Share-Based Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Schedule of share-based compensation expense

The following table summarizes the Company's share-based compensation expense.

	Years Ended December 31,
	2019			2018			2017
	(Thousands)
2015 Executive Performance Incentive Program	$	—		$	—		$	5,348
2016 Incentive Performance Share Unit Program	—			6,863			13,077
2017 Incentive Performance Share Unit Program	(681		)	2,467			5,038
2018 Incentive Performance Share Unit Program	(952		)	4,742			—
2019 Incentive Performance Share Unit Program	14,939			—			—
2016 EQT Value Driver Performance Share Unit Award Program	—			—			3,341
2017 EQT Value Driver Performance Share Unit Award Program	—			584			10,822
2018 EQT Value Driver Performance Share Unit Award Program	(248		)	8,224			—
2019 EQT Value Driver Performance Share Unit Award Program	3,624			—			—
Restricted stock awards	14,430			14,503			87,104
Non-qualified stock options	4,774			2,757			2,626
Other programs, including non-employee director awards	2,257			3,014			1,005
Less: Discontinued operations	—			(18,250		)	(15,595		)
Total share-based compensation expense (a)	$	38,143		$	24,904		$	112,766

(a) For the year ended December 31, 2019, share-based compensation expense of $28.6 million was included in proxy, transaction and reorganization expense.

Schedule of details of award types

detailed information on each award.

EQT VDPSU Program	Settled In	Accounting Treatment	Fair Value per Unit (a)		Vested/Payment Date	Number of awards (including accrued dividends) or cash paid (Millions)		Unvested/Expected Payment Date	Awards Outstanding (including accrued dividends) as of December 31, 2019 (b)
2016 (c)	Cash	Liability	$	65.40	February 2017	$	21.3	N/A	N/A
			$	56.92	February 2018	$	16.8	N/A	N/A
2017	Cash	Liability	$	56.92	February 2018	$	14.0	N/A	N/A
			$	18.89	February 2019	$	4.0	N/A	N/A
2018	Cash	Liability	$	18.89	February 2019	$	4.9	N/A	N/A
			$	10.90	N/A	N/A		Second tranche first quarter of 2020	185,976
2019 (d)	Cash	Liability	$	10.90	N/A	N/A		First tranche first quarter of 2020	169,417
			N/A		N/A	N/A		Second tranche first quarter of 2021	170,180

(a) For liability awards, the fair value per unit is equal to EQT common stock price on the measurement date.

(b) The 2017 EQT VDPSU Program and 2018 EQT VDPSU Program include 95,452 and 130,355 awards, respectively, for Equitrans Midstream employees that will be settled by the Company.

(c) In addition to the $21.3 million in awards paid in February 2017, $0.2 million in awards were paid in 2017 in accordance with employee separation agreements.

(d) The total liability recorded for the 2019 EQT VDPSU Program was $2.8 million as of December 31, 2019.

More detailed information on each award is set forth in the table below.

Incentive PSU Program	Settled In	Accounting Treatment	Fair Value (a)		Risk-Free Rate	Vested/Payment Date	Awards Paid	Value (Millions)		Unvested/Expected Payment Date	Awards Outstanding as of December 31, 2019 (b)
2015	Stock	Equity	$	141.11	1.10%	February 2018	274,767	$	38.8	N/A	N/A
2016	Stock	Equity	$	109.30	1.31%	February 2019	384,101	$	34.8	N/A	N/A
2017 (c)	Stock	Equity	$	120.60	1.47%	N/A	N/A	N/A		First Quarter of 2020	44,573
2017 (d)	Cash	Liability	$	10.90	N/A	N/A	N/A	N/A		First Quarter of 2020	93,953
2018 (e)	Stock	Equity	$	76.53	1.97%	N/A	N/A	N/A		First Quarter of 2021	107,340
2018 (f)	Cash	Liability	$	11.81	1.58%	N/A	N/A	N/A		First Quarter of 2021	113,517
2019 (g)	Stock	Equity	$	29.45	2.44%	N/A	N/A	N/A		First Quarter of 2022	463,380
2019 (h)	Cash	Liability	$	14.21	1.57%	N/A	N/A	N/A		First Quarter of 2022	244,940

(a) Information for the valuation of the liability plans is shown as of December 31, 2019.

(b) Represents the number of outstanding units as of December 31, 2019 adjusted for forfeitures. The 2016 Incentive PSU Program settled in stock included 130,393 for Equitrans Midstream employees that was settled by the Company. The 2017 and 2018 Incentive PSU Programs to be settled in stock include 7,020 and 9,550 shares, respectively, for Equitrans Midstream employees that will be settled by the Company. The 2017 and 2018 Incentive PSU Programs to be settled in cash include 40,018 and 55,210 shares, respectively, for Equitrans Midstream employees that will be settled by the Company.

(c) As of January 1, 2019, 44,573 units were outstanding under the 2017 Incentive PSU Program – Equity. There were no forfeitures in 2019 and 44,573 outstanding units as of December 31, 2019.

(d) As of January 1, 2019, 105,018 units were outstanding under the 2017 Incentive PSU Program – Liability. Adjusting for 11,065 forfeitures, there were 93,953 outstanding units as of December 31, 2019.

(e) As of January 1, 2019, 107,340 units were outstanding under the 2018 Incentive PSU Program – Equity. There were no forfeitures in 2019 and 107,340 total outstanding units as of December 31, 2018.

(f) As of January 1, 2019, 124,820 units were outstanding under the 2018 Incentive PSU Program – Liability. Adjusting for 11,303 forfeitures, there were 113,517 outstanding units as of December 31, 2019.

(g) A total of 463,380 units were granted under the 2019 Incentive PSU Program – Equity in 2019, and no additional units may be granted. There were no forfeitures in 2019 and 463,380 total outstanding units as of December 31, 2019.

(h) A total of 255,920 units were granted under the 2019 Incentive PSU Program – Liability in 2019, and no additional units may be granted. Adjusting for 10,980 forfeitures, there were 244,940 outstanding units as of December 31, 2019.

Schedule of employee service share-based compensation, allocation of recognized period costs

The following table presents total capitalized compensation costs related to the VDPSU Programs.

	Years Ended December 31,
	2019		2018		2017
	(Millions)
2016 EQT VDPSU Program	$	—	$	—	$	7.0
2017 EQT VDPSU Program	—		0.1		10.3
2018 EQT VDPSU Program	0.1		3.3		—
2019 EQT VDPSU Program	2.4		—		—

The following table presents total capitalized compensation costs related to the Incentive PSU Programs.

	Years Ended December 31,
	2019			2018		2017
	(Millions)
2015 Incentive PSU Program	$	—		$	—	$	2.2
2016 Incentive PSU Program	—			2.1		4.4
2017 Incentive PSU Program (liability only)	(1.4		)	1.0		1.7
2018 Incentive PSU Program (liability only)	(0.3		)	0.6		—
2019 Incentive PSU Program (liability only)	0.9			—		—

Summary of restricted stock awards activity

The following table summarizes restricted stock equity award activity as of December 31, 2019.

Restricted Stock	Nonvested Shares (a)		Weighted Average Fair Value		Aggregate Fair Value
Outstanding at January 1, 2019	192,782		$	59.79	$	11,525,593
Granted	613,440		17.42		10,685,274
Vested	(487,509	)	24.33		(11,862,608		)
Forfeited	(7,716	)	35.16		(271,295		)
Outstanding at December 31, 2019	310,997		$	32.40	$	10,076,964

(a) Nonvested shares outstanding at December 31, 2019 included 71,313 shares for Equitrans Midstream employees that will be settled by the Company.

Non-qualified stock options, assumptions used to value share-based compensation

The expected term represents the period of time that options granted are expected to be outstanding based on historical option exercise experience.

	Years Ended December 31,
	2019 (a)			2018			2017 (a)
Risk-free interest rate	2.48		%	2.25		%	1.95		%
Dividend yield	0.46		%	0.20		%	0.18		%
Volatility factor	27.97		%	26.46		%	27.45		%
Expected term	5 years			5 years			5 years
Number of Options Granted	779,300			287,800			153,700
Weighted Average Grant Date Fair Value	$	5.31		$	15.39		$	17.47
Total Intrinsic Value of Options Exercised (Millions)	$	—		$	—		$	1.7

(a)

There were two grant dates for the 2019 and 2017 options. Amounts shown represent weighted average.

air value is estimated using a Monte Carlo simulation valuation method with the following weighted average assumptions:

	Incentive PSU Programs Issued During the Years Ended December 31,
	2019	2019	2018	2018	2017	2017	2016	2015
Accounting Treatment	Liability (a)	Equity	Liability (a)	Equity	Liability (b)	Equity	Equity	Equity
Risk-free rate	1.57%	2.44%	1.58%	1.97%	N/A	1.47%	1.31%	1.10%
Dividend Yield (c)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Volatility factor	59.90%	54.60%	52.10%	32.60%	N/A	32.30%	28.43%	27.45%
Expected term	2 years	3 years	1 year	3 years	N/A	3 years	3 years	3 years

(a) Information for the valuation of the liability plans is shown as of December 31, 2019.

(b) The 2017 Incentive PSU Program – Liability award fair value per unit is equal to EQT common stock price on the measurement date.

(c)

Dividends paid from the beginning of the performance period will be cumulatively added as additional shares of common stock.

Summary of option activity

The following table summarizes option activity as of December 31, 2019.

Non-Qualified Stock Options	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2019	1,775,429	$	32.43
Granted	779,300	19.11
Outstanding at December 31, 2019	2,554,729	$	28.37	5.94 years	$	—
Exercisable at December 31, 2019	2,447,020	$	28.75	5.81 years	$	—