EQT Corporation, together with its subsidiaries, operates as a natural gas company in the United States. Segments The company operates in two segments, EQT Production and EQT Midstream. EQT Production This segment includes the company’s exploration for, and development and production of, natural gas, natural gas liquids (NGLs) and a limited amount of crude oil in the Appalachian Basin. EQT Production is a natural gas producer in the Appalachian Basin with 10.7 Tcfe (trillion cubic feet of natural gas) of proved natural gas, NGLs and crude oil reserves across approximately 3.4 million gross acres, including approximately 630,000 gross acres in the Marcellus play, as of December 31, 2014. EQT Midstream This segment's operations include the natural gas gathering, transportation, storage and marketing activities of the company, including ownership and operation of the EQT Midstream Partners, LP (Partnership). This segment provides services for independent third parties across the Appalachian Basin. In 2012, the company formed the Partnership to own, operate, acquire and develop midstream assets in the Appalachian Basin. The Partnership provides midstream services to the company and other third parties through its two primary assets, the Partnership’s transmission and storage system and the Partnership’s gathering system. As of December 31, 2014, the company held a 34.4% limited partner interest and a 2% general partner interest in the Partnership. The company’s gathering system includes approximately 8,200 miles of gathering lines, 1,500 miles of which are the Federal Energy Regulatory Commission (FERC) regulated, low-pressure gathering lines owned by the Partnership. The Partnership also owns 45 miles of high pressure gathering lines which are not subject to federal rate regulation. During 2014, the company turned in-line approximately 60 miles of pipeline and 80,000 horse power of compression capacity primarily in the Marcellus play, which added approximately 475 million cubic feet (MMcf) per day of incremental gathering capacity, resulting in year-end Marcellus gathering capacity of 1,975 MMcf per day, consisting of 1,405 MMcf per day in Pennsylvania and 570 MMcf per day in West Virginia. EQT Midstream’s transmission and storage system includes approximately 900 miles of FERC-regulated interstate pipeline that connects to seven interstate pipelines and multiple distribution companies. The interstate pipeline system includes approximately 700 miles of pipe owned by Equitrans, L.P. (Equitrans) and is referred to as the Equitrans transmission and storage system. Equitrans is owned by the Partnership. EQT Midstream’s transmission and storage system also includes an approximately 200-mile pipeline referred to as the Allegheny Valley Connector (AVC), which was acquired by the company in 2013 in connection with the Equitable Gas Transaction. The transmission and storage system is supported by 18 natural gas storage reservoirs with approximately 660 MMcf per day of peak delivery capability and 47 billion cubic feet (Bcf) of working gas capacity. 14 of these reservoirs, representing 400 MMcf per day of peak delivery capability and 32 Bcf of working gas capacity, are owned by the Partnership. The storage reservoirs are clustered in 2 geographic areas connected to the Partnership’s transmission and storage system, with 10 in southwestern Pennsylvania and 8 in northern West Virginia. The AVC facilities include four storage reservoirs owned by the company and operated by the Partnership under a lease between the Partnership and an affiliate of the company. During 2014, the company added approximately 750 MMcf per day of incremental transmission capacity, 550 MMcf per day of incremental transmission capacity through the completed Jefferson Compression Expansion project, as well as 200 MMcf per day of transmission capacity through various third-party contracts. As a result of these expansion projects, EQT Midstream year-end total transmission capacity was approximately 3,450 MMcf per day. Strategy The company’s strategy is to maximize shareholder value by maintaining an industry leading cost structure, profitably developing its undeveloped reserves, and effectively and efficiently utilizing its extensive gathering and transmission assets that are uniquely positioned across the Marcellus Shale and in close proximity to the northeastern United States markets. Markets and Customers The company’s produced natural gas is sold to marketers, utilities and industrial customers located mainly in the Appalachian Basin and the Northeastern United States, as well as the Permian Basin of Texas. The company’s transportation portfolio also enables the company to reach markets along the Gulf Coast of the United States. The company sells NGLs from its own production through the EQT Production segment and from gas marketed for third parties by EQT Midstream. In its Appalachian operations, the company contracts with MarkWest Energy Partners, L.P. (MarkWest) to process natural gas to extract heavier liquid hydrocarbons (propane, iso-butane, normal butane and natural gasoline) from the natural gas stream, primarily from EQT Production’s produced gas. The company also has contractual processing arrangements in its Permian Basin operations whereby the company sells gas to third-party processors. Customers of EQT Midstream’s gas transportation and storage services are affiliates and third parties primarily in the northeastern United States. EQT Midstream derives gathering revenues from charges to customers for use of its gathering system in the Appalachian Basin. The gathering system volumes are transported to four major interstate pipelines: Columbia Gas Transmission, East Tennessee Natural Gas Company, Dominion Transmission and Tennessee Gas Pipeline Company. The gathering system also maintains interconnections with the Partnership’s transmission and storage system. Regulations The interstate natural gas transmission systems and storage operations of the EQT Midstream segment are regulated by the FERC, and certain gathering lines are also subject to rate regulation by the FERC. History EQT Corporation was founded in 1925.
eqt corp (EQ6:Berlin)
625 Liberty Avenue
Pittsburgh, PA 15222
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