Financial Information by Business Segment (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of company's operating revenues, income from operations and assets



Three Months Ended March 31, 2018	EQT Production		EQM Gathering		EQM Transmission		RMP Gathering		RMP Water		Intersegment Eliminations			EQT Corporation
Revenues:	(Thousands)
Sales of natural gas, oil and NGLs	$	1,226,374	$	—	$	—	$	—	$	—	$	—		$	1,226,374
Pipeline, water and net marketing services	59,636		125,908		106,934		61,501		22,963		(232,325		)	144,617
Gain on derivatives not designated as hedges	62,592		—		—		—		—		—			62,592
Total operating revenues	$	1,348,602	$	125,908	$	106,934	$	61,501	$	22,963	$	(232,325	)	$	1,433,583



Three Months Ended March 31, 2017	EQT Production		EQM Gathering		EQM Transmission		Intersegment Eliminations			EQT Corporation
Revenues:	(Thousands)
Sales of natural gas, oil and NGLs	$	673,465	$	—	$	—	$	—		$	673,465
Pipeline and net marketing services	14,455		102,329		97,743		(134,565		)	79,962
Gain on derivatives not designated as hedges	140,742		—		—		—			140,742
Total operating revenues	$	828,662	$	102,329	$	97,743	$	(134,565	)	$	894,169



	Three Months Ended March 31,
	2018			2017
	(Thousands)
Operating (loss) income:
EQT Production (a)	$	(1,893,807	)	$	257,549
EQM Gathering	98,891			73,704
EQM Transmission	79,451			71,604
RMP Gathering	44,095			—
RMP Water	11,370			—
Unallocated expenses and intersegment eliminations (b)	(63,516		)	(11,880		)
Total operating (loss) income	$	(1,723,516	)	$	390,977


(a)	Impairment of long-lived assets of $2.3 billion is included in EQT Production operating income for the three months ended March 31, 2018. See Note Q.


(b)	Unallocated expenses consist primarily of compensation expense and administrative costs, including transaction costs of $35.7 million. Intersegment eliminations include water services that are provided to EQT Production and capitalized as part of development costs.

Reconciliation of operating income to income from continuing operations

Reconciliation of operating (loss) income to net (loss) income:



	Three Months Ended March 31,
	2018			2017
	(Thousands)
Total operating (loss) income	$	(1,723,516	)	$	390,977
Other income	9,585			3,048
Interest expense	70,013			42,655
Income tax (benefit) expense	(338,965		)	100,665
Net (loss) income	$	(1,444,979	)	$	250,705

Schedule of segment assets



	March 31, 2018		December 31, 2017
	(Thousands)
Segment assets:
EQT Production	$	20,633,392	$	22,711,854
EQM Gathering	1,449,871		1,411,857
EQM Transmission	1,475,214		1,462,881
RMP Gathering	2,741,744		2,720,305
RMP Water	163,458		185,079
Total operating segments	26,463,679		28,491,976
Headquarters assets, including cash and short-term investments	1,168,667		1,030,628
Total assets	$	27,632,346	$	29,522,604

Schedule of depreciation, depletion and amortization and expenditures for segment assets



	Three Months Ended March 31,
	2018			2017
	(Thousands)
Depreciation, depletion and amortization: (c)
EQT Production	$	400,058		$	211,097
EQM Gathering	10,738			8,860
EQM Transmission	12,441			11,687
RMP Gathering	8,124			—
RMP Water	5,771			—
Other	761			274
Total	$	437,893		$	231,918

Expenditures for segment assets (d):
EQT Production (e)	$	675,028		$	945,458
EQM Gathering	68,933			48,838
EQM Transmission	18,929			21,389
RMP Gathering	20,940			—
RMP Water	2,375			—
Other and intersegment eliminations (f)	(21,223		)	1,628
Total	$	764,982		$	1,017,313


(c)	Excludes amortization of intangible assets.


(d)	Includes the capitalized portion of non-cash stock-based compensation costs, non-cash acquisitions and the impact of capital accruals. These non-cash items are excluded from capital expenditures on the Statements of Condensed Consolidated Cash Flows. Expenditures for segment assets does not include consideration for the Rice Merger.

(e)

Expenditures for segment assets in the EQT Production segment included $36.8 million and $42.7 million for fill-ins and bolt-ons associated with legacy EQT acreage for the three months ended March 31, 2018 and 2017, respectively. Expenditures included $44.3 million associated with retained midstream assets during the three months ended March 31, 2018. The three months ended March 31, 2017 included $669.5 million of cash and $15.4 million of non-cash capital expenditures, for the acquisitions discussed in Note P.


(f)	Intersegment eliminations include water services that are provided to EQT Production and capitalized as part of development costs.