Segment Information (Tables)

9 Months Ended

Sep. 30, 2012

Segment Information

Schedule of revenue from external customers and operating income

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
	(Thousands)
Revenues from external customers:
EQT Production	$	195,289		$	207,500		$	549,334		$	577,352
EQT Midstream	120,484			122,614			362,630			395,477
Distribution	35,649			49,175			219,343			313,366
Other (a)	12,635			(16,645		)	20,514			(83,065		)
Total	$	364,057		$	362,644		$	1,151,821		$	1,203,130
Operating income:
EQT Production (b)	$	38,341		$	98,936		$	116,193		$	281,024
EQT Midstream (b)	51,021			221,816			166,907			363,477
Distribution	685			2,463			43,831			64,758
Unallocated expenses	(4,286		)	(8,231		)	(6,470		)	(20,693		)
Total	$	85,761		$	314,984		$	320,461		$	688,566

(a) Includes entries to eliminate intercompany natural gas sales from EQT Production to EQT Midstream and transportation activities between EQT Midstream and both EQT Production and Distribution. In addition, this amount reflects the reclassification of third party transportation costs from operating revenues to purchased gas costs at the consolidated level. Reduced activity between segments, lower prices and increased third-party transportation costs caused the change for the three and nine month periods presented.

(b) Losses on dispositions of $0.2 million and gains on dispositions of $0.9 million are included in EQT Production operating income for the three and nine month periods ended September 30, 2012 and gains on dispositions of $180.1 million and $202.9 million are included in EQT Midstream operating income for the three and nine month periods ended September 30, 2011. See Note K.

Reconciliation of operating income to net income

Reconciliation of operating income to net income:
Other income	$	2,988	$	3,098	$	12,918	$	27,948
Interest expense	40,460		32,503		122,341		98,642
Income taxes	11,585		106,665		70,853		228,949
Total	$	36,704	$	178,914	$	140,185	$	388,923

Schedule of segment assets

	September 30,		December 31,
	2012		2011
	(Thousands)
Segment Assets:
EQT Production	$	5,458,646	$	5,256,645
EQT Midstream	1,990,056		1,785,089
Distribution	818,790		850,414
Total operating segments	8,267,492		7,892,148
Headquarters assets, including cash and short-term investments	730,208		880,571
Total assets	$	8,997,700	$	8,772,719

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012		2011
	(Thousands)
Depreciation, depletion and amortization:
EQT Production	$	108,204		$	66,947		$	289,176	$	186,680
EQT Midstream	17,172			14,093			46,864		43,097
Distribution	6,237			6,534			18,767		18,414
Other	(2		)	(231		)	10		(564		)
Total	$	131,611		$	87,343		$	354,817	$	247,627
Expenditures for segment assets:
EQT Production (c)	$	255,223		$	255,151		$	703,834	$	800,029
EQT Midstream	97,135			81,227			296,698		156,832
Distribution	8,164			10,149			21,066		25,179
Other	661			1,118			1,905		3,131
Total	$	361,183		$	347,645		$	1,023,503	$	985,171

(c)Capital expenditures at EQT Production for the nine month period ended 2011 include $92.6 million of liabilities assumed in exchange for producing properties as part of the ANPI transaction discussed in Note J.