EQT Reports Third Quarter 2012 Earnings

  EQT Reports Third Quarter 2012 Earnings

  Production sales volume up 33% -- with a 2013 forecast of 30% sales volume
                                    growth

Business Wire

PITTSBURGH -- October 25, 2012

EQT Corporation (NYSE:EQT) today announced third quarter 2012 earnings of
$31.9 million, or $0.21 per diluted share; compared to third quarter 2011
earnings of $67.6 million, or $0.45 per diluted share, excluding a gain on the
sale of the Big Sandy pipeline. Thirdquarter 2012 earnings were negatively
impacted by $0.03 in earnings per diluted share (EPS), from the resale of
unused transmission capacity at prices below the contracted price. For the
first time, the Company recorded a $4.8 million reduction in net income, or
$0.03 in EPS, attributable to non-controlling interests in EQT Midstream
Partners, LP. Operating cash flow was $176.2 million in the third quarter
2012, compared to $191.1 million for the third quarter of 2011. Cash flow per
share was $1.18 in the third quarter 2012, compared to $1.28 in the third
quarter 2011.

EQT’s third quarter 2012 operating income was $85.8 million, compared to third
quarter 2011 operating income of $134.8 million, excluding the Big Sandy gain.
During the quarter, revenue from production and midstream sales volume growth
was more than offset by a $44.3 million increase in depreciation, depletion
and amortization expenses; as well as a 23% reduction in average wellhead
sales prices to EQT Corporation. The 2011 results excluding the Big Sandy gain
are non-GAAP financial measures and are reconciled in the Non-GAAP Disclosures
section of this press release.

Highlights for the third quarter 2012 vs. third quarter 2011; and
quarter-over-quarter 2012:

  *Production sales volumes were 33% higher, and 12.5% sequentially;
  *Marcellus production sales volumes were 85% higher, and 27% sequentially;
  *Midstream gathered volumes were 30% higher, and 12% sequentially; and
  *EQT average wellhead sales price was 23% lower.

Additional Highlights:

  *Increased 2012 production sales volume guidance to 257 Bcfe; and
  *Initiated 2013 production sales volume guidance of 335 Bcfe, a 30%
    increase over 2012

RESULTS BY BUSINESS

EQT Production

Driven by drilling in the Marcellus Shale, EQT Production achieved sales
volumes of 68.2 Bcfe in the third quarter 2012, which was 33% higher than the
third quarter 2011 and 12.5% higher quarter-over-quarter 2012. Sales volumes
from the Marcellus averaged 451 MMcfe per day for the third quarter 2012, up
from 243 MMcfe per day in the third quarter 2011, an 85% increase. The Company
is increasing its full-year 2012 sales volume guidance to 257 Bcfe, 32% higher
than 2011, and is initiating preliminary 2013 volume guidance of at least 335
Bcfe, 30% higher than 2012 forecasted volumes. The Company will provide more
detailed guidance with the announcement of its 2013 capital budget in
December.

Operating income for EQT Production was $38.3 million in the third quarter of
2012, compared to $98.9 million in the same period last year, while revenues
for the quarter were $195.3 million, $12.2 million lower than the third
quarter 2011. There was a 33% increase in sales volumes for the quarter; which
was more than offset by a $1.17 per Mcfe decrease in realized price. The lower
realized price resulted from a 33% decrease in average NYMEX natural gas price
on our unhedged volumes, and a 40% decrease in average natural gas liquids
price. Natural gas hedges contributed $75.1 million to revenues during the
quarter. The Company realized an increase of $1.10 per Mcfe, due to its
natural gas hedges, and a $0.66 per Mcfe premium over NYMEX natural gas prices
resulting from production from its liquids rich acreage. EQT Production’s
sales volumes consisted of approximately 5% NGLs and oil, excluding ethane.
Revenues, however, were reduced by $5.0 million due to selling unused
transmission capacity that was not under long-term resale agreements, at
prices lower than paid by EQT, in turn reducing the realized price by $0.07
per Mcfe.

For the third quarter 2012, operating expenses for EQT Production were $156.8
million, $48.2 million higher than the same quarter last year. Depreciation,
depletion and amortization expenses were $41.3 million higher, primarily due
to an increase in produced volumes and a higher unit depletion rate, which
averaged $1.54 in the quarter. Other operating expenses were $6.9 million
higher, consistent with the sales volume growth during the quarter. Per unit
lease operating expense (LOE), excluding production taxes, decreased 18% to
$0.18 per Mcfe.

The Company drilled (spud) 30 gross wells in the Marcellus Shale during the
third quarter 2012, with an average length of pay of 5,840 feet. The Company
drilled 100 Marcellus wells through the first three quarters and is on track
to drill 132 wells in 2012.

EQT Midstream

EQT Midstream’s third quarter 2012 operating income was $51.0 million, $9.3
million higher than the third quarter of 2011, excluding the Big Sandy gain.
Net gathering revenues increased 22% to $77.0 million in the third quarter
2012, primarily due to a 30% increase in gathered volumes. Transmission
revenues for the third quarter 2012 increased by $8.2 million, or 45%, from
capacity charges associated with Equitrans expansion projects, including the
Sunrise Pipeline, which was completed in July 2012. Net storage, marketing and
other operating revenues totaled $5.4 million, a $7.0 million decrease, or
$0.04 in EPS, due to unrealized losses on derivatives and inventory and lower
liquids pricing. The Company expects that net storage, marketing and other
operating revenues will total approximately $45 million in 2012.

Total operating expenses for EQT Midstream during the quarter were $57.9
million, $5.6 million higher than the same quarter last year, consistent with
the growth of the business. Per unit gathering costs decreased 27% to $0.24
per Mcfe.

Distribution

Distribution had third quarter 2012 operating income of $0.7 million, compared
to $2.5million for the same period in 2011. Net operating revenues for the
third quarter 2012 were $1.6 millionlower primarily due to a favorable change
in estimated recoverable costs during the third quarter of 2011. Operating
expenses were flat year-over-year.

OTHER BUSINESS

EQT Midstream Partners, LP (NYSE:EQM)

On July 2, 2012, EQT Midstream Partners completed its initial public offering
(IPO) of 14,375,000 common units at $21.00 per common unit. EQT received $231
million cash after the IPO, and retained a 57.4% limited partner interest in
the partnership and a 2% general partner interest. For tax purposes, as a
result of the IPO, EQT recognized a gain of approximately $110 million which
results in additional cash taxes for 2012 of approximately $13.2 million. EQT
Midstream Partners results are consolidated in EQT Corporation’s results; and
EQT Corporation recorded a $4.8 million reduction in net income, or $0.03 of
EPS, attributable to non-controlling interest in the quarter. EQT Midstream
Partners’ results were released today and are available at
www.eqtmidstreampartners.com. EQT Midstream Partners’ earnings were ahead of
plan and its adjusted EBITDA and distributable cash flow forecasts for the 12
months ending June 2013 were increased.

EQT Midstream Partners announced its first quarterly cash distribution of
$0.35 per unit for the third quarter of 2012. The distribution will be paid on
November 14, 2012 to all unit holders of record at the close of business on
November 5, 2012.

Hedging

The Company added to its hedge position for the remainder of 2012 through
2015. The Company does not hedge produced liquids. The Company’s total natural
gas hedge positions for 2012 through 2015 production are:

                                      2012**   2013    2014    2015
Swaps
Total Volume (Bcf)                       32        108      62       51
Average Price per Mcf (NYMEX)*         $ 4.71    $ 4.75   $ 4.61   $ 4.70
Collars
Total Volume (Bcf)                       5         25       24       23
Average Floor Price per Mcf (NYMEX)*   $ 6.51    $ 4.95   $ 5.05   $ 5.03
Average Cap Price per Mcf (NYMEX)*     $ 11.83   $ 9.09   $ 8.85   $ 8.97
                                                                     
* The average price is based on a conversion rate of 1.05 MMBtu/Mcf
** October through December

Operating Income

The Company reports operating income by segment in this press release.
Interest, income taxes and unallocated income/(expense) are controlled on a
consolidated, corporate-wide basis and are not allocated to the segments. The
Company’s management reviews and reports segment results for operating
revenues and purchased gas costs, net of third-party transportation costs.

The following table reconciles operating income by segment, as reported in
this press release, to the consolidated operating income reported in the
Company’s financial statements:

                          Three Months Ended         Nine Months Ended
                                                  
                          September 30,              September 30,
                          2012        2011          2012         2011
Operating income
(thousands):
EQT Production            $ 38,341     $ 98,936      $ 116,193     $ 281,024
EQT Midstream               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 )
Operating income          $ 85,761    $ 314,984    $ 320,461    $ 688,566 

Unallocated expense is primarily due to certain incentive compensation and
administrative costs that differ from budget and are not allocated to the
operating segments.

Price Reconciliation

EQT Production's average wellhead sales price is calculated by allocating
specified revenues to EQT Midstream for the gathering, processing and
transportation of the produced gas. EQT Production’s average wellhead sales
prices for the three and nine months ended September 30, 2012 and 2011:

                                 Three Months Ended      Nine Months Ended
                                                      
                                 September 30,           September 30,
                                 2012       2011        2012       2011
Revenues ($ / Mcfe)
Average NYMEX price              $ 2.81      $ 4.19      $ 2.59      $ 4.21
Hedge impact                       1.10        0.44        1.30        0.42
Average basis                      (0.03 )     0.08        (0.01 )     0.15
Average net liquids revenue       0.66      1.11      0.78      1.12  
Average hedge adjusted price     $ 4.54      $ 5.82      $ 4.66      $ 5.90
                                                                     
Midstream Revenue Deductions
($ / Mcfe)
Gathering to EQT Midstream       $ (1.00 )   $ (1.09 )   $ (1.04 )   $ (1.13 )
Transportation and processing      (0.19 )     (0.14 )     (0.18 )     (0.24 )
to EQT Midstream
Third-party gathering,            (0.50 )    (0.57 )    (0.45 )    (0.48 )
processing and transmission
Total midstream revenue          $ (1.69 )   $ (1.80 )   $ (1.67 )   $ (1.85 )
deductions
Average wellhead sales price     $ 2.85     $ 4.02     $ 2.99     $ 4.05  
to EQT Production
                                                                     
EQT Revenue ($/ Mcfe)
Revenues to EQT Midstream        $ 1.19      $ 1.23      $ 1.22      $ 1.37
Revenues to EQT Production        2.85      4.02      2.99      4.05  
Average wellhead sales price     $ 4.04     $ 5.25     $ 4.21     $ 5.42  
to EQT Corporation

Third-party gathering, processing and transmission rates included $0.07 per
Mcfe for the third quarter 2012, reducing revenues by $5.0 million due to the
sale of unused capacity on the El Paso 300 line that was not under long-term
resale agreements, at prices lower than paid by EQT.

Unit Costs

The Company’s unit costs to produce, gather, process, and transport EQT
Production’s produced gas:

                                                     

                       Three Months Ended           Nine Months Ended

                        September 30,                 September 30,
                        2012          2011           2012          2011
Production segment
costs: ($ / Mcfe)
LOE                     $   0.18       $   0.22       $   0.19       $   0.21
Production taxes            0.16           0.25           0.17           0.21
SG&A                       0.35          0.30          0.36          0.31
                        $   0.69       $   0.77       $   0.72       $   0.73
Midstream segment
costs: ($ / Mcfe)
Gathering and           $   0.32       $   0.39       $   0.34       $   0.36
transmission
SG&A                       0.17          0.18          0.18          0.17
                        $   0.49       $   0.57       $   0.52       $   0.53
Total ($ / Mcfe)        $   1.18       $   1.34       $   1.24       $   1.26
                                                                         
*Excludes the retroactive PA Impact Fee of $0.04 per Mcfe for the nine months
ended September 30, 2012, for Marcellus wells spud prior to 2012.

Marcellus Horizontal Well Status (cumulative since inception)

                     As of       As of      As of     As of      As of
                      9/30/12      6/30/12     3/31/12    12/31/11    9/30/11
Wells spud            345          318         281        248         230
Wells online          233          214         186        159         137
Wells complete,       27           22          3          22          4
not online
Frac stages (spud     6,390        5,411       4,747      3,796       3,530
wells)*
Frac stages online    3,604        3,247       2,749      2,171       1,873
Frac stages
complete, not         622          412         51         331         65
online
                                                                      
*Includes planned stages for spud wells that have not yet been hydraulically
fractured.

NON-GAAP DISCLOSURES

Adjusted operating income, adjusted net income and adjusted earnings per
diluted share

Adjusted operating income, adjusted net income and adjusted earnings per
diluted share, are non-GAAP financial measures that are presented because they
are important measures used by management to evaluate period-to-period
comparisons of earnings trends. Adjusted operating income, adjusted net income
and adjusted earnings per diluted share should not be considered in isolation
or as a substitute for operating income, net income or earnings per diluted
share. The table below reconciles adjusted operating income, adjusted net
income and adjusted earnings per diluted share with operating income, net
income and earnings per diluted share, as derived from the statements of
consolidated income to be included in the Company’s quarterly report on Form
10-Q for the quarter ended September 30, 2012.

Reconciliation of Adjusted Operating Income:

                                  Three Months Ended
                                   September 30,
                                   2011
Operating income as reported       $   314,984
(Deduct) / add back
Gain on disposition of Big Sandy      (180,143   )
Adjusted operating income          $   134,841

Reconciliation of Adjusted Net Income and Adjusted Earnings Per Diluted Share:

                                                    Three Months Ended
                                                     September 30,
                                                     2011
Net income as reported                               $   178,914
(Deduct) / add back
Gain on disposition of Big Sandy                         (180,143   )
Tax impact at 38.2%                                     68,815     
Adjusted net income                                  $   67,586
Diluted weighted average common shares outstanding       150,301
Diluted EPS, as adjusted                             $   0.45

Operating Cash Flow

Operating cash flow is a non-GAAP financial measure but is presented as an
accepted indicator of an oil and gas exploration and production company’s
ability to internally fund exploration and development activities and to
service or incur additional debt. EQT Corporation also includes this
information because management believes that changes in operating assets and
liabilities relate to the timing of cash receipts and disbursements, and
therefore, may not relate to the period in which the operating activities
occurred. Operating cash flow should not be considered in isolation or as a
substitute for net cash provided by operating activities prepared in
accordance with GAAP. The table below reconciles operating cash flow with net
cash provided by operating activities, as derived from the statement ofcash
flowsto be included in the Company’s quarterly report on Form 10-Q for the
quarter ended September 30, 2012.

                         Three Months Ended           Nine Months Ended
                                                   
                         September 30,                September 30,
(thousands)              2012         2011           2012       2011
Net Income               $ 36,704      $ 178,914      $ 140,185   $ 388,923
Add back (deduct):
Deferred income taxes      (7,584  )     86,392         45,473      190,330
Depreciation,
depletion, and             131,611       87,343         354,817     247,627
amortization
Gain on disposition of
Big Sandy and Langley,                   (159,560 )                 (166,657 )
net of current taxes
Other items, net          15,429      (1,949   )    22,848     (16,911  )
Operating cash flow:     $ 176,160    $ 191,140     $ 563,323   $ 643,312  
                                                                  
Add back (deduct):
Changes in operating       75,371        85,194         106,647     129,794
assets and liabilities
Current taxes on
dispositions of Big                    (20,583  )               (36,271  )
Sandy and Langley
Net cash provided by     $ 251,531    $ 255,751     $ 669,970   $ 736,835  
operating activities

Adjusted cash flow per share

Adjusted cash flow per share is a non-GAAP financial measure that is presented
because it is a capital efficiency metric used by investors and analysts to
evaluate oil and gas companies. Adjusted cash flow per share should not be
considered in isolation or as a substitute for net cash provided by operating
activities or net income per share or as a measure of liquidity.

The table below provides the calculation for adjusted cash flow per share, as
derived from the financial statements to be included in the Company’s
quarterly report on Form 10-Q for the quarter ended September 30, 2012.

                                Three Months Ended     Nine Months Ended
                                 September 30,           September 30,
(thousands)                      2012       2011        2012       2011
Operating cash flow (a
non-GAAP measure reconciled      $ 176,160   $ 191,140   $ 563,323   $ 643,312
above)
Add back:
Exploration expense               1,163      814        4,878      3,387
Operating cash flow and          $ 177,323   $ 191,954   $ 568,201   $ 646,699
exploration expense
                                                                     
Diluted weighted average          150,388    150,301    150,270    150,144
common shares outstanding
Adjusted cash flow per share     $ 1.18      $ 1.28      $ 3.78      $ 4.31

Net Operating Revenues and Net Operating Expenses

Net operating revenues and net operating expenses are non-GAAP financial
measures that exclude purchased gas costs, but are presented because they are
important analytical measures used by management to evaluate period-to-period
comparisons of revenue and operating expenses. Purchased gas cost is typically
excluded by management in such analysis because, although subject to commodity
price volatility, purchased gas cost is mostly passed on to customers and does
not have a significant impact on the Company’s earnings. Net operating
revenues and net operating expenses should not be considered in isolation or
as a substitute for operating revenues or total operating expenses prepared in
accordance with GAAP. The table below reconciles net operating revenues to
operating revenues and net operating expenses to total operating expenses for
the three and nine months ended September 30, 2012 were:

                          Three Months Ended     Nine Months Ended
                           September 30,           September 30,
(thousands)                2012       2011        2012       2011
Net operating revenues     $ 329,663   $ 328,523   $993,694    $ 1,013,521
Plus: purchased gas cost    34,394     34,121    158,127       189,609
Operating revenues         $ 364,057   $ 362,644   $1,151,821   $ 1,203,130
                                                                
Net operating expenses     $ 243,715   $ 193,682   $674,156     $ 527,883
Plus: purchased gas cost    34,394     34,121    158,127       189,609
Total operating expenses   $ 278,109   $ 227,803   $832,283     $ 717,492

Q3 2012 Webcast Information

EQT Corporation will host a live webcast with security analysts today,
beginning at 10:30 a.m. Eastern Time. The topic of the webcast will be
financial results, operating results and other matters with respect to the
third quarter of 2012. The webcast will be broadcast live via EQT’s website,
http://www.eqt.com and on its investor page at http://ir.eqt.com. A replay
will be available for seven days following the call.

In addition, investor presentations and discussion materials are available via
EQT’s website. These materials are updated periodically.

About EQT Corporation:

EQT Corporation is an integrated energy company with emphasis on Appalachian
area natural gas production, gathering, transmission, and distribution. EQT is
the general partner and majority equity owner of EQT Midstream Partners, LP.
With more than 120 years of experience, EQT is a technology-driven leader in
the integration of air and horizontal drilling. Through safe and responsible
operations, the Company is committed to meeting the country’s growing demand
for clean-burning energy, while continuing to provide a rewarding workplace
and enrich the communities where its employees live and work. Company shares
are traded on the New York Stock Exchange as EQT.

Visit EQT Corporation on the Internet at www.EQT.com.

Cautionary Statements

The United States Securities and Exchange Commission (SEC) permits oil and gas
companies, in their filings with the SEC, to disclose only proved, probable
and possible reserves that a Company anticipates as of a given date to be
economically and legally producible and deliverable by application of
development projects to known accumulations. We use certain terms, such as
“EUR” (estimated ultimate recovery), that the SEC’s guidelines prohibit us
from including in filings with the SEC. This measure is by its nature more
speculative than estimates of reserves prepared in accordance with SEC
definitions and guidelines and accordingly is less certain.

The Company is unable to provide a reconciliation of its projected operating
cash flow to projected net cash provided by operating activities, the most
comparable financial measure calculated in accordance with generally accepted
accounting principles, because of uncertainties associated with projecting
future net income and changes in assets and liabilities.

Capital expenditure forecasts do not include capital expenditures for land
acquisitions.

Disclosures in this press release contain certain forward-looking statements.
Statements that do not relate strictly to historical or current facts are
forward-looking. Without limiting the generality of the foregoing,
forward-looking statements specifically include the expectations of plans,
strategies, objectives and growth and anticipated financial and operational
performance of the Company and its subsidiaries, including guidance regarding
the Company’s drilling program (including the number, type, feet of pay and,
location of wells to be drilled and the conversion of drilling rigs to
liquefied natural gas) and transmission and gathering infrastructure programs;
monetization transactions, including; asset sales, joint ventures or other
transactions involving the Company’s assets; total resource potential,
reserves, EUR, expected decline curve, reserve replacement ratio and
production and sales volumes and growth rates; internal rate of return (IRR);
F&D costs, operating costs, unit costs, well costs and EQT Midstream costs;
capital expenditures; capital budget and sources of funds for capital
expenditures; financing plans and availability; projected operating revenues
and cash flows; hedging strategy; the effects of government regulation; and
tax position. These statements involve risks and uncertainties that could
cause actual results to differ materially from projected results. Accordingly,
investors should not place undue reliance on forward-looking statements as a
prediction of actual results. The Company has based these forward-looking
statements on current expectations and assumptions about future events. While
the Company considers these expectations and assumptions to be reasonable,
they are inherently subject to significant business, economic, competitive,
regulatory and other risks and uncertainties, most of which are difficult to
predict and many of which are beyond the Company’s control. The risks and
uncertainties that may affect the operations, performance and results of the
Company’s business and forward-looking statements include, but are not limited
to, those set forth under Item 1A, “Risk Factors” of the Company’s Form 10-K
for the year ended December 31, 2011, as updated by any subsequent Form 10-Qs.

Any forward-looking statementapplies only as of the date on which such
statement is made and the Company does not intend to correct or update any
forward-looking statement, whether as a result of new information, future
events or otherwise.

EQT CORPORATION AND SUBSIDIARIES

                 Three Months Ended               Nine Months Ended
                                               
                 September 30,                    September 30,
                 2012             2011           2012            2011
OPERATIONAL DATA
Average wellhead
sales price to
EQT Corporation:
Natural gas
excluding hedges $  2.61           $  4.21        $  2.44          $ 4.37
($/Mcf)
Hedge impact
($/Mcf of        $  1.16          $  0.47        $  1.38          $ 0.46
natural gas) (a)
Natural gas
including hedges $  3.77           $  4.68        $  3.82          $ 4.83
($/Mcf)
                                                                   
NGLs ($/Bbl)     $  31.67          $  52.56       $  37.97         $ 52.12
Crude oil        $  80.25          $  81.66       $  83.44         $ 83.52
($/Bbl)
Total ($/Mcfe)   $  4.04           $  5.25        $  4.21          $ 5.42
Less revenues to
EQT Midstream    $  1.19          $  1.23        $  1.22          $ 1.37
($/Mcfe)
Average wellhead
sales price to   $  2.85           $  4.02        $  2.99          $ 4.05
EQT Production
($/Mcfe)
Average NYMEX
natural gas      $  2.81           $  4.19        $  2.59          $ 4.21
($/Mcf)
                                                                   
Natural gas
sales volumes       64,637            48,070         171,763         132,035
(MMcf)
NGL sales           853               759            2,490           2,259
volumes (MBbls)
Crude oil sales     64                61             192             141
volumes (MBbls)
Total production
sales volumes       68,213            51,298         182,280         141,375
(MMcfe) (b)
Capital
expenditures     $  361,183        $  347,645     $  1,023,503     $ 985,171
(thousands) (c)
                                                                   
STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)
(Thousands, except per share amounts)
Operating        $  364,057        $  362,644     $  1,151,821     $ 1,203,130
revenues
Operating
expenses:
Purchased gas       34,394            34,121         158,127         189,609
costs
Operation and       36,259            35,872         105,464         91,513
maintenance
Production          23,201            24,908         72,796          60,784
Exploration         1,163             814            4,878           3,387
Selling, general
and                 51,481            44,745         136,201         124,572
administrative
Depreciation,
depletion and      131,611         87,343        354,817        247,627
amortization
Total operating     278,109           227,803        832,283         717,492
expenses
Gain on            (187     )       180,143       923            202,928
dispositions
Operating income    85,761            314,984        320,461         688,566
Other income        2,988             3,098          12,918          27,948
Interest expense   40,460          32,503        122,341        98,642
Income before       48,289            285,579        211,038         617,872
income taxes
Income taxes       11,585          106,665       70,853         228,949
Net income         36,704          178,914       140,185        388,923
Less: Net income
attributable to    4,831         -                4,831          -
non-controlling
interests
Net income
attributable to  $  31,873        $  178,914     $  135,354       $ 388,923
EQT Corporation
Earnings per
share of common
stock
attributable to
EQT Corporation:
Basic:
Weighted average
common shares       149,604           149,441        149,555         149,373
outstanding
Net income       $  0.21          $  1.20        $  0.91          $ 2.60
Diluted:
Weighted average
common shares       150,388           150,301        150,270         150,144
outstanding
Net income       $  0.21          $  1.19        $  0.90          $ 2.59
                                                                     
(a) All hedges are related to natural gas.
(b) NGLs were converted to Mcfe at the rates of 3.74 Mcfe per barrel and 3.76
Mcfe per barrel based on the liquids content for the three months ended
September 30, 2012 and 2011, respectively, and 3.76 Mcfe per barrel based on
the liquids content for both the nine months ended September 30, 2012 and
2011. Crude oil was converted to Mcfe at the rate of six Mcfe per barrel for
all periods.
(c) Capital expenditures in the EQT Production segment 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.

EQT PRODUCTION

RESULTS OF OPERATIONS
                                                 
                Three Months Ended                  Nine Months Ended

                September 30,                       September 30,
                2012             2011              2012          2011
OPERATIONAL
DATA
Natural gas,
NGL and crude      68,957            52,456            184,383       145,021
oil production
(MMcfe) (a)
Company usage,
line loss         (744     )       (1,158   )       (2,103  )    (3,646  )
(MMcfe)
Total
production         68,213            51,298            182,280       141,375
sales volumes
(MMcfe)
                                                                   
Average daily
sales volumes      741               558               665           518
(MMcfe/d)
                                                                   
Sales volume
detail (MMcfe):
Horizontal         41,486            22,401            100,551       56,896
Marcellus Play
Horizontal         8,934             9,815             28,452        30,175
Huron Play
CBM Play           3,282             3,479             9,868         10,254
Other (vertical   14,511          15,603          43,409      44,050  
non-CBM)
Total
production         68,213            51,298            182,280       141,375
sales volumes
                                                                   
Average
wellhead sales  $  2.85           $  4.02           $  2.99        $ 4.05
price ($/Mcfe)
                                                                   
Lease operating
expenses,
excluding       $  0.18           $  0.22           $  0.19        $ 0.21
production
taxes (LOE)
($/Mcfe)
Production      $  0.16           $  0.25           $  0.17        $ 0.21
taxes ($/Mcfe)
Production
depletion       $  1.54           $  1.23           $  1.54        $ 1.24
($/Mcfe)
                                                                   
Depreciation,
depletion and
amortization
(DD&A)
(thousands):
Production      $  106,196        $  64,742         $  283,152     $ 180,063
depletion
Other DD&A        2,008           2,205           6,024       6,617   
Total DD&A      $  108,204        $  66,947         $  289,176     $ 186,680
                                                                   
Capital
expenditures    $  255,223        $  255,151        $  703,834     $ 800,029
(thousands) (c)
                                                                   
FINANCIAL DATA
(Thousands)
Total operating $  195,289        $  207,500        $  549,334     $ 577,352
revenues
                                                                   
Operating
expenses:
LOE                12,257            11,612            34,991        29,760
Production         10,944            13,296            37,805        31,024
taxes (b)
Exploration        1,163             814               4,878         3,387
expense
Selling,
general and        24,193            15,895            67,214        45,477
administrative
(SG&A)
DD&A              108,204         66,947         289,176     186,680 
Total operating   156,761         108,564         434,064     296,328 
expenses
(Loss) gain on    (187     )     -                   923        -
dispositions
Operating       $  38,341        $  98,936        $  116,193    $ 281,024 
income
                                                                   
(a) Natural gas, NGL and oil production represents the Company’s interest in
natural gas, NGL and oil production measured at the wellhead. It is equal to
the sum of total sales volumes, Company usage and line loss.
(b) Production taxes include severance and production-related ad valorem and
other property taxes. In 2012, production taxes also include the Pennsylvania
impact fee of $2.0 million and $13.2 million for the three and nine months,
respectively. The production taxes unit rate for the nine months ending
September 30, 2012 excludes the impact of $6.7 million for the accrual for
pre-2012 Marcellus wells.
(c) Capital expenditures in 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.

EQT MIDSTREAM

RESULTS OF OPERATIONS
                                               
                  Three Months Ended               Nine Months Ended

                  September 30,                    September 30,
                                                                 
                  2012              2011           2012              2011
OPERATIONAL
DATA
Gathered             87,318            67,304         235,877          188,492
volumes (BBtu)
Average
gathering fee     $  0.88           $  0.94        $  0.93           $ 0.97
($/MMBtu)
Gathering and
compression       $  0.24           $  0.33        $  0.26           $ 0.30
expense
($/MMBtu) (a)
Transmission
pipeline             59,746            38,121         148,870          117,122
throughput
(BBtu)
                                                                     
Net operating
revenues
(thousands):
Gathering         $  77,034         $  63,285      $  218,411        $ 183,523
Transmission         26,563            18,339         71,018           69,294
Storage,
marketing and       5,362           12,380        34,956         45,547
other
Total net
operating         $  108,959        $  94,004      $  324,385        $ 298,364
revenues
                                                                     
Unrealized
(losses) gains
on derivatives
and               $  (3,018   )     $  1,396       $  (4,946   )     $ 1,850

and inventory
(thousands)
(b)
                                                                     
Capital
expenditures      $  97,135         $  81,227      $  296,698        $ 156,832
(thousands)
                                                                     
FINANCIAL DATA
(Thousands)
Total
operating         $  120,484        $  122,614     $  362,630        $ 395,477
revenues
Purchased gas       11,525          28,610        38,245         97,113
costs
Total net
operating            108,959           94,004         324,385          298,364
revenues
                                                                     
Operating
expenses:
Operating and
maintenance          25,441            25,348         73,245           59,708
(O&M)
SG&A                 15,325            12,890         37,369           35,010
DD&A                17,172          14,093        46,864         43,097
Total
operating            57,938            52,331         157,478          137,815
expenses
Gain on           -                   180,143     -                  202,928
dispositions
Operating         $  51,021        $  221,816     $  166,907       $ 363,477
income
                                                                     
(a) Gathering and compression expense per unit excludes $7.1 million of
favorable adjustments during the nine months ended September 30, 2011 for
certain non-income tax reserves.
(b) Included within storage, marketing and other net operating revenues.

DISTRIBUTION

RESULTS OF OPERATIONS
                                                      
                                   Three Months Ended    Nine Months Ended

                                   September 30,         September 30,
                                   2012      2011       2012       2011
                                                                     
OPERATIONAL DATA
Heating degree days (30 year
average:                            115        85         2,836       3,508
QTD – 114; YTD – 3,649)
                                                                     
Residential sales and               1,266      1,175      12,726      15,893
transportation volumes (MMcf)
Commercial and industrial           4,939    4,398     20,051    21,140
volumes (MMcf)
Total throughput (MMcf)             6,205      5,573      32,777      37,033
                                                                     
Net operating revenues
(thousands):
Residential                        $ 14,221   $ 13,640   $ 72,855    $ 83,736
Commercial & industrial             6,499      6,543      32,182      35,959
Off-system and energy services      4,706     6,837      14,968     18,107
Total net operating revenues       $ 25,426   $ 27,020   $ 120,005   $ 137,802
                                                                     
Capital expenditures (thousands)   $ 8,164    $ 10,149   $ 21,066    $ 25,179
                                                                     
FINANCIAL DATA (Thousands)
Total operating revenues           $ 35,649   $ 49,175   $ 219,343   $ 313,366
Purchased gas costs                 10,223    22,155     99,338     175,564
Net operating revenues               25,426     27,020     120,005     137,802
                                                                     
Operating expenses:
O&M                                  10,549     10,414     31,010      31,466
SG&A                                 7,955      7,609      26,397      23,164
DD&A                                6,237     6,534      18,767     18,414
Total operating expenses            24,741    24,557     76,174     73,044
Operating income                   $ 685      $ 2,463    $ 43,831    $ 64,758

Contact:

EQT Corporation
Analyst inquiries please contact:
Patrick Kane – Chief Investor Relations Officer, 412-553-7833
pkane@eqt.com
or
Nate Tetlow – Manager, Investor Relations, 412-553-5834
ntetlow@eqt.com
or
Media inquiries please contact:
Natalie Cox – Corporate Director, Communications, 412-395-3941
ncox@eqt.com
 
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