Financial Information by Business Segment

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Financial Information by Business Segment

Financial Information by Business Segment

Operating segments are revenue-producing components of the enterprise for which separate financial information is produced internally and which are subject to evaluation by the Company’s chief operating decision maker in deciding how to allocate resources.

The Company reports its operations in two segments, which reflect its lines of business.  The EQT Production segment includes the Company’s exploration for, and development and production of, natural gas, natural gas liquids (NGLs) and a limited amount of crude oil in the Appalachian and Permian Basins.  The EQT Midstream segment’s operations include the natural gas gathering, transmission, storage and marketing activities of the Company, including ownership and operation of the Partnership.

Operating segments are evaluated on their contribution to the Company’s consolidated results based on operating income. Other income, interest and income taxes are managed on a consolidated basis. Headquarters’ costs are billed to the operating segments based upon an allocation of the headquarters’ annual operating budget.  Differences between budget and actual headquarters’ expenses are not allocated to the operating segments.

Substantially all of the Company’s operating revenues, income from operations and assets are generated or located in the United States. 

	Three Months Ended March 31,
	2015			2014
	(Thousands)
Revenues from external customers:
EQT Production	$	502,194		$	512,374
EQT Midstream	208,227			166,226
Less intersegment revenues, net (a)	(1,648		)	(16,975		)
Total	$	708,773		$	661,625
Operating income:
EQT Production	$	185,843		$	277,205
EQT Midstream	129,741			83,069
Unallocated expenses (b)	(825		)	(3,483		)
Total operating income	$	314,759		$	356,791

Reconciliation of operating income to income from continuing operations:

Total operating income	$	314,759	$	356,791
Other income	939		2,551
Interest expense	37,216		31,968
Income taxes	57,314		116,335
Income from continuing operations	$	221,168	$	211,039

	As of March 31, 2015		As of December 31, 2014
	(Thousands)
Segment assets:
EQT Production	$	8,389,691	$	8,153,199
EQT Midstream	2,800,865		2,709,052
Total operating segments	11,190,556		10,862,251
Headquarters assets, including cash and short-term investments	1,875,762		1,202,649
Total assets	$	13,066,318	$	12,064,900

(a) Includes entries to eliminate intercompany natural gas sales from EQT Production to EQT Midstream.

(b) Unallocated expenses consist primarily of incentive compensation expense and administrative costs.

	Three Months Ended March 31,
	2015		2014
	(Thousands)
Depreciation, depletion and amortization:
EQT Production	$	171,463	$	131,239
EQT Midstream	23,195		21,009
Other	87		(137		)
Total	$	194,745	$	152,111
Expenditures for segment assets:
EQT Production (c)	$	481,974	$	411,084
EQT Midstream	72,575		84,919
Other	893		560
Total	$	555,442	$	496,563

(c)     Expenditures for segment assets in the EQT Production segment include $51.0 million and $59.2 million for property acquisitions during the three months ended March 31, 2015 and 2014, respectively.