EQT to Sell Jupiter Gathering System for $1.18 Billion

  EQT to Sell Jupiter Gathering System for $1.18 Billion

     Also: Exchange Nora Assets for Permian Acreage; and Share Repurchase
                                Authorization

Business Wire

PITTSBURGH -- April 30, 2014

EQT Corporation (NYSE: EQT) today announced that EQT Midstream Partners, LP
(NYSE: EQM) (Partnership) has agreed to acquire EQT’s Jupiter natural gas
gathering system (Jupiter) for $1.18 billion. EQT will receive $1.12 billion
of cash and $59 million of common and general partner units. In addition, the
Partnership will fund $182 million of expansion projects related to Jupiter.
Two additional announcements include the execution of an agreement to exchange
assets with Range Resources Corporation (NYSE: RRC) (Range); and EQT share
repurchase authorization.

Jupiter Sale

The Jupiter system gathers EQT’s Marcellus production in portions of Greene
and Washington Counties, Pennsylvania, and consists of approximately 35 miles
of natural gas gathering pipeline and approximately 21,300 horsepower of
compression. Jupiter has a total of 970 MMcf per day of pipeline capacity and
six interconnects with the Partnership’s transmission and storage systems.

The Partnership has agreed to complete several expansion projects related to
Jupiter during 2014 and 2015. The 2014 expansions will add approximately 350
MMcf per day of compression capacity, with an in-service date anticipated for
the fourth quarter 2014. The 2015 expansion will add approximately 200 MMcf
per day of compression capacity, with an in-service date anticipated for the
fourth quarter 2015. In addition, the Partnership plans to install
approximately 20 miles of pipeline during this time. In total, the compression
and gathering expansion projects have an estimated cost of approximately $182
million.

The Jupiter assets are supported by a gathering agreement with EQT that
includes 10-year firm capacity reservation commitments. The contracted
capacity is initially 225 MMcf per day and will grow to 775 MMcf per day by
the end of 2015. EQT will also pay a per-unit fee for volume above the
contracted capacity; and expects full-year 2014 firm reservation charges and
usage fees to be approximately $130 million. Operating expenses, excluding
depreciation and amortization, are forecast to be approximately $20 million in
2014.

EQT currently holds approximately 48,000 net acres surrounding Jupiter,
including approximately 31,000 undeveloped net acres. As of March 31, 2014, a
total of 206 Marcellus and 9 Upper Devonian wells were drilled in the Jupiter
service area. Jupiter’s average daily gathered volume for the first quarter
2014 was approximately 595 MMcf per day.

Asset Exchange Agreement with Range Resources

EQT will receive approximately 73,000 net acres in the Permian Basin, most of
which is held by production, along with approximately 900 producing wells in
Glasscock and Sterling Counties, Texas. This Permian Basin acreage has
multiple horizontal, stacked pay drilling opportunities in the Upper Wolfcamp,
Lower Wolfcamp, and Cline horizons. During 2014, EQT expects to drill two
horizontal wells on the newly acquired acreage, with tentative plans to drill
20 – 30 horizontal wells in 2015. The existing wells, most of which are
vertical, are currently producing approximately 28 MMcfe (4,800 BOE) per day,
with 62% being liquids. Additional development is expected to reach 75%
liquids.

In exchange, Range will receive EQT’s interest in 138,000 net acres and the
supporting gathering system in the Nora Field of Virginia, giving Range 100%
ownership of Nora. In addition, Range will receive $145 million cash. The Nora
Field properties, primarily coalbed methane, are currently producing
approximately 41 MMcfe per day.

The exchange is subject to satisfaction of customary closing conditions, final
due diligence and post-closing purchase price adjustments. The transaction is
anticipated to close in the second quarter of 2014. Additional information on
the Permian assets can be found in EQT’s updated analyst presentation, which
is available at www.eqt.com.

EQT Share Repurchase Authorization

EQT’s Board of Directors has approved a share repurchase authorization of up
to 1 million shares. Under the authorization, EQT may repurchase shares of its
outstanding common stock in the open market or in privately negotiated
transactions, and may do so over a period of time and in a series of
transactions. The Company has not established a target number of shares to
repurchase and will not forecast the amount or timing of share repurchases, if
any.

EQT Quarterly Dividend

EQT’s Board of Directors has declared a quarterly cash dividend of $0.03 per
share, payable June 1, 2014, to shareholders of record at the close of
business on May 16, 2014.

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.

About EQT Midstream Partners:

EQT Midstream Partners, LP is a growth-oriented limited partnership formed by
EQT Corporation to own, operate, acquire, and develop midstream assets in the
Appalachian basin. The Partnership provides midstream services to EQT
Corporation and third-party companies through its strategically located
transmission and storage system, and gathering system. The Partnership owns
700 miles and operates an additional 200 miles of FERC-regulated interstate
pipelines, and also owns more than 1,600 miles of FERC-regulated, low-pressure
gathering lines.

Visit EQT Midstream Partners, LP at www.eqtmidstreampartners.com

About Range Resources:

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading independent oil and
natural gas producer with operations focused in Appalachia and the
Midcontinent region of the United States. The Company pursues an organic
growth strategy targeting high return, low-cost projects within its large
inventory of low risk, development drilling opportunities. The Company is
headquartered in Fort Worth, Texas. More information about Range can be found
at http://www.rangeresources.com/ and http://www.myrangeresources.com/.

Cautionary Statements

EQT has no obligation to repurchase any amount of its common stock. EQT
intends to make all repurchases and to administer the plan in accordance with
applicable laws and regulatory guidelines, including Rule 10b-18 of the
Securities Exchange Act of 1934, as amended.

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 reserves;
drilling plans and programs (including the number and type of wells to be
drilled); projected liquids content; projected firm reservation charges and
usage fees; projected operating expenses; infrastructure programs (including
the timing, cost, capacity and sources of funding with respect to such
programs); projected compression capacity; monetization and other
transactions, including the Company’s ability to complete the sale of the
Jupiter natural gas gathering system (Jupiter) to the Partnership and the
asset exchange with Range; uses of capital provided by the Jupiter
transaction; projected capital expenditures; liquidity and financing
requirements, including funding sources for the asset exchange with Range; and
the amount and timing of any share repurchases under the Company’s share
repurchase authorization. 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. With respect to the proposed Jupiter and Range
transactions, these risks and uncertainties include, among others, disruption
to the Company’s business, including customer, employee and supplier
relationships resulting from the transactions 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 risks
discussed in the Company’s most recent Annual Report on Form10-K, Quarterly
Report on Form10-Q and other filings with the Securities and Exchange
Commission. 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.

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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