EQT Reports Second Quarter 2016 Earnings

EQT Corporation (NYSE: EQT) today announced second quarter 2016 net loss
attributable to EQT of $258.6 million, or $1.55 loss per diluted share
(EPS), compared to second quarter 2015 net income attributable to EQT of
$5.5 million, or $0.04 per diluted share. Net cash provided by operating
activities was $208.5 million, $5.6 million higher than the second
quarter 2015.

Adjusted net loss was $57.6 million excluding hedge losses totaling
$234.7 million in the second quarter 2016, resulting from a significant
improvement in forward natural gas prices, $48.4 million lower than the
second quarter 2015; and adjusted loss per share was $0.35, down from
adjusted loss per share of $0.06 for the second quarter 2015. Adjusted
operating cash flow attributable to EQT was $113.8 million; $32.7
million lower than the second quarter 2015. The Non-GAAP Disclosures
section of this news release provides reconciliations of adjusted net
loss attributable to EQT and adjusted loss per share to net loss
attributable to EQT and earnings per diluted share, the most comparable
financial measures calculated in accordance with GAAP, as well as
important disclosures regarding non-GAAP financial measures.

Highlights:

• Production sales volume was 26% higher
• Midstream gathering revenue was 11% higher
• Midstream transmission revenue was 14% higher
• Realized price was 23% lower
• Acquired 62,500 Marcellus and 53,000 Utica acres from Statoil

RESULTS BY BUSINESS

EQT PRODUCTION

EQT Production achieved sales volume of 184.5 Bcfe in the second quarter
2016, representing a 26% increase over the second quarter last year.

EQT Production’s operating loss totaled $444.0 million for the quarter,
compared to operating loss of $66.9 million in 2015. Operating revenue
totaled $72.0 million for the second quarter 2016, which was $316.8
million lower than the second quarter 2015, primarily due to a lower
average realized sales price, which more than offset the increase in
production sales volume.

EQT Production’s adjusted operating loss totaled $112.5 million for the
quarter, excluding hedge losses totaling $234.7 million, resulting from
a significant improvement in forward natural gas prices, compared to
adjusted operating loss of $31.8 million in 2015. Adjusted operating
revenue for the quarter was $390.1 million, which was $14.7 million
lower than the same period last year, primarily due to a lower average
realized sales price, which more than offset the increase in production
sales volume. Average realized price for the second quarter 2016 was
$2.11 per Mcfe, 23% lower than the $2.75 per Mcfe realized in the same
period last year.

The “net marketing services” revenue includes marketing revenue
generated by either reselling third-party transportation capacity not
used to transport EQT’s produced gas, or utilizing such capacity to
transport purchased gas to higher priced markets, net of the
transportation charges for such capacity. Net marketing services revenue
totaled $2.1 million in the second quarter 2016, $7.7 million lower than
the same quarter last year, primarily due to incremental capacity costs.

EQT Production’s operating expenses for the quarter were $516.0 million,
$60.3 million higher than the same period last year. Consistent with the
growth in sales volume – depreciation, depletion, and amortization
(DD&A) expenses were $24.5 million higher; gathering expenses were $19.6
million higher; transmission expenses were $11.3 million higher;
selling, general and administrative (SG&A) expenses were $7.2 million
higher, including a $7.1 million legal reserve; processing expenses were
$3.9 million higher; and production taxes were $1.5 million higher.
Exploration expenses were $7.8 million lower; and lease operating
expenses (LOE), excluding production taxes, were essentially unchanged.

The Company drilled (spud) 28 gross wells during the second quarter
2016, including 27 Marcellus wells, with an average length-of-pay of
6,400 feet; and 1 Utica well with a length-of-pay of 5,200 feet.

The Company plans to accelerate its drilling program for the second half
of 2016 by spudding an additional 63 wells - 33 Pennsylvania Marcellus
wells and 30 Upper Devonian wells – for a total of 105 Marcellus and 30
Upper Devonian wells in 2016. The 2016 capital expenditure forecast of
$1.0 billion is unchanged, as lower costs per well offset the costs of
increased activity.

EQT MIDSTREAM

EQT Midstream’s second quarter 2016 operating income was $124.5 million,
an increase of $16.3 million over the second quarter 2015, primarily as
a result of increased gathering and transmission revenue, partially
offset by increased operating expenses. Operating revenue was $214.3
million, which was $21.9 million higher due to higher Marcellus volume.
Gathering revenue was 11% higher at $136.4 million and transmission
revenue increased by 14% to $69.7 million.

Total operating expenses for the quarter were $89.8 million, $5.5
million higher than last year. SG&A increased $7.7 million due to the
termination of the Company’s pension plan; and DD&A increased $3.2
million. These increases were partially offset by lower operation and
maintenance (O&M) expense of $5.4 million due to the timing of
maintenance activities. Per unit gathering and compression expense for
the quarter was 23% lower year-over-year.

OTHER BUSINESS

EQT Midstream Partners, LP (NYSE: EQM) / EQT GP Holdings, LP (NYSE:
EQGP)

On July 26, 2016, EQM announced a cash distribution to its unitholders
of $0.78 per unit for the second quarter 2016. EQGP also announced a
cash distribution to its unitholders of $0.15 per unit for the second
quarter 2016.

The second quarter 2016 financial results for EQM and EQGP were released
today and provide operational results, as well as updates on significant
midstream projects under development by EQM. This news release is
available at www.eqtmidstreampartners.com.

Statoil Acquisition

On July 8, 2016, EQT closed a transaction with Statoil USA Onshore
Properties, Inc. -- acquiring 62,500 net acres located in EQT’s core
Marcellus development area of West Virginia. Much of the acreage is
contiguous with EQT’s current acreage; therefore, allowing the lateral
lengths of 106 existing EQT locations to be extended from an average of
3,000 feet to an average of 6,500 feet, which will reduce overall costs
and deliver stronger well economics. The acquisition also included
approximately 500 undeveloped locations that are expected to have an
average lateral length of 5,600 feet, along with the drilling rights on
an estimated 53,000 net acres in the deep Utica.

On May 6, 2016, the Company completed a $796 million common stock
offering. A portion of the proceeds was used to fund the acquisition.

Calculation of Net Income Attributable to Noncontrolling Interest

The results of EQGP and EQM are consolidated in EQT’s results. For the
second quarter 2016, EQT recorded earnings of $77.8 million, or $0.47
per diluted share, attributable to the publicly held partnership
interests in EQGP and EQM.

				Three Months Ended
(thousands)				June 30, 2016
EQM net income				$	124,762
Less: General Partner interest (including incentive distribution rights)					24,427
Limited Partner interest in net income				$	100,335
EQM LP units
Publicly owned (72.5%)*				$	72,744
EQGP owned (27.5%)*					27,591
Limited Partner interest in net income				$	100,335
EQGP net income
EQM LP unit ownership				$	27,591
EQM GP unit ownership (including incentive distribution rights)					24,427
EQGP incremental expenses					(772	)
Net income attributable to EQGP				$	51,246
EQGP units
Publicly owned LP (9.9%)				$	5,094
EQT owned LP (90.1%)					46,152
Net income attributable to EQGP				$	51,246
Noncontrolling interest in EQT earnings
EQM publicly-owned LP units				$	72,744
EQGP publicly-owned LP units					5,094
Net income attributable to noncontrolling interest				$	77,838
*weighted average calculation for the three months ended June 30, 2016

Hedging

During the quarter, the Company added to its hedge position. The
Company’s natural gas production hedge position through December 2018 is:

			2016(a)					2017				2018
NYMEX Swaps
Total Volume (Bcf)				156					229				103
Average Price per Mcf (NYMEX)			$	3.61				$	3.31			$	3.13
Collars
Total Volume (Bcf)				−					17				−
Average Floor Price per Mcf (NYMEX)			$	−				$	2.98			$	−
Average Cap Price per Mcf (NYMEX)			$	−				$	3.92			$	−

(a)July through December
•		The Company also sold calendar year 2016, 2017 and 2018 calls for approximately 11 Bcf, 32 Bcf and 16 Bcf at strike prices of $3.65 per Mcf, $3.53 per Mcf and $3.50 per Mcf, respectively
•		For 2017 and 2018 the Company sold puts for approximately 3 Bcf at a strike price of $2.63 per Mcf
•		The average price is based on a conversion rate of 1.05 MMBtu/Mcf

Operating (Loss) Income

The Company reports operating (loss) income by segment in this news
release. Interest, income taxes and unallocated expenses are controlled
on a consolidated, corporate-wide basis and are not allocated to the
segments.

The following table reconciles operating (loss) income by segment, as
reported in this news release, to the consolidated operating (loss)
income reported in the Company’s financial statements:

			Three Months Ended										Six Months Ended
			June 30,										June 30,
(thousands)			2016					2015					2016					2015
Operating (loss) income:
EQT Production			$	(444,000	)			$	(66,886	)			$	(455,254	)			$	118,957
EQT Midstream				124,528					108,192					266,387					237,931
Unallocated expenses				(5,020	)				(8,272	)				(8,424	)				(9,095	)
Total operating (loss) income			$	(324,492	)			$	33,034				$	(197,291	)			$	347,793

Unallocated expenses consist primarily of incentive compensation expense
and administrative costs.

Marcellus Horizontal Well Status (cumulative since inception)

			As of			As of			As of			As of			As of
			6/30/16			3/31/16			12/31/15			9/30/15			6/30/15
Wells drilled (spud)			896			869			854			827			796
Wells online			774			735			693			642			604
Wells complete, not online			34			45			57			65			60
Wells drilled, uncompleted			88			89			104			120			132

NON-GAAP DISCLOSURES

Adjusted Net Loss Attributable to EQT and Adjusted Loss per Diluted
Share

Adjusted net loss attributable to EQT and adjusted loss 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 net loss
attributable to EQT and adjusted loss per diluted share should not be
considered as alternatives to net (loss) income attributable to EQT or
(loss) earnings per diluted share presented in accordance with GAAP.
Adjusted net loss attributable to EQT as presented excludes the revenue
impact of changes in the fair value of derivative instruments prior to
settlement, a pension termination settlement charge, a legal reserve
charge, and asset impairments. Management utilizes adjusted net loss
attributable to EQT to evaluate earnings trends because the measure
reflects only the impact of settled derivative contracts and thus the
income from natural gas sales is not impacted by the often volatile
fluctuations in the fair value of derivatives prior to settlement. The
measure also excludes other items that affect the comparability of
results. Management believes that adjusted net loss attributable to EQT
as presented provides useful information for investors for evaluating
period-over-period earnings.

The table below reconciles adjusted net loss attributable to EQT and
adjusted loss per diluted share with net (loss) income attributable to
EQT and (loss) earnings per diluted share as derived from the statements
of consolidated (loss) income to be included in EQT’s report on Form
10-Q for the quarter ended June 30, 2016.

			Three Months Ended
			June 30,
(thousands, except per share information)			2016					2015
Net (loss) income attributable to EQT, as reported			$	(258,645	)			$	5,536
Add back (deduct):
Asset impairments				2,231					9,433
Pension settlement charge				9,403					−
Legal reserve charge				7,100					−
Loss (gain) on derivatives not designated as hedges				234,693					(4,259	)
Net cash settlements received on derivatives not designated as hedges				86,097					30,879
Premiums paid for derivatives that settled during the period				(553	)				(1,018	)
Tax impact (a)				(137,961	)				(14,084	)
Subtotal			$	(57,635	)			$	26,487
Tax benefit related to regulatory asset				−					(35,713	)
Adjusted net loss attributable to EQT			$	(57,635	)			$	(9,226	)
Diluted weighted average common shares outstanding				166,801					152,877
Diluted EPS, as adjusted			$	(0.35	)			$	(0.06	)

(a)		A tax rate of 40.7% and 40.2% for the three month periods ended June 30, 2016 and 2015, respectively, was applied to the items under the caption “Add back (deduct)”. The tax impact on the items above represents the incremental deferred tax expense if these items were excluded from net (loss) income attributable to EQT.

Operating Cash Flow and Adjusted Operating Cash Flow Attributable to
EQT

Operating cash flow and adjusted operating cash flow attributable to EQT
are non-GAAP supplemental financial measures that are presented as
indicators 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.
Adjusted operating cash flow attributable to EQT is EQT’s operating cash
flow (a non-GAAP supplemental financial measure reconciled below),
adjusted to exclude adjusted EQT Midstream Partners EBITDA (a non-GAAP
supplemental financial measure reconciled below), and includes the EQT
GP Holdings, LP (EQGP) cash distribution payable to EQT. Management
believes that removing the impact on operating cash flows of the public
unitholders of EQGP and EQT Midstream Partners, LP (EQM) that is
otherwise required to be consolidated in EQT’s results provides useful
information to an EQT investor. Adjusted operating cash flow
attributable to EQT also excludes current taxes on transactions, cash
exploration expense, a legal reserve charge, and cash rig release
expenses in order to adjust for the cash impact of these activities on
operating activities of the period. Management believes this will
enhance the comparability of results. Operating cash flow and adjusted
operating cash flow attributable to EQT should not be considered as
alternatives to net cash provided by operating activities presented in
accordance with GAAP.

The tables below reconcile operating cash flow and adjusted operating
cash flow attributable to EQT with net cash provided by operating
activities, as derived from the statements of consolidated cash flows to
be included in EQT’s report on Form 10-Q for the quarter ended June 30,
2016.

			Three Months Ended										Six Months Ended
			June 30,										June 30,
(thousands)			2016					2015					2016					2015
Net (loss) income			$	(180,807	)			$	63,747				$	(92,382	)			$	284,915
Add back / (deduct):
Depreciation, depletion and amortization				224,629					196,819					445,860					391,564
Asset and lease impairments, non-cash				2,231					9,433					4,063					28,428
Deferred income tax benefit				(172,667	)				(164,855	)				(165,594	)				(195,925	)
Loss (gain) on derivatives not designated as hedges				234,693					(4,259	)				125,698					(47,851	)
Cash settlements received on derivatives not designated as hedges				86,097					30,879					195,229					38,775
Non-cash incentive compensation				11,100					12,988					23,877					28,429
Pension settlement charge				9,403					−					9,403					−
Other items, net				(7,192	)				(3,813	)				(11,932	)				(5,276	)
Operating cash flow:			$	207,487				$	140,939				$	534,222				$	523,059
Add back / (deduct):
Changes in other assets and liabilities				1,000					61,972					(40,818	)				132,968
Net cash provided by operating activities			$	208,487				$	202,911				$	493,404				$	656,027

			Three Months Ended										Six Months Ended
			June 30,										June 30,
(thousands)			2016					2015					2016					2015
Operating cash flow (a non-GAAP measure reconciled above)			$	207,487				$	140,939				$	534,222				$	523,059
(Deduct) / add back:
Adjusted EQT Midstream Partners EBITDA(1)				(138,136	)				(110,466	)				(279,707	)				(207,026	)
Cash distribution payable to EQT (2)				35,957					23,531					68,079					45,926
Exploration expense (cash)				1,360					1,989					2,651					3,413
Legal reserve charge				7,100					−					7,100					−
Rig release expenses, cash				−					−					−					5,400
Current taxes on transactions(3)				−					90,486					−					150,425
Adjusted operating cash flow attributable to EQT			$	113,768				$	146,479				$	332,345				$	521,197

(1)		Adjusted EQT Midstream Partners EBITDA is a non-GAAP supplemental financial measure reconciled below.
(2)		Cash distribution payable to EQT for the three and six months ended June 30, 2016 and 2015 represents the distribution payable from EQGP to EQT.
(3)		Represents current tax expense related to the sale of the Northern West Virginia Marcellus Gathering System (NWV Gathering).

EQT has not provided projected net cash provided by operating activities
or a reconciliation of projected adjusted operating cash flow
attributable to EQT to projected net cash provided by operating
activities, the most comparable financial measure calculated in
accordance with GAAP. EQT is unable to project net cash provided by
operating activities because this metric includes the impact of changes
in operating assets and liabilities related to the timing of cash
receipts and disbursements that may not relate to the period in which
the operating activities occurred. EQT is unable to project these timing
differences with any reasonable degree of accuracy without unreasonable
efforts such as predicting the timing of its and customers payments,
with accuracy to a specific day, three or more months in advance.
Furthermore, EQT does not provide guidance with respect to its average
realized price or income taxes, among other items, that are reconciling
items between net cash provided by operating activities and adjusted
operating cash flow attributable to EQT. Natural gas prices are volatile
and out of EQT’s control, and the timing of transactions and the income
tax effects of future transactions and other items are difficult to
accurately predict. Therefore, EQT is unable to provide projected net
cash provided by operating activities, or the related reconciliation of
projected adjusted operating cash flow attributable to EQT to projected
net cash provided by operating activities, without unreasonable effort.

EQT Production Adjusted Operating Revenue

The table below reconciles EQT Production adjusted operating revenue, a
non-GAAP supplemental financial measure, to EQT Corporation total
operating revenue, as derived from the statements of consolidated income
(loss) to be included in EQT’s report on Form 10-Q for the quarter ended
June 30, 2016.

EQT Production adjusted operating revenue (also referred to as total
natural gas and liquids sales, including cash settled derivatives) is
presented because it is an important measure used by EQT’s management to
evaluate period-over-period comparisons of earnings trends. EQT
Production adjusted operating revenue should not be considered as an
alternative to EQT Corporation total operating revenue presented in
accordance with GAAP. EQT Production adjusted operating revenue as
presented excludes the revenue impact of changes in the fair value of
derivative instruments prior to settlement and the revenue impact of
certain marketing services. Management utilizes EQT Production adjusted
operating revenue to evaluate earnings trends because the measure
reflects only the impact of settled derivative contracts and thus the
revenue from natural gas sales is not impacted by the often volatile
fluctuations in the fair value of derivatives prior to settlement. EQT
Production adjusted operating revenue also excludes “Net marketing
services” because management considers this revenue to be unrelated to
the revenue for its natural gas and liquids production. “Net marketing
services” includes both the cost of and recoveries on third party
pipeline capacity not used for EQT Production sales volume. Management
further believes that EQT Production adjusted operating revenue as
presented provides useful information for investors for evaluating
period-over-period earnings.

			Three Months Ended										Six Months Ended
Calculation of EQT Production Adjusted Operating Revenue			June 30,										June 30,
$ in thousands (unless noted)			2016					2015					2016					2015
EQT Production total operating revenue			$	71,962				$	388,755				$	549,970				$	1,032,546
Add back (deduct):
Loss (gain) on derivatives not designated as hedges				234,693					(5,177	)				125,698					(49,423	)
Net cash settlements received on derivatives not designated as hedges not designated as hedges				86,097					32,064					195,229					36,544
Premiums paid for derivatives that settled during the period				(553	)				(1,018	)				(1,016	)				(2,025	)
Net marketing services				(2,123	)				(9,822	)				(6,709	)				(22,959	)
EQT Production adjusted operating revenue, a non-GAAP measure			$	390,076				$	404,802				$	863,172				$	994,683
Total sales volumes (MMcfe)				184,548					147,051					364,483					292,249
Average realized price ($/Mcfe)			$	2.11				$	2.75				$	2.37				$	3.40
EQT Production total operating revenue			$	71,962				$	388,755				$	549,970				$	1,032,546
EQT Midstream total operating revenue				214,298					192,430					439,027					400,656
Less: intersegment revenue, net				(158,729	)				(141,597	)				(316,397	)				(278,798	)
EQT Corporation total operating revenue, as reported in accordance with GAAP			$	127,531				$	439,588				$	672,600				$	1,154,404

EQT Production Adjusted Operating (Loss) Income

The table below reconciles EQT Production adjusted operating (loss)
income, a non-GAAP supplemental financial measure, to EQT Corporation
operating (loss) income, as derived from the statements of consolidated
(loss) income to be included in EQT’s report on Form 10-Q for the
quarter ended June 30, 2016.

EQT Production adjusted operating (loss) income is presented because it
is an important measure used by EQT’s management to evaluate
period-over-period comparisons of earnings trends. EQT Production
adjusted operating (loss) income should not be considered as an
alternative to EQT Corporation operating (loss) income presented in
accordance with GAAP. EQT Production adjusted operating (loss) income as
presented excludes the revenue impact of changes in the fair value of
derivative instruments prior to settlement, restructuring charges, a
pension settlement charge, a legal reserve charge, impairments and rig
release expenses and non-cash gains (losses) on sales / exchanges of
assets (if applicable). Management utilizes EQT Production adjusted
operating (loss) income to evaluate earnings trends because the measure
reflects only the impact of settled derivative contracts and thus the
income from natural gas sales is not impacted by the often volatile
fluctuations in the fair value of derivatives prior to settlement. The
measure also excludes other items that affect the comparability of
results. Management believes that EQT Production adjusted operating
(loss) income as presented provides useful information for investors for
evaluating period-over-period earnings.

			Three Months Ended										Six Months Ended
			June 30,										June 30,
(thousands)			2016					2015					2016					2015
EQT Corporation operating (loss) income, as reported in accordance with GAAP			$	(324,492	)			$	33,034				$	(197,291	)			$	347,793
Add back / (deduct):
Unallocated expenses				5,020					8,272					8,424					9,095
EQT Midstream operating income, as reported on segment page				(124,528	)				(108,192	)				(266,387	)				(237,931	)
EQT Production operating (loss) income, as reported on segment page			$	(444,000	)			$	(66,886	)			$	(455,254	)			$	118,957
Add back / (deduct):
Loss (gain) on derivatives not designated as hedges				234,693					(5,177	)				125,698					(49,423	)
Net cash settlements received on derivatives not designated as hedges				86,097					32,064					195,229					36,544
Premiums paid for derivatives that settled during the period				(553	)				(1,018	)				(1,016	)				(2,025	)
Restructuring charges				252					−					2,029					−
Pension settlement charge				1,709					−					1,709					−
Legal reserve charge				7,100					−					7,100					−
Asset impairments and rig release expenses				2,231					9,201					4,063					31,674
EQT Production adjusted operating (loss) income			$	(112,471	)			$	(31,816	)			$	(120,442	)			$	135,727

Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA)

As used in this news release, EBITDA is defined as earnings before
interest, taxes, depreciation, and amortization expense. EBITDA is not a
financial measure calculated in accordance with GAAP. EBITDA is a
non-GAAP supplemental financial measure that EQT’s 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.

EQT has not provided projected net income (loss) or reconciliations of
projected EBITDA to projected net income (loss), the most comparable
financial measure calculated in accordance with GAAP. EQT does not
provide guidance with respect to its average realized price or income
taxes, among other items, that are reconciling items between EBITDA and
net income (loss). Natural gas prices are volatile and out of EQT’s
control, and the timing of transactions and the income tax effects of
future transactions and other items are difficult to accurately predict.
Further, management believes a reliable forecasted effective tax rate is
not available because small fluctuations in estimated “ordinary” income
would result in significant changes in the estimated annual effective
tax rate for 2016. Consequently, EQT is not able to provide a projected
net income (loss) that would be useful to investors. Therefore,
projected net income (loss) and reconciliations of projected EBITDA to
projected net income (loss) are not available without unreasonable
effort.

Adjusted EQT Midstream Partners EBITDA

As used in this news release, adjusted EQT Midstream Partners EBITDA
means EQM’s net income plus EQM’s interest expense, depreciation and
amortization expense, income tax expense (if applicable), and non-cash
long-term compensation expense (if applicable) less EQM’s equity income,
AFUDC-equity, capital lease payments, and adjusted EBITDA attributable
to the NWV Gathering prior to acquisition. Adjusted EQT Midstream
Partners EBITDA is a non-GAAP supplemental financial measure that
management and external users of EQT’s consolidated financial
statements, such as industry analysts, investors, lenders and rating
agencies, use to assess the effects of the noncontrolling interests in
relation to:

• EQT's operating performance as compared to other companies in its
  industry;
• the ability of EQT's assets to generate sufficient cash flow to make
  distributions to its investors;
• EQT's ability to incur and service debt and fund capital expenditures;
  and
• the viability of acquisitions and other capital expenditure projects
  and the returns on investment of various investment opportunities.

EQT believes that adjusted EQT Midstream Partners EBITDA provides useful
information to investors in assessing EQT's financial condition and
results of operations. Adjusted EQT Midstream Partners EBITDA should not
be considered as an alternative to EQM’s net income, operating income,
or any other measure of financial performance or liquidity presented in
accordance with GAAP. Adjusted EQT Midstream Partners EBITDA has
important limitations as an analytical tool because it excludes some,
but not all, items that affect EQM's net income. Additionally, because
adjusted EQT Midstream Partners EBITDA may be defined differently by
other companies in EQT's or EQM's industries, the definition of adjusted
EQT Midstream Partners EBITDA may not be comparable to similarly titled
measures of other companies, thereby diminishing the utility of the
measure. The table below reconciles adjusted EQT Midstream Partners
EBITDA with EQM’s net income, as derived from the statements of
consolidated operations to be included in EQM’s report on Form 10-Q for
the quarter ended June 30, 2016.

EQM has not provided reconciliations of projected adjusted EQT Midstream
Partners EBITDA to projected EQM net income, the most comparable
financial measure calculated in accordance with GAAP. EQM does not
provide guidance with respect to the intra-year timing of its or
Mountain Valley Pipeline, LLC’s capital spending, which impact
AFUDC-debt and equity and equity earnings, among other items, that are
reconciling items between adjusted EQT Midstream Partners EBITDA and EQM
net income. The timing of capital expenditures is volatile as it depends
on weather, regulatory approvals, contractor availability, system
performance and various other items. EQM provides a range for the
forecast of EQM net income and adjusted EQT Midstream Partners EBITDA to
allow for the variability in the timing of spending and the impact on
the related reconciling items, many of which interplay with each other.
Therefore, the reconciliation of projected adjusted EQT Midstream
Partners EBITDA to projected EQM net income is not available without
unreasonable effort.

			Three Months Ended										Six Months Ended
			June 30,										June 30,
(thousands, unless noted)			2016					2015					2016					2015
Net income, EQT Midstream Partners			$	124,762				$	91,319				$	253,827				$	186,625
Add:
Interest expense				9,391					11,640					19,649					23,097
Depreciation and amortization expense				15,111					12,258					30,589					24,185
Income tax expense				−					−					−					6,703
Non-cash long-term compensation expense				−					239					195					805
Less:
Equity income				(1,850	)				(394	)				(3,439	)				(394	)
AFUDC - equity				(5,242	)				(1,169	)				(7,714	)				(1,883	)
Capital lease payments for Allegheny Valley Connector (a)				(4,036	)				(3,427	)				(13,400	)				(12,271	)
Adjusted EBITDA attributable to NWV Gathering prior to acquisition (b)				−					−					−					(19,841	)
Adjusted EQT Midstream Partners EBITDA			$	138,136				$	110,466				$	279,707				$	207,026

(a)		Reflects capital lease payments due under the lease. These lease payments are generally made monthly on a one month lag.
(b)		Adjusted EBITDA attributable to NWV Gathering prior to acquisition for the periods presented was excluded from EQM’s adjusted EBITDA calculations as these amounts were generated by NWV Gathering prior to EQM’s acquisition; therefore, they were not amounts that could have been distributed to EQM’s unitholders. Adjusted EBITDA attributable to NWV Gathering for the six months ended June 30, 2015 was calculated as net income of $11.1 million plus depreciation and amortization expense of $2.0 million plus income tax expense of $6.7 million.

Second Quarter 2016 Webcast Information

The Company's conference call with securities analysts begins at 10:30
a.m. ET today and will be broadcast live via the Company's web site at www.eqt.com,
and on the investor information page of the Company’s web site at ir.eqt.com,
with a replay available for seven days following the call.

EQT Midstream Partners, LP and EQT GP Holdings, LP, for which EQT
Corporation is the parent company, will also host a joint conference
call with security analysts today, beginning at 11:30 a.m. ET. The call
will be broadcast live via 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.
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.
EQT also owns a 90% limited partner interest in EQT GP Holdings, LP. EQT
GP Holdings, LP owns the general partner interest, all of the incentive
distribution rights, and a portion of the limited partner interests in
EQT Midstream Partners, LP.

Visit EQT Corporation at www.EQT.com.

EQT Management speaks to investors from time-to-time and the analyst
presentation for these discussions, which is updated periodically, is
available via the Company’s investor relations website at http://ir.eqt.com.

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).

Disclosures in this news release contain certain forward-looking
statements within the meaning of Section 21E of the Securities Exchange
Act of 1934, as amended, and Section 27A of the Securities Act of 1933,
as amended. 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, deep Utica, and other reserves;
drilling plans and programs (including the number, type, feet of pay and
location of wells to be drilled and number and type of drilling rigs);
projected natural gas prices, basis and average differential; total
resource potential, reserves, EUR, expected decline curve and reserve
replacement ratio; projected Company and third party production sales
volume and growth rates (including liquids sales volume and growth
rates); projected unit costs and well costs; projected net marketing
services revenues; projected gathering and transmission volume and
growth rates; the Company’s access to, and timing of, capacity on
pipelines; infrastructure programs (including the timing, cost and
capacity of the transmission and gathering expansion projects); the
timing, cost, capacity and expected interconnects with facilities and
pipelines of the Ohio Valley Connector and Mountain Valley Pipeline
(MVP) projects; the ultimate terms, partners and structure of the MVP
joint venture; technology (including drilling and completion
techniques); projected EBITDA; acquisition transactions; monetization
transactions, including asset sales (dropdowns) to EQT Midstream
Partners, LP (EQM) and other asset sales, joint ventures or other
transactions involving the Company’s assets; the projected cash flows
resulting from the Company’s limited partner interests in EQT GP
Holdings, LP (EQGP); internal rate of return (IRR) and returns per well;
projected capital contributions and expenditures; potential future
impairments of the Company’s assets; the amount and timing of any
repurchases under the Company’s share repurchase authorization;
liquidity and financing requirements, including funding sources and
availability; the expected use of proceeds from equity offerings;
changes in the Company’s or EQM’s credit ratings; projected net income
attributable to noncontrolling interests, adjusted operating cash flow
attributable to EQT Corporation, revenue and cash-on-hand; hedging
strategy; the effects of government regulation and litigation; projected
dividend and distribution amounts and rates; the effects of government
regulation and litigation; tax position and projected effective tax
rate. 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, many of which are
difficult to predict and 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, 2015, 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 EQGP and its subsidiaries,
including EQM, is derived from publicly available information published
by the partnerships.

2016 Current Guidance

Based on current NYMEX natural gas prices adjusted operating cash flow
attributable to EQT is projected to be approximately $750 million for
2016, which includes approximately $150 million from EQT’s interest in
EQGP. See the Non-GAAP Disclosures section for important information
regarding the non-GAAP financial measures included in this news release,
including the projections for adjusted operating cash flow attributable
to EQT and EBITDA.

PRODUCTION
			Q3 2016				2016
Total production sales volume (Bcfe)			183 – 187				730 – 740
NGL & oil volume (Mbbls)			3,050 – 3,100				11,000 – 11,500
Marcellus / Utica Rigs							4
Top-hole rigs							3
Unit Costs ($ / Mcfe)
Gathering to EQT Midstream							$	0.66 – 0.68
Transmission to EQT Midstream							$	0.18 – 0.20
Third-party gathering and transmission							$	0.29 – 0.31
Processing							$	0.15 – 0.17
LOE, excluding production taxes							$	0.08 – 0.10
Production taxes							$	0.06 – 0.08
SG&A							$	0.17 – 0.19
DD&A							$	1.07 – 1.09
Average differential ($ / Mcfe)			$	(1.10) – (1.05)			$	(0.75) – (0.65)*
Net marketing services ($MM)			$	0 – 5			$	7 – 17
FINANCIAL
Net income attributable to noncontrolling interest ($MM)			$	77			$	320
EQM net income ($MM)							$	505 – 515
EBITDA ($MM)
EQM adjusted EBITDA							$	555 – 565
Huron gathering								35 – 40
Other EQT Midstream								40 – 45
Total consolidated Midstream							$	630 – 650
Total Production EBITDA**								580 – 590
Total EBITDA							$	1,210 – 1,240
*Includes fixed price physical sales of 20 Bcf at average prices of $3.00 per Mcf for July-December 2016.
**Excludes non-cash derivative losses

EQT CORPORATION AND SUBSIDIARIES
Statements of Consolidated (Loss) Income (Unaudited)
			Three Months Ended										Six Months Ended
			June 30,										June 30,
			2016					2015					2016				2015
			(Thousands except per share amounts)
Revenues:
Sales of natural gas, oil and NGLs			$	304,532				$	373,756				$ 668,959				$	960,164
Pipeline and marketing services				57,692					61,573				129,339					146,389
(Loss) gain on derivatives not designated as hedges				(234,693	)				4,259				(125,698	)				47,851
Total operating revenues				127,531					439,588				672,600					1,154,404
Operating expenses:
Transportation and processing				84,207					69,356				161,400					135,133
Operation and maintenance				29,253					32,061				60,736					60,308
Production				33,044					31,492				59,940					62,848
Exploration				3,591					11,422				6,714					23,976
Selling, general and administrative				77,299					65,404				135,241					128,530
Depreciation, depletion and amortization				224,629					196,819				445,860					391,564
Impairment of long-lived assets				–					–				–					4,252
Total operating expenses				452,023					406,554				869,891					806,611
Operating (loss) income				(324,492	)				33,034				(197,291	)				347,793
Other income				7,644					2,689				12,484					3,628
Interest expense				36,305					36,833				72,485					74,049
(Loss) income before income taxes				(353,153	)				(1,110	)			(257,292	)				277,372
Income tax (benefit)				(172,346	)				(64,857	)			(164,910	)				(7,543	)
Net (loss) income				(180,807	)				63,747				(92,382	)				284,915
Less: Net income attributable to noncontrolling interests				77,838					58,211				160,627					105,952
Net (loss) income attributable to EQT Corporation			$	(258,645	)			$	5,536				$(253,009	)			$	178,963
Earnings per share of common stock attributable to EQT Corporation:
Basic:
Weighted average common stock outstanding				166,801					152,454				161,909					152,220
Net (loss) income			$	(1.55	)			$	0.04				$ (1.56	)			$	1.18
Diluted:
Weighted average common stock outstanding				166,801					152,877				161,909					152,751
Net (loss) income			$	(1.55	)			$	0.04				$ (1.56	)			$	1.17
Dividends declared per common share			$	0.03				$	0.03				$ 0.06				$	0.06

EQT CORPORATION
PRICE RECONCILIATION
			Three Months Ended										Six Months Ended
			June 30,										June 30,
in thousands (unless noted)			2016					2015					2016					2015
NATURAL GAS
Sales volume (MMcf)				167,741					133,469					333,015					264,376
NYMEX price ($/MMBtu) (a)			$	1.95				$	2.64				$	2.02				$	2.81
Btu uplift			$	0.16				$	0.23				$	0.17				$	0.25
Natural gas price ($/Mcf)			$	2.11				$	2.87				$	2.19				$	3.06
Basis ($/Mcf) (b)			$	(0.75	)			$	(0.96	)			$	(0.58	)			$	(0.37	)
Cash settled basis swaps (not designated as hedges) ($/Mcf)				(0.04	)				(0.02	)				0.08					(0.04	)
Average differential, including cash settled basis swaps ($/Mcf)			$	(0.79	)			$	(0.98	)			$	(0.50	)			$	(0.41	)
Average adjusted price ($/Mcf)			$	1.32				$	1.89				$	1.69				$	2.65
Cash settled derivatives (cash flow hedges) ($/Mcf)				0.16					0.53					0.14					0.53
Cash settled derivatives (not designated as hedges) ($/Mcf)				0.55					0.25					0.50					0.17
Average natural gas price, including cash settled derivatives ($/Mcf)			$	2.03				$	2.67				$	2.33				$	3.35
Natural gas sales, including cash settled derivatives			$	342,561				$	357,377				$	777,414				$	885,874
LIQUIDS
NGLs:
Sales volume (MMcfe) (c)				15,619					12,444					29,271					25,725
Sales volume (Mbbls)				2,604					2,074					4,879					4,288
Price ($/Bbl)			$	15.53				$	18.67				$	15.23				$	21.87
NGL sales			$	40,429				$	38,719				$	74,304				$	93,775
Oil:
Sales volume (MMcfe) (c)				1,188					1,138					2,197					2,148
Sales volume (Mbbls)				198					190					366					358
Price ($/Bbl)			$	35.78				$	45.91				$	31.28				$	41.99
Oil sales			$	7,086				$	8,706				$	11,454				$	15,034
Liquids sales			$	47,515				$	47,425				$	85,758				$	108,809
TOTAL PRODUCTION
Total natural gas & liquids sales, including cash settled derivatives (d)			$	390,076				$	404,802				$	863,172				$	994,683
Total sales volume (MMcfe)				184,548					147,051					364,483					292,249
Average realized price ($/Mcfe)			$	2.11				$	2.75				$	2.37				$	3.40

(a)		The Company’s volume weighted NYMEX natural gas price (actual average NYMEX natural gas price ($/MMBtu) was $1.95 and $2.64 for the three months ended June 30, 2016 and 2015, respectively, and $2.02 and $2.81 for the six months ended June 30, 2016 and 2015, respectively).
(b)		Basis represents the difference between the ultimate sales price for natural gas and the NYMEX natural gas price.
(c)		NGLs and crude oil were converted to Mcfe at the rate of six Mcfe per barrel for all periods.
(d)		Also referred to in this report as EQT Production adjusted operating revenues, a non-GAAP measure.

			Three Months Ended										Six Months Ended
			June 30,										June 30,
			2016					2015					2016					2015
Total natural gas & liquids sales, including cash settled derivatives above (d)			$	390,076				$	404,802				$	863,172				$	994,683
(Deduct) add:
Net cash settlements received on derivatives not designated as hedges				(86,097	)				(32,064	)				(195,229	)				(36,544	)
Premiums paid for derivatives that settled during the period				553					1,018					1,016					2,025
Production sales			$	304,532				$	373,756				$	668,959				$	960,164

EQT PRODUCTION
RESULTS OF OPERATIONS
			Three Months Ended										Six Months Ended
			June 30,										June 30,
			2016					2015					2016					2015
OPERATIONAL DATA
Sales volume detail (MMcfe):
Marcellus (a)				160,382					122,406					314,971					243,877
Other (b)				24,166					24,645					49,512					48,372
Total production sales volumes (c)				184,548					147,051					364,483					292,249
Average daily sales volumes (MMcfe/d)				2,028					1,616					2,003					1,615
Average realized price ($/Mcfe)			$	2.11				$	2.75				$	2.37				$	3.40
Gathering to EQT Midstream ($/Mcfe)			$	0.67				$	0.75				$	0.68				$	0.75
Transmission to EQT Midstream ($/Mcfe)			$	0.19				$	0.20				$	0.19				$	0.19
Third party gathering and transmission ($/Mcfe)			$	0.30				$	0.30				$	0.29				$	0.29
Processing ($/Mcfe)			$	0.16				$	0.17				$	0.15				$	0.17
Lease operating expenses (LOE), excluding production taxes ($/Mcfe)			$	0.10				$	0.12				$	0.09				$	0.12
Production taxes ($/Mcfe)			$	0.08				$	0.09				$	0.07				$	0.10
Production depletion ($/Mcfe)			$	1.06				$	1.16				$	1.06				$	1.16
Depreciation, depletion and amortization (DD&A) (thousands):
Production depletion			$	195,293				$	170,856				$	387,288				$	339,884
Other DD&A				2,571					2,475					5,412					4,910
Total DD&A (thousands)			$	197,864				$	173,331				$	392,700				$	344,794
Capital expenditures (thousands)			$	237,043				$	520,315				$	468,656				$	1,002,289
FINANCIAL DATA (thousands)
Revenues:
Production sales			$	304,532				$	373,756				$	668,959				$	960,164
Net marketing services				2,123					9,822					6,709					22,959
(Loss) gain on derivatives not designated as hedges				(234,693	)				5,177					(125,698	)				49,423
Total operating revenues			$	71,962				$	388,755				$	549,970				$	1,032,546
Operating expenses:
Gathering			$	135,064				$	115,439				$	268,401				$	228,810
Transmission				78,556					67,210					153,740					130,653
Processing				29,082					25,148					55,097					49,571
LOE, excluding production taxes				18,290					18,273					32,708					34,807
Production taxes				14,754					13,219					27,232					28,041
Exploration				3,591					11,421					6,714					23,965
SG&A				38,761					31,600					68,632					68,696
DD&A				197,864					173,331					392,700					344,794
Impairment of long-lived assets				–					–					–					4,252
Total operating expenses				515,962					455,641					1,005,224					913,589
Operating (loss) income			$	(444,000	)			$	(66,886	)			$	(455,254	)			$	118,957

(a)		Includes Upper Devonian wells.
(b)		Includes 3,842 and 7,795 MMcfe of deep Utica sales volume for the three and six months ended June 30, 2016, respectively.
(c)		NGLs and crude oil were converted to Mcfe at the rate of six Mcfe per barrel for all periods.

EQT MIDSTREAM
RESULTS OF OPERATIONS
			Three Months Ended							Six Months Ended
			June 30,							June 30,
			2016				2015			2016				2015
OPERATIONAL DATA
Operating revenues (thousands):
Gathering
Firm reservation fee revenues			$	84,849			$ 68,290			$	168,145			$	126,664
Volumetric based fee revenues:
Usage fees under firm contracts (a)				11,103			7,203				21,856				16,752
Usage fees under interruptible contracts				40,458			47,837				83,363				108,853
Total volumetric based fee revenues				51,561			55,040				105,219				125,605
Total gathering revenues			$	136,410			$ 123,330			$	273,364			$	252,269
Transmission
Firm reservation fee revenues			$	53,329			$ 50,091			$	116,670			$	111,945
Volumetric based fee revenues:
Usage fees under firm contracts (a)				14,109			10,002				27,333				18,577
Usage fees under interruptible contracts				2,278			990				4,874				2,525
Total volumetric based fee revenues				16,387			10,992				32,207				21,102
Total transmission revenues			$	69,716			$ 61,083			$	148,877			$	133,047
Storage, marketing and other revenues				8,172			8,017				16,786				15,340
Total operating revenues			$	214,298			$ 192,430			$	439,027			$	400,656
Gathered volumes (BBtu per day):
Firm reservation				1,532			1,136				1,478				1,052
Volumetric based services (b)				862			870				881				978
Total gathered volumes				2,394			2,006				2,359				2,030
Gathering and compression expense ($/MMBtu)			$	0.10			$ 0.13			$	0.10			$	0.12
Transmission pipeline throughput (BBtu per day):
Firm capacity reservation				1,486			1,825				1,554				1,924
Volumetric based services (b)				570			257				528				236
Total transmission pipeline throughput				2,056			2,082				2,082				2,160
Average contracted firm transmission reservation commitments (BBtu per day)				2,386			2,362				2,703				2,655
Capital expenditures (thousands)			$	201,211			$ 164,542			$	342,131			$	237,117
FINANCIAL DATA (thousands)
Total operating revenues			$	214,298			$ 192,430			$	439,027			$	400,656
Operating expenses:
Operating and maintenance (O&M)				29,487			34,894				61,295				64,708
SG&A				33,605			25,951				58,334				51,429
DD&A				26,678			23,393				53,011				46,588
Total operating expenses				89,770			84,238				172,640				162,725
Operating income			$	124,528			$ 108,192			$	266,387			$	237,931

(a)		Includes commodity charges and fees on volumes gathered or transported in excess of firm contracted capacity.
(b)		Includes volumes gathered or transported under interruptible contracts and volumes in excess of firm contracted capacity.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160728005300/en/

Source: Business Wire
(July 28, 2016 - 6:26 AM EDT)

News by QuoteMedia

www.quotemedia.com