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Financial Information by Business Segment
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Financial Information by Business Segment Financial Information by Business Segment
Prior to the completion of the Equitrans Midstream Merger, the Company's operations consisted of one reportable segment. Historically, the Company administered all properties as a whole rather than by discrete operating segments and measured financial performance as a single enterprise and not on an area-by-area basis.

As a result of the completion of the Equitrans Midstream Merger, the Company adjusted its internal reporting structure and the Company's chief operating decision maker changed the manner in which he allocates resources and measures financial performance to incorporate the gathering and transmission assets acquired by the Company in the Equitrans Midstream Merger. Hence, the Company's operations expanded to comprise three discrete operating segments reflective of its three lines of business consisting of Production, Gathering and Transmission. Accordingly, the manner in which the Company reports its operations has been changed retrospectively, with certain prior period amounts recast between Production and Gathering.
Certain amounts, including cash and cash equivalents, debt, income taxes and other amounts related to the Company's headquarters function as well as amounts related to the Company's energy transition initiatives, are managed on a consolidated basis and, as such, have not been allocated to the Company's reportable segments and are presented as "Other" along with intersegment eliminations. Water assets acquired in the Equitrans Midstream Merger primarily support the Company's production operations and, as such, have been included in the Company's Production segment.

Substantially all of the Company's operating revenues and assets are generated and located in the United States.

Profit and loss metric with reconciliation to net (loss) income attributable to EQT Corporation for the three months ended September 30, 2024
ProductionGatheringTransmissionOther and intersegment eliminationsEQT Corporation
(Thousands)
Operating revenues:
Sales of natural gas, natural gas liquids and oil$1,099,752 $— $— $— $1,099,752 
Gain (loss) on derivatives72,489 (5,673)— — 66,816 
Pipeline, net marketing services and other5,826 276,829 87,384 (252,805)117,234 
Total operating revenues1,178,067 271,156 87,384 (252,805)1,283,802 
Operating expenses:
Transportation and processing693,670 — — (252,825)440,845 
Production93,842 — — — 93,842 
Operating and maintenance— 30,712 9,806 — 40,518 
Exploration282 — — — 282 
Selling, general and administrative (a)62,952 11,366 5,492 8,660 88,470 
Depreciation, depletion and amortization530,745 37,773 17,109 3,672 589,299 
Loss on sale/exchange of long-lived assets9,708 — 409 — 10,117 
Impairment and expiration of leases12,095 — — — 12,095 
Other operating expenses (b)10,206 — — 279,968 290,174 
Total operating expenses1,413,500 79,851 32,816 39,475 1,565,642 
Operating (loss) income$(235,433)$191,305 $54,568 $(292,280)$(281,840)
Reconciliation of profit and loss metric to net (loss) income attributable to EQT Corporation
Loss (income) from investments$1,671 $(597)$(35,616)$300 $(34,242)
Other income(3,488)(128)(75)(269)(3,960)
Loss on debt extinguishment— — — 365 365 
Interest expense, net— — — 158,299 158,299 
(Loss) income before income taxes(233,616)192,030 90,259 (450,975)(402,302)
Income tax benefit— — — (104,870)(104,870)
Net (loss) income(233,616)192,030 90,259 (346,105)(297,432)
Less: Net income (loss) attributable to noncontrolling interests— 3,687 — (296)3,391 
Net (loss) income attributable to EQT Corporation$(233,616)$188,343 $90,259 $(345,809)$(300,823)
(a)Selling, general and administrative expense incurred prior to the Equitrans Midstream Merger closing date was not recast as the necessary information is not available and the cost to develop such information would be excessive.
(b)Corporate other operating expenses consisted primarily of transaction costs related to the Equitrans Midstream Merger. See Note 12.
Profit and loss metric with reconciliation to net income attributable to EQT Corporation for the three months ended September 30, 2023
ProductionGatheringOther and intersegment eliminationsEQT Corporation
(Thousands)
Operating revenues:
Sales of natural gas, natural gas liquids and oil$1,001,883 $— $— $1,001,883 
Gain on derivatives177,906 — — 177,906 
Pipeline, net marketing services and other3,456 42,057 (39,200)6,313 
Total operating revenues1,183,245 42,057 (39,200)1,186,102 
Operating expenses:
Transportation and processing593,988 — (39,200)554,788 
Production62,858 — — 62,858 
Operating and maintenance— 4,235 — 4,235 
Exploration447 — — 447 
Selling, general and administrative (a)56,942 — — 56,942 
Depreciation, depletion and amortization440,360 4,054 2,472 446,886 
Loss on sale/exchange of long-lived assets1,511 — — 1,511 
Impairment and expiration of leases6,419 — — 6,419 
Other operating expenses (b)(621)— 36,830 36,209 
Total operating expenses1,161,904 8,289 102 1,170,295 
Operating income (loss)$21,341 $33,768 $(39,302)$15,807 
Reconciliation of profit and loss metric to net income attributable to EQT Corporation
Loss (income) from investments$424 $(255)$377 $546 
Other income— — (132)(132)
Loss on debt extinguishment— — 1,089 1,089 
Interest expense, net— — 60,427 60,427 
Income (loss) before income taxes20,917 34,023 (101,063)(46,123)
Income tax benefit— — (126,853)(126,853)
Net income20,917 34,023 25,790 80,730 
Less: Net income (loss) attributable to noncontrolling interests149 — (674)(525)
Net income attributable to EQT Corporation$20,768 $34,023 $26,464 $81,255 
(a)Selling, general and administrative expense incurred prior to the Equitrans Midstream Merger closing date was not recast as the necessary information is not available and the cost to develop such information would be excessive.
(b)Corporate other operating expenses consisted primarily of transaction costs related to the Tug Hill and XcL Midstream Acquisition (defined in Note 11).
Profit and loss metric with reconciliation to net (loss) income attributable to EQT Corporation for the nine months ended September 30, 2024
ProductionGatheringTransmissionOther and intersegment eliminationsEQT Corporation
(Thousands)
Operating revenues:
Sales of natural gas, natural gas liquids and oil$3,293,174 $— $— $— $3,293,174 
Gain (loss) on derivatives240,333 (5,673)— — 234,660 
Pipeline, net marketing services and other2,757 415,491 87,384 (384,884)120,748 
Total operating revenues3,536,264 409,818 87,384 (384,884)3,648,582 
Operating expenses:
Transportation and processing1,914,010 — — (384,917)1,529,093 
Production273,042 — — — 273,042 
Operating and maintenance— 56,018 9,806 — 65,824 
Exploration2,576 — — — 2,576 
Selling, general and administrative (a)180,767 11,366 5,492 31,105 228,730 
Depreciation, depletion and amortization1,470,966 45,282 17,109 8,674 1,542,031 
(Gain) loss on sale/exchange of long-lived assets(310,252)(22)409 — (309,865)
Impairment and expiration of leases58,963 — — — 58,963 
Other operating expenses (b)23,650 — — 330,687 354,337 
Total operating expenses3,613,722 112,644 32,816 (14,451)3,744,731 
Operating (loss) income$(77,458)$297,174 $54,568 $(370,433)$(96,149)
Reconciliation of profit and loss metric to net (loss) income attributable to EQT Corporation
(Income) loss from investments$(371)$(2,109)$(35,616)$1,422 $(36,674)
Other income(17,638)(5,153)(75)(730)(23,596)
Loss on debt extinguishment— — — 5,651 5,651 
Interest expense, net— — — 268,390 268,390 
(Loss) income before income taxes(59,449)304,436 90,259 (645,166)(309,920)
Income tax benefit— — — (124,790)(124,790)
Net (loss) income(59,449)304,436 90,259 (520,376)(185,130)
Less: Net income (loss) attributable to noncontrolling interests— 3,687 — (999)2,688 
Net (loss) income attributable to EQT Corporation$(59,449)$300,749 $90,259 $(519,377)$(187,818)
(a)Selling, general and administrative expense incurred prior to the Equitrans Midstream Merger closing date was not recast as the necessary information is not available and the cost to develop such information would be excessive.
(b)Corporate other operating expenses consisted primarily of transaction costs related to the Equitrans Midstream Merger. See Note 12.
Profit and loss metric with reconciliation to net income (loss) attributable to EQT Corporation for the nine months ended September 30, 2023
ProductionGatheringOther and intersegment eliminationsEQT Corporation
(Thousands)
Operating revenues:
Sales of natural gas, natural gas liquids and oil$3,680,566 $— $— $3,680,566 
Gain on derivatives1,167,144 — — 1,167,144 
Pipeline, net marketing services and other9,675 95,753 (87,214)18,214 
Total operating revenues4,857,385 95,753 (87,214)4,865,924 
Operating expenses:
Transportation and processing1,680,009 — (87,075)1,592,934 
Production163,963 — — 163,963 
Operating and maintenance— 6,108 — 6,108 
Exploration2,602 — — 2,602 
Selling, general and administrative (a)168,999 — — 168,999 
Depreciation, depletion and amortization1,214,882 8,077 7,296 1,230,255 
Loss on sale/exchange of long-lived assets17,814 — — 17,814 
Impairment and expiration of leases22,290 — — 22,290 
Other operating expenses (b)7,645 — 61,620 69,265 
Total operating expenses3,278,204 14,185 (18,159)3,274,230 
Operating income (loss)$1,579,181 $81,568 $(69,055)$1,591,694 
Reconciliation of profit and loss metric to net income (loss) attributable to EQT Corporation
(Income) loss from investments$(2,675)$(4,004)$1,369 $(5,310)
Other income(395)— (474)(869)
Gain on debt extinguishment— — (55)(55)
Interest expense, net— — 146,856 146,856 
Income (loss) before income taxes1,582,251 85,572 (216,751)1,451,072 
Income tax expense— — 217,975 217,975 
Net income (loss)1,582,251 85,572 (434,726)1,233,097 
Less: Net income (loss) attributable to noncontrolling interests1,588 — (1,668)(80)
Net income (loss) attributable to EQT Corporation$1,580,663 $85,572 $(433,058)$1,233,177 
(a)Selling, general and administrative expense incurred prior to the Equitrans Midstream Merger closing date was not recast as the necessary information is not available and the cost to develop such information would be excessive.
(b)Corporate other operating expenses consisted primarily of transaction costs related to the Tug Hill and XcL Midstream Acquisition.
Assets by segment as of September 30, 2024
ProductionGatheringTransmissionOther and intersegment eliminationsEQT Corporation
(Thousands)
Investment in the MVP Joint Venture$— $— $3,358,346 $— $3,358,346 
Goodwill— — 1,289,759 888,477 2,178,236 
Other segment assets (a)22,890,299 8,187,601 2,962,486 368,621 34,409,007 
Total assets$22,890,299 $8,187,601 $7,610,591 $1,257,098 $39,945,589 
(a)Other segment assets in other and intersegment eliminations includes cash and cash equivalents.

Assets by segment as of September 30, 2023
ProductionGatheringOther and intersegment eliminationsEQT Corporation
(Thousands)
Total assets (a)$23,138,353 $1,167,766 $248,869 $24,554,988 
(a)Total assets in other and intersegment eliminations includes cash and cash equivalents.

The Company did not have an investment in the MVP Joint Venture or goodwill as of September 30, 2023.

Capital expenditures by segment
Three Months Ended September 30,Nine Months Ended
September 30,
2024202320242023
(Thousands)
Capital expenditures:
Production (a)$454,772 $435,646 $1,539,904 $1,366,669 
Gathering (b)79,597 6,941 111,644 11,521 
Transmission10,118 — 10,118 — 
Other13,402 1,998 21,345 8,546 
Total capital expenditures$557,889 $444,585 $1,683,011 $1,386,736 
(a)Production capital expenditures included capital expenditures attributable to the noncontrolling interest in The Mineral Company LLC (a joint venture formed between a subsidiary of EQT and a third-party investor for the purpose of purchasing certain mineral rights in the Appalachian Basin) of approximately $8.5 million for the nine months ended September 30, 2023. The Mineral Company LLC was dissolved in the third quarter of 2023.
(b)Gathering capital expenditures included capital expenditures attributable to the noncontrolling interest in Eureka Midstream Holdings of approximately $1.6 million for both the three and nine months ended September 30, 2024. See Notes 1 and 12.

Intersegment contracts

On February 26, 2020, EQT and certain of its affiliates (such parties, collectively, the EQT Producer) entered into a gas gathering and compression agreement (the Consolidated GGA) with an affiliate of EQM Midstream Partners, LP (EQM), which became an indirect wholly-owned subsidiary of EQT upon the closing of the Equitrans Midstream Merger. Pursuant to the terms of the Consolidated GGA, among other things, the EQM affiliate agreed to provide gas gathering services to the EQT Producer, and the EQT Producer committed to an initial annual minimum volume commitment (MVC) of 3.0 Bcf per day and an acreage dedication in Pennsylvania and West Virginia. The Consolidated GGA is effective through December 31, 2035 and will renew annually thereafter unless terminated by the parties thereto.
The Consolidated GGA provides for cash bonus payments (the Henry Hub Cash Bonus) payable by the EQT Producer to the EQM affiliate during each quarter beginning with the first day of the quarter in which the MVP In-Service Date (as defined in the Consolidated GGA) occurs and ending on the earlier of 36 months thereafter or December 31, 2024. Such payments are conditioned upon the quarterly average of the NYMEX Henry Hub natural gas settlement price exceeding certain price thresholds. Upon commencement of long-term firm capacity obligations, the MVP In-Service Date occurred on July 1, 2024. See Note 8.

The EQT Producer's derivative liability and any gain or loss realized related to the Henry Hub Cash Bonus are included in the Company's Production segment; the EQM affiliate's derivative asset and any gain or loss realized related to the Henry Hub Cash Bonus are included in the Company's Gathering segment. All balances and gains or losses related to the Henry Hub Cash Bonus have been eliminated in consolidation. As of September 30, 2024 and December 31, 2023, the derivative related to the Henry Hub Cash Bonus had a fair value of approximately $15 million and $48 million, respectively. The fair value of the derivative asset and liability related to the Henry Hub Cash Bonus is based on significant inputs that are interpolated from observable market data and, as such, is a Level 2 fair value measurement. See Note 5 for a description of the fair value hierarchy.