reinvested in the business.
Measuring management's efficiency at generating profits from shareholder capital
EQT Corp's ROE shows pronounced volatility across the reported periods, moving between positive and negative territory. Earlier readings include 10.9% (2013) and 11.3% (2017), with intervening declines to 1.1% (2015) and -5.0% (2016). A marked inflection occurs after 2017 when ROE plunged to -20.5% for the year ended 2018.
The most recent data point indicates partial recovery from that trough but remains negative: ROE for the year ended 2021 is -11.5%. The most recent quarterly return on equity (ROE) was -11.5%.
The Gold Standard of Profitability
Return on Equity (ROE) is a powerful measure of how effectively a company's management is using the money shareholders have invested. Calculated by dividing Net Income by Shareholders' Equity, it reveals how much profit is generated for every dollar of equity capital.
A consistently high ROE (typically above 15-20%) is often the signature of a "quality" business with a durable competitive advantage. It indicates that the company can generate high returns on its own capital, which it can then reinvest at these high rates to compound value over time.
What to Look For:
How the company generates and deploys its cash
EQT Corp's trailing twelve-month cash flow profile shows operating cash flow strengthening into 2022, with operating cash flow at $3.47B as of the 2022-12-31 TTM. Investing cash flow has been consistently negative across the history shown, with the 2022-12-31 TTM at -$1.42B, indicating continued net cash outflows for investing activities. Financing cash flow moved from material positive inflows in the mid-2010s to net outflows more recently; it was -$699.1M at the 2022-12-31 TTM and improved to -$367.9M by the 2023-03-31 TTM.
Operating cash flow shows a multi-year increase from levels around $1.22B–$1.54B in earlier years to $3.47B most recently, while investing cash flow remains persistently negative across periods.
Latest Trailing-Twelve-Month Values: Operating Cash Flow (TTM) $3.47B, Investing Cash Flow (TTM) -$1.42B, Financing Cash Flow (TTM) -$367.9M.
Understanding Company Strategy
Capital allocation refers to how management decides to spend and invest the company's cash. Analyzing the three primary categories of cash flow reveals a company's true operational strategy:
What to look for: Is the company bootstrapping (funding growth solely from operating cash)? Are they borrowing to fund aggressive expansion or dividends? Or are they capital raising by issuing new shares, potentially diluting your ownership? A healthy, mature company typically generates strong operating cash, moderately invests in growth, and returns the surplus to shareholders through financing activities.
Net assets attributable to each share — the accounting floor of intrinsic value
Why Book Value per Share Matters
Book value per share is the net worth of the company — total assets minus total liabilities — divided by shares outstanding (split-adjusted). It represents the theoretical liquidation value per share if every asset were sold and every liability repaid at balance-sheet carrying values. It is the accounting foundation upon which much of equity valuation is built.
A steadily rising book value per share is one of the most reliable signals of compounding wealth creation. It means the company is retaining earnings and building net worth faster than it is returning capital or eroding it. Warren Buffett famously tracked Berkshire Hathaway's book value per share for decades as his primary measure of intrinsic value growth.
Context is essential. Asset-heavy businesses (banks, manufacturers, utilities) should be judged by book value more directly than asset-light businesses (software, consumer brands), where intangible assets like intellectual property and customer loyalty may far exceed their balance-sheet carrying values. A company trading at a large premium to book value is not necessarily overvalued — it may simply possess competitive advantages that accounting rules do not capture. Conversely, a declining book value per share — especially over multiple years — is a serious warning sign of capital destruction.
How much of the company is financed by debt versus shareholders' equity
Reading the Debt-to-Equity Ratio
The debt-to-equity (D/E) ratio compares total financial debt to shareholders' equity. A ratio of 1.0 means the company has borrowed one dollar for every dollar of equity; a ratio of 2.0 means it has borrowed twice as much as it owns. Financial leverage amplifies both returns and risk: in good times, debt turbocharges equity returns; in bad times, it accelerates losses and can threaten solvency.
Trends matter more than a single number. A rising D/E ratio can mean the company is taking on debt to fund growth — potentially value-creating if returns exceed the cost of capital. But it can also mean equity is being eroded through losses or that the business is borrowing simply to sustain operations. A falling D/E ratio generally reflects strengthening financial health: earnings are being retained, debt maturities are being paid down, or both.
Industry norms vary enormously. Capital-intensive sectors (utilities, real estate, financials) routinely carry high D/E ratios that would be alarming in, say, a technology company. Always compare against sector peers. As a rough rule of thumb, a D/E above 2× in a cyclical business warrants careful scrutiny of interest coverage and refinancing risk.
Short-term liquidity — can the company cover its near-term obligations?
Liquidity: Can the Business Pay Its Bills?
The current ratio is calculated as current assets divided by current liabilities. A ratio of 1.5 means the company has $1.50 of short-term assets — cash, receivables, inventory — for every $1.00 of obligations due within the next twelve months. It is the most direct measure of near-term financial resilience: can the business meet its obligations without needing to raise new capital or sell long-term assets at a discount?
A ratio above 1.0 is generally healthy, meaning current assets exceed current liabilities. A ratio consistently above 2.0 may indicate the company is holding excess cash or inventory that could be deployed more productively. A ratio below 1.0 is a warning sign — the company is relying on future cash generation or external financing to cover its near-term obligations, which is manageable in normal conditions but dangerous during a downturn.
Trends and context matter.A declining current ratio isn't always alarming — highly efficient businesses (e.g., large retailers with reliable daily cash flows) often run leaner balance sheets intentionally. Conversely, a rapidly rising current ratio can signal slowing sales causing inventory to build, or customers taking longer to pay. Always compare the trend against industry peers and cross-reference with the cash flow statement to assess whether the business is genuinely liquid or just holding non-cash current assets.
How much the market is paying for each dollar of company earnings
EQT Corp's historical P/E series in the dataset is sparse but shows pronounced volatility across the available years. From the earliest reported value here, the P/E rose from 15.9x at 2011 year-end to 66.4x at 2012 year-end and then 45.4x at 2013 year-end, followed by a large spike to 135.4x at 2015 year-end. The most recent rows in the dataset (2018 and 2021 period-ends) do not contain reported P/E values, so there is no comparable data for those later dates.
The clearest inflection in the provided data is the sharp peak at 135.4x in 2015 and the subsequent decline to 8.6x by the 2017 year-end. Given the missing values for 2018 and 2021 in this file, the latest available observed P/E in the dataset is 8.6x as of the period ending 2017-12-31. The most recent reported P/E ratio was 8.6x (period end 2017-12-31).
What Is the PE Ratio?
The Price-to-Earnings (PE) ratio is one of the most widely used valuation metrics in investing. It divides the current stock price by the company's earnings per share (EPS), revealing how much investors are willing to pay for each dollar of earnings. A high PE can signal that the market expects strong future growth, while a low PE may suggest undervaluation—or reflect genuine concerns about the company's prospects.
Context matters:PE ratios vary significantly across industries. High-growth technology companies routinely trade at PE ratios above 30x or 40x, while mature, low-growth sectors like utilities or financials often trade closer to 10–15x. Always compare a company's PE to its own history and its industry peers, not just an absolute number.
What to Look For:
Key Insight:The PE ratio is a snapshot of market sentiment and expectations. Tracking it over time alongside earnings trends reveals whether the market's valuation has expanded or contracted—and whether that change is justified by fundamentals.