Segment Information (Tables)

9 Months Ended

Sep. 30, 2013

Schedule of revenue from external customers and operating income

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
	(Thousands)
Revenues from external customers:
EQT Production	$	304,231	$	195,289	$	860,874	$	549,334
EQT Midstream	155,677		120,484		452,731		362,630
Distribution	36,118		35,649		246,281		219,343
Third-party transportation costs (a)	34,316		33,947		104,884		91,624
Less intersegment revenues, net (b)	(23,744)		(21,312)		(79,420)		(71,110		)
Total	$	506,598	$	364,057	$	1,585,350	$	1,151,821

Operating income:
EQT Production	$	97,600	$	38,528	$	276,753	$	115,270
EQT Midstream	78,533		51,021		224,993		166,907
Distribution	(87)		685		58,359		43,831
Unallocated expenses (c)	(5,498)		(4,286)		(19,627)		(6,470		)
Total operating income	$	170,548	$	85,948	$	540,478	$	319,538

(a) EQT Production’s segment results are reported with third-party transportation costs reflected as a deduction from operating revenues. Third-party transportation costs are reported as a component of purchased gas costs in the consolidated results. This amount reflects the reclassification of third-party transportation costs from operating revenues to purchased gas costs at the consolidation level.

(b) 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.

(c) Unallocated expenses consist primarily of incentive compensation expenses, general and administrative costs and expenses related to the pending sale of Equitable Gas and Homeworks for the three and nine months ended September 30, 2013.

Reconciliation of operating income to net income


Reconciliation of operating income to net income:
Other income	$	2,405	$	2,801	$	6,846	$	13,841
Interest expense	35,554		40,460		110,690		122,341
Income taxes	34,789		11,585		130,625		70,853
Net income	$	102,610	$	36,704	$	306,009	$	140,185

Schedule of segment assets

	As of September 30,		As of December 31,
	2013		2012
	(Thousands)
Segment assets:
EQT Production	$	6,123,994	$	5,675,534
EQT Midstream	2,210,574		2,046,558
Distribution	857,421		860,029
Total operating segments	9,191,989		8,582,121
Headquarters assets, including cash and short-term investments	490,263		267,741
Total assets	$	9,682,252	$	8,849,862

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
	(Thousands)
Depreciation, depletion and amortization:
EQT Production	$	150,637	$	108,204	$	419,619	$	289,176
EQT Midstream	18,930		17,172		55,601		46,864
Distribution	6,096		6,237		18,216		18,767
Other	(15)		(2)		(95)		10
Total	$	175,648	$	131,611	$	493,341	$	354,817

Expenditures for segment assets:
EQT Production (d)	$	332,370	$	255,223	$	977,394	$	703,834
EQT Midstream	111,593		97,135		254,205		296,698
Distribution	9,710		8,164		24,873		21,066
Other	942		661		3,162		1,905
Total	$	454,615	$	361,183	$	1,259,634	$	1,023,503

(d) Expenditures for segment assets in the EQT Production segment include $20.5 million and $20.6 million for property acquisitions during the three months ended September 30, 2013 and 2012, respectively, and $162.1 million and $95.2 million for property acquisitions during the nine months ended September 30, 2013 and 2012, respectively.