Consolidated Variable Interest Entities

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The Company determined EQGP and EQM to be variable interest entities. Through EQT's ownership and control of EQGP's general partner and control of EQM's general partner, EQT has the power to direct the activities that most significantly impact their economic performance. In addition, through EQT's limited partner interest in EQGP and EQGP's general partner interest, limited partner interest and IDRs in EQM, EQT has the obligation to absorb the losses of EQGP and EQM and the right to receive benefits from EQGP and EQM, in accordance with such interests. As EQT has a controlling financial interest in EQGP, and is the primary beneficiary of EQGP, EQT consolidates EQGP who consolidates EQM. See Note 12 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 for additional information related to the consolidated variable interest entities.

The risks associated with the operations of EQGP and EQM are discussed in their respective Annual Reports on Form 10-K for the year ended December 31, 2016, as updated by any Quarterly Reports on Form 10-Q. See further discussion of the impact that EQT's ownership and control of EQGP and EQM have on EQT's financial position, results of operations and cash flows included in EQT's Annual Report on Form 10-K for the year ended December 31, 2016, including in the section captioned "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein. See Notes B and C for further discussion of EQGP and EQM, respectively.

The following table presents amounts included in the Company's Condensed Consolidated Balance Sheets that were for the use or obligation of EQGP or EQM as of March 31, 2017 and December 31, 2016.



Classification	March 31, 2017		December 31, 2016
	(Thousands)
Assets:
Cash and cash equivalents	$	42,768	$	60,453
Accounts receivable	21,630		20,662
Prepaid expenses and other	1,582		5,745
Property, plant and equipment, net	2,632,465		2,578,834
Other assets	258,779		206,104
Liabilities:
Accounts payable	$	43,531	$	35,831
Other current liabilities	61,807		32,242
Long-term debt	986,137		985,732
Other liabilities and credits	10,258		9,562

The following table summarizes EQGP's Statements of Consolidated Operations and Cash Flows for the three months ended March 31, 2017 and 2016, inclusive of affiliate amounts.



	Three Months Ended March 31,
	2017			2016
	(Thousands)
Operating revenues	$	203,426		$	185,786
Operating expenses	59,525			49,623
Other expenses	1,913			384
Net income	$	141,988		$	135,779

Net cash provided by operating activities	$	160,769		$	115,644
Net cash used in investing activities	(81,687		)	(123,522		)
Net cash used in financing activities	(96,767		)	(352,704		)