Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
EQT Corporation's free cash flow turned positive in the fourth quarter of fiscal 2023, driven by higher revenue and operating cash flow. The free cash flow margin improved from a deficit in the prior quarter to a positive level.
- Revenue grew compared to the prior quarter, and operating cash flow increased, resulting in positive free cash flow despite a rise in capital expenditure. The free cash flow margin strengthened from negative to positive.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow turning positive. Versus the same quarter a year ago, revenue and free cash flow were higher, though operating cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$91.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$624.4M
Cash generated by operations before capital spending.
CapEx
$533.1M
Capital spending and related asset purchases.
FCF margin
4.5%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-03-31 | $1.8B | $1.7B | $494.8M | $1.2B | 63.8% |
| 2023-06-30 | $848.3M | $437.1M | $487.0M | -$49.9M | -5.9% |
| 2023-09-30 | $1.2B | $454.6M | $504.1M | -$49.5M | -4.2% |
| 2023-12-31 | $2.0B | $624.4M | $533.1M | $91.2M | 4.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 18.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth and Operating Cash Flow
Revenue increased significantly from the prior quarter, and operating cash flow followed suit, driving free cash flow into positive territory. This improvement in cash generation was the key factor behind the positive free cash flow margin.
Stronger cash conversion from revenue enabled the company to report positive free cash flow after a deficit in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew compared to the prior quarter, and operating cash flow increased, resulting in positive free cash flow despite a rise in capital expenditure. The free cash flow margin strengthened from negative to positive.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow turning positive. Versus the same quarter a year ago, revenue and free cash flow were higher, though operating cash flow was lower.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter.