EQT Reports First Quarter 2013 Earnings

  EQT Reports First Quarter 2013 Earnings

  Year-over-year production sales volume growth 47%; Marcellus sales volume
                                 growth 103%

Business Wire

PITTSBURGH -- April 25, 2013

EQT Corporation (NYSE:EQT) today announced first quarter 2013 earnings of
$100.3 million, or $0.66 per diluted share; compared to first quarter 2012
earnings of $72.0 million, or $0.48 per diluted share. Operating cash flow was
$304.4 million, compared to first quarter 2012 operating cash flow of $227.8
million, and adjusted cash flow per share was $2.01 in the first quarter 2013,
compared to $1.52 in the first quarter 2012. The non-GAAP financial measures
are detailed and reconciled in the Non-GAAP Disclosures section below.

Highlights for the first quarter 2013 vs. first quarter 2012 include:

  *Production sales volumes were 47% higher
  *Marcellus production sales volumes were 103% higher
  *Production LOE per Mcfe were 20% lower
  *Production SG&A per Mcfe were 26% lower
  *Midstream gathered volumes were 42% higher
  *Midstream per unit gathering and compression expenses were 32% lower

Additional Highlights:

  *Initiating 2014 production sales volume guidance of a minimum 445 Bcfe
  *Increasing 2013 production sales volume guidance to between 340 and 350
    Bcfe
  *Increasing 2013 midstream EBITDA guidance to between $350 and $355 million

EQT’s first quarter 2013 operating income was $198.6 million, a 31% increase
from the same quarter in 2012. Earnings per share and adjusted cash flow per
share were higher due to increased production sales, increased gathered
volumes and transmission throughput, and higher sales at distribution, which
were partially offset by lower realized commodity prices. Net operating
revenues increased $92.2 million, or 25%, to $458.1 million in the quarter;
while net operating expenses rose by $45.7million, or 21%, to $259.5 million.

RESULTS BY BUSINESS

EQT Production

With a focus on drilling in the Marcellus Shale, EQT Production achieved sales
volumes of 79.4 Bcfe in the first quarter 2013, a 47% increase over the first
quarter 2012. Sales volumes from the Marcellus averaged 606 MMcfe per day for
the first quarter 2013, up from 295 MMcfe per day in the first quarter 2012.
Natural gas liquids (NGL) volumes totaled 1,194 Mbbls, a 52% increase over the
same period last year. Sales volumes for 2013 are now projected to be between
340 and 350 Bcfe, approximately 33% higher than in 2012; while 2013 NGL
volumes are projected to be between 4,500 and 4,700 Mbbls.

Operating income for the first quarter of 2013 was $74.1 million, compared to
$59.0 million in the same period last year – while net operating revenues for
the quarter were $250.5million, 28% higher than the first quarter 2012. The
revenue growth was due to a 47% increase in sales volumes, which was partially
offset by a lower average realized price. The average effective sales price to
EQT was 12% lower than last year at $4.27 per Mcfe, with $3.14 per Mcfe
allocated to EQT Production; and $1.13 per Mcfe allocated to EQT Midstream.
During the quarter, the average NYMEX natural gas price was 22% higher than
last year; however, this increase was more than offset by a smaller hedge gain
and lower NGL prices.

Operating expenses for EQT Production for the first quarter 2013 were $176.4
million, $40.1 million higher than the same quarter last year. Depreciation,
depletion and amortization expenses (DD&A) were $38.3 million higher,
primarily due to an increase in produced volumes. Consistent with the sales
volume growth, lease operating expenses (LOE) were $2.1 million higher;
production taxes were $2.0 million higher, excluding a $6.2 million
Pennsylvania impact fee recorded in the first quarter of 2012 for wells
drilled prior to 2012; and selling, general and administrative expenses (SG&A)
were $1.9 million higher. Per unit SG&A decreased 26% to $0.29 per Mcfe and
per unit LOE decreased 20% to $0.16 per Mcfe, as volume growth dramatically
outpaced higher costs.

With plans for 153 Marcellus wells in 2013, EQT drilled (spud) 33 gross wells
in the Marcellus during the first quarter, with an average length of pay of
4,898 feet. EQT also drilled two Utica wells and six Upper Devonian wells in
the quarter.

EQT Midstream

EQT Midstream’s first quarter 2013 operating income was $74.2 million; $18.1
million higher than the first quarter of 2012. Net gathering revenues
increased 18% to $81.8 million, primarily due to a 42% increase in gathered
volumes; however, at lower average gathering rates. Net transmission revenues
totaled $37.3million, a 63% increase over this quarter last year, primarily
due to sales of new capacity associated with the Sunrise and Marcellus
expansion projects, as well as higher volumes. Net storage, marketing and
other revenues totaled $9.8 million, which was a $5.2million decrease over
last year, due to lower margins and reduced activity resulting from lower
seasonal price spreads. Operating expenses for the quarter were $54.7 million,
$3.7 million higher than the same quarter last year, primarily due to
increased DD&A, which is consistent with the growth of the business. Per unit
gathering and compression expense decreased by 32%.

The Company is increasing its projected 2013 midstream earnings before
interest, taxes, depreciation, and amortization (EBITDA) guidance from $335
million to between $350 and $355 million.

Distribution

Distribution’s first quarter 2013 operating income totaled $52.3 million,
compared to $36.8 million for the same period in 2012. Total net operating
revenues for the first quarter 2013 were $78.7 million; $15.3 million higher
than the first quarter 2012, which was primarily attributed to $11.9 million
from increased usage due to a colder winter season and $5.0 million from
adjustments due to the completion of the purchased gas cost audit related to
prior years. Operating expenses were $26.4million, essentially unchanged.

OTHER BUSINESS

EQT Midstream Partners, LP

EQT has a 57.4% limited partner interest and a 2% general partner interest in
EQT Midstream Partners, LP, whose results are consolidated in EQT’s results.
For the first quarter 2013, EQT Corporation recorded $9.0 million, or $0.06 of
earnings per diluted share, attributable to non-controlling interests. EQT
Midstream Partners’ results were released today and are available at
www.eqtmidstreampartners.com.

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 segment,
Equitable Gas Company, to Peoples Natural Gas, subject to receipt of
regulatory approvals. The Company recorded a $2.1 million unallocated SG&A
expense in the first quarter of 2013 related to the transaction.

The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for
the pending transaction expired on April 22, 2013, without a request for
additional information. This expiration indicates that the Federal Trade
Commission has not objected to the transaction and that the parties may
proceed. EQT has also submitted filings with the Pennsylvania Public Utility
Commission, West Virginia Public Service Commission, and the Federal Energy
Regulatory Commission; and will soon file with the Kentucky Public Service
Commission – each must approve the transaction as part of the regulatory
process. The Company expects to receive all necessary approvals by year end.

Hedging

Since the end of 2012, the Company added to its hedge position for 2013
through 2015. As of April24, 2013, the Company has hedged approximately 60%
of its expected production sales volumes for the remainder of 2013 and
approximately 30% for 2014. The Company’s total natural gas hedge positions
for April 2013 through December 2015 production are:

                                       2013**   2014     2015
Fixed Price
Total Volume (Bcf)                         142        110        69
Average Price per Mcf (NYMEX)*           $ 4.55     $ 4.48     $ 4.59
                                                               
Collars
Total Volume (Bcf)                         19         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 average price is based on a conversion rate of 1.05 MMBtu/Mcf
** April 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
                                  March 31,
                                  2013         2012
Operating income (thousands):
EQT Production                    $ 74,097      $ 59,038
EQT Midstream                       74,214        56,136
Distribution                        52,276        36,770
Unallocated income/(expense)       (1,952  )    242
Operating income                  $ 198,635    $ 152,186

For the first quarter 2013, unallocated expense is primarily due to the
Equitable Gas transaction.

Marcellus Horizontal Well Status (cumulatively since inception)

                     As of     As of      As of     As of     As of
                      3/31/13     12/31/12     9/30/12     6/30/12     3/31/12
Wells spud            404         371          344         317         279
Wells online          276         258          229         211         183
Wells complete, not   30          17           27          21          20
online
Frac stages (spud     8,327       7,230        6,331       5,352       4,676
wells)*
Frac stages online    4,788       4,366        3,545       3,188       2,726
Frac stages
complete, not         925         462          622         391         320
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 the most comparable GAAP financial measures of
operating income, net income or earnings per diluted share.

The table below reconciles adjusted operating income with operating income, as
derived from the statements of consolidated income to be included in the
Company’s Form 10-Q for the quarter ended March 31, 2013.

Reconciliation of Adjusted Operating Income:

                                         Three Months Ended
                                           March 31,
                                           2013          2012
Operating income as reported               $ 198,635       $ 152,186
(Deduct) / add back:
Resale of unused transmission capacity       3,728           (6,731  )
Purchased gas cost audit adjustment          (4,992  )       −
PA impact fee (retroactive portion)         −             6,178   
Adjusted operating income                  $ 197,371       $ 151,633

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 statement of consolidated income to be included in the Company’s Form 10-Q
for the quarter ended March 31, 2013.

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

                                                 Three Months Ended
                                                   March 31,
                                                   2013          2012
Net income attributable to EQT, as reported        $ 100,255       $ 72,035
(Deduct) / add back:
Resale of unused transmission capacity               3,728           (6,731  )
Purchased gas cost audit adjustment                  (4,992  )       −
PA Impact fee (retroactive portion)                  −               6,178
Tax impact at 33.0% for 2013, and 38.3% for         417           212     
2012
Adjusted net income                                $ 99,408        $ 71,694
Diluted weighted average common shares               150,949         150,216
outstanding
Diluted EPS, as adjusted                           $ 0.66          $ 0.48

Operating Cash Flow:

Operating cash flow is a non-GAAP financial measure that is presented as an
accepted indicator of oil and gas exploration and production companies’
ability to internally fund exploration and development activities and to
service or incur additional debt. EQT has also included this information
because management believes that changes in operating assets and liabilities
relate to the timing of cash receipts and disbursements that the Company may
not control, and therefore, may not 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 the most comparable GAAP financial measures
of net cash provided by operating activities. 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 EQT’s quarterly report
on Form 10-Q for the quarter ended March 31, 2013.

                                            Three Months Ended
                                              March 31,
(thousands)                                   2013        2012
Net income                                    $ 109,281     $ 72,035
Add back (deduct):
Deferred income taxes                           34,347        39,363
Depreciation, depletion, and amortization       149,116       107,525
Other items, net                               11,620       8,837   
Operating cash flow                           $ 304,364     $ 227,760 
                                                            
Add back (deduct):
Changes in other assets and liabilities       $ 876         $ (5,636  )
Net cash provided by operating activities     $ 305,240     $ 222,124 

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 EQT’s Form 10-Q for
the quarter ended March 31, 2013.

                                                 Three Months Ended
                                                   March 31,
(thousands)                                        2013          2012
Operating cash flow (a non-GAAP measure            $ 304,364       $ 227,760
reconciled above)
Add back:
Exploration expense (cash)                           750             1,136
Resale of unused transmission capacity               3,728           (6,731  )
Purchased gas cost audit adjustment                  (4,992  )       −
PA Impact fee (retroactive portion)                 −             6,178   
Adjusted operating cash flow and exploration       $ 303,850      $ 228,343 
expense
                                                                   
Diluted weighted average common shares              150,949       150,216 
outstanding
Adjusted cash flow per share                       $ 2.01         $ 1.52    

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 EQT’s earnings. Net operating revenues and
net operating expenses should not be considered in isolation or as a
substitute for the most comparable GAAP financial measures of operating
revenues or total operating expenses. The table below reconciles net operating
revenues to operating revenues and net operating expenses to total operating
expenses for the three months ended March 31, 2013 and 2012:

                           Three Months Ended
                             March 31,
(thousands)                  2013        2012
Net operating revenues       $ 458,091     $ 365,894
Plus: purchased gas cost      100,569      84,066
Operating revenues           $ 558,660     $ 449,960
                                           
Net operating expenses       $ 259,456     $ 213,708
Plus: purchased gas cost      100,569      84,066
Total operating expenses     $ 360,025     $ 297,774

Q1 2013 Webcast Information

The Company's conference call with securities analysts, which begins at 10:30
a.m. ET today, will be broadcast live via the Company'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 following
the call.

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. ET. The call will be broadcast live via
http://www.eqtmidstreampartners.com, with a replay 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).

EQT 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, EQT 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 EQT management
and external users of EQT’s financial statements, such as industry analysts,
investors, lenders and rating agencies, may use to assess: (i) EQT’s
performance versus prior periods; (ii) EQT’s operating performance as compared
to other companies in its industry; (iii) the ability of EQT’s assets to
generate sufficient cash flow to make distributions to its investors; (iv)
EQT’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 EQT and its subsidiaries, including guidance regarding EQT’s
strategy to develop its Marcellus and other reserves; drilling plans and
programs (including the number, type, feet of pay and location of wells to be
drilled, the conversion of drilling rigs to utilize natural gas and the
availability of capital to complete these plans and programs); natural gas
prices; total resource potential, reserves, EUR, expected decline curve,
reserve replacement ratio and production and sales volumes and growth rates;
F&D costs, operating costs, unit costs, well costs and gathering and
transmission revenue deductions to EQT Midstream; gathering and transmission
volumes and growth rates; infrastructure programs (including the timing, cost
and capacity of the transmission and gathering expansion projects); technology
(including drilling techniques); projected midstream EBITDA; monetization
transactions, including midstream asset sales (dropdowns) to the Partnership
and other asset sales and joint ventures or other transactions involving EQT’s
assets; the proposed transfer of Equitable Gas Company to PNG Companies LLC;
the timing of receipt of required approvals for the proposed Equitable Gas
Company transaction; guidance regarding the expected form and amount of
midstream assets to be exchanged in the Equitable Gas Company transaction; the
expected EBITDA to be generated from the midstream assets and commercial
arrangements transferred by or entered into with Peoples Natural Gas or its
affiliates; uses of capital provided by the Equitable Gas Company transaction;
internal rate of return (IRR); capital expenditures, including funding sources
and availability; financing requirements and availability; projected operating
revenues and cash flows; hedging strategy; the effects of government
regulation and pending and future litigation; the annual dividend rate; and
tax position. The forward-looking 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. EQThas based these
forward-looking statements on current expectations and assumptions about
future events. While EQTconsiders 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 EQT’s control. With respect
to the proposed Equitable Gas Company 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 EQT’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 EQT’s business and forward-looking statements
include, but are not limited to, those set forth under Item 1A, “Risk Factors”
of EQT’s Form 10-K for the year ended December 31, 2012, as updated by any
subsequent Form 10-Qs.

Any forward-looking statement speaks only as of the date on which such
statement is made and EQT 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
                                                       March 31,
                                                       2013        2012
Operating revenues                                     $ 558,660     $ 449,960
                                                                     
Operating expenses:
Purchased gas costs                                      100,569       84,066
Operation and maintenance                                33,223        34,390
Production                                               24,889        27,023
Exploration                                              3,730         1,828
Selling, general and administrative                      48,498        42,942
Depreciation, depletion and amortization                149,116      107,525
Total operating expenses                                 360,025       297,774
Operating income                                         198,635       152,186
Other income                                             2,330         5,791
Interest expense                                        37,752       41,252
                                                                     
Income before income taxes                               163,213       116,725
Income taxes                                            53,932       44,690
Net income                                             $ 109,281     $ 72,035
Less: Net income attributable to noncontrolling         9,026        −
interests
Net Income attributable to EQT Corporation             $ 100,255     $ 72,035
Earnings per share of common stock attributable to
EQT Corporation
Basic:
Weighted average common shares outstanding               150,327       149,494
Net income                                             $ 0.67        $ 0.48
Diluted:
Weighted average common shares outstanding               150,949       150,216
Net income                                             $ 0.66        $ 0.48
                                                                       

EQT Corporation
Price Reconciliation
                                                 Three Months Ended
                                                   March 31,
in thousands (unless noted)                        2013          2012
LIQUIDS
NGLs:
Sales Volume (MMcfe) (a)                             4,370           2,969
Sales Volume (Mbbls)                                 1,194           787
Gross Price ($/Mbbls)                              $ 43.07        $ 55.83   
Gross NGL Revenue                                  $ 51,423        $ 43,939
BTU Premium (Ethane sold as natural gas):
Sales Volume (MMbtu)                                 6,417           4,645
Price ($/MMbtu)                                    $ 3.34         $ 2.74    
BTU Premium Revenue                                $ 21,406        $ 12,708
Oil:
Sales Volume (MMcfe) (a)                             368             327
Sales Volume (Mbbls)                                 61              54
Net Price ($/Mbbls)                                $ 81.74        $ 85.32   
Net Oil Revenue                                    $ 4,986         $ 4,607
                                                                   
Total Liquids Revenue                              $ 77,815        $ 61,254
GAS
Sales Volume (MMcf)                                  74,654          50,773
NYMEX Price ($/Mcf)                                $ 3.34         $ 2.74    
Gas Revenues                                       $ 249,021       $ 138,916
Basis                                               (193    )      (118    )
Gross Gas Revenue (unhedged)                       $ 248,828       $ 138,798
                                                                   
Total Gross Gas & Liquids Revenue (unhedged)       $ 326,643       $ 200,052
Hedge impact                                        43,498        76,747  
Total Gross Gas & Liquid Revenue                   $ 370,141       $ 276,799
Total Sales Volume (MMcfe)                          79,392        54,070  
Average hedge adjusted price ($/Mcfe)              $ 4.66          $ 5.12
                                                                   
Midstream Revenue Deductions ($/Mcfe)
Gathering to EQT Midstream                           (0.90   )       (1.08   )
Transmission to EQT Midstream                        (0.23   )       (0.17   )
Third-party gathering and transmission (b)           (0.27   )       (0.17   )
Third-party processing                              (0.12   )      (0.11   )
Total midstream revenue deductions                  (1.52   )      (1.53   )
Average effective sales price to EQT               $ 3.14         $ 3.59    
Production
                                                                   
EQT Revenue ($/Mcfe)
Revenues to EQT Midstream                          $ 1.13          $ 1.25
Revenues to EQT Production                          3.14          3.59    
Average effective sales price to EQT               $ 4.27         $ 4.84    
Corporation
                                                                   

      NGLs were converted to Mcfe at the rates of 3.66 Mcfe per barrel and
(a)  3.77 Mcfe per barrel based on the liquids content for the three months
      ended March 31, 2013 and 2012, respectively. Crude oil was converted to
      Mcfe at the rate of six Mcfe per barrel for all periods.
      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 $0.05 per Mcfe
(b)   for the three months ended March 31, 2013. In 2012, 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 $0.12 per Mcfe for the three months ended
      March 31, 2012.
      

UNIT EXPENSES                           Three Months Ended
                                          March 31,
                                          2013      2012
Production segment expenses: ($/Mcfe)
Lease operating                           $  0.16     $ 0.20
Production taxes (a)                         0.15       0.18
Selling, general and administrative         0.29      0.39
                                          $  0.60     $ 0.77
Midstream segment expenses: ($/Mcfe)
Gathering and transmission                $  0.25     $ 0.37
Selling, general and administrative         0.15      0.19
                                          $  0.40     $ 0.56
Total ($/Mcfe)                            $  1.00     $ 1.33
                                                      

      Excludes for the three months ended March 31, 2012 the retroactive
(a)  Pennsylvania Impact Fee of $0.11 per Mcfe for Marcellus wells spud prior
      to 2012.
      

EQT PRODUCTION
RESULTS OF OPERATIONS
                                                     Three Months Ended
                                                       March 31,
                                                       2013        2012
OPERATIONAL DATA
Sales volume detail (MMcfe):
Horizontal Marcellus Play (a)                            54,515        26,842
Horizontal Huron Play                                    8,031         9,666
CBM Play                                                 3,116         3,298
Other (vertical non-CBM)                                13,730       14,264
Total production sales volumes                           79,392        54,070
                                                                     
Average daily sales volumes (MMcfe/d)                    882           594
                                                                     
Average effective sales price ($/Mcfe)                 $ 3.14        $ 3.59
                                                                     
Lease operating expenses, excluding production         $ 0.16        $ 0.20
taxes ($/Mcfe)
Production taxes ($/Mcfe) (b)                          $ 0.15        $ 0.18
Production depletion ($/Mcfe)                          $ 1.54        $ 1.56
                                                                     
Depreciation, depletion and amortization (DD&A)
(thousands):
Production depletion                                   $ 122,491     $ 84,526
Other DD&A                                              2,418        2,041
Total DD&A                                             $ 124,909     $ 86,567
                                                                     
Capital expenditures (thousands)                       $ 246,946     $ 183,685
                                                                     
                                                                     
FINANCIAL DATA (thousands)
                                                                     
Total net operating revenues                           $ 250,511     $ 195,396
                                                                     
Operating expenses:
Lease operating                                          13,039        10,936
Production taxes (b)                                     11,851        16,087
Exploration                                              3,730         1,828
Selling, general and & administrative                    22,885        20,940
DD&A                                                    124,909      86,567
Total operating expenses                                176,414      136,358
Operating income                                       $ 74,097      $ 59,038
                                                                       

(a)  Includes Upper Devonian and Utica volumes.
      Production taxes include severance and production-related ad valorem and
      other property taxes. Production taxes also include the Pennsylvania
      impact fee of $2.9 million for the three months ended March 31, 2013
(b)   compared to $8.2 million for the three months ended March 31, 2012, of
      which $6.2 million represents the retroactive fee for pre-2012 Marcellus
      wells. The production taxes unit rate for the three months ended March
      31, 2012 excludes the impact of the $6.2 million accrual for pre-2012
      Marcellus wells.

EQT MIDSTREAM
RESULTS OF OPERATIONS
                                                   Three Months Ended
                                                     March 31,
                                                     2013        2012
OPERATIONAL DATA
Gathered volumes (BBtu)                                101,231       71,166
Average gathering fee ($/MMBtu)                      $ 0.81        $ 0.97
Gathering and compression expense ($/MMBtu)          $ 0.19        $ 0.28
Transmission pipeline throughput (BBtu)                80,971        42,075
                                                                   
Net operating revenues (thousands):
Gathering                                            $ 81,814      $ 69,253
Transmission                                           37,307        22,941
Storage, marketing and other                          9,759        14,923  
Total net operating revenues                         $ 128,880     $ 107,117
                                                                   
Unrealized (losses) gains on derivatives and         $ 1,674       $ (5,447  )
inventory (thousands) (a)
                                                                   
Capital expenditures (thousands)                     $ 51,358      $ 79,638
                                                                   
FINANCIAL DATA (thousands)
                                                                   
Total operating revenues                             $ 146,688     $ 122,048
Purchased gas costs                                   17,808       14,931  
Total net operating revenues                           128,880       107,117
                                                                   
Operating expenses:
Operating and maintenance                              22,673        24,104
Selling, general and & administrative                  13,774        12,169
Depreciation, depletion and amortization              18,219       14,708  
Total operating expenses                              54,666       50,981  
Operating income                                     $ 74,214      $ 56,136  
                                                                   

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

DISTRIBUTION
RESULTS OF OPERATIONS
                                                     Three Months Ended
                                                       March 31,
                                                       2013        2012
OPERATIONAL DATA
Heating degree days (30 year average: 2,870)             2,904         2,232
                                                                     
Residential sales and transportation volumes             11,652        9,055
(MMcf)
Commercial and industrial volumes (MMcf)                10,041       9,359
Total throughput (MMcf)                                  21,693        18,414
                                                                     
Net operating revenues (thousands):
Residential                                            $ 54,067      $ 40,660
Commercial and industrial                                19,706        17,023
Off-system and energy services                          4,938        5,708
Total net operating revenues                           $ 78,711      $ 63,391
                                                                     
Capital expenditures (thousands)                       $ 5,605       $ 5,463
                                                                     
FINANCIAL DATA (thousands)
                                                                     
Total operating revenues                               $ 153,818     $ 135,421
Purchased gas costs                                     75,107       72,030
Total net operating revenues                             78,711        63,391
                                                                     
Operating expenses:
Operating and maintenance                                10,035        10,213
Selling, general and & administrative                    10,352        10,165
Depreciation, depletion and amortization                6,048        6,243
Total operating expenses                                26,435       26,621
Operating income                                       $ 52,276      $ 36,770

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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