EQT CorpEQT
EQT Corp Revenue Disclosure
Revenue from Contracts with Customers
Sales of natural gas, NGLs and oil. Under the Company's natural gas, NGLs and oil sales contracts, the Company generally considers the delivery of each unit (MMBtu or Bbl) to be a separate performance obligation that is satisfied upon delivery. These contracts typically require payment within 25 days of the end of the calendar month in which the commodity is delivered. A significant number of these contracts contain variable consideration because the payment terms refer to market prices at future delivery dates. In these situations, the Company has not identified a standalone selling price because the terms of the variable payments relate specifically to the Company's efforts to satisfy the performance obligations. Other contracts, such as fixed price contracts or contracts with a fixed differential to New York Mercantile Exchange (NYMEX) or index prices, contain fixed consideration. The Company allocates the fixed consideration to each performance obligation on a relative standalone selling price basis, which requires judgment from management. For these contracts, the Company generally concludes that the fixed price or fixed differentials in the contracts are representative of the standalone selling price.
Based on management's judgment, the performance obligations for the sale of natural gas, NGLs and oil are satisfied at a point in time because the customer obtains control and legal title of the asset when the natural gas, NGLs or oil is delivered to the designated sales point.
The sales of natural gas, NGLs and oil presented in the Statements of 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.
Pipeline revenue. The Company provides gathering, transmission and storage services under firm and interruptible service contracts.
Firm service contracts generally require the customer to pay a firm reservation fee, which is a fixed, monthly fee to reserve an agreed upon amount of pipeline or storage capacity regardless of whether the customer uses the capacity. Under its firm service contracts, the Company has a stand-ready obligation to provide the firm service over the life of the contract. The performance obligation for revenue from firm reservation fees is satisfied over time as the pipeline capacity is made available to the customer. As such, the Company recognizes firm reservation fee revenue evenly over the contract period using a time-elapsed output method to measure progress.
Volumetric-based fees, which are charges based on the volume of gas gathered, transported or stored, can also be charged under firm service contracts for each firm contracted volume gathered, transported or stored as well as for volumes gathered, transported or stored in excess of the firm contracted volume so long as capacity exists.
Interruptible service contracts require the customer to pay volumetric-based fees and generally do not guarantee access to the pipeline or storage facility.
The performance obligation for revenue from volumetric-based fees is generally satisfied upon the Company's monthly invoicing to the customer for volumes gathered, transported or stored during the month. The amount invoiced generally corresponds directly to the value of the Company's performance to date because the customer obtains value as each volume is gathered, transported or stored. Gathering service contracts are invoiced on a one-month lag, with payment typically due within 21 days of the invoice date. Revenue for gathering services provided but not yet invoiced is estimated based on contract data, preliminary throughput and allocation measurements on a monthly basis. Transmission and storage service contracts are invoiced at the end of each calendar month, with payment typically due within 10 days of the invoice date.
For both firm reservation and volumetric-based fee revenues, the Company allocates the transaction price to each performance obligation based on the estimated relative standalone selling price. Any excess of consideration received over revenue recognized results in the deferral of those amounts until future periods based on a units-of-production or straight-line methodology as these methods align with the consumption of services provided to the customer. The units-of-production methodology requires the use of judgment to estimate future production volumes.
Certain of the Company's gathering service agreements are structured with MVCs, which specify minimum quantities that the customer will be charged regardless of whether such quantities are gathered. Revenue is recognized for MVCs when the performance obligation has been met, which is the earlier of when the gas is gathered or when the likelihood that the customer will be able to meet its MVC is remote. If a customer fails to meet its MVC for a specified period (thus not exercising all the contractual rights to gathering services within the specified period), the customer is obligated to pay a contractually-determined fee based on the shortfall between actual volume gathered and the MVC.
Disaggregated revenue information. The table below provides disaggregated information on the Company's revenues. Certain other revenue contracts are outside the scope of ASU 2014-09, Revenue from Contracts with Customers. These contracts are reported in pipeline and other revenues in the Statements of Consolidated Operations. Derivative contracts are also outside the scope of ASU 2014-09.
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (Thousands) | |||||||||||||||||
| Revenues from contracts with customers: | |||||||||||||||||
| Upstream sales | |||||||||||||||||
| Natural gas | $ | 7,018,766 | $ | 4,224,882 | $ | 4,520,817 | |||||||||||
| NGLs | 620,384 | 615,933 | 427,760 | ||||||||||||||
| Oil | 87,562 | 93,551 | 96,191 | ||||||||||||||
| Sales of natural gas, NGLs and oil | 7,726,712 | 4,934,366 | 5,044,768 | ||||||||||||||
| Gathering pipeline revenue | |||||||||||||||||
| Firm reservation fee (a) | 632,916 | 313,987 | — | ||||||||||||||
| Volumetric-based fee | 668,518 | 452,476 | 161,395 | ||||||||||||||
| Total Gathering pipeline revenue | 1,301,434 | 766,463 | 161,395 | ||||||||||||||
| Transmission pipeline revenue | |||||||||||||||||
| Firm reservation fee | 435,194 | 183,088 | — | ||||||||||||||
| Volumetric-based fee | 137,058 | 35,205 | — | ||||||||||||||
| Total Transmission pipeline revenue | 572,252 | 218,293 | — | ||||||||||||||
| Intersegment eliminations and other | (1,253,532) | (704,517) | (148,830) | ||||||||||||||
| Total revenues from contracts with customers (b) | 8,346,866 | 5,214,605 | 5,057,333 | ||||||||||||||
| Other sources of revenue: | |||||||||||||||||
| Gain on derivatives | 290,994 | 51,117 | 1,838,941 | ||||||||||||||
| Other revenues | 6,351 | 7,587 | 12,649 | ||||||||||||||
| Total other sources of revenue | 297,345 | 58,704 | 1,851,590 | ||||||||||||||
| Total operating revenues | $ | 8,644,211 | $ | 5,273,309 | $ | 6,908,923 | |||||||||||
(a)Firm reservation fee revenue included unbilled revenues supported by MVCs of $18.4 million and $4.2 million for the years ended December 31, 2025 and 2024, respectively.
(b)For contracts with customers in which the Company had satisfied its performance obligations and held an unconditional right to consideration at the balance sheet date, the Company recorded accounts receivable of $1,159.0 million and $939.9 million as of December 31, 2025 and 2024, respectively.
Summary of remaining performance obligations. The following table summarizes the transaction price allocated to the Company's remaining obligations on all contracts with fixed consideration as of December 31, 2025. The table excludes contracts that qualified for the exception to the relative standalone selling price method as of December 31, 2025.
| 2026 | 2027 | 2028 | 2029 | 2030 | Thereafter | Total | |||||||||||||||||||||||||||||||||||
| (Thousands) | |||||||||||||||||||||||||||||||||||||||||
| Upstream natural gas sales | $ | 4,597 | $ | 1,978 | $ | — | $ | — | $ | — | $ | — | $ | 6,575 | |||||||||||||||||||||||||||
| Gathering firm reservation fee revenue: | |||||||||||||||||||||||||||||||||||||||||
| Third-party | 100,794 | 85,998 | 85,998 | 85,998 | 85,998 | 287,261 | 732,047 | ||||||||||||||||||||||||||||||||||
| Affiliate | 101,792 | 101,450 | 97,701 | 97,701 | 103,977 | 1,403,698 | 1,906,319 | ||||||||||||||||||||||||||||||||||
| Total | 202,586 | 187,448 | 183,699 | 183,699 | 189,975 | 1,690,959 | 2,638,366 | ||||||||||||||||||||||||||||||||||
| Gathering revenue supported by MVCs: | |||||||||||||||||||||||||||||||||||||||||
| Third-party | 96,377 | 89,203 | 80,536 | 67,311 | 56,762 | 132,254 | 522,443 | ||||||||||||||||||||||||||||||||||
| Affiliate | 397,966 | 410,621 | 411,740 | 410,622 | 408,322 | 1,634,128 | 3,673,399 | ||||||||||||||||||||||||||||||||||
| Total | 494,343 | 499,824 | 492,276 | 477,933 | 465,084 | 1,766,382 | 4,195,842 | ||||||||||||||||||||||||||||||||||
| Transmission firm reservation fee revenue: | |||||||||||||||||||||||||||||||||||||||||
| Third-party | 185,328 | 176,986 | 171,814 | 169,198 | 165,686 | 660,199 | 1,529,211 | ||||||||||||||||||||||||||||||||||
| Affiliate | 253,089 | 262,637 | 260,776 | 260,445 | 260,445 | 1,704,604 | 3,001,996 | ||||||||||||||||||||||||||||||||||
| Total | 438,417 | 439,623 | 432,590 | 429,643 | 426,131 | 2,364,803 | 4,531,207 | ||||||||||||||||||||||||||||||||||
| Total remaining performance obligations | $ | 1,139,943 | $ | 1,128,873 | $ | 1,108,565 | $ | 1,091,275 | $ | 1,081,190 | $ | 5,822,144 | $ | 11,371,990 | |||||||||||||||||||||||||||
As of December 31, 2025, based on total projected contractual revenues, the Company's firm gathering contracts had weighted average remaining terms of approximately 10 years for third-party contracts and 13 years for affiliate contracts.
As of December 31, 2025, based on total projected contractual revenues, the Company's firm transmission and storage contracts had weighted average remaining terms of approximately 10 years for third-party contracts and 13 years for affiliate contracts.
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 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 15, 2018 | |
| 2016 | Feb 9, 2017 | |
| 2015 | Feb 11, 2016 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.