EQT First Quarter 2014 Earnings Show 92% Increase

  EQT First Quarter 2014 Earnings Show 92% Increase

Business Wire

PITTSBURGH -- April 24, 2014

EQT Corporation (NYSE: EQT) today announced first quarter 2014 net income
attributable to EQT of $192.2 million, or $1.26 per diluted share, compared to
first quarter 2013 earnings of $100.3 million, or $0.66 per diluted share.
Adjusted earnings, excluding $22.3 million of hedging ineffectiveness, were
$206.6 million, or $1.35 per diluted share – which was 214% higher than first
quarter 2013 adjusted earnings of $65.5 million, or $0.43 per diluted share,
excluding $35.0 million from discontinued operations. Operating cash flow in
the quarter was $481.9 million, compared to $306.2 million; and adjusted cash
flow per share was $3.16, compared to $2.03. The Non-GAAP financial measures
are reconciled in the Non-GAAP Disclosures section of this news release.

First Quarter Highlights 2014 vs. 2013:

  *Production sales volume was 30% higher
  *Production operating expenses per Mcfe were 17% lower
  *Midstream transmission revenues were 40% higher
  *Midstream gathered volume was 25% higher

EQT’s first quarter 2014 operating income was $356.8 million, a 147% increase
from the same quarter 2013. Earnings per share and adjusted cash flow per
share were higher due to increases in production sales volume, realized price,
contracted transmission capacity, and gathered volume. Net operating revenues
increased 63% to $616.5 million in the quarter, while net operating expenses
increased only 11% to $259.7 million.

RESULTS BY BUSINESS
EQT PRODUCTION
With its continued focus on the Marcellus Shale, EQT Production achieved sales
volume of 106.1 Bcfe in the first quarter 2014, representing a 30% increase
compared to the first quarter 2013.Sales volume from the Marcellus/Upper
Devonian averaged 923.6 MMcfe per day, 50% higher. Natural gas liquids (NGL)
volume totaled 1,295 Mbbls, 16% higher.

Production operating income for the first quarter totaled $277.2 million, an
increase of 274% from last year. As a result of increases in sales volume and
average realized price, net operating revenue for the quarter was $467.7
million, 87% higher.

Consistent with the significant growth in sales volume, EQT Production’s
operating expenses for the quarter were $190.5 million, $14.1 million higher
than the same period last year.Depreciation, depletion and amortization
expense (DD&A) was $6.3 million higher; production taxes were $5.2 million
higher; selling, general and administrative expense (SG&A) was $3.1 million
higher; lease operating expense (LOE), less production taxes, was $1.8 million
higher; and exploration expense was $2.3 million lower.Per unit SG&A
decreased 14% to $0.24 per Mcfe; and per unit LOE decreased 13% to $0.14 per
Mcfe, as volume growth dramatically outpaced higher costs.

The Company drilled (spud) 64 gross wells during the quarter -- 46 wells
targeted the Marcellus with an average length-of-pay of 5,870 feet; 14 wells
targeted the Huron with an average length-of-pay of 6,395 feet; and 4 wells
targeted the Upper Devonian with an average length-of-pay of 5,460 feet. In
2014, the Company will complete and evaluate 5 Utica wells drilled in 2013 but
has decided to delay further drilling on its Ohio Utica acreage until after
this year. Alternatively, the Company now expects to drill 8 additional
Marcellus wells and 13 additional Upper Devonian wells for a total of 194
Marcellus wells and 43 Upper Devonian wells in 2014. This change will have no
net impact to the Company’s 2014 CAPEX budget.

Production sales volume for 2014 is projected to be 465 – 480 Bcfe; and
liquids volume is expected to be 6,800 – 6,900 MBBls. Production sales volume
for the second quarter 2014 is projected to be 113 - 115 Bcfe; and liquids
volume is expected to be 1,600– 1,650 MBBls.

Realized Price
The NYMEX price of natural gas averaged $4.94 per MMBtu in the first quarter
2014, which was 48% higher than the average of $3.34 for the same period last
year.EQT’s realized price varies from NYMEX due to revenue deductions for the
net cost of gathering, transporting and processing, regional basis, and
hedging.In the first quarter, the Company’s average realized price was $5.34
per Mcfe, 28% higher than the $4.16 per Mcfe realized last year – with $4.40
per Mcfe allocated to EQT Production and $0.94 per Mcfe allocated to EQT
Midstream.This increase in the realized price includes negative $0.21 per
Mcfe related to hedge ineffectiveness. During the first quarter 2014, which
was unusually cold, EQT utilized its firm capacity to move gas to higher
priced markets. The sale of gas in these markets resulted in gains that more
than offset the cost of third-party gathering and transmission, and resulted
in positive net revenue of $0.64 per Mcfe.This is a significant improvement
over last year when EQT realized a net cost of $0.26 per Mcfe in the first
quarter 2013 for third-party gathering and transmission.Basis averaged a
negative $0.22 per Mcfe in the first quarter compared to zero in 2013.

Based on current market conditions, EQT is forecasting third-party gathering
and transmission to average $0.00 to negative $0.05 per Mcfe; and basis to
average negative $0.40 to negative $0.60 per Mcfe for the full-year 2014.

EQT MIDSTREAM
EQT Midstream’s first quarter 2014 operating income was $83.1 million, or $8.9
million higher than the first quarter of 2013. Net operating revenue was
$148.7 million, 15% higher. Net gathering revenue was $89.4 million, an
increase of 9%, which was primarily due to a 25% increase in gathered volume,
partly offset by lower gathering rates. Net transmission revenue totaled
$52.1million, a 40% increase over last year as a result of higher contracted
capacity. Net storage, marketing and other revenues totaled $7.2 million, $2.5
million lower; and operating expenses for the quarter were $65.6 million,
$11.0million higher, consistent with the volume growth. Per unit gathering
and compression expense decreased by 16% as volumes grew faster than expenses.

OTHER BUSINESS
EQT Midstream Partners, LP
EQT has a 42.6% limited partner interest and a 2% general partner interest in
EQT Midstream Partners, LP, whose results are consolidated in EQT’s results.
For the quarter, EQT Corporation recorded $18.7 million, or $0.12 of earnings
per diluted share, attributable to non-controlling interests. EQT Midstream
Partners’ results were released today and are available at
www.eqtmidstreampartners.com.

On April 22, 2014, EQT Midstream Partners announced a cash distribution to its
unitholders of $0.49per unit for the first quarter, from which EQT will
receive $10.2 million on its limited partner units. In addition, EQT will
receive $0.5 million related to its 2% general partner interest, and $1.0
million for its incentive distribution rights as EQT receives 25% of the
amount in excess of $0.4375 per unit.

Hedging
The Company’s total natural gas hedge positions through December 2016
production are

                                       2014**   2015     2016***
Fixed Price
Total Volume (Bcf)                         171        132         60
Average Price per Mcf (NYMEX)*           $ 4.36     $ 4.37     $  4.45
                                                               
Collars
Total Volume (Bcf)                         18         23          –
Average Floor Price per Mcf (NYMEX)*     $ 5.05     $ 5.03     $  –
Average Cap Price per Mcf (NYMEX)*       $ 8.85     $ 8.97     $  –
                                                                  

*The average price is based on a conversion rate of 1.05 MMBtu/Mcf
**April through December
***The Company also executed a natural gas sales agreement for approximately
35 Bcf that includes a NYMEX ceiling price of $4.88 per Mcf

Operating Income
The Company reports operating income by segment in this news release.
Interest, income taxes and unallocated 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 news release, to the consolidated operating income reported in the
Company’s financial statements:

                                Three Months Ended
                                  March 31,
                                  2014          2013
Operating income (thousands):
EQT Production                    $ 277,205       $ 74,097
EQT Midstream                       83,069          74,214
Unallocated expense                (3,483  )      (3,832  )
Operating income                  $ 356,791      $ 144,479 
                                                            

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

Marcellus Horizontal Well Status (cumulative since inception)

                            As of    As of     As of    As of    As of
                              3/31/14   12/31/13   9/30/13   6/30/13   3/31/13
Wells spud                    573       527        486       444       404
Wells online                  390       373        338       322       279
Wells complete, not           42        32         20        11        30
online
Frac stages (spud             13,512    11,991     10,613    9,754     8,327
wells)*
Frac stages online            8,012     7,567      6,596     6,297     4,788
Frac stages complete,         959       708        553       224       925
not 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 supplemental 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 as alternatives to operating income, net income or earnings per
diluted share presented in accordance with GAAP.

The table below reconciles adjusted operating income with operating income, as
derived from the statements of consolidated income to be included in EQT’s
quarterly report on Form 10-Q for the quarter ended March 31, 2014.

Reconciliation of Adjusted Operating Income:        
                                                       
                                                       Three Months Ended
                                                       March 31,
(thousands)                                            2014        2013
Operating income as reported                           $ 356,791     $ 144,479
(Deduct) / add back:
Loss recognized in operating revenues for hedging       22,260       481
ineffectiveness
Adjusted operating income                              $ 379,051     $ 144,960
                                                                       

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 EQT’s quarterly report
on Form 10-Q for the quarter ended March 31, 2014.

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

                                                 Three Months Ended
                                                   March 31,
(thousands)                                        2014          2013
Net income attributable to EQT, as reported        $ 192,193       $ 100,255
(Deduct) / add back:
Loss recognized in operating revenues for            22,260          481
hedging ineffectiveness
Tax impact                                          (7,910  )      (153    )
Subtotal                                           $ 206,543       $ 100,583
Loss/(income) from discontinued operations,         104           (35,041 )
net of tax
Adjusted net income attributable to EQT, as        $ 206,647      $ 65,542  
reported
Diluted weighted average common shares               152,759         150,949
outstanding
Diluted EPS, as adjusted                           $ 1.35         $ 0.43    
                                                                             

Operating Cash Flow
Operating cash flow is a non-GAAP supplemental financial measure that is
presented as an 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 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 as an alternative to net cash provided by operating
activities presented in accordance with GAAP. The table below reconciles
operating cash flow with net cash provided by operating activities, as derived
from the statements of consolidated cash flows to be included in the EQT’s
quarterly report on Form 10-Q for the quarter ended March 31, 2014.

                                                 Three Months Ended
                                                   March 31,
(thousands)                                        2014          2013^(a)
Net income                                         $ 210,935       $ 109,281
Add back (deduct):
Depreciation, depletion, and amortization            152,111         149,116
Deferred income taxes                                85,878          34,347
Loss recognized in operating revenues for            22,260          481
hedging ineffectiveness
Non-cash incentive compensation                      11,317          10,334
Other items, net                                    (590    )      2,612   
Operating cash flow                                $ 481,911      $ 306,171 
Add back (deduct):
Changes in other assets and liabilities            $ (20,350 )     $ (6,916  )
Net cash provided by operating activities          $ 461,561      $ 299,255 
                                                                   
^(a) Includes results of discontinued
operations
                                                                   

Adjusted Cash Flow Per Share
Adjusted cash flow per share is a non-GAAP supplemental 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 as an alternative to net cash provided by operating
activities or net income per share presented in accordance with GAAP, 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 quarterly report
on Form 10-Q for the quarter ended March 31, 2014.

                                                     Three Months Ended
                                                       March 31,
(thousands)                                            2014        2013
Operating cash flow (a non-GAAP measure reconciled     $ 481,911     $ 306,171
above)
Add back:
Exploration expense (cash)                              1,144        750
Adjusted operating cash flow                           $ 483,055     $ 306,921
                                                                     
Diluted weighted average common shares outstanding      152,759      150,949
Adjusted cash flow per share                           $ 3.16        $ 2.03
                                                                     

Net Operating Revenues and Net Operating Expenses
Net operating revenues and net operating expenses are non-GAAP supplemental
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
costs are typically excluded by management in such analysis because more
emphasis is placed on the net price impact to revenues and expenses. Net
operating revenues and net operating expenses should not be considered as
alternatives to operating revenues or total operating expenses presented in
accordance with GAAP. The table below reconciles net operating revenues to
operating revenues and net operating expenses to total operating expenses as
derived from the statements of consolidated income to be included in EQT’s
quarterly report on Form 10-Q for the quarter ended March 31, 2014.

                           Three Months Ended
                             March 31,
(thousands)                  2014        2013
Net operating revenues       $ 616,450     $ 379,152
Plus: purchased gas cost      45,175       36,731
Operating revenues           $ 661,625     $ 415,883
                                           
Net operating expenses       $ 259,659     $ 234,673
Plus: purchased gas cost      45,175       36,731
Total operating expenses     $ 304,834     $ 271,404
                                             

Q1 2014 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 (Partnership), for which EQT Corporation is the
general partner and a significant 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, and transmission. EQT is the general
partner and significant equity owner of EQT Midstream Partners, LP. With more
than 125 years of experience, EQT continues to be a leader in the use of
advanced horizontal drilling technology – designed to minimize the potential
impact of drilling-related activities and reduce the overall environmental
footprint. 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 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 were updated today and 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) and “3P” (proved, probable and possible)
that the SEC’s guidelines prohibit us from including in filings with the SEC.
These measures are by their nature more speculative than estimates of reserves
prepared in accordance with SEC definitions and guidelines and accordingly are
less certain.

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

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 the Company’s
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.

The Company is unable to provide a reconciliation of projected EBITDA to
projected operating 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.

Similarly, 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 GAAP,
because of uncertainties associated with projecting future net income and
changes in assets and liabilities.

Disclosures in this news 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 contained in this news release 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 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); projected natural gas prices
and changes in basis; total resource potential, reserves, EUR, expected
decline curve and reserve replacement ratio; projected production sales volume
and growth rates (including liquids sales volume and growth rates); projected
finding and development costs, operating costs, unit costs, well costs and
gathering and transmission revenue deductions; projected gathering and
transmission volume and growth rates; projected firm pipeline capacity and
sales; infrastructure programs (including the timing, cost and capacity of the
transmission and gathering expansion projects); the EQT subsidiary to own and
construct the Ohio Valley Connector and/or Ohio Valley Express projects;
technology (including drilling and completion techniques); projected EQT
Midstream and Partnership EBITDA; monetization transactions, including asset
sales (dropdowns) to the Partnership and other asset sales, joint ventures or
other transactions involving the Company’s assets; uses of capital provided by
the Equitable Gas transaction; the cash flows resulting from, and the value
of, the Company’s general partner and limited partner interests and incentive
distribution rights in the Partnership; internal rate of return (IRR);
projected capital expenditures; liquidity and financing requirements,
including funding sources and availability; projected operating revenues, cash
flows and cash-on-hand; hedging strategy; the effects of government regulation
and litigation; the Company dividend and Partnership distribution amount and
rates; and tax position. These 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. 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,
2013, 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 the Company does not intend to correct or update any
forward-looking statement, whether as a result of new information, future
events or otherwise.

Information in this news release regarding the Partnership and its
subsidiaries is derived from publicly available information published by the
Partnership.

EQT CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)
(Thousands, except per share amounts)

                                                   Three Months Ended
                                                     March 31,
                                                     2014          2013
Operating revenues                                   $ 661,625       $ 415,883
Operating expenses:
Purchased gas costs                                    45,175          36,731
Operation and maintenance                              25,221          23,233
Production                                             31,940          24,889
Exploration                                            1,419           3,730
Selling, general and administrative                    48,968          39,785
Depreciation, depletion and amortization              152,111       143,036
Total operating expenses                              304,834       271,404
Operating income                                       356,791         144,479
Other income                                           2,551           2,281
Interest expense                                      31,968        37,752
                                                                     
Income before income taxes                             327,374         109,008
Income taxes                                          116,335       34,768
Income from continuing operations                      211,039         74,240
(Loss) income from discontinued operations, net       (104    )      35,041
of tax
Net income                                           $ 210,935       $ 109,281
Less: Net income attributable to noncontrolling       18,742        9,026
interests
Net Income attributable to EQT Corporation           $ 192,193      $ 100,255
                                                                     
Amounts attributable to EQT Corporation
Income from continuing operations                      192,297       $ 65,214
(Loss) income from discontinued operations            (104    )      35,041
Net Income                                           $ 192,193      $ 100,255
                                                                     
Earnings per share of common stock attributable
to EQT Corporation
Basic:
Weighted average common shares outstanding             151,371         150,327
Income from continuing operations                    $ 1.27          $ 0.44
(Loss) income from discontinued operations            -             0.23
Net income                                           $ 1.27         $ 0.67
                                                                     
Diluted:
Weighted average common shares outstanding             152,759         150,949
Income from continuing operations                    $ 1.26          $ 0.43
(Loss) income from discontinued operations            -             0.23
Net income                                           $ 1.26         $ 0.66
                                                                     

EQT Corporation
Price Reconciliation

                                                 Three Months Ended
                                                   March 31,
in thousands (unless noted)                        2014          2013
LIQUIDS
NGLs:
Sales Volume (MMcfe) (a)                             7,767           6,692
Sales Volume (Mbbls)                                 1,295           1,115
Gross Price ($/Bbl)                                $ 55.71        $ 46.11   
Gross NGL Revenue                                    72,114        $ 51,423
Oil:
Sales Volume (MMcfe) (a)                             304             368
Sales Volume (Mbbls)                                 51              61
Net Price ($/Bbl)                                  $ 83.11       $ 81.74   
Net Oil Revenue                                    $ 4,214         $ 4,986
                                                                   
Total Liquids Revenue                              $ 76,328        $ 56,409
                                                                   
GAS
Sales Volume – Natural Gas (MMBtu)                   98,052          74,654
Sales Volume – Ethane sold as natural gas           6,931         6,417   
(MMBtu)
Sales Volume (MMBtu)                                 104,983         81,071
NYMEX Price ($/MMBtu) (b)                          $ 4.92         $ 3.34    
Gas Revenue                                        $ 516,636       $ 270,427
Basis                                               (23,669 )      (193    )
Gross Gas Revenue (unhedged)                       $ 492,967       $ 270,234
Sales Volume (MMcf)                                 98,052        74,654  
Gas Price ($/Mcf) (unhedged)                       $ 5.03          $ 3.62
                                                                   
Total Gross Gas & Liquids Revenue (unhedged)       $ 569,295       $ 326,643
Hedge impact (c)                                    (59,220 )      43,498  
Total Gross Gas & Liquid Revenue                   $ 510,075       $ 370,141
Total Sales Volume (MMcfe)                          106,123       81,714  
Average hedge adjusted price ($/Mcfe)              $ 4.81          $ 4.53
                                                                   
Midstream Revenue Deductions ($ / Mcfe)
Gathering to EQT Midstream                         $ (0.73   )     $ (0.88   )
Transmission to EQT Midstream                        (0.21   )       (0.23   )
Net third-party gathering and transmission           0.64            (0.26   )
Third-party processing                              (0.11   )      (0.11   )
Total midstream revenue deductions                 $ (0.41   )     $ (1.48   )
Average effective sales price to EQT               $ 4.40         $ 3.05    
Production
                                                                   
EQT Revenue ($/ Mcfe)
Revenues to EQT Midstream                          $ 0.94          $ 1.11
Revenues to EQT Production                          4.40          3.05    
Average effective sales price to EQT               $ 5.34         $ 4.16    
Corporation

(a) NGLs and crude oil were converted to Mcfe at the rate of six Mcfe per
barrel for all periods. Information for the three months ended March 31, 2013
has been recast to reflect this conversion rate.
(b) The Company’s volume weighted NYMEX natural gas price (actual average
NYMEX natural gas price ($/MMBtu) was $4.94 and $3.34 for the three months
ended March 31, 2014 and 2013, respectively).
(c) Includes gains or losses related to the sale of fixed price natural gas.
The hedge impact also included a loss for hedging ineffectiveness of $22.4
million, $0.21 per Mcfe, and $0.5 million, $0.01 per Mcfe, for the three
months ended March 31, 2014 and 2013, respectively.

                                      
                                         Three Months Ended
UNIT COSTS                               March 31,
                                         2014     2013 (a)
Production segment costs: ($ / Mcfe)
LOE                                      $ 0.14     $ 0.16
Production taxes                           0.16       0.15
SG&A                                      0.24      0.28 
                                         $ 0.54     $ 0.59
Midstream segment costs: ($ / Mcfe)
Gathering and transmission               $ 0.20     $ 0.24
SG&A                                      0.14      0.15 
                                         $ 0.34     $ 0.39 
Total ($ / Mcfe)                         $ 0.88     $ 0.98 

(a) NGLs and crude oil were converted to Mcfe at the rate of six Mcfe per
barrel for all periods. Information for the three months ended March 31, 2013,
has been recast to reflect this conversion rate.


EQT PRODUCTION
RESULTS OF OPERATIONS

                                                     Three Months Ended
                                                       March 31,
                                                       2014        2013
OPERATIONAL DATA
Sales volume detail (MMcfe):
Horizontal Marcellus Play (a)                            83,126        55,452
Horizontal Huron Play                                    7,119         9,413
CBM Play                                                 2,914         3,116
Other                                                   12,964       13,733
Total production sales volume (b)                        106,123       81,714
                                                                     
Average daily sales volume (MMcfe/d)                     1,179         908
                                                                     
Average effective sales price to EQT Production        $ 4.40        $ 3.05
($/Mcfe)
                                                                     
Lease operating expenses (LOE), excluding              $ 0.14        $ 0.16
production taxes ($/Mcfe)
Production taxes ($/Mcfe)                              $ 0.16        $ 0.15
Production depletion ($/Mcfe)                          $ 1.21        $ 1.50
                                                                     
DD&A (thousands):
Production depletion                                   $ 128,557     $ 122,491
Other DD&A                                              2,682        2,418
Total DD&A (thousands)                                 $ 131,239     $ 124,909
                                                                     
Capital expenditures (thousands)                       $ 408,331     $ 243,175
                                                                     
                                                                     
FINANCIAL DATA (Thousands)
                                                                     
Total net operating revenues                           $ 467,745     $ 250,511
                                                                     
Operating expenses:
LOE, excluding production taxes                          14,847        13,039
Production taxes                                         17,093        11,851
Exploration expense                                      1,412         3,730
SG&A                                                     25,949        22,885
DD&A                                                    131,239      124,909
Total operating expenses                               $ 190,540     $ 176,414
Operating income                                       $ 277,205     $ 74,097

(a) Includes Upper Devonian wells.
(b) NGLs and crude oil were converted to Mcfe at the rate of six Mcfe per
barrel for all periods. Information for the three months ended March 31, 2013
has been recast to reflect this conversion rate.


EQT MIDSTREAM
RESULTS OF OPERATIONS

                                              Three Months Ended
                                                March 31,
                                                2014        2013
OPERATIONAL DATA
Gathered volume (BBtu)                            126,164       101,231
Average gathering fee ($/MMBtu)                 $ 0.71        $ 0.81
Gathering and compression expense ($/MMBtu)     $ 0.16        $ 0.19
Transmission pipeline throughput (BBtu)           144,362       80,971
Net operating revenues (thousands):
Gathering                                       $ 89,376      $ 81,814
Transmission                                      52,109        37,307
Storage, marketing and other                     7,220        9,759
Total net operating revenues                    $ 148,705     $ 128,880
                                                              
Capital expenditures (thousands)                $ 83,213      $ 49,144
                                                              
FINANCIAL DATA (Thousands)
                                                              
Total operating revenues                        $ 166,226     $ 146,688
Purchased gas costs                              17,521       17,808
Total net operating revenues                      148,705       128,880
                                                              
Operating expenses:
Operating and maintenance                         25,154        22,673
SG&A                                              19,473        13,774
DD&A                                             21,009       18,219
Total operating expenses                         65,636       54,666
Operating income                                $ 83,069      $ 74,214

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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