Segment Information (Tables)

6 Months Ended

Jun. 30, 2013

Segment Information

Schedule of revenue from external customers and operating income

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
	(Thousands)
Revenues from external customers:
EQT Production	$	306,132	$	158,649	$	556,643	$	354,045
EQT Midstream	150,366		120,098		297,054		242,146
Distribution	56,345		48,273		210,163		183,694
Third-party transportation costs (a)	34,827		30,470		70,568		57,677
Less intersegment revenues, net (b)	(27,578)		(19,686)		(55,676)		(49,798		)
Total	$	520,092	$	337,804	$	1,078,752	$	787,764

(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.

Reconciliation of operating income to net income

Operating income:
EQT Production	$	105,056	$	17,704	$	179,153	$	76,742
EQT Midstream	72,246		59,750		146,460		115,886
Distribution	6,170		6,376		58,446		43,146
Unallocated expenses (c)	(12,177)		(2,426)		(14,129)		(2,184		)
Total operating income	$	171,295	$	81,404	$	369,930	$	233,590
Reconciliation of operating income to net income:
Other income	$	2,111	$	5,249	$	4,441	$	11,040
Interest expense	37,384		40,629		75,136		81,881
Income taxes	41,904		14,578		95,836		59,268
Net income	$	94,118	$	31,446	$	203,399	$	103,481

(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 six months ended June 30, 2013.

Schedule of segment assets

	As of June 30,		As of December 31,
	2013		2012
	(Thousands)
Segment assets:
EQT Production	$	6,011,973	$	5,675,534
EQT Midstream	2,119,342		2,046,558
Distribution	834,577		860,029
Total operating segments	8,965,892		8,582,121
Headquarters assets, including cash and short-term investments	88,383		267,741
Total assets	$	9,054,275	$	8,849,862

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2013		2012		2013		2012
	(Thousands)
Depreciation, depletion and amortization:
EQT Production	$	144,073	$	94,405	$	268,982	$	180,972
EQT Midstream	18,452		14,984		36,671		29,692
Distribution	6,072		6,287		12,120		12,530
Other	(20)		5		(80)		12
Total	$	168,577	$	115,681	$	317,693	$	223,206
Expenditures for segment assets:
EQT Production (d)	$	398,078	$	264,926	$	645,024	$	448,611
EQT Midstream	91,254		119,925		142,612		199,563
Distribution	9,558		7,439		15,163		12,902
Other	1,872		443		2,220		1,244
Total	$	500,762	$	392,733	$	805,019	$	662,320

(d) Expenditures for segment assets in the EQT Production segment include $128.9 million and $56.5 million for property acquisitions during the three months ended June 30, 2013 and 2012, respectively, and $141.6 million and $74.6 million for property acquisitions during the six months ended June 30, 2013 and 2012, respectively.