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Item 1. Financial Statements

2022-07-28 compared with 2022-04-28 · 270 added, 103 removed, 356 unchanged (51% of the section changed)

2 unchanged sentences

STATEMENTS OF CONDENSED CONSOLIDATED OPERATIONS (UNAUDITED)

Three Months Ended March 31,

Three Months Ended

June 30, Six Months Ended

2022 2021 2022 2021

(Thousands, except per share amounts)

1 unchanged sentence

Sales of natural gas, natural gas liquids and oil $ 3,365,211 $ 1,077,904 $ 5,851,835 $ 2,208,855

Loss on derivatives not designated as hedges ( 3,077,637 ) ( 188,813 )

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

11 unchanged sentences

Total operating expenses 1,165,607 957,525 2,474,763 1,898,603

Operating (loss) income ( 1,888,266 ) 8,845

Loss (income) from investments 20,785 ( 11,848 )

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 )

1 unchanged sentence

Interest expense 65,985 72,254 133,887 142,727

Loss before income taxes ( 1,980,280 ) ( 50,900 )

Income tax benefit ( 465,697 ) ( 12,959 )

Net loss ( 1,514,583 ) ( 37,941 )

Net income (loss) attributable to noncontrolling interest 1,465 ( 514 )

Net loss attributable to EQT Corporation $ ( 1,516,048 ) $ ( 37,427 )

Loss per share of common stock attributable to EQT Corporation:

Basic and diluted:

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 )

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 369,866 279,156 372,023 278,996

Net loss $ ( 4.05 ) $ ( 0.13 )

Net income (loss) $ 2.41 $ ( 3.34 ) $ ( 1.68 ) $ ( 3.48 )

Weighted average common stock outstanding 407,303 279,156 372,023 278,996

Net income (loss) $ 2.19 $ ( 3.34 ) $ ( 1.68 ) $ ( 3.48 )

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

EQT CORPORATION AND SUBSIDIARIES

STATEMENTS OF CONDENSED CONSOLIDATED COMPREHENSIVE LOSS (UNAUDITED)

Three Months Ended March 31,

Net loss $ ( 1,514,583 ) $ ( 37,941 )

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

Three Months Ended

June 30, Six Months Ended

2022 2021 2022 2021

Net income (loss) $ 894,224 $ ( 933,322 ) $ ( 620,359 ) $ ( 971,263 )

Other comprehensive income, net of tax:

1 unchanged sentence

$ 21 , $ 27 , $ 41 and $ 54

Comprehensive loss ( 1,514,520 ) ( 37,861 )

Comprehensive income (loss) attributable to noncontrolling interest 1,465 ( 514 )

Comprehensive loss attributable to EQT Corporation $ ( 1,515,985 ) $ ( 37,347 )

64 81 127 161

Comprehensive income (loss) 894,288 ( 933,241 ) ( 620,232 ) ( 971,102 )

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 )

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

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Current assets:

36 unchanged sentences

Total common shareholders' equity 9,061,187 9,954,763

Noncontrolling interest in consolidated subsidiary 17,360 16,236

Noncontrolling interest in consolidated subsidiaries 28,903 16,236

Total equity 9,090,090 9,970,999

3 unchanged sentences

STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS (UNAUDITED)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows from operating activities:

8 unchanged sentences

Amortization, accretion and other 31,256 12,739

Loss on derivatives not designated as hedges 3,077,637 188,813

Net cash settlements paid on derivatives not designated as hedges ( 885,539 ) ( 38,140 )

Net premiums received (paid) on derivative instruments 372 ( 3,147 )

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:

6 unchanged sentences

Capital expenditures ( 684,972 ) ( 470,259 )

Proceeds from sale of assets 1,258 —

Cash paid for acquisitions — ( 209,764 )

Proceeds from sale/exchange of assets 2,414 —

Proceeds from sale of investment shares 189,249 —

Other investing activities ( 14,376 ) 5,125

3 unchanged sentences

Repayment of credit facility borrowings ( 6,137,000 ) ( 2,986,000 )

Proceeds from issuance of debt — 1,000,000

Debt issuance costs ( 9,154 ) ( 19,713 )

Repayment and retirement of debt ( 576,640 ) ( 127,691 )

6 unchanged sentences

Other financing activities ( 734 ) —

Net cash used in financing activities ( 827,097 ) ( 129,545 )

Net cash (used in) provided by financing activities ( 814,173 ) 544,064

Net change in cash and cash equivalents ( 70,218 ) 312,560

8 unchanged sentences

Comprehensive Loss (a) Noncontrolling Interest in

Consolidated Subsidiary Total Equity

Consolidated Subsidiaries Total Equity

(Thousands, except per share amounts)

Balance at April 1, 2021 278,781 $ 8,142,498 $ ( 21,469 ) $ 1,019,199 $ ( 5,275 ) $ 10,726 $ 9,145,679

Comprehensive loss, net of tax:

Net loss ( 933,260 ) ( 62 ) ( 933,322 )

Other postretirement benefits liability adjustment, net of tax expense:

Share-based compensation plans 77 7,109 1,385 8,494

Balance at June 30, 2021 278,858 $ 8,149,607 $ ( 20,084 ) $ 85,939 $ ( 5,194 ) $ 10,664 $ 8,220,932

Balance at April 1, 2022 369,074 $ 9,921,348 $ ( 2,848 ) $ ( 1,725,279 ) $ ( 4,548 ) $ 17,360 $ 8,206,033

Comprehensive income, net of tax:

Net income 891,361 2,863 894,224

Other postretirement benefits liability adjustment, net of tax expense:

Dividends ($ 0.125 per share)

( 46,209 ) ( 46,209 )

Share-based compensation plans 645 27,268 27,268

Convertible Notes settlements (Note 6) 1 30 30

Distribution to noncontrolling interest ( 2,553 ) ( 2,553 )

Other 11,233 11,233

Balance at June 30, 2022 369,720 $ 9,948,646 $ ( 2,848 ) $ ( 880,127 ) $ ( 4,484 ) $ 28,903 $ 9,090,090

Common shares authorized:

Preferred shares authorized:

There were no preferred shares issued or outstanding.

(a) 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.

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

EQT CORPORATION AND SUBSIDIARIES

STATEMENTS OF CONDENSED CONSOLIDATED EQUITY (UNAUDITED)

Shares No Par Value Treasury Stock Retained Earnings

(Accumulated Deficit) Accumulated Other

Comprehensive Loss (a) Noncontrolling Interest in

Consolidated Subsidiaries Total Equity

(Thousands, except per share amounts)

Balance at January 1, 2021 278,345 $ 8,145,539 $ ( 29,348 ) $ 1,056,626 $ ( 5,355 ) $ 7,490 $ 9,174,952

4 unchanged sentences

Contribution from noncontrolling interest 3,750 3,750

Balance at March 31, 2021 278,781 $ 8,142,498 $ ( 21,469 ) $ 1,019,199 $ ( 5,275 ) $ 10,726 $ 9,145,679

Balance at June 30, 2021 278,858 $ 8,149,607 $ ( 20,084 ) $ 85,939 $ ( 5,194 ) $ 10,664 $ 8,220,932

Balance at January 1, 2022 376,399 $ 10,071,820 $ ( 18,046 ) $ ( 94,400 ) $ ( 4,611 ) $ 16,236 $ 9,970,999

2 unchanged sentences

Other postretirement benefits liability adjustment, net of tax expense:

Dividends ($0.125 share) ( 47,063 ) ( 47,063 )

Dividends ($ 0.25 per share)

( 93,272 ) ( 93,272 )

Share-based compensation plans 1,852 9,048 15,198 24,246

Issuance of common stock for Convertible Notes settlement (Note 6) 1 8 8

Convertible Notes settlements (Note 6) 2 38 38

Repurchase and retirement of common stock ( 8,533 ) ( 132,260 ) ( 67,768 ) ( 200,028 )

Distribution to noncontrolling interest ( 2,894 ) ( 2,894 )

Balance at March 31, 2022 369,074 $ 9,921,348 $ ( 2,848 ) $ ( 1,725,279 ) $ ( 4,548 ) $ 17,360 $ 8,206,033

Other 11,233 11,233

Balance at June 30, 2022 369,720 $ 9,948,646 $ ( 2,848 ) $ ( 880,127 ) $ ( 4,484 ) $ 28,903 $ 9,090,090

Common shares authorized:

8 unchanged sentences

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 March 31, 2022 and December 31, 2021, the results of its operations, equity and cash flows for the three month periods ended March 31, 2022 and 2021.

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.

5 unchanged sentences

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 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.

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.

5 unchanged sentences

See Note 6 for discussion of the Convertible Notes (defined in Note 6).

Three Months Ended March 31, 2021

Three Months Ended June 30, 2021

As Reported ASU 2020-06 Adoption Adjustment As Adjusted

8 unchanged sentences

Loss per share of common stock attributable to EQT Corporation $ ( 3.35 ) $ 0.01 $ ( 3.34 )

(a) For the three months ended March 31, 2021, diluted weighted average common stock outstanding did not change because the potentially dilutive securities had an anti-dilutive effect on loss per share.

(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.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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 )

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

6 unchanged sentences

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 were adjusted to reflect the impact of the adoption of ASU 2020-06;

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.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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.

Three Months Ended March 31,

Six Months Ended June 30,

Cash paid during the period for:

4 unchanged sentences

Capitalization of non-cash equity share-based compensation 2,550 2,499

Issuance of common stock for Convertible Notes settlement (Note 6) 8 —

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 Customers

7 unchanged sentences

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.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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 $ 898.4 million and $ 1,093.9 million in accounts receivable in the Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021, respectively.

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.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

The table below provides disaggregated information on the Company's revenues.

2 unchanged sentences

Derivative contracts are also outside the scope of ASU 2014-09.

Three Months Ended March 31,

Three Months Ended

June 30, Six Months Ended

2022 2021 2022 2021

Revenues from contracts with customers:

4 unchanged sentences

Other sources of revenue:

Loss on derivatives not designated as hedges ( 3,077,637 ) ( 188,813 )

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 March 31, 2022.

Amounts shown exclude contracts that qualified for the exception to the relative standalone selling price method as of March 31, 2022.

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

Natural gas sales $ 12,148 $ 10,747 $ 22,895

(a) April 1 through December 31.

(a) July 1 through December 31.

Derivative Instruments

7 unchanged sentences

The Company typically enters into over the counter (OTC) derivative commodity instruments with financial institutions, and the creditworthiness of all counterparties is regularly monitored.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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 the Statements of Condensed Consolidated Operations.

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.

1 unchanged sentence

The Company can net settle its derivative instruments at any time.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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.

3 unchanged sentences

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 2,471 billion cubic feet (Bcf) of natural gas and 2,143 thousand barrels (Mbbl) of NGLs as of March 31, 2022 and 2,184 Bcf of natural gas and 3,055 Mbbl of NGLs as of December 31, 2021.

The open positions at both March 31, 2022 and December 31, 2021 had maturities extending through December 2027.

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.

5 unchanged sentences

Anything below these ratings is considered non-investment grade.

As of March 31, 2022, the Company's senior notes were rated "Ba1" by Moody's, "BBB–" by S&P and "BBB–" by Fitch.

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 March 31, 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 $ 639.6 million and $ 594.9 million, respectively, for which the Company deposited and recorded current assets of $ 117.7 million and $ 0.1 million, respectively.

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 March 31, 2022 and December 31, 2021, there were no such deposits recorded in the Condensed Consolidated Balance Sheets.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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.

5 unchanged sentences

The margin requirements are subject to change at the exchanges' discretion.

As of March 31, 2022 and December 31, 2021, the Company recorded $ 141.6 million and $ 147.7 million, respectively, of such deposits as current assets in the Condensed Consolidated Balance Sheets.

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.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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.

2 unchanged sentences

master netting agreements Margin requirements with counterparties Net derivative instruments

March 31, 2022

June 30, 2022

Asset derivative instruments, at fair value $ 1,409,199 $ ( 1,363,094 ) $ — $ 46,105

5 unchanged sentences

Such payments are conditioned upon the quarterly average of the NYMEX Henry Hub natural gas settlement price exceeding certain price thresholds.

As of March 31, 2022 and December 31, 2021, the derivative liability related to the Henry Hub Cash Bonus had a fair value of approximately $ 51 million and $ 111 million, respectively.

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.

1 unchanged sentence

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 March 31, 2022 and December 31, 2021, the derivative asset related to the Contingent Consideration had a fair value of approximately $ 5.8 million and $ 8.2 million, respectively.

During the three months ended March 31, 2022, the Company received cash from the Contingent Consideration of $ 2.5 million.

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.

1 unchanged sentence

See Note 4 for a description of the fair value hierarchy.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

Fair Value Measurements

7 unchanged sentences

Assets and liabilities that use Level 2 inputs primarily include the Company's swap, collar and option agreements.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

Exchange traded commodity swaps have Level 1 inputs.

8 unchanged sentences

(Level 2) Significant unobservable inputs

March 31, 2022

June 30, 2022

Asset derivative instruments, at fair value $ 1,409,199 $ 297,009 $ 1,112,190 $ —

4 unchanged sentences

The carrying values of cash equivalents, accounts receivable and accounts payable approximate fair value due to their short-term maturities.

The carrying value of the Company's investment in Equitrans Midstream Corporation (Equitrans Midstream) approximates fair value as Equitrans Midstream is a publicly traded company.

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.

During April 2022, the Company sold the remaining balance of its Equitrans Midstream common stock for net proceeds of approximately $ 189 million.

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.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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 March 31, 2022 and December 31, 2021, the Company's senior notes had a fair value of approximately $ 5.8 billion and $ 6.5 billion, respectively, and a carrying value of approximately $ 4.9 billion and $ 5.5 billion, respectively, inclusive of any current portion.

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 March 31, 2022 and December 31, 2021, the Company's note payable to EQM had a fair value of approximately $ 109 million and $ 118 million, respectively, and a carrying value of approximately $ 98 million and $ 100 million, respectively, inclusive of any current portion.

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.

4 unchanged sentences

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.

For the three months ended March 31, 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 three months ended March 31, 2022.

The Company recorded income tax benefit at an effective tax rate of 23.5 % and 25.5 % for the three months ended March 31, 2022 and 2021, respectively.

The Company's effective tax rate for the three months ended March 31, 2022 was higher compared to the U.S.

federal statutory rate due primarily to state taxes, including valuation allowances limiting certain state tax benefits.

The Company's effective tax rate for the three months ended March 31, 2021 was higher compared to the U.S.

federal statutory rate due primarily to state taxes, including valuation allowances limiting certain state tax benefits, partly offset by tax expense related to deduction limitations for executive compensation.

Credit facility .

The Company has a $ 2.5 billion credit facility that matures in July 2023.

The Company had approximately $ 425 million and $ 440 million of letters of credit outstanding under its credit facility as of March 31, 2022 and December 31, 2021, respectively.

Under the Company's credit facility, for the three months ended March 31, 2022 and 2021, the maximum amounts of outstanding borrowings were $ 615 million and $ 890 million, respectively, the average daily balances were approximately $ 306 million and $ 525 million, respectively, and interest was incurred at weighted average annual interest rates of 2.0 % and 2.1 %, respectively.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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.

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)

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

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.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

Debt repayments .

In the first quarter of 2022, the Company redeemed or repurchased all $ 568.8 million of the remaining aggregate principal amount of its 3.00 % senior notes at a total cost of $ 581.5 million, inclusive of premiums of $ 5.5 million and accrued but unpaid interest of $ 7.2 million.

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

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

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.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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 .

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• 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);

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

• 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;

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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 and March 31, 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 June 30, 2022, subject to the terms and conditions set forth in the Convertible Notes indenture.

Therefore, as of December 31, 2021 and March 31, 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 April 22, 2022.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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.

3 unchanged sentences

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.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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.

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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 $ 34.41 on March 31, 2022 and excluding the impact of the Capped Call Transactions, the if-converted value of the Convertible Notes exceeded the principal amount by $ 651 million.

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.

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

Principal $ 434,856 $ 499,991

3 unchanged sentences

(a) The fair value is a Level 2 fair value measurement.

See Note 4 for further discussion.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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 March 31,

Three Months Ended

June 30, Six Months Ended

2022 2021 2022 2021

Contractual interest expense $ 2,183 $ 2,187 $ 4,370 $ 4,375

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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 three months ended March 31, 2022 and 2021, all such securities, totaling 7,336,020 and 7,745,522 , respectively, were excluded from potentially dilutive securities because of their anti-dilutive effect on loss per share.

Additionally, the Company uses the if-converted method to calculate the impact of the Convertible Notes on diluted EPS.

For the three months ended March 31, 2022 and 2021, approximately 33.5 million and 33.3 million shares, respectively, were excluded from potentially dilutive securities 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.

EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

Impairment of Contract Asset

During the first quarter of 2020, the Company sold to Equitrans Midstream approximately 50 % of the Company's 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).

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 $ 196 million.

The cash payment option can be exercised following January 1, 2022 and ending on the earlier of the Mountain Valley Pipeline in-service date or December 31, 2022.

To date, the Company has not exercised 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 for the three months ended March 31, 2022.

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.

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EQT CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

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

June 30, 2021 Six Months Ended

June 30, 2021

(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 )

EQT CORPORATION AND SUBSIDIARIES

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

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements