XML 52 R27.htm IDEA: XBRL DOCUMENT v3.8.0.1
Share-Based Compensation Plans
12 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation Plans
Share-Based Compensation Plans
 
Share-based compensation expense recorded by the Company was as follows:
 
 
Years Ended December 31,
 
 
2017
 
2016
 
2015
 
 
(millions)
2013 Executive Performance Incentive Program
 
$

 
$

 
$
6.8

2014 Executive Performance Incentive Program
 

 
9.5

 
12.9

2015 Executive Performance Incentive Program
 
5.4

 
12.4

 
12.1

2016 Incentive Performance Share Unit Program
 
13.1

 
7.2

 

2017 Incentive Performance Share Unit Program
 
5.0

 

 

2014 EQT Value Driver Award Program
 

 

 
1.1

2014 EQM Value Driver Award Program
 

 

 
0.6

2015 EQT Value Driver Award Program
 

 
3.2

 
14.6

2016 EQT Value Driver Performance Share Unit Award Program
 
3.4

 
15.7

 

2017 EQT Value Driver Performance Share Unit Award Program
 
10.8

 

 

Restricted stock awards
 
87.1

 
9.4

 
7.0

Non-qualified stock options
 
2.6

 
3.1

 
1.9

Other programs, including non-employee director awards
 
1.0

 
5.5

 
(2.3
)
Total share-based compensation expense
 
$
128.4

 
$
66.0

 
$
54.7


         
A portion of the expense related to share-based compensation plans is included as an unallocated expense in deriving total operating income for segment reporting purposes. See Note 6. When an award has graduated vesting, the Company records expense equal to the vesting percentage on the vesting date.

The Company typically uses treasury stock to fund awards that are paid in stock, but the awards may be funded by stock acquired by the Company in the open market or from any other person, issued directly by the Company or any combination of the foregoing. 
 
Cash received from exercises under all share-based payment arrangements for employees and directors for the years ended December 31, 2017, 2016 and 2015 was $0.2 million, $5.0 million and $14.0 million, respectively.  During the years ended December 31, 2017, 2016 and 2015, share-based payment arrangements paid in stock generated tax benefits of $58.9 million, $22.2 million and $43.1 million, respectively.
 
Executive Performance Incentive Programs - Equity & Liability

The Management Development and Compensation Committee of the Company's Board of Directors (the Compensation Committee) adopted:
the 2013 Executive Performance Incentive Plan (2013 Incentive PSU Program) under the 2009 Long-Term Incentive Plan (2009 LTIP);
the 2014 Executive Performance Incentive Plan (2014 Incentive PSU Program) under the 2009 LTIP;
the 2015 Executive Performance Incentive Plan (2015 Incentive PSU Program) under the 2014 Long-Term Incentive Plan (2014 LTIP);
the 2016 Incentive Performance Share Unit Program (2016 Incentive PSU Program) under the 2014 LTIP; and
the 2017 Incentive Performance Share Unit Program (2017 Incentive PSU Program) under the 2014 LTIP.

The 2013 Incentive PSU Program, the 2014 Incentive PSU Program, the 2015 Incentive PSU Program, the 2016 Incentive PSU Program and the 2017 Incentive PSU Program are collectively referred to as the Incentive PSU Programs. All of the Incentive PSU Programs with the exception of the 2017 Incentive PSU Program (which granted both equity and liability awards) granted equity awards.

    
The Incentive PSU Programs were established to provide long-term incentive opportunities to key employees to further align their interests with those of the Company’s shareholders and with the strategic objectives of the Company.  The performance period for each of the awards under the Incentive PSU Programs is 36 months, with vesting occurring upon payment following the expiration of the performance period. Awards granted were/will be earned based upon:
the level of total shareholder return relative to a predefined peer group; and
with respect to the 2013 Incentive PSU Program, the level of cumulative operating cash flow per share, and with respect to the other Incentive PSU Programs, the cumulative total sales volume growth, in each case, over the performance period.

The payout factor varies between zero and 300% of the number of outstanding units contingent upon the performance metrics listed above. The Company recorded 2013 Incentive PSU Program, the 2014 Incentive PSU Program, the 2015 Incentive PSU Program, the 2016 Incentive PSU Program and the portion of the 2017 Incentive PSU Program to be settled in stock as equity awards using a grant date fair value determined through a Monte Carlo simulation which projected the share price for the Company and its peers at the ending point of the performance period. The 2017 Incentive PSU Program also included awards to be settled in cash which are recorded at fair value as of the measurement date determined through a Monte Carlo simulation which projected the share price for the Company and its peers at the ending point of the performance period. The expected share prices were generated using each company's annual volatility for the expected term and the commensurate three-year risk-free rate shown in the chart below for equity awards and two year risk free rate shown in chart below for liability awards. As the Incentive PSU Programs include a performance condition that affects the number of shares that will ultimately vest (the level of cumulative operating cash flow per share with respect to the 2013 Incentive PSU Program and the cumulative total sales volume growth performance condition with respect to the other Incentive PSU Programs), the Monte Carlo simulation computed either the grant date fair value for equity awards or the measurement date fair value for liability awards for each possible performance condition outcome on the grant date for equity awards or the measurement date for liability awards. The Company reevaluates the then-probable outcome at the end of each reporting period, in order to record expense at the probable outcome grant date fair value or measurement date fair value, as applicable. The vesting of the units under each Incentive PSU Program occurs upon payment after the end of the performance period. More detailed information about each award is set forth in the table below:

Incentive PSU Program
Settled In
Accounting Treatment
Fair Value1
Risk Free Rate
Vested/Payment Date
Awards Paid
Value
(in millions)
Unvested/Expected Payment Date2
Awards Outstanding as of December 31, 20173
2013
Stock
Equity
$
140.00

0.36
%
February 2016
261,073

$
36.6

N/A
N/A

2014
Stock
Equity
$
189.68

0.78
%
February 2017
238,060

$
45.2

N/A
N/A

2015
Stock
Equity
$
141.11

1.10
%
N/A
N/A

N/A

First Quarter of 2018
306,407

20164
Stock
Equity
$
96.30

1.31
%
N/A
N/A

N/A

First Quarter of 2019
447,145

20175
Stock
Equity
$
120.60

1.47
%
N/A
N/A

N/A

First Quarter of 2020
79,070

20176
Cash
Liability
$
103.70

1.88
%
N/A
N/A

N/A

First Quarter of 2020
117,530

 
1 Grant date fair value determined using a Monte Carlo simulation for equity awards. Fair value determined using a Monte Carlo simulation as of the measurement date for liability awards. For unvested Incentive PSU Programs the grant date fair value for equity awards and the measurement date fair value for liability awards is as of December 31, 2017. The Company recorded compensation expense as of December 31, 2017 using the grant date fair value for equity awards and the measurement date fair value for liability awards, each computed for the outcome which management estimated to be most probable.
2 Vesting of the units will occur upon payment, following the expiration of the performance period subject to continued service through such date.
3 Represents the number of outstanding units as of December 31, 2017 adjusted for forfeitures.
4 As of January 1, 2017, a total of 482,030 units were outstanding under the 2016 Incentive PSU Program. Adjusting for 34,885 forfeitures, there were 447,145 outstanding units as of December 31, 2017.
5 A total of 90,580 units were granted under the 2017 Incentive PSU Program - Equity in 2017 and no additional units may be granted. Adjusting for 11,510 forfeitures, there were 79,070 outstanding units as of December 31, 2017.
6 A total of 133,000 units were granted under the 2017 Incentive PSU Program - Liability in 2017 and no additional units may be granted. Adjusting for 15,470 forfeitures, there were 117,530 outstanding units as of December 31, 2017.

The following table sets forth the total compensation costs capitalized related to each of the Incentive PSU Programs:

 
 
For the Years Ended December 31,
 
 
(millions)
Award
 
2017
 
2016
 
2015
2013 Incentive PSU Program
 
$

 
$

 
$
4.4

2014 Incentive PSU Program
 

 
4.2

 
4.9

2015 Incentive PSU Program
 
2.2

 
4.9

 
4.9

2016 Incentive PSU Program
 
4.4

 
3.3

 

2017 Incentive PSU Program (liability only)
 
$
1.7

 
$

 
$



As of December 31, 2017, $12.9 million, $6.4 million and $7.9 million of unrecognized compensation cost (assuming no changes to the performance condition achievement level) related to the 2016 Incentive PSU Program, the 2017 Incentive PSU Program - Equity and 2017 Incentive PSU Program - Liability, respectively, was expected to be recognized over the remainder of the performance periods.    

The fair value is estimated using a Monte Carlo simulation valuation method with the following weighted average assumptions:
 
For the Years Ended December 31,
 
 
2017
 
2017
 
2016
 
2015
 
2014
 
2013
 
 
Liability2
 
Equity

 
Equity

 
Equity

 
Equity

 
Equity

Risk-free rate
 
1.88
%
 
1.47
%
 
1.31
%
 
1.10
%
 
0.78
%
 
0.36
%
Dividend Yield1
 
N/A

 
N/A

 
N/A

 
N/A

 
N/A

 
N/A

Volatility factor
 
33.01
%
 
32.30
%
 
28.43
%
 
27.45
%
 
31.38
%
 
32.97
%
Expected term2
 
2 years

 
3 years

 
3 years

 
3 years

 
3 years

 
3 years

 
 
 
 
 
 
 
 
 
 
 
 
 
1 Dividends paid from the beginning of the Performance Period will be cumulatively added as additional shares of common stock.
2 Information shown for the valuation of the liability plan is as of measurement date.

Value Driver Award Programs

The Compensation Committee has also adopted:
the 2014 Value Driver Award Program (2014 EQT VDPSU Program) under the 2009 LTIP;
the 2015 Value Driver Award Program (2015 EQT VDPSU Program) under the 2014 LTIP;
the 2016 Value Driver Performance Share Unit Award Program (2016 EQT VDPSU Program) under the 2014 LTIP; and
the 2017 Value Driver Performance Share Unit Award Program (2017 EQT VDPSU Program) under the 2014 LTIP.

The 2014 EQT VDPSU Program, the 2015 EQT VDPSU Program, the 2016 EQT VDPSU Program and the 2017 EQT VDPSU Program are collectively referred to as the VDPSU Programs.

The VDPSU Programs were established to align the interests of key employees with the interests of shareholders and customers and the strategic objectives of the Company. Under each VDPSU Program, 50% of the awards confirmed vest upon payment following the first anniversary of the grant date; the remaining 50% of the awards confirmed vest upon payment following the second anniversary of the grant date subject to continued service through such date. Due to the graded vesting of each award under the VDPSU Programs, the Company recognized compensation cost over the requisite service period for each separately vesting tranche of the award as though each award was, in substance, multiple awards. The payments are contingent upon adjusted earnings before interest, income taxes, depreciation and amortization performance as compared to the Company's annual business plan and individual, business unit and Company value driver performance over the respective one-year periods. More detailed information about each award is set forth in the table below:

EQT VDPSU Program
Settled In
Accounting Treatment
Fair Value per Unit1
Vested/Payment Date
Number of awards (including accrued dividends) or cash (millions) paid
Unvested/Expected Payment Date
Awards Outstanding (including accrued dividends) as of December 31, 20172
2014
Cash
Liability
$
75.70

February 2015
$
14.2

N/A
N/A

$
52.13

February 2016
$
9.4

2015
Stock
Equity
$
75.70

February 2016
222,751

N/A

N/A

 
 
 
$
75.70

February 2017
208,567

N/A
N/A

20163
Cash
Liability
$
65.40

February 2017
$
21.3

N/A

N/A

$
56.92

N/A

N/A

Second tranche first quarter of 2018
298,480

20174
Cash
Liability
$
56.92

N/A
N/A

First tranche first quarter of 2018
245,913

N/A

N/A
N/A

Second tranche first quarter of 2019
246,297


1 For equity awards, the fair value per unit is equal to the Company's closing common stock price on the business day prior to the
grant date. For liability awards, the fair value per unit is equal to the Company's common stock price on the measurement date.
2 As of January 1, 2017, 651,328 awards including accrued dividends were outstanding under the 2016 EQT VDPSU Program.
3 In addition to the $21.3 million in awards paid in February 2017, $0.2 million in awards were paid in 2017 in accordance with employee separation agreements.
4 The total liability recorded for the 2017 EQT VDPSU Program was $21.0 million as of December 31, 2017.

The following table sets forth the total compensation costs capitalized related to each of the VDPSU Programs:
 
 
For the Years Ended December 31,
 
 
(millions)
Award
 
2017
 
2016
 
2015
2014 EQT VDPSU Program
 
$

 
$

 
$
1.3

2015 EQT VDPSU Program
 

 
4.1

 
10.9

2016 EQT VDPSU Program
 
7.0

 
16.3

 

2017 EQT VDPSU Program
 
$
10.3

 
$

 
$



Restricted Stock Awards - Equity
 
The Company granted 85,350 and 158,360 restricted stock equity awards during the years ended December 31, 2017 and 2016, respectively, to key employees of the Company.  The restricted stock granted will be fully vested at the end of the three-year period commencing with the date of grant, assuming continued service through such date.  The weighted average fair value of these restricted stock grants, based on the grant date fair value of the Company’s common stock, was approximately $63 and $75 for the years ended December 31, 2017 and 2016, respectively. 

The Company granted 7,900 restricted stock equity awards during the year ended December 31, 2016 to its new Chief Financial Officer. The restricted shares granted were fully vested at the end of the one-year period commencing on the date of grant. The fair value of this restricted stock grant, based on the Company's closing common stock price on the grant date, was $63.33 per share.

In conjunction with the closing of the Rice Merger, the Company converted Rice restricted stock equity awards and performance share equity awards to 2,290,234 Company restricted stock equity awards on November 13, 2017.  Employees who were terminated on the closing date were immediately vested in their Company awards and received Merger Consideration cash of $5.30 per Rice share. Company awards of those employees who continued employment with the Company under a transition agreement will vest upon the earlier of (i) the end of the vesting period set forth in the original award agreement or (ii) the end of such employee's employment period set forth in his/her transition agreement, in both cases subject to continued service through such date. Company awards of those employees who continued employment with the Company on an at will basis will vest in accordance with the vesting period set forth in the original award agreement, assuming continued service through such date. The fair value of these restricted stock grants, based on the grant date fair value of the Company’s common stock, was approximately $65.18 for the year December 31, 2017

The total fair value of restricted stock awards vested during the years ended December 31, 2017, 2016 and 2015 was $123.0 million, $5.1 million and $3.8 million, respectively. The $123.0 million includes $13.0 million for the cash payment for the Merger Consideration of $5.30 per Rice share.
 
As of December 31, 2017, $11.7 million of unrecognized compensation cost related to nonvested restricted stock equity awards was expected to be recognized over a remaining weighted average vesting term of approximately 1.0 year.
    
A summary of restricted stock equity award activity as of December 31, 2017, and changes during the year then ended, is presented below:
Restricted Stock
 
Non-
Vested
Shares
 
Weighted
Average
Fair Value
 
Aggregate
Fair Value
Outstanding at January 1, 2017
 
224,340

 
$
81.61

 
$
18,309,538

Granted
 
2,375,584

 
65.12

 
154,690,670

Vested
 
(1,854,549
)
 
66.31

 
(122,983,162
)
Forfeited
 
(15,875
)
 
78.12

 
(1,240,174
)
Outstanding at December 31, 2017
 
729,500

 
$
66.86

 
$
48,776,872



Restricted Stock Unit Awards - Liability

The Company granted 292,400 and 148,860 restricted stock unit liability awards that will be paid in cash during the years ended December 31, 2017 and 2016 to key employees of the Company. Adjusting for forfeitures, there were 386,360 awards outstanding as of December 31, 2017. Because these awards are liability awards, the Company records compensation expense based upon of the fair value of the awards as remeasured at the end of each reporting period. The restricted units granted will be fully vested at the end of the three-year period commencing with the date of grant, assuming continued service through such date. The total liability recorded for these restricted units was $8.8 million and $2.7 million as of December 31, 2017 and December 31, 2016.

Non-Qualified Stock Options
 
The fair value of the Company’s option grants was estimated at the dates of grant using a Black-Scholes option-pricing model with the assumptions indicated in the table below for the years ended December 31, 2017, 2016 and 2015.  The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the date of grant.  The dividend yield is based on the dividend yield of the Company’s common stock at the time of grant.  Expected volatilities are based on historical volatility of the Company’s common stock.  The expected term represents the period of time that options granted are expected to be outstanding based on historical option exercise experience.
 
 
For the Years Ended December 31,
 
 
2017 1
 
2016 1
 
2015
Risk-free interest rate
 
1.95
%
 
1.67
%
 
1.61
%
Dividend yield
 
0.18
%
 
0.16
%
 
0.12
%
Volatility factor
 
27.45
%
 
28.59
%
 
26.80
%
Expected term
 
5 years

 
5 years

 
5 years



 
 
For the Years Ended December 31,
 
 
2017 1
 
2016 1
 
2015
Number of Options Granted
 
153,700

 
228,500

 
158,200

Weighted Average Grant Date Fair Value
 
$
17.47

 
$
15.10

 
$
19.90

Total Intrinsic Value of Options Exercised (millions)
 
$
1.7

 
$
3.5

 
$
15.1


1 There were two grant dates for the 2017 and 2016 options. Amounts represent weighted average.
 
As of December 31, 2017, $2.5 million of unrecognized compensation cost related to outstanding nonvested stock options was expected to be recognized by December 31, 2019.

A summary of option activity as of December 31, 2017, and changes during the year then ended, is presented below:
Non-qualified Stock Options
 
Shares
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic
Value
Outstanding at January 1, 2017
 
1,174,200

 
$
60.99

 
 
 
 
Granted
 
153,700

 
63.97

 
 
 
 
Exercised
 
(158,700
)
 
44.84

 
 
 
 
Forfeited
 
(40,000
)
 
67.91

 
 
 
 
Expired
 

 

 
 
 
 
Outstanding at December 31, 2017
 
1,129,200

 
$
63.42

 
6.25 years
 
$
1,428,439

Exercisable at December 31, 2017
 
691,100

 
$
63.92

 
5.08 years
 
$
668,266



EQM Awards
 
At the closing of EQM’s IPO in July 2012, the Compensation Committee and the Board of Directors of EQM's general partner granted certain key Company employees performance awards under the EQM Total Return Program representing 146,490 common units of EQM.  The performance condition related to the performance awards was satisfied on December 31, 2015 as the total unitholder return realized on EQM’s common units from the date of grant was at least 10%.

The Company accounted for the EQM Total Return Program awards as equity awards using a $20.02 grant date fair value per unit as determined using a fair value model.  The model projected the unit price for EQM common units at the ending point of the performance period.  The price was generated using annual historical volatilities of peer group companies for the expected term of the awards, which was based upon the performance period.  The range of expected volatilities calculated by the valuation model was 27% - 72%, and the weighted-average expected volatility was approximately 38%.  Additional assumptions included the risk-free rate for the period within the contractual life of the awards based on the U.S. Treasury yield curve in effect at the time of grant and the expected EQM distribution growth rate of 10%The confirmed awards vested and 153,367 awards including accrued distributions were distributed in EQM common units in February 2016.
 
Effective in 2014, the Compensation Committee and the Board of Directors of EQM’s general partner adopted the 2014 EQM Value Driver Award Program (2014 EQM VDPSU Program) under the 2009 LTIP and EQM’s 2012 Long-Term Incentive Plan. The 2014 EQM VDPSU Program was established to align the interests of key employees with the interests of EQM unitholders and customers and the strategic objectives of EQM. Under the 2014 EQM VDPSU Program, 50% of the units confirmed vested upon payment following the first anniversary of the grant date; the remaining 50% of the units confirmed vested upon payment following the second anniversary of the grant date. The performance metrics were EQM’s 2014 adjusted earnings before interest, income taxes, depreciation and amortization performance as compared to EQM’s annual business plan and individual, business unit and value driver performance over the period of January 1, 2014 through December 31, 2014. The awards vested and 31,629 awards including accrued distributions were distributed in EQM common units in February 2015 and 28,998 awards including accrued distributions were distributed in EQM common units in February 2016. EQM accounted for these awards as equity awards using the $58.79 grant date fair value per unit which was equal to EQM’s closing common unit price on the business day prior to the date of grant. Due to the graded vesting of the awards, EQM recognized compensation cost over the requisite service period for each separately vesting tranche of the award as though the award was, in substance, multiple awards. The total compensation cost capitalized related to the 2014 EQM VDPSU Program was less than $0.1 million in 2015.

Non-employee Directors’ Share-Based Awards

The Company has historically granted to EQT non-employee directors share-based awards which vest upon grant of the awards.  The share-based awards will be paid in cash or Company common stock following the directors’ termination of service on the Company’s Board of Directors.  Awards that will be paid in cash are accounted for as liability awards and as such compensation expense is recorded based upon the fair value of the awards as remeasured at the end of each reporting period.  Awards that will be settled in Company common stock are accounted for as equity awards and as such the Company recorded compensation expense for the fair value of the awards at the grant date fair value. A total of 217,414 non-employee director share-based awards including accrued dividends were outstanding as of December 31, 2017.  A total of 26,090, 37,620 and 24,110 share-based awards were granted to non-employee directors during the years ended December 31, 2017, 2016 and 2015, respectively.  The weighted average fair value of these grants, based on the Company’s closing common stock price on the business day prior to the grant date, was $65.35, $52.13 and $75.52 for the years ended December 31, 2017, 2016 and 2015, respectively.

The general partner of EQM has granted EQM common unit-based phantom awards to its independent directors, which vested upon grant.  The value of the phantom awards will be paid in EQM common units upon the director’s termination of service on the general partner’s Board of Directors.  The Company accounts for these awards as equity awards and as such recorded compensation expense for the fair value of the awards at the grant date fair value.  A total of 21,740 independent director unit-based awards including accrued distributions were outstanding as of December 31, 2017.  A total of 2,940, 2,610 and 2,220 unit-based awards were granted to independent directors during the years ended December 31, 2017, 2016 and 2015, respectively.  The weighted average fair value of these grants, based on EQM’s closing common unit price on the business day prior to the grant date, was $76.68, $75.46 and $88.00 for the years ended December 31, 2017, 2016 and 2015, respectively.

The general partner of EQGP has granted EQGP common unit-based phantom awards to its independent directors, which vested upon grant.  The value of the phantom awards will be paid in EQGP common units upon the director’s termination of service on the general partner’s Board of Directors.  The Company accounts for these awards as equity awards and as such recorded compensation expense for the fair value of the awards at the grant date fair value.  A total of 21,014 independent director unit-based awards including accrued distributions were outstanding as of December 31, 2017.  A total of 8,940, 8,270 and 2,910 unit-based awards were granted to independent directors during the years ended December 31, 2017, 2016 and 2015, respectively. The weighted average fair value of these grants, based on EQGP’s closing common unit price on the business day prior to the grant date, was $25.21, $21.57, and $28.77 for the years ended December 31, 2017, 2016, and 2015 respectively.
The general partner of RMP has granted RMP common unit-based awards to certain of its independent directors, which vest one year from the date of grant, contingent upon continued service through such date. The Company records these awards as equity awards. A total of 20,688 independent director unit-based awards including accrued distributions were outstanding as of December 31, 2017. A total of 20,688 unit based awards were granted to independent directors during the year ended December 31, 2017. The fair value of these grants, based on RMP’s closing common unit price on the business day prior to the grant date, was $24.41 for the year ended December 31, 2017. There have been no unit-based awards granted to independent directors since the Rice Merger.

2018 Value Driver Performance Share Unit Award Program and 2018 Incentive Performance Share Unit Program
 
Effective in 2018, the Compensation Committee adopted the 2018 EQT Value Driver Performance Share Unit Award Program (2018 EQT VDPSU Program) and the 2018 Incentive Performance Share Unit Program (2018 Incentive PSU Program) under the 2014 LTIP. The 2018 EQT VDPSU Program and 2018 Incentive PSU Program were established to align the interests of key employees with the interests of shareholders and customers and the strategic objectives of the Company.
 
A total of 363,460 units were granted under the 2018 EQT VDPSU Program.  Fifty percent of the units confirmed under the 2018 EQT VDPSU will vest upon payment following the first anniversary of the grant date; the remaining 50% of the confirmed units under the 2018 EQT VDPSU Program will vest upon payment following the second anniversary of the grant date.  The payout will vary between zero and 300% of the number of outstanding units contingent upon adjusted 2018 earnings before interest, income taxes, depreciation and amortization performance as compared to the Company’s annual business plan and individual, business unit and Company value driver performance over the period January 1, 2018 through December 31, 2018.  If earned, the 2018 EQT VDPSU Program units are expected to be paid in cash.

A total of 314,210 units were granted under the 2018 Incentive PSU Program.  The vesting of the units under the 2018 Incentive PSU Program will occur upon payment after December 31, 2020 (the end of the three-year performance period).  The payout will vary between zero and 300% of the number of outstanding units contingent upon a combination of the level of total shareholder return relative to a predefined peer group, the level of operating and development cost improvement, and return on capital employed over the period January 1, 2018 through December 31, 2020.  For certain key employees, the award will be reduced if the first year synergies in connection with the Rice Merger are not achieved. If earned, 172,350 of the 2018 Incentive PSU Program units are expected to be distributed in Company common stock and 141,860 of the 2018 Incentive PSU Program units are expected to be paid in cash. 

2018 Stock Options
 
Effective January 1, 2018, the Compensation Committee granted 287,800 non-qualified stock options to key employees of the Company.  The 2018 options are ten-year options, with an exercise price of $56.92, and are subject to three-year cliff vesting.

2018 Restricted Stock and Restricted Stock Unit Awards

Effective January 1, 2018, the Compensation Committee granted 86,200 restricted stock equity and 264,930 restricted stock unit liability awards. The restricted stock equity awards and restricted stock unit liability awards will be fully vested at the end of the three-year period commencing with the date of grant, assuming continued employment.