Equity in Nonconsolidated Investments

12 Months Ended

Dec. 31, 2011

Equity in Nonconsolidated Investments

Equity in Nonconsolidated Investments

8.Equity in Nonconsolidated Investments

The Company has ownership interests in nonconsolidated investments that are accounted for under the equity method of accounting.  The following table summarizes the equity in the nonconsolidated investments:

		Interest	Ownership as of December	December 31,
Investees	Location	Type	31, 2011	2011	2010
				(Thousands)
Nora Gathering, LLC (Nora LLC)	USA	Joint	50%	$  136,972	$  153,345
Appalachian Natural Gas Trust (ANGT)	USA		100%	–	37,920
Total equity in nonconsolidated investments				$  136,972	$  191,265

The Company’s ownership share of the earnings for 2011, 2010 and 2009 related to the total investments accounted for under the equity method was $7.2 million, $9.7 million, and $6.5 million, respectively.

EQT Midstream’s equity investment in Nora LLC represents a 50% ownership interest which was obtained during 2007 through a series of transactions with Pine Mountain Oil and Gas, Inc., a subsidiary of Range Resources Corporation, by contributing Nora area gathering property in exchange for the ownership interest.  EQT Midstream made no additional equity investments in Nora LLC during 2010 or 2011.  EQT Midstream’s investment in Nora LLC totaled $137.0 million and $153.3 million as of December 31, 2011 and 2010, respectively.

Prior to May 4, 2011, EQT Production had a limited 1% Class B equity investment in ANGT which represented a profits interest in natural gas producing properties located in the Appalachian Basin region of the United States.  Effective May 4, 2011, the Company, through EQT Production Company, acquired the Class A interest in ANGT thereby acquiring 100% of the net profits interest associated with the producing properties (the ANPI transaction).  As a result of this transaction, the Company removed the equity investment in the trust from its books.  See Note 6 for further details.

The following tables summarize the unaudited condensed financial statements for nonconsolidated investments accounted for under the equity method of accounting for the periods noted:

Summarized Balance Sheets

	As of December 31,
	2011		2010
	(Thousands)
Current assets	$	18,838	$	45,493
Noncurrent assets	260,286		399,447
Total assets	$	279,124	$	444,940
Current liabilities	$	5,210	$	8,013
Stockholders’ equity	273,914		436,927
Total liabilities and stockholders’ equity	$	279,124	$	444,940

Summarized Statements of Income

	Years Ended December 31,
	2011	2010	2009
	(Thousands)
Revenues	$  49,772	$  62,618	$   89,980
Operating expenses	35,520	41,693	63,877
Net income	$14,252	$20,925	$   26,103