Financial Information by Business Segment (Tables)

3 Months Ended

Mar. 31, 2014

Financial Information by Business Segment

Schedule of revenue from external customers and operating income (loss) and reconciliation to net income

	Three Months Ended
	March 31,
	2014		2013
	(Thousands)
Revenues from external customers:
EQT Production	$	467,745	$	250,511
EQT Midstream	166,226		146,688
Third-party transportation costs (a)	44,629		35,741
Less intersegment revenues, net (b)	(16,975)		(17,057)
Total	$	661,625	$	415,883

Operating income:
EQT Production	$	277,205	$	74,097
EQT Midstream	83,069		74,214
Unallocated expenses (c)	(3,483)		(3,832)
Total operating income	$	356,791	$	144,479

Reconciliation of operating income to income from continuing operations:

Other income	$	2,551	$	2,281
Interest expense	31,968		37,752
Income taxes	116,335		34,768
Income from continuing operations	$	211,039	$	74,240

(a) This amount reflects the reclassification of third-party transportation costs from operating revenues to purchased gas costs at the consolidated level.

(b) Includes entries to eliminate intercompany natural gas sales from EQT Production to EQT Midstream. The Company also had $10.9 million for the three months ended March 31, 2013 of intercompany eliminations for transmission and storage services between EQT Midstream and the Companyâ€™s previously reported Distribution segment that were recast to discontinued operations as a result of the Equitable Gas Transaction. These recast adjustments had no impact on the Companyâ€™s net income for the three months ended March 31, 2013.

(c) Unallocated expenses consist primarily of incentive compensation expense, administrative costs and, for the three months ended March 31, 2013, corporate overhead charges previously allocated to the Distribution segment that were reclassified to Headquarters as part of the recast of the 2013 financial information in this Quarterly Report on Form 10-Q.

Schedule of segment assets


	As of March 31,		As of December 31,
	2014		2013
	(Thousands)
Segment assets:
EQT Production	$	6,706,590	$	6,359,065
EQT Midstream	2,532,559		2,514,429
Total operating segments	9,239,149		8,873,494
Headquarters assets, including cash and short-term investments	1,007,157		918,559
Total assets	$	10,246,306	$	9,792,053

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

	Three Months Ended
	March 31,
	2014		2013
	(Thousands)
Depreciation, depletion and amortization:
EQT Production	$	131,239	$	124,909
EQT Midstream	21,009		18,219
Other	(137)		(92)
Total	$	152,111	$	143,036

Expenditures for segment assets (d):
EQT Production (e)	$	408,331	$	243,175
EQT Midstream	83,213		49,144
Other	560		348
Total	$	492,104	$	292,667

(d) Excludes non-cash capital expenditures of $4.5 million and $6.0 million for the three months ended March 31, 2014 and 2013, respectively. The Company capitalizes certain labor overhead costs including a portion of non-cash stock-based compensation expense.

(e) Expenditures for segment assets in the EQT Production segment include $59.2 million and $12.7 million for property acquisitions during the three months ended March 31, 2014 and 2013, respectively.