EQT CorpEQT
EQT Corp Leases Disclosure
Leases
The Company leases drilling rigs, facilities (including a water storage facility), vehicles and drilling and compression equipment.
To determine the present value of its right-of-use assets and lease liabilities, the Company calculates a discount rate per lease contract based on an estimate of the rate of interest that the Company would pay to borrow (on a collateralized basis, over a similar term) an amount equal to the lease payment obligation.
The Company has elected a practical expedient to forgo application of the recognition requirements under ASU 2016-02, Leases, to short-term leases; as such, short-term leases are not recorded in the Consolidated Balance Sheets. In addition, the Company has elected a practical expedient to account for lease and nonlease components together as a lease.
Certain of the Company's lease contracts include variable lease payments, such as payments for property taxes and other operating and maintenance expenses and payments based on asset use, which are not included in the lease cost or the present value of the right-of-use asset or lease liability. Certain of the Company's lease contracts provide renewal periods at the Company's option; if a renewal period option is reasonably assured to be exercised, the associated lease payment obligation is included in the present value of the right-of-use asset and lease liability. As of December 31, 2025 and 2024, the Company was not a lessor.
The following table summarizes the Company's lease costs.
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (Thousands) | |||||||||||||||||
| Operating lease costs | $ | 43,002 | $ | 41,991 | $ | 26,755 | |||||||||||
| Finance lease costs | 9,585 | 5,546 | 2,414 | ||||||||||||||
| Variable and short-term lease costs | 38,935 | 33,475 | 24,151 | ||||||||||||||
| Total lease costs (a) | $ | 91,522 | $ | 81,012 | $ | 53,320 | |||||||||||
(a)Includes drilling rig lease costs capitalized to property, plant and equipment of $47.9 million, $50.5 million and $40.8 million, respectively, of which $30.8 million, $33.1 million and $24.5 million, respectively, were operating lease costs for the years ended December 31, 2025, 2024 and 2023.
The following table summarizes the cash paid for operating and financing lease liabilities reported in the Statements of Consolidated Cash Flows. Cash paid for operating lease liabilities is presented in other items, net as a cash flow from operating activity, and cash paid for finance lease liabilities is presented in other financing activities as a cash flow from financing activity.
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (Thousands) | |||||||||||||||||
| Operating lease liabilities | $ | 21,155 | $ | 13,595 | $ | 10,078 | |||||||||||
| Finance lease liabilities | 6,347 | 4,232 | 2,305 | ||||||||||||||
For the Company's operating leases, as of December 31, 2025, 2024 and 2023, the weighted average remaining term was 2.4 years, 3.4 years and 1.6 years, respectively, and the weighted average discount rate was 5.1%, 5.3% and 4.7%, respectively. For the Company's finance leases, as of December 31, 2025, 2024 and 2023, the weighted average remaining term was 5.6 years, 6.8 years and 3.8 years, respectively, and the weighted average discount rate was 5.1%, 5.1% and 4.8%, respectively.
The Company records its right-of-use assets in other assets and the current and noncurrent portions of its lease liabilities in other current liabilities and asset retirement obligations and other liabilities, respectively, in the Consolidated Balance Sheets. The following table summarizes the Company's right-of-use assets and lease liabilities.
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (Thousands) | |||||||||||
| Right-of-Use Assets | |||||||||||
| $ | 74,111 | $ | 60,496 | ||||||||
| 35,650 | 34,803 | ||||||||||
| Total right-of-use assets | $ | 109,761 | $ | 95,299 | |||||||
| Lease Liabilities | |||||||||||
| Current lease liabilities | |||||||||||
| $ | 51,042 | $ | 36,275 | ||||||||
| 7,082 | 5,603 | ||||||||||
| Total current lease liabilities | 58,124 | 41,878 | |||||||||
| Noncurrent lease liabilities | |||||||||||
| 27,369 | 29,391 | ||||||||||
| 29,973 | 29,263 | ||||||||||
| Total noncurrent lease liabilities | 57,342 | 58,654 | |||||||||
| Total lease liabilities | $ | 115,466 | $ | 100,532 | |||||||
The following table summarizes the Company's lease payment obligations as of December 31, 2025.
Operating Lease | Finance Lease | Total Lease | |||||||||||||||
| (Thousands) | |||||||||||||||||
| 2026 | $ | 53,639 | $ | 8,722 | $ | 62,361 | |||||||||||
| 2027 | 10,859 | 8,355 | 19,214 | ||||||||||||||
| 2028 | 7,915 | 7,058 | 14,973 | ||||||||||||||
| 2029 | 5,972 | 5,879 | 11,851 | ||||||||||||||
| 2030 | 4,885 | 4,697 | 9,582 | ||||||||||||||
| Thereafter | 350 | 7,705 | 8,055 | ||||||||||||||
| Total lease payment obligations | 83,620 | 42,416 | 126,036 | ||||||||||||||
| Less: Imputed interest | 5,209 | 5,361 | 10,570 | ||||||||||||||
| Present value of lease liabilities | $ | 78,411 | $ | 37,055 | $ | 115,466 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 10, 2022 | |
| 2020 | Feb 17, 2021 | |
| 2019 | Feb 27, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.