Equilibrium reconstructions of low-aspect ratio (A < 1.3) discharges in the Pegasus toroidal experiment have been performed. Magnetic diagnostics are used for equilibrium constraint and a filament code is used to estimate the significant currents flowing in the vacuum vessel walls. This technique is able to fit the global plasma parameters of plasma current and major radius to within 5%, internal inductance to within 10% and plasma pressure to within 15% as determined by Monte Carlo estimation of the uncertainties in the fit parameters. Determination of the equilibrium properties of the plasma allows an understanding of the dynamics of internal tearing modes and external ideal kink modes that limit plasma performance. Internal tearing modes were found to degrade plasma confinement when rational surfaces are located in regions of low magnetic shear early in the discharge when temperature is lower and resistivity is higher. This confinement degradation limits the maximum achievable plasma current and pressure. Disruptions with precursors growing with a time of ∼90 µs have been found to be consistent with ideal external kink modes with a hybrid growth time.