What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2021-07-29 compared with 2021-05-06 · 126 added, 61 removed, 260 unchanged (42% of the section changed)

20 unchanged sentences

monetization transactions, including asset sales, joint ventures or other transactions involving our assets, and our planned use of the proceeds from such monetization transactions;

potential acquisition transactions or other strategic transactions, the timing thereof and our ability to achieve the intended operational, financial and strategic benefits from any such transactions, including our acquisition of certain upstream and midstream assets from Alta Resources Development, LLC;

the timing and structure of any dispositions of our remaining retained shares of Equitrans Midstream's common stock, and the planned use of the proceeds from any such dispositions;

28 unchanged sentences

These and other risks and uncertainties are described under Item 1A., "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2020.

Any forward-looking statement speaks only as of the date on which such statement is made, and we do not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

EQT CORPORATION AND SUBSIDIARIES

Management's Discussion and Analysis of Financial Condition and Results of Operations

Consolidated Results of Operations

Net loss attributable to EQT Corporation for the three months ended March 31, 2021 was $40.5 million, $0.15 per diluted share, compared to net loss attributable to EQT Corporation for the same period in 2020 of $167.1 million, $0.65 per diluted share.

The improvement was attributable primarily to higher sales of natural gas, NGLs and oil, income from investments, lower impairments and an income tax benefit, partly offset by loss on derivatives not designated as hedges, the gain on the Equitrans Share Exchange (defined and discussed in Note 8 to the Condensed Consolidated Financial Statements) in the first quarter of 2020, lower dividends and other income, increased depreciation and depletion and increased selling, general and administrative expense.

Net loss attributable to EQT Corporation for the three months ended June 30, 2021 was $936.5 million, $3.35 per diluted share, compared to net loss attributable to EQT Corporation for the same period in 2020 of $263.1 million, $1.03 per diluted share.

The change was attributable primarily to the loss on derivatives not designated as hedges, lower income from investments, increased transportation and processing expense and increased depreciation and depletion, partly offset by increased sales of natural gas, NGLs and oil, higher income tax benefit, the gain on sale of long-lived assets and decreased impairment and expiration of leases.

Net loss attributable to EQT Corporation for the six months ended June 30, 2021 was $977.0 million, $3.50 per diluted share, compared to net loss attributable to EQT Corporation for the same period in 2020 of $430.2 million, $1.68 per diluted share.

The change was attributable primarily to the loss on derivatives not designated as hedges, the gain on Equitrans Share Exchange (defined and discussed in Note 8 to the Condensed Consolidated Financial Statements) recognized in the first quarter of 2020, increased depreciation and depletion and increased transportation and processing expense, partly offset by increased sales of natural gas, NGLs and oil, the income from investments, higher income tax benefit, the gain on sale of long-lived assets and decreased impairment and expiration of leases.

See "Sales Volume and Revenues" and "Operating Expenses" for discussions of items affecting operating income and "Other Income Statement Items" for a discussion of other income statement items.

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Three Months Ended

June 30, Six Months Ended

2021 2020 2021 2020

(Thousands, unless otherwise noted)

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Average realized price ($/Mcfe) $ 2.37 $ 2.36 $ 2.49 $ 2.43

(a) Basis represents the difference between the ultimate sales price for natural gas and the New York Mercantile Exchange (NYMEX) natural gas price.

(a) Basis represents the difference between the ultimate sales price for natural gas, including the effects of delivered price benefit or deficit associated with our firm transportation agreements, and the New York Mercantile Exchange (NYMEX) natural gas price.

(b) NGLs, ethane and oil were converted to Mcfe at a rate of six Mcfe per barrel.

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Three Months Ended

June 30, Six Months Ended

2021 2020 2021 2020

(Thousands, unless otherwise noted)

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Net cash settlements (paid) received on derivatives not designated as hedges (71,441) 315,393 (109,581) 561,129

Premiums (paid) for derivatives that settled during the period (9,726) (3,555)

Premiums (paid) received for derivatives that settled during the period (9,579) 2,076 (19,305) (1,479)

Net marketing services and other (7,512) (1,876) (15,297) (4,296)

3 unchanged sentences

Sales Volume and Revenues

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2021 2020 % 2021 2020 %

(Thousands, unless otherwise noted)

12 unchanged sentences

(b) NGLs, ethane and oil were converted to Mcfe at a rate of six Mcfe per barrel.

Sales of natural gas, NGLs and oil.

Sales of natural gas, NGLs and oil increased for the three months ended March 31, 2021 compared to the same period in 2020 due to higher sales volume and a higher average realized price.

Average realized price

EQT CORPORATION AND SUBSIDIARIES

Management's Discussion and Analysis of Financial Condition and Results of Operations

increased due to higher NYMEX prices and higher liquids prices, partly offset by unfavorable cash settled derivatives.

For the three months ended March 31, 2021, we paid $38.1 million of net cash settlements on derivatives not designated as hedges and for the same period in 2020, we received $245.7 million of net cash settlements on derivatives not designated as hedges, which are included in average realized price but may not be included in operating revenues.

Sales volume increased primarily as a result of sales volume of 34 Bcfe from upstream assets we acquired from Chevron U.S.A.

in the fourth quarter of 2020 (Chevron Acquisition), partly offset by a decrease of 5 Bcfe attributable to assets we divested in the second quarter of 2020.

Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020

Sales of natural gas, NGLs and oil.

Sales of natural gas, NGLs and oil increased for the three months ended June 30, 2021 compared to the same period in 2020 due to increased sales volume and a higher average realized price.

Average realized price increased due to higher NYMEX prices and higher liquids prices, partly offset by lower cash settled derivatives and unfavorable differential.

For the three months ended June 30, 2021 and 2020, we paid $71.4 million and received $315.4 million, respectively, of net cash settlements on derivatives not designated as hedges, which are included in average realized price but may not be included in operating revenues.

Sales volume increased primarily as a result of prior period sales volume decreases of 36 Bcfe from the 2020 Strategic Production Curtailments (defined below) and sales volume increases of 33 Bcfe from the assets acquired from the Chevron Acquisition (defined below).

The 2020 Strategic Production Curtailments refers to our strategic decision to temporarily curtail approximately 1.4 Bcfe per day of gross production, equivalent to approximately 1.0 Bcfe per day of net production, beginning in May 2020 and ending in July 2020, at which time we began a moderated approach to bringing back on-line production that had been curtailed.

The Chevron Acquisition refers to our acquisition of upstream assets from Chevron U.S.A.

in the fourth quarter of 2020.

(Loss) gain on derivatives not designated as hedges.

For the three months ended March 31, 2021, we recognized a loss of $188.8 million on derivatives not designated as hedges and for the same period in 2020, we recognized a gain of $389.4 million.

The loss for the three months ended March 31, 2021 was related primarily to decreases in the fair market value of our NYMEX swaps and options due to increases in NYMEX forward prices.

The gain for the three months ended March 31, 2020 was related primarily to increases in the fair market value of our NYMEX swaps and options due to decreases in NYMEX forward prices.

For the three months ended June 30, 2021 and 2020, we recognized a loss of $1,345.5 million and a gain of $26.4 million, respectively, on derivatives not designated as hedges.

The 2021 loss was related primarily to decreases in the fair market value of our NYMEX swaps and options due to increases in NYMEX forward prices.

The 2020 gain was related primarily to increases in the fair market value of our NYMEX swaps and options due to decreases in NYMEX forward prices.

Net marketing services and other.

Net marketing services and other increased for the three months ended June 30, 2021 compared to the same period in 2020 due primarily to the liquids uplift realized on gas purchased at the wellhead from other operators.

Six Months Ended June 30, 2021 Compared to Six Months Ended June 30, 2020

Sales of natural gas, NGLs and oil.

Sales of natural gas, NGLs and oil increased for the six months ended June 30, 2021 compared to the same period in 2020 due to increased sales volume and a higher average realized price.

Average realized price increased due to higher NYMEX prices and higher liquids prices, partly offset by lower cash settled derivatives and unfavorable differential.

For the six months ended June 30, 2021 and 2020, we paid $109.6 million and received $561.1 million, respectively, of net cash settlements on derivatives not designated as hedges, which are included in average realized price but may not be included in operating revenues.

Sales volume increased primarily as a result of sales volume increases of 67 Bcfe from the assets acquired from the Chevron Acquisition and prior period sales volume decreases of 36 Bcfe from the 2020 Strategic Production Curtailments.

(Loss) gain on derivatives not designated as hedges.

For the six months ended June 30, 2021 and 2020, we recognized a loss of $1,534.3 million and a gain of $415.9 million, respectively, on derivatives not designated as hedges.

The 2021 loss was related primarily to decreases in the fair market value of our NYMEX swaps and options due to increases in NYMEX forward prices.

The 2020 gain was related primarily to increases in the fair market value of our NYMEX swaps and options due to decreases in NYMEX forward prices.

Net marketing services and other.

Net marketing services and other increased for the six months ended June 30, 2021 compared to the same period in 2020 due primarily to the liquids uplift realized on gas purchased at the wellhead from other operators.

EQT CORPORATION AND SUBSIDIARIES

Management's Discussion and Analysis of Financial Condition and Results of Operations

Operating Expenses

The following table presents information on our production-related operating expenses.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2021 2020 % 2021 2020 %

(Thousands, unless otherwise noted)

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0.05 0.04 25.0 0.05 0.03 66.7

Exploration — — —

Selling, general and administrative 0.12 0.13 (7.7) 0.11 0.11 —

Production depletion 0.90 0.92 (2.2) 0.90 0.92 (2.2)

Gathering expense increased on an absolute basis for the three months ended March 31, 2021 compared to the same period in 2020 due to increased sales volume and additional gathering capacity acquired as a result of the Chevron Acquisition and a higher gathering rate structure as a result of the Consolidated GGA (defined and discussed in Note 8 to the Condensed Consolidated Financial Statements).

Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020

Gathering expense increased on an absolute basis for the three months ended June 30, 2021 compared to the same period in 2020 due to increased sales volume, additional gathering capacity acquired from the Chevron Acquisition and a higher gathering rate structure as a result of the Consolidated GGA (defined and discussed in Note 8 to the Condensed Consolidated Financial Statements).

We expect to realize fee relief and a lower gathering rate structure from the Consolidated GGA beginning with the Mountain Valley Pipeline (MVP) in-service date.

Gathering expense decreased on a per Mcfe basis for the three months ended June 30, 2021 compared to the same period in 2020 due primarily to increased sales volume, which resulted in utilization of lower overrun rates as part of the Consolidated GGA, and a lower gathering rate structure on the assets acquired from the Chevron Acquisition.

Transmission.

Transmission expense decreased on an absolute and per Mcfe basis for the three months ended March 31, 2021 compared to the same period in 2020 due primarily to released capacity on, and credits received from, the Texas Eastern Transmission Pipeline and the Tennessee Gas Pipeline.

Transmission expense increased on an absolute basis for the three months ended June 30, 2021 compared to the same period in 2020 due primarily to released capacity on, and credits received from, the Texas Eastern Transmission Pipeline in 2020.

Transmission expense decreased on a per Mcfe basis for the three months ended June 30, 2021 compared to the same period in 2020 due primarily to increased sales volume, some of which does not have associated transmission expense, such as the assets acquired from the Chevron Acquisition.

Processing expense increased on an absolute and per Mcfe basis for the three months ended June 30, 2021 compared to the same period in 2020 due to increased liquid sales volume due primarily to increased development of liquids-rich areas and increased processed volume from the Chevron Acquisition.

EQT CORPORATION AND SUBSIDIARIES

Management's Discussion and Analysis of Financial Condition and Results of Operations

Processing expense increased on an absolute and per Mcfe basis for the three months ended March 31, 2021 compared to the same period in 2020 due to higher liquid sales volume due primarily to the Chevron Acquisition and increased development of liquids-rich areas.

Production taxes.

Production taxes increased on an absolute and per Mcfe basis for the three months ended March 31, 2021 compared to the same period in 2020 due primarily to increased West Virginia severance taxes as a result of higher prices and sales volume.

Production taxes increased on an absolute and per Mcfe basis for the three months ended June 30, 2021 compared to the same period in 2020 due primarily to increased Pennsylvania impact fees and West Virginia severance taxes as a result of higher prices.

Selling, general and administrative.

Selling, general and administrative expense increased on an absolute and per Mcfe basis for the three months ended March 31, 2021 compared to the same period in 2020 due primarily to higher long-term incentive compensation costs due to changes in the fair value of awards.

Selling, general and administrative expense increased on an absolute basis for the three months ended June 30, 2021 compared to the same period in 2020 due primarily to higher long-term incentive compensation costs due to changes in the fair value of awards.

Depreciation and depletion.

Production depletion increased on an absolute basis for the three months ended March 31, 2021 compared to the same period in 2020 due to increased sales volume, partly offset by a lower annual depletion rate.

Production depletion decreased on a per Mcfe basis for the three months ended March 31, 2021 compared to the same period in 2020 due to a lower annual depletion rate.

Production depletion expense increased on an absolute basis for the three months ended June 30, 2021 compared to the same period in 2020 due to increased sales volume, partly offset by a lower annual depletion rate.

Production depletion expense decreased on a per Mcfe basis for the three months ended June 30, 2021 compared to the same period in 2020 due to a lower annual depletion rate.

Amortization of intangible assets.

Amortization of intangible assets for the three months ended March 31, 2020 was $7.5 million.

Amortization of intangible assets for the three months ended June 30, 2020 was $7.5 million.

Our intangible assets were fully amortized in the fourth quarter of 2020.

(Gain) loss on sale/exchange of long-lived assets.

During the three months ended June 30, 2021, we recognized a gain on sale of long-lived assets of $16.8 million related primarily to changes in the fair value of the Contingent Consideration from the 2020 Divestiture (defined and discussed in Note 9 to the Condensed Consolidated Financial Statements).

During the three months ended June 30, 2020, we recognized a loss on sale/exchange of long-lived assets of $49.2 million, of which $6.7 million related to the 2020 Asset Exchange Transactions and $42.5 million related to the 2020 Divestiture.

See Note 9 to the Condensed Consolidated Financial Statements.

Impairment and expiration of leases.

Impairment and expiration of leases for the three months ended June 30, 2021 was $25.6 million compared to $41.3 million for the same period in 2020.

The decrease was driven by higher lease expirations in 2020 due to changes in market conditions.

Other operating expenses.

Other operating expenses for the three months ended June 30, 2021 of $5.2 million were attributable primarily to transaction costs associated with the Chevron Acquisition and Alta Acquisition (defined and discussed in Note 10 to the Condensed Consolidated Financial Statements).

Other operating expenses for the three months ended June 30, 2020 of $4.7 million were attributable primarily to transaction and reorganization costs.

Six Months Ended June 30, 2021 Compared to Six Months Ended June 30, 2020

Gathering expense increased on an absolute basis for the six months ended June 30, 2021 compared to the same period in 2020 due to increased sales volume, additional gathering capacity acquired from the Chevron Acquisition and a higher gathering rate structure as a result of the Consolidated GGA.

We expect to realize fee relief and a lower gathering rate structure from the Consolidated GGA beginning with the MVP in-service date.

Gathering expense decreased on a per Mcfe basis for the six months ended June 30, 2021 compared to the same period in 2020 due primarily to increased sales volume, which resulted in utilization of lower overrun rates as part of the Consolidated GGA, and a lower gathering rate structure on the assets acquired from the Chevron Acquisition.

Transmission.

Transmission expense decreased on an absolute basis for the six months ended June 30, 2021 compared to the same period in 2020 due primarily to released capacity on, and credits received from, the Texas Eastern Transmission Pipeline in 2020 and released capacity on the Tennessee Gas Pipeline.

Transmission expense decreased on a per Mcfe basis for the six months ended June 30, 2021 compared to the same period in 2020 due primarily to increased sales volume, some of which does not have associated transmission expense, such as the assets acquired from the Chevron Acquisition.

Processing expense increased on an absolute and per Mcfe basis for the six months ended June 30, 2021 compared to the same period in 2020 due to increased liquid sales volume due primarily to increased development of liquids-rich areas and increased processed volume from the Chevron Acquisition.

Production taxes.

Production taxes increased on an absolute and per Mcfe basis for the six months ended June 30, 2021 compared to the same period in 2020 due primarily to increased West Virginia severance taxes and Pennsylvania impact fees as a result of higher prices.

EQT CORPORATION AND SUBSIDIARIES

Management's Discussion and Analysis of Financial Condition and Results of Operations

Selling, general and administrative.

Selling, general and administrative expense increased on an absolute basis for the six months ended June 30, 2021 compared to the same period in 2020 due primarily to higher long-term incentive compensation costs due to changes in the fair value of awards.

Depreciation and depletion.

Production depletion expense increased on an absolute basis for the six months ended June 30, 2021 compared to the same period in 2020 due to increased sales volume, partly offset by a lower annual depletion rate.

Production depletion expense decreased on a per Mcfe basis for the six months ended June 30, 2021 compared to the same period in 2020 due to a lower annual depletion rate.

Amortization of intangible assets.

Amortization of intangible assets for the six months ended June 30, 2021 was $15.0 million.

The intangible assets were fully amortized in the fourth quarter of 2020.

(Gain) loss on sale/exchange of long-lived assets.

During the first quarter of 2020, we recognized a loss on exchange of long-lived assets of $48.9 million related to the 2020 Asset Exchange Transactions.

During the six months ended June 30, 2021, we recognized a gain on sale of long-lived assets of $18.0 million related primarily to changes in the fair value of the Contingent Consideration from the 2020 Divestiture.

During the six months ended June 30, 2020, we recognized a loss on sale/exchange of long-lived assets of $98.1 million, of which $55.6 million related to the 2020 Asset Exchange Transactions and $42.5 million related to the 2020 Divestiture.

See Note 9 to the Condensed Consolidated Financial Statements.

Impairment and expiration of leases.

Impairment and expiration of leases for the three months ended March 31, 2021 was $16.8 million compared to $53.8 million for the same period in 2020.

Impairment and expiration of leases for the six months ended June 30, 2021 was $42.4 million compared to $95.0 million for the same period in 2020.

The decrease was driven by higher lease expirations in 2020 due to changes in market conditions.

Other operating expenses.

Other operating expenses for the three months ended March 31, 2021 of $9.4 million were due primarily to certain transaction-related costs associated with the Chevron Acquisition and changes in legal reserves, including settlements.

Other operating expenses for the six months ended June 30, 2021 of $14.7 million were attributable primarily to transaction costs associated with the Chevron Acquisition and Alta Acquisition and changes in legal reserves, including settlements.

Other operating expenses for the six months ended June 30, 2020 of $4.7 million were attributable primarily to transaction and reorganization costs.

Other Income Statement Items

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(Income) loss from investments.

For the three months ended March 31, 2021, we recognized a gain on an investment in a fund that invests in companies developing technology and operating solutions for exploration and production companies and a gain on our investment in Equitrans Midstream.

Our investment in Equitrans Midstream fluctuates with changes in Equitrans Midstream's stock price, which was $8.16 and $8.04 as of March 31, 2021 and December 31, 2020, respectively.

For the three months ended March 31, 2020, we recognized a loss on our investment in Equitrans Midstream, due to a decrease in Equitrans Midstream's stock price during the three months ended March 31, 2020 as well as a decrease in the number of shares of Equitrans Midstream's common stock that we own as a result of the Equitrans Share Exchange.

For the three and six months ended June 30, 2021, we recognized income on our investment in Equitrans Midstream and income on our investment in a fund that invests in companies developing technology and operating solutions for exploration and production companies.

Our investment in Equitrans Midstream fluctuates with changes in Equitrans Midstream's stock price, which was $8.51 and $8.04 as of June 30, 2021 and December 31, 2020, respectively.

For the three months ended June 30, 2020, we recognized income on our investment in Equitrans Midstream due to an increase in Equitrans Midstream's stock price during the three months ended June 30, 2020.

For the six months ended June 30, 2020, we recognized a loss on our investment in Equitrans Midstream due to a decrease in Equitrans Midstream's stock price during the six months ended June 30, 2020 as well as a decrease in the number of shares of Equitrans Midstream's common stock that we own as a result of the Equitrans Share Exchange.

Dividend and other income.

Dividend and other income decreased for the three months ended March 31, 2021 compared to the same period in 2020 due primarily to lower dividends received from our investment in Equitrans Midstream driven by the decrease in the number of shares of Equitrans Midstream's common stock that we own as well as a decrease in the dividend amount per share.

Dividend and other income decreased for the six months ended June 30, 2021 compared to the same period in 2020 due primarily to lower dividends received from our investment in Equitrans Midstream driven by a decrease in the number of shares of Equitrans Midstream's common stock that we own as well as a decrease in the dividend amount per share.

Loss on debt extinguishment.

During the three months ended March 31, 2021, we recognized a loss on debt extinguishment of $4.4 million related to the repayment of our 4.875% senior notes.

During the three months ended March 31, 2020, we recognized a loss on debt extinguishment of $16.6 million related to the repayment of all or a portion of our 4.875% senior notes, 2.50% senior notes and floating rate notes.

EQT CORPORATION AND SUBSIDIARIES

Management's Discussion and Analysis of Financial Condition and Results of Operations

During the three and six months ended June 30, 2021, we recognized a loss on debt extinguishment of $5.3 million and $9.8 million, respectively, due to fees incurred for a bridge-loan commitment related to the Alta Acquisition and the repayment of our 4.875% senior notes.

During the three and six months ended June 30, 2020, we recognized a loss on debt extinguishment of $0.4 million and $17.0 million, respectively, related to the repayment of our 4.875% senior notes, 2.50% senior notes, floating rate notes and term loan facility.

See Note 6 to the Condensed Consolidated Financial Statements.

Interest expense.

Interest expense increased for the three months ended March 31, 2021 compared to the same period in 2020 due to increased interest incurred on new debt and letters of credit issued throughout 2020 as well as higher borrowings under our credit facility.

Interest expense increased for the three and six months ended June 30, 2021 compared to the same periods in 2020 due to increased interest incurred on new debt, higher borrowings under our credit facility and increased interest due to letters of credit issued throughout 2020.

These increases were partly offset by lower interest incurred due to debt repayments throughout 2020 and the first quarter of 2021.

See Note 6 to the Condensed Consolidated Financial Statements.

Income tax (benefit) expense.

EQT CORPORATION AND SUBSIDIARIES

Management's Discussion and Analysis of Financial Condition and Results of Operations

Income tax benefit.

See Note 5 to the Condensed Consolidated Financial Statements.

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Sales volume in 2021 is expected to be 1,800 Bcfe to 1,875 Bcfe.

The planned capital expenditures and expected sales volume include amounts attributable to the assets acquired from the Alta Acquisition, which closed on July 21, 2021.

Operating Activities.

Net cash provided by operating activities was $400 million for the three months ended March 31, 2021 compared to $500 million for the same period in 2020.

The decrease was due primarily to decreased cash settlements received on derivatives not designated as hedges and unfavorable timing of working capital payments, partly offset by higher cash operating revenues.

Net cash provided by operating activities was $443 million for the six months ended June 30, 2021 compared to $947 million for the same period in 2020.

The decrease was due primarily to decreased cash settlements received on derivatives not designated as hedges and unfavorable timing of working capital payments including increased collateral and margin deposits associated with the Company's over the counter derivative instrument contracts and exchange traded natural gas contracts, partly offset by higher cash operating revenues.

Our cash flows from operating activities are affected by movements in the market price for commodities.

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Investing Activities.

Net cash used in investing activities was $248 million for the three months ended March 31, 2021 compared to $204 million for the same period in 2020.

The increase was due primarily to cash received during the first quarter of 2020 for the Equitrans Share Exchange, partly offset by lower capital expenditures.

Net cash used in investing activities was $675 million for the six months ended June 30, 2021 compared to $349 million for the same period in 2020.

The increase was due primarily to cash paid for acquisitions in 2021 and cash received in 2020 from the sale of assets and the Equitrans Share Exchange, partly offset by lower capital expenditures.

The following table summarizes our capital expenditures.

Three Months Ended

June 30, Six Months Ended

2021 2020 2021 2020

Reserve development $ 178 $ 235 $ 367 $ 458

5 unchanged sentences

Total capital expenditures 246 303 484 565

Add (deduct) non-cash items (b) 13 (6)

Non-cash items (b) (27) (47) (14) (53)

Total cash capital expenditures $ 219 $ 256 $ 470 $ 512

(a) Capital expenditures attributable to noncontrolling interests were $1.3 million for the three months ended March 31, 2021.

(a) Capital expenditures attributable to noncontrolling interests were $3.8 million and $5.1 million for the three and six months ended June 30, 2021, respectively.

(b) Represents the net impact of non-cash capital expenditures, including the effect of timing of receivables from working interest partners, accrued capital expenditures and capitalized share-based compensation costs.

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Financing Activities.

Net cash used in financing activities was $130 million for the three months ended March 31, 2021 compared to $283 million for the same period in 2020.

For the three months ended March 31, 2021, the primary use of financing cash flows

Net cash provided by financing activities was $544 million for the six months ended June 30, 2021 compared to net cash used in financing activities of $600 million for the same period in 2020.

For the six months ended June 30, 2021, the primary source of financing cash flows was net proceeds from the issuance of debt, and the primary uses of financing

EQT CORPORATION AND SUBSIDIARIES

Management's Discussion and Analysis of Financial Condition and Results of Operations

was net repayments of debt.

For the three months ended March 31, 2020, the primary uses of financing cash flows were net repayments of debt and credit facility borrowings, and the primary source of financing cash flows was net proceeds from the issuance of debt.

cash flows were net repayments of credit facility borrowings and debt.

For the six months ended June 30, 2020, the primary uses of financing cash flows were net repayments of debt and credit facility borrowings, and the primary source of financing cash flows was net proceeds from the issuance of debt.

See Note 6 to the Condensed Consolidated Financial Statements for further discussion of our debt and borrowings under our credit facility.

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Security Ratings and Financing Triggers

The table below reflects the credit ratings and rating outlooks assigned to our debt instruments as of April 30, 2021.

The table below reflects the credit ratings and rating outlooks assigned to our debt instruments as of July 27, 2021.

Our credit ratings and rating outlooks are subject to revision or withdrawal at any time by the assigning rating agency, and each rating should be evaluated independent from any other rating.

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Moody's Investors Service (Moody's) Ba1 Stable

Standard & Poor's Ratings Service (S&P) BB Stable

Fitch Ratings Service (Fitch) BB Positive

Standard & Poor's Ratings Service (S&P) BB+ Positive

Fitch Ratings Service (Fitch) BB+ Stable

Changes in credit ratings may affect our access to the capital markets, the cost of short-term debt through interest rates and fees under our lines of credit, the interest rate on the senior notes with adjustable rates, the rates available on new long-term debt, our pool of investors and funding sources, the borrowing costs and margin deposit requirements on our over the counter (OTC) derivative instruments and credit assurance requirements, including collateral, in support of our midstream service contracts, joint venture arrangements or construction contracts.

Margin deposits on our OTC derivative instruments are also subject to factors other than credit rating, such as natural gas prices and credit thresholds set forth in the agreements between us and our hedging counterparties.

As of April 30, 2021, we had sufficient unused borrowing capacity, net of letters of credit, under our credit facility to satisfy any requests for margin deposit or other collateral that our counterparties are permitted to request of us pursuant to our OTC derivative instruments, midstream services contracts and other contracts.

As of April 30, 2021, such assurances could be up to approximately $1.1 billion, inclusive of letters of credit, OTC derivative instrument margin deposits and other collateral posted of approximately $0.9 billion in the aggregate.

As of July 27, 2021, we had sufficient unused borrowing capacity, net of letters of credit, under our credit facility to satisfy any requests for margin deposit or other collateral that our counterparties are permitted to request of us pursuant to our OTC derivative instruments, midstream services contracts and other contracts.

As of July 27, 2021, such assurances could be up to approximately $1.2 billion, inclusive of letters of credit, OTC derivative instrument margin deposits and other collateral posted of approximately $1.2 billion in the aggregate.

See Notes 3 and 6 to the Condensed Consolidated Financial Statements for further information.

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The calculation of this ratio excludes the effects of accumulated other comprehensive income.

As of March 31, 2021, we were in compliance with all debt provisions and covenants under our debt agreements.

As of June 30, 2021, we were in compliance with all debt provisions and covenants under our debt agreements.

EQT CORPORATION AND SUBSIDIARIES

Management's Discussion and Analysis of Financial Condition and Results of Operations

Commodity Risk Management

1 unchanged sentence

The overall objective of our hedging program is to protect cash flows from undue exposure to the risk of changing commodity prices.

EQT CORPORATION AND SUBSIDIARIES

Management's Discussion and Analysis of Financial Condition and Results of Operations

The derivative commodity instruments that we use are primarily swap, collar and option agreements.

The following table summarizes the approximate volumes and prices of our NYMEX hedge positions through 2024 as of April 30, 2021.

The following table summarizes the approximate volume and prices of our NYMEX hedge positions through 2024 as of July 23, 2021.

2021 (a) 2022 2023 2024

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Average Price ($/Dth) $ 2.49 $ 2.38 $ 2.38 $ —

(a) April 1 through December 31.

(a) July 1 through December 31.

(b) The difference between the fixed price and NYMEX price is included in average differential presented in our price reconciliation in "Average Realized Price Reconciliation." The fixed price natural gas sales agreements can be physically or financially settled.

For 2021 (April 1 through December 31), 2022, 2023 and 2024, we have natural gas sales agreements for approximately 14 MMDth, 18 MMDth, 88 MMDth and 11 MMDth, respectively, that include average NYMEX ceiling prices of $3.17, $3.17, $2.84 and $3.21, respectively.

For 2021 (July 1 through December 31), 2022, 2023 and 2024, we have natural gas sales agreements for approximately 9 MMDth, 18 MMDth, 88 MMDth and 11 MMDth, respectively, that include average NYMEX ceiling prices of $3.17, $3.17, $2.84 and $3.21, respectively.

We have also entered into derivative instruments to hedge basis.

15 unchanged sentences

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What changed 10-Q

Item 2. Management’s Discussion and Analysis