EQT Reports 2012 Full-Year Earnings

  EQT Reports 2012 Full-Year Earnings

                  2012 Production Sales Volume Growth of 33%

Business Wire

PITTSBURGH -- January 24, 2013

EQT Corporation (NYSE:EQT) today announced 2012 net income of $183.4 million,
compared to $479.8 million last year. To accurately review and compare the
year-over-year earnings results, certain items should be considered. Results
for 2012 were negatively impacted by items totaling $62.2 million net. Results
for 2011 were positively impacted by several items totaling $238.0 million
including gains on the sale of the Big Sandy Pipeline and the Langley Natural
Gas Processing Complex. Adjusted earnings per diluted share (EPS) was $1.49 in
2012, down from $2.19 in 2011. Operating cash flow was $832 million in 2012,
vs. $887 million in 2011; and adjusted cash flow per share was $5.56 in 2012,
compared to $5.92 last year. See the Non-GAAP Disclosures section of this
press release for detailed adjustments related to net income, EPS, and cash
flow per share.

Highlights for 2012 include:

  *Record annual production sales volumes of 258.5 Bcfe, 33% higher than 2011
  *Record Marcellus sales volumes of 150.6 Bcfe; 85% higher vs. 2011
  *Record gathered volumes of 335.4 TBtu; 30% higher vs. 2011
  *Year-end proved reserves increased by 12% to 6.0 Tcfe (separate press
    release issued today)
  *Completed EQT Midstream Partners, LP initial public offering (IPO)
  *Announced an agreement to sell EQT’s gas utility, Equitable Gas

In 2012, EQT’s operating income was $470.5 million, compared to $861.3 million
in 2011, which included $202.9 million of pre-tax gains on the sale of Big
Sandy and Langley. Operating revenues were $1.7 million higher in 2012;
however the increase in production, gathering and transmission volumes was
nearly offset by a 31% lower NYMEX price, as well as lower storage and
marketing revenues. Total operating expenses increased $189.5 million to
$1,171.1 million, as depreciation, depletion and amortization expense (DD&A);
selling, general and administrative expense (SG&A); exploration expenses, and
operation and maintenance (O&M) were all higher. These increases are
consistent with the growth in produced volumes and midstream throughput.

Fourth quarter 2012 net income was $48.0 million, compared to $90.8 million in
2011. The 2012 results were negatively impacted by items totaling $39.1
million, including a $23.3 million charge for the termination of an interest
rate hedge, $4.5 million in expenses related to the pending sale of Equitable
Gas, and a $4.4 million lease impairment. Fourth quarter 2012 adjusted EPS was
$0.48, down from $0.59 in 2011. Operating cash flow was $268.9 million in
2012, vs. $243.7 million in 2011; and adjusted cash flow per share was $1.79,
vs. $1.62 last year. See the Non-GAAP Disclosures section of this press
release for detailed adjustments related to net income, EPS, and cash flow per
share.

In the fourth quarter of 2012, EQT’s operating income was $151.0 million, a
13%decrease from the same quarter of 2011. Higher net operating revenues,
from an increase in production, gathering and transmission volumes was more
than offset by lower commodity prices, lower storage, marketing and other net
revenues, and higher costs related to the increased volumes. Net operating
revenues rose 13% to $419.5 million in the quarter, while net operating
expenses were $268.5 million, an increase of $71.3 million compared to last
year -- consistent with the growth of the EQT Production and EQT Midstream
businesses.

RESULTS BY BUSINESS

EQT Production

Driven by horizontal drilling in the Marcellus shale, EQT Production achieved
record production sales volumes of 258.5 Bcfe for 2012, representing a 33%
increase over 2011. Approximately 58% of EQT’s 2012 production sales volumes
came from Marcellus wells, and Marcellus volumes increased by 85% over last
year.

Production operating income totaled $187.9 million in 2012, $199.2 million
lower than 2011. Operating revenue was $793.8 million, $2.5 million higher
than last year. Increased revenue from sales volume growth was nearly offset
by lower realized commodity prices that included an $8.2 million reduction
related to a financial derivative adjustment, and a $10.0 million reduction
from the resale of unused transportation capacity. The average wellhead sales
price to EQT Corporation was 21% lower than last year at $4.26 per Mcfe, with
$3.05 per Mcfe allocated to EQT Production; and $1.21 per Mcfe allocated to
EQT Midstream.

Consistent with growth and increased drilling activity, EQT Production 2012
operating expenses rose to $605.9 million, a $201.7 million increase over last
year. DD&A was $152.5 million higher; SG&A was $28.5 million higher;
production taxes were $9.4 million higher, and included $6.7 million in
retroactive Pennsylvania impact fees; and lease operating expense (LOE) was
$5.8 million higher than 2011. Per unit LOE was 10% lower year-over-year at
$0.18 per Mcfe, due to production sales volumes growing significantly faster
than operating costs. LOE including production taxes totaled $0.34 per Mcfe,
excluding the $6.7 million retroactive portion of the Pennsylvania impact fee.

Production sales volumes totaled 76.2 Bcfe in the fourth quarter 2012, 44%
higher than the fourth quarter 2011, and 12% higher sequentially. Operating
income for the fourth quarter of 2012 was $72.6 million, compared to $106.1
million in the same period last year. Production operating revenues for the
quarter were $244.4million, 14% higher than last year due to the increase in
sales volumes; however, partially offset by a 20% lower average wellhead sales
price to EQT Production. Operating expenses for the quarter were $171.8
million in 2012, $63.9 million higher than the fourth quarter 2011, consistent
with the increase in Marcellus drilling activity. Exploration expense totaled
$5.5million and included $4.4 million of lease impairment charges during the
quarter.

The Company drilled (spud) 135 gross wells during 2012; 127 targeted the
Marcellus shale with an average length of pay of 5,485 feet; 7 targeted the
Huron shale and 1 targeted the Utica shale.

Production sales volumes in 2013 are projected between 335 and 340 Bcfe, 31%
higher than in 2012. Liquids volumes for 2013 are now expected between 3,900
and 4,000 MBBls.

EQT Midstream

EQT Midstream’s operating income totaled $237.3 million in 2012, 11% higher
than in 2011 after excluding $202.9 million in pre-tax gains from the sale of
Big Sandy and Langley. The Company realized higher gathered volumes and an
increase in firm transportation revenues. Net operating revenues for 2012
totaled $449.4 million, representing a $44.8 million increase over 2011. Net
gathering revenues were $302.3 million in 2012, up 21% from 2011, due to a 30%
increase in gathered volumes, partially offset by lower gathering rates. Net
transmission revenues increased by 16% to $104.5 million in 2012, mainly
driven by the sale of increased capacity associated with the Sunrise and
Marcellus expansion projects. Storage, marketing and other net revenues
totaled $42.7 million in 2012, down 34% from 2011, as a result of lower
marketed volumes and lower seasonal price spreads, and a non-cash $9.2 million
unrealized loss on derivatives and inventory.

Operating expenses for 2012 totaled $212.1 million, 11% higher than in 2011
and consistent with the growth in the EQT Midstream business, such as higher
compressor O&M and depreciation expenses, property taxes, and labor on the
expanded gathering and transmission infrastructure. On a per unit basis;
however, year-over-year gathering and compression expenses were 20% lower in
2012. O&M in 2011 was reduced by $10.3 million resulting from a property tax
reserve. SG&A was flat year-over-year as a result of a $2.8 million recovery
from the Lehman Brothers bankruptcy, and a $2.5 million reduction of a
regulatory reserve at Transmission, which together offset higher SG&A costs.

EQT Midstream had fourth quarter 2012 operating income of $70.4 million, a 33%
increase over the same period in 2011. Net gathering revenues increased 27% to
$83.8 million in the fourth quarter 2012, primarily due to a 43% increase in
gathered volumes. Net transmission revenues totaled $33.5 million, a 59%
increase over 2011, mainly due to the sale of capacity on the Sunrise and
Marcellus expansion projects. Net storage, marketing and other revenues
totaled $7.7 million, a 59% decrease over 2011, and included a $4.3 million
non-cash unrealized loss on derivatives and inventory. Operating expenses for
the quarter were $54.6 million, up $1.5 million from 2011, as an increase in
DD&A was partly offset by a $2.5 million reduction of a regulatory reserve
included in SG&A.

Distribution

Distribution’s operating income totaled $68.6 million in 2012, 21% lower than
reported in 2011. Net operating revenues for 2012 were $170.0 million, $17.5
million lower than last year, due to the warmest weather on record in the
Company’s service territory. Operating expenses for 2012 were $101.4 million,
compared to $100.7 million in 2011.

Distribution’s fourth quarter 2012 operating income totaled $24.8 million,
compared to $22.1million for the same period in 2011. Total net operating
revenues were $50.0 million, essentially unchanged compared with last year,
while operating expenses were $2.4 million lower as a result of lower
incentive compensation expense and a reduction in the estimate of asset
retirement obligations.

OTHER BUSINESS

2012 Capital Expenditures

EQT invested $1,400 million in capital projects during 2012. This included
$992 million for EQT Production, including $135 million for acreage
acquisitions; $376 million for EQT Midstream; and $32million for Distribution
infrastructure projects and other corporate items.

Initial Public Offering - EQT Midstream Partners, LP

On July 2, 2012, EQT Midstream Partners, LP (NYSE: EQM) completed its initial
public offering (IPO) of 14,375,000 common units at $21.00 per common unit.
EQT received $231 million cash and retained a 57.4% limited partner interest
and a 2% general partner interest. EQT Midstream Partners results are
consolidated in the EQT Corporation financial results.

Utility Sale

On December 20, 2012, the Company announced that it has entered into a
definitive agreement for the transfer of its natural gas distribution
business, Equitable Gas Company, to Peoples Natural Gas, subject to receipt of
regulatory approvals. As part of the transaction, EQT will receive cash
proceeds of $720 million, subject to certain purchase price adjustments, and
select midstream assets and commercial arrangements, which are expected to
generate at least $40 million in EBITDA (earnings before interest, taxes,
depreciation, and amortization) per year. The Company realized a $4.5 million
unallocated SG&A expense in the fourth quarter related to the transaction.

Dividend

Concurrent with the December 20, 2012 announcement referenced above, EQT
reduced its dividend, effective January 2013. The new annual dividend rate of
$0.12 per share reflects the blend of EQT’s two remaining core businesses – a
dividend-supporting midstream business, and a capital-intensive, rapidly
growing production business.

Interest Rate Hedge

During the third quarter 2011, the Company entered into an interest rate hedge
in anticipation of refinancing $200 million of long-term debt scheduled to
mature in November 2012. Given the strong liquidity position at year end, and
visibility of future capital, the Company retired the debt using cash on hand
and recognized a $23 million expense to close the interest rate hedge.

Hedging

EQT has hedged approximately 43% of its forecasted 2013 sales of produced
natural gas. The Company does not hedge produced liquids. The Company’s total
hedge positions for 2013 through 2015 production are:

                                                     
                                       2013     2014    2015
Swaps
Total Volume (Bcfe)                      121      79       65
Average Price per Mcf (NYMEX)*         $ 4.70   $ 4.53   $ 4.60
Collars
Total Volume (Bcfe)                      25       24       23
Average Floor Price per Mcf (NYMEX)*   $ 4.95   $ 5.05   $ 5.03
Average Cap Price per Mcf (NYMEX)*     $ 9.09   $ 8.85   $ 8.97
                                                         

* The above price is based on a conversion rate of 1.05 MMBtu/Mcf

Operating Income

The Company reports operating income by segment in this press release.
Interest, income taxes and unallocated (expense)/income 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          Year Ended

                         December 31,                December 31,
                         2012         2011          2012         2011
Operating income
(thousands):
EQT Production           $ 72,643      $ 106,074     $ 187,913     $ 387,098
EQT Midstream              70,417        53,134        237,324       416,611
Distribution               24,783        22,140        68,614        86,898
Unallocated               (16,853 )    (8,595  )    (23,323 )    (29,288 )
(expense)/income
Operating income         $ 150,990    $ 172,753    $ 470,528    $ 861,319 
                                                                             

Unallocated (expense)/income is primarily due to certain incentive
compensation and administrative costs in excess of budget that are not
allocated to the operating segments.

Price Reconciliation

EQT Production's average wellhead sales price is calculated by allocating some
revenues to EQT Midstream for the gathering and transportation of the produced
gas. EQT Production’s average wellhead sales prices were as follows:

                                 Three Months Ended      Year Ended
                                                      
                                 December 31,            December 31,
                                 2012       2011        2012       2011
Revenues ($ / Mcfe)
Average NYMEX price              $ 3.40      $ 3.55      $ 2.79      $ 4.04
Average basis                      0.01        0.06        0.00        0.13
Hedge impact                       0.70        0.77        1.12        0.52
Average net liquids revenue       0.76      1.13      0.81      1.11  
Hedge adjusted price             $ 4.87      $ 5.51      $ 4.72      $ 5.80
                                                                     
Midstream Revenue Deductions
($ / Mcfe)
Gathering to EQT Midstream       $ (0.99 )   $ (1.07 )   $ (1.02 )   $ (1.11 )
Transmission to EQT Midstream      (0.21 )     (0.14 )     (0.19 )     (0.22 )
Third-party gathering and          (0.37 )     (0.17 )     (0.36 )     (0.31 )
transmission*
Third-party processing            (0.11 )    (0.12 )    (0.10 )    (0.12 )
Total midstream revenue           (1.68 )    (1.50 )    (1.67 )   $ (1.76 )
deductions
Average wellhead sales price     $ 3.19     $ 4.01     $ 3.05     $ 4.04  
to EQT Production
                                                                     
EQT Revenue ($ / Mcfe)
Revenues to EQT Midstream        $ 1.20      $ 1.21      $ 1.21      $ 1.33
Revenues to EQT Production        3.19      4.01      3.05      4.04  
Average wellhead sales price     $ 4.39     $ 5.22     $ 4.26     $ 5.37  
to EQT Corporation
                                                                             

*Due to the sale of unused capacity on the El Paso 300 line that was not under
long-term resale agreements at prices below the capacity charge, third-party
gathering and transmission rates increased by $0.04 per Mcfe for the full year
2012 and $0.07 per Mcfe in the fourth quarter 2012. In 2011, the unused
capacity on the El Paso 300 line not under long-term resale agreements was
sold at prices above the capacity charge, decreasing third-party gathering and
transmission rates by $0.03 per Mcfe for the full year 2011 and $0.12 per Mcfe
for the fourth quarter 2011.

NOTE: Beginning Q1 2013, the preceding table will be replaced by the expanded
price reconciliation table located on page 12 of this release.

Unit Costs

EQT’s unit costs to produce, gather, process and transport EQT's produced
natural gas were:

                                                         
                                       Three Months Ended   Year Ended

                                       December 31,         December 31,
                                       2012       2011     2012    2011
                                                                     
Production segment costs: ($ / Mcfe)
LOE                                    $  0.15     $ 0.20   $ 0.18   $ 0.20
Production taxes*                         0.16       0.18     0.16     0.20
SG&A                                     0.29      0.29    0.31    0.31
                                       $  0.60     $ 0.67   $ 0.65   $ 0.71
Midstream segment costs: ($ / Mcfe)
Gathering and transmission             $  0.28     $ 0.40   $ 0.32   $ 0.37
SG&A                                     0.13      0.19    0.16    0.17
                                         0.41      0.59    0.48    0.54
Total ($ / Mcfe)                       $  1.01     $ 1.26   $ 1.13   $ 1.25
                                                                       

*Excludes the retroactive Pennsylvania Impact Fee of $0.03 per Mcfe for the
year-ended December31, 2012, for Marcellus wells spud prior to 2012.

Marcellus Horizontal Well Status (cumulatively since inception)

                       As of      As of     As of     As of     As of
                        12/31/12    9/30/12    6/30/12    3/31/12    12/31/11
Wells spud              375         345        318        281        248
Wells online            262         233        214        186        159
Wells complete, not     17          27         22         3          22
online
Frac stages (spud       7,289       6,390      5,411      4,747      3,796
wells)*
Frac stages online      4,425       3,604      3,247      2,749      2,171
Frac stages complete,   462         622        412        51         331
not online
                                                                     

*Includes planned stages for spud wells that have not yet been hydraulically
fractured.

NON-GAAP DISCLOSURES

Adjusted Net Income and Adjusted Earnings Per Diluted Share

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 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 net income and
adjusted earnings per diluted share with net income and earnings per diluted
share, as derived from the statements of consolidated income to be included in
the Company’s Form 10-K for the year ended December 31, 2012.

                                                 
                        Three Months Ended          Year-Ended

                        December 31,                December 31,
                        2012         2011          2012         2011
Net income
attributable to EQT,      48,041        90,846        183,395       479,769
as reported
(Deduct)/ add back:                                               `
Interest rate hedge       23,340        -             23,340        -
expense
Resale of unused          5,496         (6,495  )     9,984         (6,495   )
transmission capacity
Financial derivative      -             -             8,227         -
reserve reduction
Unrealized losses on
commercial                4,279         2,605         9,225         755
derivatives and
inventory
PA impact fee             -             -             6,745         -
(retroactive portion)
Cost associated with      4,459         -             4,459         -
sale of gas utility
Lease impairment          4,384         978           5,543         2,587
Lehman bankruptcy         (322    )     -             (2,826  )     -
recovery
Regulatory reserve        (2,508  )     -             (2,508  )     -
adjustment
Gain on dispositions      -             -             .             (202,928 )
Adjustments to
non-income tax            -             -             -             (13,300  )
reserves
Gain on ANPI              -             -             -             (10,129  )
Transactions
Gain on Available for     -             -             -             (8,474   )
sale securities
Tax impact               (14,869 )    1,040       (21,704 )    87,578   
Adjusted Net income       72,300        88,974        223,880       329,363
Diluted weighted
average common shares     150,825       150,378       150,506       150,209
outstanding
Diluted EPS, as         $ 0.48        $ 0.59        $ 1.49        $ 2.19
adjusted
                                                                             

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 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 of cash flows to be included in the Company’s
Form 10-K for the year ended December 31, 2012.

                                                 
                       Three Months Ended           Year Ended

                       December 31,                 December 31,
(thousands)            2012          2011          2012         2011
Net income             $ 56,226       $ 90,846      $ 196,411     $ 479,769
Add back (deduct):
Deferred income          49,712         43,689        95,185        234,019
taxes
Depreciation,
depletion, and           144,301        91,670        499,118       339,297
amortization
Gain on disposition,     -              11,994        -             (154,663 )
net of current taxes
Other items, net        18,626       5,524       41,474      (11,387  )
Operating cash flow    $ 268,865     $ 243,723    $ 832,188    $ 887,035  
                                                                  
Add back (deduct):
Changes in operating
assets and             $ (117,968 )   $ (53,300 )   $ (11,321 )   $ 76,494
liabilities
Current taxes on        -            (11,994 )    -           (48,265  )
disposition
Net cash provided by   $ 150,897     $ 178,429    $ 820,867    $ 915,264  
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 Form
10-K for the year ended December 31, 2012.

                                                      
                                 Three Months Ended      Year Ended

                                 December 31,            December 31,
(thousands)                      2012       2011        2012       2011
Operating cash flow (a
non-GAAP measure reconciled      $ 268,865   $ 243,723   $ 832,188   $ 887,035
above)
Add back:
Exploration expense (cash)        1,108      568        4,827      2,345
Operating cash flow and          $ 269,973   $ 244,291   $ 837,015   $ 889,380
exploration cash expense
                                                                     
Diluted weighted average          150,825    150,378    150,506    150,209
common shares outstanding
Adjusted cash flow per share     $ 1.79      $ 1.62      $ 5.56      $ 5.92
                                                                       

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 twelve months ended December 31, 2012:

                                                 
                           Three Months Ended      Year Ended

                           December 31,            December 31,
(thousands)                2012       2011        2012         2011
Net operating revenues     $ 419,509   $ 369,946   $ 1,413,203   $ 1,383,467
Plus: purchased gas cost    70,278     66,858    228,405        256,467
Operating revenues         $ 489,787   $ 436,804   $ 1,641,608   $ 1,639,934
                                                                 
Net operating expenses     $ 268,519   $ 197,193   $ 942,675     $ 725,076
Plus: purchased gas cost    70,278     66,858    228,405        256,467
Total operating expenses   $ 338,797   $ 264,051   $ 1,171,080   $ 981,543
                                                                 

Year-end and Q4 2012 Webcast Information

EQT's conference call with securities analysts, which begins at 10:30 a.m.
Eastern Time today, will cover 2012 financial and operational results and
other matters and will be broadcast live via EQT's web site at
http://www.eqt.com and on the investor information page of the Company’s web
site at http://ir.eqt.com, with a replay available for seven days.

EQT Midstream Partners, LP, for which EQT Corporation is the general partner
and majority equity owner, will host a conference call with security analysts
today, beginning at 11:30 a.m. Eastern Time, and will cover 2012 financial and
operational results and other matters. The conference call will be broadcast
live via http://www.eqtmidstreampartners.com. A replay will be available for
seven days following the call.

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.

EQT Management speaks to investors from time to time. Slides for these
discussions will be available online via the Company’s investor relations
website at http://ir.eqt.com. The slides may be updated periodically.

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.

Total sales volumes per day (or daily production) is an operational estimate
of the daily production or sales volume on a typical day (excluding
curtailments).

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 (GAAP), because of uncertainties associated with
projecting future net income and changes in assets and liabilities. Similarly,
the Company is unable to provide a reconciliation of projected EBITDA to
projected net income, the most comparable financial measure calculated in
accordance with GAAP, due to the unknown effect, timing and potential
significance of certain income statement items.

EBITDA is defined as earnings before interest, taxes, depreciation, and
amortization and is not a financial measure calculated in accordance with
GAAP. EBITDA is a non-GAAP supplemental financial measure that company
management and external users of the company’s financial statements, such as
industry analysts, investors, lenders and rating agencies, may use to assess:
(i) the company’s performance versus prior periods; (ii) the company’s
operating performance as compared to other companies in its industry; (iii)
the ability of the company’s assets to generate sufficient cash flow to make
distributions to its investors; (iv) the company’s ability to incur and
service debt and fund capital expenditures; and (v) the viability of
acquisitions and other capital expenditure projects and the returns on
investment of various investment opportunities.

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;
guidance regarding the expected form and amount of assets to be exchanged for
Equitable Gas; the expected EBITDA to be generated from the midstream assets
and commercial arrangements transferred by or entered into with Peoples
Natural Gas; uses of capital provided by the Equitable Gas transaction; the
timing of receipt of required approvals for the Equitable Gas transaction;
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; the
annual dividend rate; 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. With respect to the proposed Equitable Gas transaction,
these risks and uncertainties include, among others, the ability to obtain
regulatory approvals for the transaction on the proposed terms and schedule;
disruption to the Company's business, including customer, employee and
supplier relationships resulting from the transaction; and risks that the
conditions to closing may not be satisfied. 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 and in the Company’s Form 10-K for the year ended
December 31, 2012 to be filed with the SEC, 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
STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)
(Thousands, except per share amounts)

                            Three Months Ended     Year Ended
                             December 31,            December 31,
                             2012       2011        2012         2011
Operating revenues           $ 489,787   $ 436,804   $ 1,641,608   $ 1,639,934
Operating expenses:
Purchased gas costs            70,278      66,858      228,405       256,467
Operation and maintenance      36,471      36,129      141,935       127,642
Production                     23,359      20,127      96,155        80,911
Exploration                    5,492       1,545       10,370        4,932
Selling, general and           58,896      47,722      195,097       172,294
administrative
Depreciation, depletion       144,301    91,670     499,118      339,297
and amortization
Total operating expenses       338,797     264,051     1,171,080     981,543
Gain on dispositions          -          -          -            202,928
Operating income               150,990     172,753     470,528       861,319
Other income                   2,124       6,190       15,965        34,138
Interest expense              62,445     37,686     184,786      136,328
Income before income taxes     90,669      141,257     301,707       759,129
Income taxes                  34,443     50,411     105,296      279,360
Net income                     56,226    $ 90,846    $ 196,411     $ 479,769
Less: Net income
attributable to               8,185      -          13,016       -
noncontrolling interests
Net Income attributable to   $ 48,041    $ 90,846    $ 183,395     $ 479,769
EQT Corporation
Earnings per share of
common stock attributable
to EQT Corporation
Basic:
Weighted average common        149,779     149,450     149,619       149,392
shares outstanding
Net income                   $ 0.32      $ 0.61      $ 1.23        $ 3.21
Diluted:
Weighted average common        150,825     150,378     150,506       150,209
shares outstanding
Net income                   $ 0.32      $ 0.60      $ 1.22        $ 3.19
                                                                   


EQT Corporation
Price Reconciliation
                                              
                     Three Months Ended          Year Ended
                     December 31,                December 31,
in thousands         2012         2011          2012           2011
(unless noted)
LIQUIDS
NGLs:
Sales Volume           3,686         3,086         13,052          11,579
(MMcfe)
Sales Volume           994           817           3,484           3,076
(Mbbls)
Gross Price          $ 43.38      $ 61.87      $ 44.75        $ 60.42     
($/Mbbls)
Gross NGL Revenue    $ 43,119      $ 50,551        155,926       $ 185,845
BTU Premium
(Ethane sold as
natural gas):
Sales Volume           6,828         4,681         22,494          16,124
(MMbtu)
Price ($/MMbtu)       3.40        3.55        2.83          4.04      
BTU Premium          $ 23,191      $ 16,614      $ 63,668        $ 65,168
Revenue
Oil:
Sales Volume           438           402           1,587           1,248
(MMcfe)
Sales Volume           73            67            264             208
(Mbbls)
Net Price            $ 84.13     $ 77.48      $ 83.95        $ 81.58     
($/Mbbls)
Net Oil Revenue      $ 6,141       $ 5,191       $ 22,161        $ 16,968
                                                                 
Total Liquids        $ 72,451      $ 72,356      $ 241,755       $ 267,981
Revenue
GAS
Sales Volume           72,121        49,530        243,886         181,566
(MMcf)
NYMEX Price          $ 3.40       $ 3.55       $ 2.83         $ 4.04      
($/Mcf) (a)
Gas Revenues         $ 244,971     $ 175,782     $ 690,293       $ 733,814
Basis                 745         2,789       (960      )    24,047    
Gross Gas Revenue    $ 245,716     $ 178,571     $ 689,333       $ 757,861
(unhedged)
                                                                 
Total Gross Gas &
Liquids Revenue      $ 318,167     $ 250,927     $ 931,088       $ 1,025,842
(unhedged)
Hedge impact          53,339      40,943      290,557       101,047   
Total Gross Gas &    $ 371,506     $ 291,870     $ 1,221,645     $ 1,126,889
Liquid Revenue
Total Sales Volume    76,245      53,018      258,525       194,393   
(Mmcfe)
Average hedge
adjusted price       $ 4.87        $ 5.51        $ 4.72          $ 5.80
($/Mcfe)
                                                                 
Midstream Revenue
Deductions ($ /
Mcfe)
Gathering to EQT       (0.99   )     (1.07   )     (1.02     )     (1.11     )
Midstream
Transmission to        (0.21   )     (0.14   )     (0.19     )     (0.22     )
EQT Midstream
Third-party
gathering and          (0.37   )     (0.17   )     (0.36     )     (0.31     )
transmission*
Third-party           (0.11   )    (0.12   )    (0.10     )    (0.12     )
processing
Total midstream       (1.68   )    (1.50   )    (1.67     )    (1.76     )
revenue deductions
Average wellhead
sales price to EQT   $ 3.19       $ 4.01       $ 3.05         $ 4.04      
Production
                                                                 
EQT Revenue ($/
Mcfe)
Revenues to EQT      $ 1.20        $ 1.21        $ 1.21          $ 1.33
Midstream
Revenues to EQT       3.19        4.01        3.05          4.04      
Production
Average wellhead
sales price to EQT   $ 4.39       $ 5.22       $ 4.26         $ 5.37      
Corporation
                                                                             

(a) The Company’s annual volume weighted NYMEX Price (actual Nymex was $2.79).

*Due to the sale of unused capacity on the El Paso 300 line that was not under
long-term resale agreements at prices below the capacity charge, third party
gathering and transmission rates increased by $0.04 per Mcfe for the full year
2012 and $0.07 per Mcfe in the fourth quarter 2012. In 2011, the unused
capacity on the El Paso 300 line not under long-term resale agreements was
sold at prices above the capacity charge, decreasing third party gathering and
transmission rates by $0.03 per Mcfe for the full year 2011 and $0.12 per Mcfe
for the fourth quarter 2011.

                                                         
                                       Three Months Ended   Year Ended
UNIT COSTS
                                       December 31,         December 31,
                                       2012       2011     2012    2011
Production segment costs: ($ / Mcfe)
LOE                                    $  0.15     $ 0.20   $ 0.18   $ 0.20
Production taxes*                         0.16       0.18     0.16     0.20
SG&A                                     0.29      0.29    0.31    0.31
                                       $  0.60     $ 0.67   $ 0.65   $ 0.71
Midstream segment costs: ($ / Mcfe)
Gathering and transmission             $  0.28     $ 0.40   $ 0.32   $ 0.37
SG&A                                     0.13      0.19    0.16    0.17
                                         0.41     $ 0.59    0.48   $ 0.54
Total ($ / Mcfe)                       $  1.01     $ 1.26   $ 1.13   $ 1.25
                                                                       

*Excludes the retroactive Pennsylvania Impact Fee of $0.03 per Mcfe for the
year-ended December 31, 2012 for Marcellus wells spud prior to 2012.


EQT PRODUCTION
RESULTS OF OPERATIONS
                                               
                       Three Months Ended          Twelve Months Ended

                       December 31,                December 31,
                       2012         2011          2012         2011
OPERATIONAL DATA
Natural gas, NGL and
crude oil production     76,580        53,800      260,963         198,821
(MMcfe) (a)
Company usage, line     (335    )    (782    )   (2,438    )    (4,428    )
loss (MMcfe)
Total production
sales volumes            76,245        53,018      258,525         194,393
(MMcfe)
                                                                 
Average daily sales      829           576         706             533
volumes (MMcfe/d)
                                                                 
Sales volume detail
(MMcfe):
Horizontal Marcellus     50,001        24,706      150,552         81,602
Play
Horizontal Huron         8,482         9,906       36,934          40,081
Play
CBM Play                 3,216         3,428       13,084          13,682
Other (vertical         14,546      14,978     57,955        59,028    
non-CBM)
Total production         76,245        53,018      258,525         194,393
sales volumes
                                                                 
Average wellhead       $ 3.19        $ 4.01        $ 3.05        $ 4.04
sales price ($/Mcfe)
                                                                 
Lease operating
expenses, excluding
                       $ 0.15        $ 0.20        $ 0.18        $ 0.20
production taxes
(LOE) ($/Mcfe)
Production taxes       $ 0.16        $ 0.18        $ 0.16        $ 0.20
($/Mcfe) (d)
Production depletion   $ 1.54        $ 1.27        $ 1.54        $ 1.25
($/Mcfe)
                                                                 
Depreciation,
depletion and
amortization (DD&A)
(thousands):
Production depletion   $ 118,304     $ 68,223      $ 401,456     $ 248,286
Other DD&A              2,148       2,241      8,172         8,858     
Total DD&A             $ 120,452     $ 70,464      $ 409,628     $ 257,144
                                                                 
Capital expenditures   $ 287,941     $ 287,811     $ 991,775     $ 1,087,840
(thousands) (b)
                                                                 
                                                                 
FINANCIAL DATA
(Thousands)
                                                                 
Total operating        $ 244,439     $ 213,933     $ 793,773     $ 791,285
revenues
                                                                 
Operating expenses:
LOE                      11,221        10,609      46,212          40,369
Production taxes (c)     12,138        9,519       49,943          40,543
Exploration expense      5,492         1,545       10,370          4,932
Selling, general and
administrative           22,493        15,722      89,707          61,199
(SG&A)
DD&A                    120,452     70,464     409,628       257,144   
Total operating         171,796     107,859    605,860       404,187   
expenses
Operating income       $ 72,643     $ 106,074    $ 187,913    $ 387,098   
                                                                             

(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 and Company usage and line loss.

(b) For the year ended December 31, 2011, capital expenditures in the EQT
Production segment include $92.6 million of liabilities assumed in exchange
for producing properties as part of the ANPI transaction.

(c) Production taxes include severance and production-related ad valorem and
other property taxes. Production taxes also include the Pennsylvania impact
fee of $2.1 million and $15.3 million for the three and twelve months ended
December 31, 2012, respectively.

(d) The production taxes unit rate for the year ended December 31, 2012
excludes the impact of $6.7 million for the accrual for pre-2012 Marcellus
wells.

                                                   
EQT MIDSTREAM
RESULTS OF OPERATIONS
                                                     
                         Three Months Ended          Twelve Months Ended

                         December 31,                December 31,
                         2012         2011          2012         2011
OPERATIONAL DATA
Gathered volumes (BBtu)    99,530        69,687      335,407         258,179
Average gathering fee    $ 0.84        $ 0.95        $ 0.90        $ 0.97
($/MMBtu)
Gathering and
compression expense      $ 0.20        $ 0.33        $ 0.24        $ 0.30
($/MMBtu) (a)
Transmission pipeline      73,074        42,262      221,944         159,384
throughput (BBtu)
Net operating revenues
(thousands):
Gathering                $ 83,844      $ 66,084      $ 302,255     $ 249,607
Transmission               33,483        21,111      104,501         90,405
Storage, marketing and    7,737       19,067     42,693        64,614  
other
Total net operating      $ 125,064     $ 106,262     $ 449,449     $ 404,626
revenues
Unrealized (losses)
gains on commercial
derivatives and          $ (4,279  )   $ (2,605  )   $ (9,225  )   $ (755    )
inventory (thousands)
(b)
Capital expenditures     $ 79,033      $ 86,054      $ 375,731     $ 242,886
(thousands)
                                                                             
FINANCIAL DATA                                       
(Thousands)
                                                                   
Total operating revenues $ 142,868     $ 129,868     $ 505,498     $ 525,345
Purchased gas costs       17,804      23,606     56,049        120,719 
Total net operating        125,064       106,262     449,449         404,626
revenues
                                                                   
Operating expenses:
Operating and              24,155        24,199      97,400          83,907
maintenance (O&M)
SG&A                       12,574        14,891      49,943          49,901
DD&A                      17,918      14,038     64,782        57,135  
Total operating expenses   54,647        53,128      212,125         190,943
Gain on dispositions      -           -          -             202,928 
Operating income         $ 70,417     $ 53,134     $ 237,324    $ 416,611 
                                                                             

(a) Gathering and compression expense for the full year 2011 excludes $7.1
million of favorable adjustments to certain non-income tax reserves.

(b) Included within storage, marketing and other net operating revenues.

                                                      
DISTRIBUTION
RESULTS OF OPERATIONS
                                                         
                                  Three Months Ended     Twelve Months Ended

                                  December 31,           December 31,
                                  2012      2011        2012       2011
                                                                     
OPERATIONAL DATA
Heating degree days (30 year
average: Qtr – 2,061; YTD –         1,857      1,681       4,693       5,189
5,710)
Residential sales and               6,600      6,440       19,326      22,333
transportation volumes (MMcf)
Commercial and industrial          7,600    7,612     27,651    28,752
volumes (MMcf)
Total throughput (MMcf) –           14,200     14,052      46,977      51,085
Distribution
Net operating revenues
(thousands):
Residential                       $ 32,527   $ 32,176    $ 105,382   $ 115,912
Commercial & industrial             12,902     13,009      45,084      48,968
Off-system and energy services     4,589     4,565      19,557     22,672
Total net operating revenues      $ 50,018   $ 49,750    $ 170,023   $ 187,552
Capital expenditures              $ 7,679    $ 6,134     $ 28,745    $ 31,313
(thousands)
                                                                       
FINANCIAL DATA (Thousands)
Total operating revenues          $ 94,647   $ 106,312   $ 313,990   $ 419,678
Purchased gas costs                44,629    56,562     143,967    232,126
Net operating revenues              50,018     49,750      170,023     187,552
                                                                     
Operating expenses:
O&M                                 11,828     11,917      42,838      43,383
SG&A                                7,720      8,360       34,117      31,524
DD&A                               5,687     7,333      24,454     25,747
Total operating expenses           25,235    27,610     101,409    100,654
Operating income                  $ 24,783   $ 22,140    $ 68,614    $ 86,898

Contact:

EQT Corporation
Analyst inquiries please contact:
Patrick Kane – Chief Investor Relations Officer, EQT, 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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