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EQT Corporation$55.99($1.14)(2.00%)

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 EQT Reports Year-End 2016 Earnings
   Thursday, February 02, 2017 6:25:01 AM ET

EQT Corporation (EQT ) today announced 2016 net loss attributable to EQT of $453.0 million, or $2.71 loss per diluted share, compared to net income attributable to EQT of $85.2 million, or $0.56 per diluted share in the previous year. Net cash provided by operating activities was $1,064.3 million in 2016, compared to $1,216.9 million the previous year. Adjusted net loss during 2016 was $54.3 million, compared to adjusted net income of $115.2 million in 2015, after considering several items that affect direct year-over-year comparability. Adjusted loss per share for the year was $0.33, compared to adjusted earnings per share (EPS) of $0.75 in 2015; and adjusted operating cash flow attributable to EQT was $816.0 million, compared to $825.4 million in 2015, resulting from a lower average realized price, which offset the 26% sales volume growth.



The Non-GAAP Disclosures section of this news release provides reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures, as well as important disclosures regarding certain projected non-GAAP financial measures and the items affecting comparability of results. Effective December 31, 2016, EQT changed its reporting segments to align its reporting structure with EQT Midstream Partners (EQM) operations. As a result, EQT Midstream has been replaced with EQT Gathering and EQT Transmission, which are equivalent to EQM’s reporting segments. Operations formerly reported in EQT Midstream that are not included in EQM have been moved to the EQT Production segment. Financial information for all periods presented has been recast to reflect this segment change.

Fourth quarter 2016 net loss attributable to EQT was $192.0 million, or $1.11 loss per share, compared to a net loss attributable to EQT of $134.6 million, or $0.88 loss per share in the fourth quarter of 2015. Net cash provided by operating activities was $296.6 million, compared to $316.7 million. Adjusted net income was $43.8 million, compared to adjusted net loss of $10.5 million; and adjusted EPS was $0.25, up from adjusted loss per share of $0.07. Adjusted operating cash flow attributable to EQT was $326.9 million, versus $239.1 million. Sales volume was 28% higher, while average realized prices were 4% lower.

Highlights for 2016:

-- Production sales volume was 26% higher

-- Gathered volume was 21% higher

-- Acquired 145,500 net Marcellus acres, with 92,300 net Utica acres

-- Ohio Valley Connector placed in-service

-- Distributions to EQT from EQGP totaled $150 million

-- Cash and marketable securities at year-end were $1.4 billion (excluding EQM)

RESULTS BY BUSINESS

EQT PRODUCTION

With its continued focus on the Marcellus shale, EQT Production achieved record production sales volume of 759.0 Bcfe for 2016, representing a 26% increase over 2015.

EQT Production’s operating loss totaled $719.7 million for 2016, compared to operating income of $132.0 million in 2015, primarily due to a loss on derivatives not designated as hedges in 2016, compared to gains on derivatives not designated as hedges in 2015. This $634.8 million year-over-year difference resulted from the impact of commodity price changes on the Company’s mark-to-market derivative portfolio. Increased sales volume was more than offset by a lower average realized price and increased operating expenses. Operating revenue totaled $1,387.1 million in 2016, compared to $2,131.7 million in 2015.

EQT Production’s adjusted operating loss, a non-GAAP financial measure, totaled $164.0 million in 2016, compared to adjusted operating income of $108.5 million in 2015. Production’s adjusted operating revenue, a non-GAAP financial measure, which excludes the impact of non-cash derivatives, was $1,872.3 million, or $10.2 million higher than the previous year. The average realized price for 2016, including cash settled derivatives, was $2.47 per Mcfe, 20% lower than the $3.09 per Mcfe realized in 2015.

Consistent with the significant growth in sales volume and increased drilling activity, EQT Production’s 2016 operating expense was $2,114.8 million, which was $115.1 million higher than in 2015. Specifically, depreciation, depletion, and amortization expense (DD&A) was $93.7 million higher; gathering expense was $83.2 million higher; transmission expense was $73.2 million higher; processing expense was $24.6 million higher; and selling, general and administrative expense (SG&A) was $7.7 million higher. Exploration expense was $48.6 million lower primarily due to decreased lease expirations and expenses related to exploratory wells in 2015. Per unit lease operating expense (LOE), including production taxes, was 21% lower, as volume increased more than expenses.

EQT Production’s operating loss totaled $251.1 million for the fourth quarter of 2016, compared to an operating loss of $72.3 million in 2015. Operating revenue totaled $318.3 million for the quarter, which was $227.8 million lower than the same quarter in 2015. Increased sales volume was more than offset by a loss on derivatives not designated as hedges.

Production sales volume totaled 198.4 Bcfe in the fourth quarter 2016, 28% higher than the fourth quarter 2015. Adjusted operating income for the quarter was $32.1 million, compared to adjusted operating income of $1.8 million. EQT Production adjusted operating revenue for the quarter was $578.5 million, which was $110.3 million higher than the same period last year, primarily due to the increase in sales volume. Operating expenses for the quarter were $577.4 million, which was 7% lower than 2015.

The Company drilled (spud) 135 gross wells during 2016, including 117 Marcellus wells, with an average expected length-of-pay of 7,300 feet; 13 Upper Devonian wells, with an average expected length-of-pay of 9,800 feet; and four Utica wells, with an average expected length-of-pay of 6,100 feet.

EQT GATHERING

EQT Gathering 2016 operating income was $289.0 million, $45.8 million higher than 2015. Firm reservation fee revenue was $339.2 million in 2016, a $71.7 million increase over 2015. Operating revenue was $397.5 million, a $62.4 million increase over 2015, primarily as a result of higher affiliate and third-party volumes gathered in 2016 compared to 2015, driven by production development in the Marcellus Shale.

EQT Gathering operating expenses were $108.5 million, a $16.6 million increase over 2015. Specifically, SG&A was $9.2 million higher; depreciation and amortization were $6.1 million higher; and operating and maintenance expense (O&M) was $1.4 million higher.

EQT Gathering’s fourth quarter 2016 operating income was $70.8 million, $2.8 million higher than the fourth quarter of 2015. Operating revenue was $100.2 million, $9.5 million higher.

EQT TRANSMISSION

EQT Transmission 2016 operating income was $237.9 million, $30.1 million higher than 2015. Firm reservation revenue was $277.8 million in 2016, a $30.6 million increase over 2015. Operating revenue was $338.1 million, a $40.3 million increase over 2015, as a result of affiliates contracting for additional capacity under firm contracts, primarily on the Ohio Valley Connector, which was placed in-service October 1, 2016. Usage fees under firm contracts were $3.0 million higher, driven by an increase in affiliate volumes associated with increased production development in the Marcellus Shale.

Operating expenses were $100.2 million, $10.1 million higher than 2015. Depreciation and amortization were $6.7 million higher; O&M was $1.8 million higher; and SG&A was $1.7 million higher.

EQT Transmission’s fourth quarter 2016 operating income was $63.8 million, $6.8 million higher than the fourth quarter of 2015. Total operating revenue was $94.8 million, $14.8 million higher.

OTHER BUSINESS

2016 Capital Expenditures

EQT invested $2,074 million in production capital projects during 2016 - including $1,284 million for property acquisitions and $783 million for well development.

2016 Reserves Report

In a separate news release issued today, EQT reported total proved reserves at December 31, 2016, of 13.5 Tcfe, a 35% increase over 2015; and proved developed reserves totaled 6.8 Tcfe, a 9% increase over last year.

Common Stock Offerings

In 2016, EQT completed two common stock offerings with proceeds totaling $1.2 billion.

Marcellus Acreage Acquisitions

During the third quarter of 2016, the Company acquired approximately 62,500 net Marcellus acres in northern West Virginia for $373 million. The acquisition also includes drilling rights on an estimated 53,000 net acres in the Utica.

During the fourth quarter of 2016, the Company acquired approximately 42,600 net Marcellus acres in West Virginia for $508 million; and approximately 17,000 net Marcellus acres located in southwestern Pennsylvania for $170 million. The acquisitions also include drilling rights on an estimated 39,300 net acres in the Utica.

Asset Sale to EQT Midstream Partners

Effective October 1, 2016, EQT sold the Allegheny Valley Connector transmission and storage system, along with several Marcellus gathering systems, to EQM for $275 million.

Pipeline Divestiture

In the fourth quarter of 2016, the Company sold a gathering system to a third-party for $75.0 million.

Asset Impairments and Drilling Costs

During 2016, the Company recognized $75.4 million in total charges (detailed below) related to impairment of long-lived assets and leases. The Company recognized $69.9 million of these expenses in the fourth quarter.

                                                       Three Months Ended                                                                   Year Ended
                                                                             December 31,                                                                                        December 31,
                                            -------------------------------------------------------------------------                          ----------------------------------------------------------------------------
(in thousands)                                          2016                          2015                                              2016                            2015
                                            ----------------------------                     -----------------------------                     ----------------------------                     --------------------------------
Production impairment
 Utica Ohio                                                    $      -                                         $       -                                         $      -                                         $      4,252
 Permian                                                              -                                            94,313                                                -                                               94,313
 Other leases                                                     6,939                                            19,703                                            6,939                                               19,703
 Processing equipment                                                 -                                             4,201                                                -                                                4,201
Production SG&A                                                       -                                               774                                                -                                               13,085
Production Exploratory                         3,248                         27,833                         8,747                            54,971
                                            -------------------- ------                      -------------------- -------                      -------------------- ------                      -------------------- ----------
Production Total                              10,187                        146,824                        15,686                           190,525
                                            -------------------- ------                      -------------------- -------                      -------------------- ------                      -------------------- ----------
                                                                                                                                                                                                 
Other Impairment*                             59,748                              -                        59,748                                 -
                                            -------------------- ------                      -------------------- -------                      -------------------- ------                      -------------------- ----------
                                                                                                                                                                                                 
Total                                                          $ 69,935                                         $ 146,824                                         $ 75,434                                         $    190,525
                                            ==================== ======                      ==================== =======                      ==================== ======                      ==================== ==========
* Other impairment is related to gathering assets sold to EQM in
  the fourth quarter of 2016. This impairment is included in
  unallocated expenses in operating income.
   

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

On January 19, 2017, EQM announced a cash distribution to its unitholders of $0.85 per unit for the fourth quarter 2016. EQGP also announced a cash distribution to its unitholders of $0.177 per unit for the fourth quarter 2016.

The fourth quarter and year-end 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.

Calculation of Net Income Attributable to Noncontrolling Interest

The results of EQGP and EQM are consolidated in EQT’s results. For the year ended December 31, 2016, EQT reported net income of $321.9 million attributable to the publicly held partnership interests in EQGP and EQM.

(thousands)                                                                            Year Ended
                                                                                                       December 31, 2016
                                                                                      -----------------------------------------------
EQM net income                                                                                           $ 537,954
Less: Pre-acquisition income allocated to parent                                                            21,861
Less: General Partner interest (including incentive distribution                        102,741  
rights)
                                                                                      -------------------- ------- --------------------
    Limited Partner interest in net income                                                               $ 413,352
                                                                                       
EQM LP units
 Publicly owned (72.8%)                                                                                  $ 300,815
 EQGP owned (27.2%)                                                                     112,537  
                                                                                      -------------------- ------- --------------------
    Limited Partner interest in net income                                                               $ 413,352
                                                                                       
EQGP net income
 EQM LP unit ownership                                                                                   $ 112,537
 EQM GP unit ownership (including incentive distribution rights)                                           102,741
 EQGP incremental expenses                                                               (2,960 )
                                                                                      -------------------- ------- --------------------
    Limited Partner interest in net income                                                               $ 212,318
                                                                                       
EQGP units
 Publicly owned LP (9.9%)                                                                                $  21,105
 EQT owned LP (90.1%)                                                                   191,213  
                                                                                      -------------------- ------- --------------------
    Limited Partner interest in net income                                                               $ 212,318
                                                                                       
Noncontrolling interest in EQT earnings
EQM publicly-owned LP units                                                                              $ 300,815
EQGP publicly-owned LP units                                                             21,105  
                                                                                      -------------------- ------- --------------------
    Net income attributable to noncontrolling interest                                                   $ 321,920
                                                                                                                    

Hedging

The Company’s total natural gas production hedge position through 2019 is:

                                          2017                     2018                                      2019
                                                                              --------                                          ----------------------------------                                          ------------------------------------------
NYMEX Swaps
Total Volume (Bcf)                                                                362                                                                         135                                                                                  19
Average Price per Mcf (NYMEX)                                                  $ 3.35                                            $                           3.14                                                    $                           3.12
                                                                                                                                                                                                             
Collars
Total Volume (Bcf)                                                                 22                                              a^’                                                      a^’
Average Floor Price per Mcf (NYMEX)                                            $ 3.03                                            $ a^’                                                    $ a^’
Average Cap Price per Mcf (NYMEX)                                              $ 3.94                                            $ a^’                                                    $ a^’
                                                                                                                                                                                                                        

-- The Company also sold calendar year 2017 and 2018 calls for approximately 32 Bcf and 16 Bcf, respectively, at strike prices of $3.53 per Mcf and $3.48 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 expense 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                                                                                           Years Ended
                                                                                               December 31,                                                                                                                December 31,
                                                 -------------------------------------------------------------------------------------------------                            ------------------------------------------------------------------------------------------------
(thousands)                                                    2016                                        2015                                                          2016                                       2015
                                                 ---------------------------------                     --------------------------------------------------                     --------------------------------                     --------------------------------------------------
Operating (loss) income:
 EQT Production                                                     $ (251,053 )                                          $ (72,254 )                                                            $ (719,731 )                                         $ 132,008
 EQT Gathering                                                          70,753                                               67,931                                                                 289,027                                             243,257
 EQT Transmission                                                       63,837                                               56,994                                                                 237,922                                             207,779
 Unallocated expense                                (73,003 )                          (7,380 )                                            (85,518 )                        (19,905 )
                                                 -------------------- -------- --                      -------------------- ------- --------------------                      -------------------- -------- -                      -------------------- ------- --------------------
    Operating (loss) income                                         $ (189,466 )                                          $  45,291                                           $ (278,300 )                                         $ 563,139  
                                                 ==================== ======== ==                      ==================== ======= ====================                      ==================== ======== =                      ==================== ======= ====================
                                                                                                                                                                                                                                                                 

Unallocated expenses consist primarily of an impairment on gathering assets sold to EQM in 2016, incentive compensation expense, and administrative costs.

Marcellus Horizontal Well Status (cumulative since inception)

                                      As of       As of     As of     As of           As of
                                                       12/31/16                        9/30/16                      6/30/16                      3/31/16                           12/31/15
                                                      ---------                       ------                       -------                      -------                      --------------------
Wells drilled (spud)                                  1,046 *                         949 *         896                          869                                       854
Wells online                                            875                           816                              774                          735                                       693
Wells complete, not online                               21                            32                               34                           45                                        57
Wells drilled, uncompleted                              150                           101                               88                           89                                       104
*Includes wells acquired in 2016
                                                                                                                                                                              

NON-GAAP DISCLOSURES

Adjusted Net Income (Loss) Attributable to EQT and Adjusted Earnings (Loss) per Diluted Share

Adjusted net income (loss) attributable to EQT and adjusted earnings (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 income (loss) attributable to EQT and adjusted earnings (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 income (loss) attributable to EQT as presented excludes the revenue impact of changes in the fair value of derivative instruments prior to settlement, gain on sale of assets, asset impairments and drilling costs, Huron restructuring charges, and pension settlement charges. Management utilizes adjusted net income (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 income (loss) attributable to EQT as presented provides useful information for investors for evaluating period-over-period earnings.

The table below reconciles adjusted net income (loss) attributable to EQT and adjusted earnings (loss) per diluted share with net (loss) income attributable to EQT and (loss) earnings per diluted share as derived from the statements of consolidated operations to be included in EQT’s report on Form 10-K for the year ended December 31, 2016.

                                                                                                                          Three Months Ended                                                                                                               Year Ended
                                                                                                                                                December 31,                                                                                                                                    December 31,
                                                                                         --------------------------------------------------------------------------------------------------------------------       -------------------- --------------------------------------------------------------------------------------------------------------------
(thousands, except per share information)                                                                       2016                                                 2015                                                                    2016                                                 2015
                                                                                         ---------------------------------------------------                     ---------------------------------------------------                     ---------------------------------------------------                     ---------------------------------------------------
Net (loss) income attributable to EQT, as reported                                                          $ (191,958 )                                                            $ (134,579 )                                                            $ (452,983 )                                                            $   85,171
Add back / (deduct):
  Asset impairments and drilling costs                                                                          69,935                                                                 146,824                                                                  75,434                                                                 190,525
  Huron restructuring charges                                                                                        -                                                                       -                                                                   4,360                                                                       -
  Loss (gain) on derivatives not designated as hedges                                                          216,649                                                                (176,648 )                                                               248,991                                                                (385,762 )
  Cash settlements received on derivatives not designated as hedges                                             56,909                                                                 101,219                                                                 279,425                                                                 172,093
  Premiums (paid) received for derivatives that settled during the                                                (558 )                                                                 2,690                                                                  (2,132 )                                                                  (364 )
  period
  Gain on sale                                                                                                  (8,025 )                                                                     -                                                                  (8,025 )                                                                     -
  Pension settlement charge                                                                                          -                                                                       -                                                                   9,403                                                                       -
  Tax impact of non-GAAP items*                                                            (134,634 )                                            (29,782 )                                           (244,197 )                                              9,450  
                                                                                         -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
Subtotal                                                                                                    $    8,318                                                              $  (90,276 )                                                            $  (89,724 )                                                            $   71,113
  Tax expense (benefit) related to regulatory asset                                                             35,438                                                                     275                                                                  35,438                                                                 (35,438 )
  Valuation allowance                                                                             -                            79,531                                 -                            79,531  
                                                                                         -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
Adjusted net income (loss) attributable to EQT                                           $   43,756                                           $  (10,470 )                                                            $  (54,286 )                                                            $  115,206  
                                                                                         ==================== ======== ====================                      ==================== ======== ====================                      ==================== ======== ====================                      ==================== ======== ====================
Diluted weighted average common shares outstanding                                                             173,688                                                                 152,633                                                                 166,978                                                                 152,939
Diluted EPS, as adjusted                                                                                    $     0.25                                                              $    (0.07 )                                                            $    (0.33 )                                                            $     0.75
*
   A tax rate of 40.2% for the three and twelve months ended December
   31, 2016 and 2015, was applied to the items under the caption "Add
   back (deduct)". This represents the incremental deferred tax
   (expense) benefit that would have been incurred had these items
   been 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 excludes the noncontrolling interest portion of adjusted EQT Midstream Partners EBITDA (a non-GAAP supplemental financial measure reconciled below). Management believes that removing the impact on operating cash flows of the public unitholders of EQGP and EQM that is otherwise required to be consolidated in EQT’s results provides useful information to an EQT investor. 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-K for the year ended December 31, 2016.

                                                                                                                          Three Months Ended                                                                                                                Years Ended
                                                                                                                                                December 31,                                                                                                                                     December 31,
                                                                                         --------------------------------------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------------------------------------
(thousands)                                                                                                     2016                                                 2015                                                                     2016                                                  2015
                                                                                         ---------------------------------------------------                     ---------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
Net (loss) income                                                                                           $ (108,785 )                                                            $  (63,262 )                                                            $  (131,063 )                                                            $   321,886
  Add back / (deduct):
  Depreciation, depletion and amortization                                                                     244,972                                                                 219,425                                                                  927,920                                                                  819,216
  Asset and lease impairments, non-cash                                                                         69,935                                                                 147,238                                                                   75,434                                                                  182,242
  Deferred income tax (benefit) expense                                                                        (34,522 )                                                                96,834                                                                 (180,261 )                                                                 17,876
  Loss (gain) on derivatives not designated as hedges                                                          216,649                                                                (176,648 )                                                                248,991                                                                 (385,762 )
  Cash settlements received on derivatives not designated as hedges                                             56,909                                                                 101,219                                                                  279,425                                                                  172,093
  Non-cash incentive compensation                                                                               10,054                                                                  17,007                                                                   44,605                                                                   58,629
  Pension settlement charge                                                                                          -                                                                       -                                                                    9,403                                                                        -
  Other items, net                                                                          (13,827 )                                             (3,318 )                                             (35,862 )                                             (11,856 )
                                                                                         -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Operating cash flow:                                                                     $  441,385                                           $  338,495                                           $ 1,238,592                                           $ 1,174,324  
                                                                                         ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                   
  (Deduct) / add back:
  Changes in other assets and liabilities                                                  (144,764 )                                            (21,773 )                                            (174,272 )                                              42,616  
                                                                                         -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
  Net cash provided by operating activities                                                                 $  296,621                                           $  316,722                                           $ 1,064,320                                           $ 1,216,940  
                                                                                         ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                Three Months Ended                                                                                                                Year Ended
                                                                                                                                      December 31,                                                                                                                                     December 31,
                                                                               --------------------------------------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------------------------------------
(thousands)                                                                                           2016                                                 2015                                                                     2016                                                  2015
                                                                               ---------------------------------------------------                     ---------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
Operating cash flow (a non-GAAP measure reconciled above)                                         $  441,385                                                              $  338,495                                                              $ 1,238,592                                                              $ 1,174,324
 (Deduct) / add back:
EQT Midstream Partners adjusted EBITDA(1)                                                           (156,868 )                                                              (128,611 )                                                               (572,611 )                                                               (449,015 )
Cash distribution payable to EQT (2)                                               42,430                            29,245                            150,062                            100,101  
                                                                               -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
Adjusted operating cash flow attributable to EQT                                                  $  326,947                                           $  239,129                                           $   816,043                                           $   825,410  
                                                                               ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                        
(1)  EQT Midstream Partners adjusted EBITDA is a non-GAAP supplemental
     financial measure reconciled in this section.
(2)  Cash distribution payable to EQT for the three and twelve months
     ended December 31, 2016 and 2015, represents the distribution
     payable from EQGP to EQT.
     

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 Revenues

The table below reconciles EQT Production adjusted operating revenues, a non-GAAP supplemental financial measure, to EQT Corporation total operating revenues as reported in the Statements of Consolidated Operations, its most directly comparable financial measure calculated in accordance with GAAP.

EQT Production adjusted operating revenues (also referred to as total natural gas & liquids sales, including cash settled derivatives) is presented because it is an important measure used by the Company’s management to evaluate period-over-period comparisons of earnings trends. EQT Production adjusted operating revenues as presented excludes the revenue impact of changes in the fair value of derivative instruments prior to settlement and the revenue impact of certain pipeline and net marketing services. Management utilizes EQT Production adjusted operating revenues to evaluate earnings trends because the measure reflects only the impact of settled derivative contracts and thus does not impact the revenue from natural gas sales with the often volatile fluctuations in the fair value of derivatives prior to settlement. EQT Production adjusted operating revenues also excludes "Pipeline and net marketing services" because management considers these revenues to be unrelated to the revenues for its natural gas and liquids production. "Pipeline and net marketing services" primarily includes revenues for gathering services provided to third-parties, as well as 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 revenues, as presented, provide useful information to investors for evaluating period-over-period earnings trends.

Calculation of EQT Production adjusted operating revenues                                                                    Three Months Ended                                                                                                                Year Ended
                                                                                                                                                   December 31,                                                                                                                                     December 31,
                                                                                            --------------------------------------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------------------------------------
$ in thousands (unless noted)                                                                                      2016                                                 2015                                                                     2016                                                  2015
                                                                                            ---------------------------------------------------                     ---------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
EQT Production total operating revenues, as reported on segment page                                           $  318,302                                                              $  546,125                                                              $ 1,387,054                                                              $ 2,131,664
 Add back / (deduct):
 Loss (gain) on derivatives not designated as hedges                                                              216,649                                                                (176,648 )                                                                248,991                                                                 (385,762 )
 Net cash settlements received on derivatives not designated as hedges                                             56,909                                                                 101,219                                                                  279,425                                                                  172,093
 Premiums (paid) received for derivatives that settled during the                                                    (558 )                                                                 2,690                                                                   (2,132 )                                                                   (364 )
 period
 Pipeline and net marketing services                                                           (12,852 )                                             (5,223 )                                             (41,048 )                                             (55,542 )
                                                                                            -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
EQT Production adjusted operating revenues, a non-GAAP financial                                               $  578,450                                           $  468,163                                           $ 1,872,290                                           $ 1,862,089  
measure
                                                                                            ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                      
 Total sales volume (MMcfe)                                                                                       198,399                                                                 154,537                                                                  758,967                                                                  603,082
                                                                                                                                                                                                                                                                                                                      
Average realized price to EQT Production ($/Mcfe)                                                              $     2.92                                                              $     3.03                                                              $      2.47                                                              $      3.09
                                                                                                                                                                                                                                                                                                                      
EQT Production total operating revenues, as reported on segment page                                           $  318,302                                                              $  546,125                                                              $ 1,387,054                                                              $ 2,131,664
EQT Gathering total operating revenues, as reported on segment page                                               100,189                                                                  90,701                                                                  397,494                                                                  335,105
EQT Transmission total operating revenues, as reported on segment                                                  94,825                                                                  80,012                                                                  338,120                                                                  297,831
page
Less: intersegment revenues, net                                                              (134,294 )                                           (115,458 )                                            (514,320 )                                            (424,838 )
                                                                                            -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
EQT Corporation total operating revenues, as reported in accordance                                            $  379,022                                           $  601,380                                           $ 1,608,348                                           $ 2,339,762  
with GAAP
                                                                                            ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                     

EQT Production Adjusted Operating Income (Loss)

The table below reconciles EQT Production adjusted operating income (loss), a non-GAAP supplemental financial measure, to EQT Corporation operating (loss) income, as derived from the statements of consolidated operations to be included in EQT’s report on Form 10-K for the year ended December 31, 2016.

EQT Production adjusted operating income (loss) 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 income (loss) should not be considered as an alternative to EQT Corporation operating (loss) income presented in accordance with GAAP. EQT Production adjusted operating income (loss) as presented excludes the revenue impact of changes in the fair value of derivative instruments prior to settlement, impairment and drilling costs, pension settlement charges, and Huron restructuring charges. Management utilizes EQT Production adjusted operating income (loss) 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 income (loss) as presented provides useful information for investors for evaluating period-over-period earnings.

                                                                                                                             Three Months Ended                                                                                                               Year Ended
                                                                                                                                                   December 31,                                                                                                                                    December 31,
                                                                                            --------------------------------------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------------------------------------
 (thousands)                                                                                                       2016                                                 2015                                                                    2016                                                 2015
                                                                                            ---------------------------------------------------                     ---------------------------------------------------                     ---------------------------------------------------                     ---------------------------------------------------
 EQT Corporation operating (loss) income, as reported in accordance                                            $ (189,466 )                                                            $   45,291                                                              $ (278,300 )                                                            $  563,139
 with GAAP
 Add back / (deduct):
 Unallocated expense                                                                                               73,003                                                                   7,380                                                                  85,518                                                                  19,905
 EQT Gathering operating income, as reported on segment page                                                      (70,753 )                                                               (67,931 )                                                              (289,027 )                                                              (243,257 )
 EQT Transmission operating income, as reported on segment page                                (63,837 )                                            (56,994 )                                           (237,922 )                                           (207,779 )
                                                                                            -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
 EQT Production operating (loss) income, as reported on segment page                                           $ (251,053 )                                                            $  (72,254 )                                                            $ (719,731 )                                                            $  132,008
 Add back / (deduct):
 Loss (gain) on derivatives not designated as hedges                                                              216,649                                                                (176,648 )                                                               248,991                                                                (385,762 )
 Net cash settlements received on derivatives not designated as hedges                                             56,909                                                                 101,219                                                                 279,425                                                                 172,093
 Premiums (paid) received for derivatives that settled during the                                                    (558 )                                                                 2,690                                                                  (2,132 )                                                                  (364 )
 period
 Asset impairments and drilling costs                                                                              10,187                                                                 146,824                                                                  15,686                                                                 190,525
 Pension settlement charge                                                                                              -                                                                       -                                                                   9,403                                                                       -
 Huron restructuring charges                                                                         -                                 -                             4,360                                 -  
                                                                                            -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- -------- --------------------
 EQT Production adjusted operating income (loss)                                                               $   32,134                                           $    1,831                                           $ (163,998 )                                                            $  108,500  
                                                                                            ==================== ======== ====================                      ==================== ======== ====================                      ==================== ======== ====================                      ==================== ======== ====================
                                                                                                                                                                                                                                                                                                                                                   

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 (loss) income or reconciliations of projected EBITDA to projected net (loss) income, 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 (loss) income. 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 2017. Consequently, EQT is not able to provide a projected net (loss) income that would be useful to investors. Therefore, projected net (loss) income and reconciliations of projected EBITDA to projected net (loss) income are not available without unreasonable effort.

EQT Midstream Partners Adjusted EBITDA

As used in this news release, EQT Midstream Partners adjusted EBITDA means EQM’s net income plus EQM’s net interest expense, depreciation and amortization expense, income tax expense (if applicable), preferred interest payments received post-conversion, and non-cash long-term compensation expense (if applicable) less EQM’s equity income, AFUDC-equity, capital lease payments, and adjusted EBITDA for assets prior to acquisition dates. EQT Midstream Partners adjusted 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 EQT Midstream Partners adjusted EBITDA provides useful information to investors in assessing EQT’s financial condition and results of operations. EQT Midstream Partners adjusted 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. EQT Midstream Partners adjusted EBITDA has important limitations as an analytical tool because it excludes some, but not all, items that affect EQM’s net income. Additionally, because EQT Midstream Partners adjusted EBITDA may be defined differently by other companies in EQT’s or EQM’s industries, the definition of EQT Midstream Partners adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing the utility of the measure. The table below reconciles EQT Midstream Partners adjusted EBITDA with EQM’s net income, as derived from the statements of consolidated operations to be included in EQM’s report on Form 10-K for the year ended December 31, 2016.

EQM is unable to provide a reconciliation of projected EQT Midstream Partners adjusted EBITDA to projected EQM net income, the most comparable financial measure calculated in accordance with GAAP, because 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 as well as equity earnings, among other items, that are reconciling items between EQT Midstream Partners adjusted 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 forecasts of EQM net income and EQT Midstream Partners adjusted EBITDA to allow for the variability in the timing of capital spending and the impact on the related reconciling items, many of which interplay with each other. Therefore, the reconciliation of projected EQT Midstream Partners adjusted EBITDA to projected EQM net income is not available without unreasonable effort.

                                                                                                                               Three Months Ended                                                                                                                           Year Ended
                                                                                                                                                     December 31,                                                                                                                                                December 31,
                                                                                        --------------------------------------------------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------------------------------------------------
(thousands)                                                                                                       2016                                                       2015                                                                          2016                                                       2015
                                                                                        ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------
Net income                                                                                                 $        135,700                                                              $        120,321                                                              $        537,954                                                              $        455,126
 Add back:
 Net interest expense                                                                                                 5,318                                                                         4,982                                                                        16,766                                                                        21,345
 Depreciation and amortization expense                                                                               19,514                                                                        13,013                                                                        62,691                                                                        49,895
 Income tax expense (benefit)                                                                                -                                                                         3,281                                                                        10,147                                                                       (16,741 )
                                                                                                                      2,764                                                                -                                                                         2,764                                                                -
  Preferred interest payments received post conversion (a)
 Non-cash long-term compensation expense                                                                     -                                                                           334                                                                           195                                                                         1,467
Less:
 Equity income                                                                                                       (3,759 )                                                                      (1,220 )                                                                      (9,898 )                                                                      (2,367 )
 AFUDC - equity                                                                                                      (2,669 )                                                                      (2,439 )                                                                     (19,402 )                                                                      (6,327 )
 Pre-acquisition capital lease payments for AVC (b)                                                          -                                                                        (6,710 )                                                                     (17,186 )                                                                     (22,059 )
 Adjusted EBITDA attributable to NWV Gathering (as defined below)                                            -                                                                -                                                                -                                                                       (19,841 )
 prior to acquisition (c)
                                                                                          -                                  (2,951 )                               (11,420 )                                                  (11,483 )
 Adjusted EBITDA attributable to Rager Mountain Storage Company,
 LLC (Rager) and certain gathering assets prior to acquisition (d)
                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
 EQT Midstream Partners Adjusted EBITDA                                                                    $        156,868                                           $        128,611                                           $        572,611                                           $        449,015  
                                                                                        ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                       
(a)   In conjunction with the acquisition of Rager and certain gathering
                         assets, the operating agreement of EQT Energy Supply, LLC (EES) was
                         amended and the accounting for EQM’s preferred interest in EES
                         converted from a cost method investment to a note receivable
                         effective October 1, 2016. There were no changes in the cash
                         payments; however, distributions from EES subsequent to this
                         amendment were recorded partly as a reduction in the note receivable
                         and partly as interest income, which is included in net interest
                         expense in EQM’s statements of consolidated operations.
                         Distributions received from EES prior to this amendment in 2016 were
                         included in other income in EQM’s statements of consolidated
                         operations. The calculation of adjusted EBITDA changed from the
                         prior period to reflect the cash payments from the preferred
                         interest in a consistent manner despite the change in accounting
                         treatment.
                          
(b)                      Reflects capital lease payments due under the lease. These lease
                         payments were generally made monthly on a one-month lag prior to
                         EQM’s acquisition of Allegheny Valley Connector, LLC (AVC).
                          
(c)                      Adjusted EBITDA attributable to the Northern West Virginia Gathering
                         System (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 acquisition
                         by EQM; therefore, the amounts could not have been distributed to
                         EQM’s unitholders. Adjusted EBITDA attributable to NWV Gathering
                         prior to acquisition for the year ended December 31, 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.
                          
(d)                      Adjusted EBITDA attributable to AVC, excluding income tax expense
                         and AFUDC-equity, was previously included in EQM’s results as a
                         result of the capital lease and was eliminated from EQT Midstream
                         Partners adjusted EBITDA by subtracting the capital lease payment;
                         therefore, there is no adjustment for AVC’s adjusted EBITDA prior to
                         acquisition other than the capital lease payments, income tax
                         expense, and AFUDC-equity. Adjusted EBITDA attributable to Rager and
                         the gathering assets prior to EQT’s sale to EQM in October 2016 for
                         the periods presented was excluded from the EQT Midstream Partners
                         adjusted EBITDA calculations as these amounts were generated by
                         Rager and the gathering assets prior to acquisition by EQM;
                         therefore, the amounts could not have been distributed to EQM’s
                         unitholders. Adjusted EBITDA attributable to Rager and the gathering
                         assets prior to acquisition for the years ended December 31, 2016
                         and 2015 was calculated as net income of $1.3 million and $34.2
                         million, respectively, plus depreciation and amortization expense of
                         $2.1 million and $2.5 million, respectively, plus income tax expense
                         (benefit) of $10.1 million and $(23.4 million), respectively, less
                         interest income of $0.5 million and $1.1 million, respectively, less
                         AFUDC - equity of $1.6 million and $0.7 million, respectively.
                         Adjusted EBITDA attributable to Rager and the gathering assets prior
                         to acquisition for the three months ended December 31, 2015, was
                         calculated as net income of $0.1 million, plus depreciation and
                         amortization expense of $0.5 million, plus income tax expense of
                         $3.3 million, less interest income of $0.5 million, less AFUDC -
                         equity of $0.4 million.
                          

Fourth Quarter and Year-End 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 .

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, storage, and gathering systems that service the Marcellus and Utica regions. The Partnership owns approximately 950 miles of FERC-regulated interstate pipelines; and also owns approximately 1,800 miles of high- and low-pressure gathering lines.

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

About EQT GP Holdings:

EQT GP Holdings, LP is a limited partnership that owns the general partner interest, all of the incentive distribution rights, and a portion of the limited partner interests in EQT Midstream Partners, LP. EQT Corporation owns a 90% limited partner interest in EQT GP Holdings, LP.

Visit EQT GP Holdings, LP at www.eqtmidstreampartners.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, Upper Devonian, 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 pipeline and 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 Mountain Valley Pipeline (MVP) project; 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, joint ventures or other transactions involving the Company’s assets; the projected cash flows resulting from the Company’s limited partner interests in 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; changes in the Company’s or EQM’s credit ratings; projected net income attributable to noncontrolling interests, adjusted operating cash flow attributable to EQT, revenues and cash-on-hand; hedging strategy; the effects of government regulation and litigation; projected dividend and distribution amounts and rates; 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 filed with the SEC and in the Company’s Form 10-K for the year ended December 31, 2016 to be filed with the SEC, 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.

2017 GUIDANCE

Based on current NYMEX natural gas prices of $3.34, the Company reiterates its current adjusted operating cash flow attributable to EQT to be approximately $1,280 million for 2017, which includes approximately $200 million from EQT’s interest in EQT GP Holdings, LP (EQGP ). See the Non-GAAP Disclosures section for important information regarding the non-GAAP financial measures included in this news release, including reasons why EQT is unable to provide projections of its 2017 net cash provided by operating activities and 2017 net income, the most comparable financial measures to adjusted operating cash flow attributable to EQT and total Production EBITDA, respectively, calculated in accordance with GAAP.

PRODUCTION                                                                                     
                                                                                             Q1 2017                                                    2017
                                                                                ---------------------------------                     ----------------------------------------
  Total production sales volume (Bcfe)                                                    190 - 195                                       810 - 830
  Liquids sales volume, excluding ethane (Mbbls)                                      2,520 - 2,540                                 10,100 - 10,500
  Ethane sales volume (Mbbls)                                                             845 - 865                                   3,100 - 3,300
  Total liquids sales volume (Mbbls)                                                  3,365 - 3,405                                 13,200 - 13,800
                                                                                                                                       
  Marcellus / Utica Rigs                                                                                                                                   6 - 8
  Top-hole rigs                                                                                                                                            5 - 7
                                                                                                                                       
  Unit Costs ($ / Mcfe)
     Gathering to EQT Gathering                                                                                                                $     0.46 - 0.48
     Transmission to EQT Transmission                                                                                                          $     0.20 - 0.22
     Third-party gathering and transmission*                                                                                                   $     0.40 - 0.42
     Processing                                                                                                                                $     0.15 - 0.17
     LOE, excluding production taxes                                                                                                           $     0.13 - 0.15
     Production taxes                                                                                                                          $     0.07 - 0.09
     SG&A                                                                                                                                      $     0.17 - 0.19
     DD&A                                                                                                                                      $     1.06 - 1.08
                                                                                                                                       
  Average differential ($ / Mcf)*                                                 $ (0.15) - (0.05)                               $ (0.60) - (0.50)
                                                                                                                                       
  Pipeline and net marketing services ($MM)*                                      $          5 - 15                               $         35 - 45
                                                                                                                                                  
FINANCIAL
                                                                                  $         81 - 83                               $       335 - 345
  Net income attributable to noncontrolling interest ($MM)
                                                                                                                                                  
                                                                                                                                               $                1,160 - 1,180
  Total Production EBITDA**
                                                                                                                                                  
 * EQT will utilize Rockies Express Pipeline capacity to transport a                      .
   portion of its produced gas in 2017. In 2016, EQT resold a portion
   of and used a portion of the capacity for marketing activities. The
   shift is expected to result in better differentials, higher
   third-party gathering and transmission expenses, and lower net
   marketing service revenues, all else equal
** Excludes non-cash derivative losses.
                                                                        
                                                                                                                                                              EQT CORPORATION AND SUBSIDIARIES
                                                                                                                                                                        Statements of
                                                                                                                                                             Consolidated Operations (Unaudited)
                                                                                                                                                                                                  
                                                                                                                                             Three Months Ended                                                                                                                              Year Ended
                                                                                                                                                December 31,                                                                                                                                December 31,
                                                                                         --------------------------------------------------------------------------------------------------------------------                            -------------------------------------------------------------------------------------------------------------
                                                                                                                2016                                                 2015                                                                     2016                                             2015
                                                                                         ---------------------------------------------------                     ---------------------------------------------------                     ----------------------------------------------------                     ------------------------------------------
                                                                                                                                                                                                                                                                                                                   
Revenues:
 Sales of natural gas, oil and NGLs                                                                         $  522,099                                                              $  364,253                                                              $ 1,594,997                                                              $            1,690,360
 Pipeline and net marketing services                                                                            73,572                                                                  60,479                                                                  262,342                                                                             263,640
 (Loss) gain on derivatives not designated as hedges                                       (216,649 )                                            176,648                           (248,991 )                                                        385,762
                                                                                         -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------------
   Total operating revenues                                                                                    379,022                                                                 601,380                                                                1,608,348                                                                           2,339,762
                                                                                                                                                                                                                                                                                                                   
Operating expenses:
 Transportation and processing                                                                                 114,534                                                                  68,219                                                                  365,817                                                                             275,348
 Operation and maintenance                                                                                      21,441                                                                  18,014                                                                   73,266                                                                              69,760
 Production                                                                                                     48,734                                                                  41,635                                                                  174,826                                                                             177,935
 Exploration                                                                                                     4,026                                                                  29,817                                                                   13,410                                                                              61,970
 Selling, general and administrative                                                                            76,119                                                                  60,762                                                                  272,747                                                                             249,925
 Depreciation, depletion and amortization                                                                      244,972                                                                 219,425                                                                  927,920                                                                             819,216
 Impairment of long-lived assets                                                             66,687                           118,217                             66,687                                       122,469
                                                                                         -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------------
  Total operating expenses                                                                                     576,513                                                                 556,089                                                                1,894,673                                                                           1,776,623
                                                                                                                                                                                                                                                                                                                   
Gain on sale / exchange of assets                                                             8,025                                 -                              8,025                                             -
                                                                                         -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------------
Operating (loss) income                                                                                       (189,466 )                                                                45,291                                                                 (278,300 )                                                                           563,139
                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                   
Other income                                                                                                     8,494                                                                   3,664                                                                   31,693                                                                               9,953
Interest expense                                                                             39,451                            35,935                            147,920                                       146,531
                                                                                         -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------------
(Loss) income before income taxes                                                                             (220,423 )                                                                13,020                                                                 (394,527 )                                                                           426,561
Income tax (benefit) expense                                                               (111,638 )                                             76,282                           (263,464 )                                                        104,675
                                                                                         -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------------
Net (loss) income                                                                                             (108,785 )                                                               (63,262 )                                                               (131,063 )                                                                           321,886
Less: Net income attributable to noncontrolling interests                                    83,173                            71,317                            321,920                                       236,715
                                                                                         -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------------
Net (loss) income attributable to EQT Corporation                                                           $ (191,958 )                                                            $ (134,579 )                                                            $  (452,983 )                                                            $               85,171
                                                                                         ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ====================
                                                                                                                                                                                                                                                                                                                   
Earnings per share of common stock attributable to EQT Corporation:
                                                                                                                                                                                                                                                                                                                   
Basic:
Weighted average common stock outstanding                                                   172,906                           152,633                            166,978                                       152,398
                                                                                         -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------------
Net (loss) income                                                                                           $    (1.11 )                                                            $    (0.88 )                                                            $     (2.71 )                                                            $                 0.56
                                                                                         ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ====================
                                                                                                                                                                                                                                                                                                                   
Diluted:
Weighted average common stock outstanding                                                   172,906                           152,633                            166,978                                       152,939
                                                                                         -------------------- -------- --------------------                      -------------------- -------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------------
Net (loss) income                                                                                           $    (1.11 )                                                            $    (0.88 )                                                            $     (2.71 )                                                            $                 0.56
                                                                                         ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ====================
Dividends declared per common share                                                                         $     0.03                                           $     0.03                                           $      0.12                                           $                 0.12
                                                                                         ==================== ======== ====================                      ==================== ======== ====================                      ==================== ========= ====================                      ==================== ====================
                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                            EQT CORPORATION
                                                                                                                                                                         PRICE RECONCILIATION
                                                                                                                                                                                                   
                                                                                                                                               Three Months Ended                                                                                                                                  Year Ended
                                                                                                                                                  December 31,                                                                                                                                    December 31,
                                                                                            ------------------------------------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------------------------------------
in thousands (unless noted)                                                                                        2016                                                2015                                                                    2016                                                  2015
                                                                                            --------------------------------------------------                     --------------------------------------------------                     ----------------------------------------------------                     ----------------------------------------------------
NATURAL GAS
Sales volume (MMcf)                                                                                              175,290                                                                141,352                                                                  683,495                                                                  547,094
NYMEX price ($/MMBtu) (a)                                                                                      $    2.98                                                              $    2.27                                                              $      2.47                                                              $      2.66
Btu uplift                                                                                                     $    0.29                                           $    0.20                                           $      0.22                                           $      0.25  
                                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
 Natural gas price ($/Mcf)                                                                                     $    3.27                                                              $    2.47                                                              $      2.69                                                              $      2.91
                                                                                                                                                                                                                                                                                                                    
Basis ($/Mcf) (b)                                                                                              $   (0.88 )                                                            $   (0.60 )                                                            $     (0.81 )                                                            $     (0.63 )
Cash settled basis swaps (not designated as hedges) ($/Mcf)                                      0.21                             0.19                               0.09                               0.03  
                                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
 Average differential, including cash settled basis swaps ($/Mcf)                                              $   (0.67 )                                                            $   (0.41 )                                                            $     (0.72 )                                                            $     (0.60 )
                                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
                                                                                                                                                                                                                                                                                                                    
Average adjusted price ($/Mcf)                                                                                 $    2.60                                                              $    2.06                                                              $      1.97                                                              $      2.31
Cash settled derivatives (cash flow hedges) ($/Mcf)                                                                 0.11                                                                   0.36                                                                     0.13                                                                     0.47
Cash settled derivatives (not designated as hedges) ($/Mcf)                                      0.11                             0.55                               0.31                               0.28  
                                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
 Average natural gas price, including cash settled derivatives ($/Mcf)                                         $    2.82                                                              $    2.97                                                              $      2.41                                                              $      3.06
                                                                                                                                                                                                                                                                                                                    
Natural gas sales, including cash settled derivatives                                                          $ 493,934                                                              $ 419,260                                                              $ 1,649,831                                                              $ 1,671,562
                                                                                                                                                                                                                                                                                                                    
LIQUIDS
 NGLs (excluding ethane):
Sales volume (MMcfe)(c)                                                                                           15,512                                                                 11,977                                                                   57,243                                                                   51,530
Sales volume (Mbbls)                                                                                               2,585                                                                  1,996                                                                    9,540                                                                    8,588
Price ($ / Bbl)                                                                                                $   27.55                                           $   21.23                                           $     19.43                                           $     18.84  
                                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
 NGL sales                                                                                                     $  71,217                                                              $  42,372                                                              $   185,405                                                              $   161,775
 Ethane:
Sales volume (MMcfe)(c)                                                                                            6,546                                                                      -                                                                   13,856                                                                        -
Sales volume (Mbbls)                                                                                               1,091                                                                      -                                                                    2,309                                                                        -
Price ($ / Bbl)                                                                                                $    5.64                                           $       -                                           $      5.08                                           $         -  
                                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
 Ethane sales                                                                                                  $   6,152                                                              $       -                                                              $    11,742                                                              $         -
 Oil:
Sales volume (MMcfe)(c)                                                                                            1,051                                                                  1,208                                                                    4,373                                                                    4,458
Sales volume (Mbbls)                                                                                                 175                                                                    201                                                                      729                                                                      743
Price ($ / Bbl)                                                                                                $   40.79                                           $   32.45                                           $     34.73                                           $     38.70  
                                                                                            -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------- --------------------
 Oil sales                                                                                                     $   7,148                                                              $   6,531                                                              $    25,312                                                              $    28,752
                                                                                                                                                                                                                                                                                                                    
Total liquids sales volume (MMcfe)(c)                                                                             23,109                                                                 13,185                                                                   75,472                                                                   55,988
Total liquids sales volume (Mbbls)                                                                                 3,851                                                                  2,197                                                                   12,578                                                                    9,331
 Liquids sales                                                                                                 $  84,517                                                              $  48,903                                                              $   222,459                                                              $   190,527
                                                                                                                                                                                                                                                                                                                    
TOTAL PRODUCTION
Total natural gas & liquids sales, including cash settled                                                      $ 578,451                                                              $ 468,163                                                              $ 1,872,290                                                              $ 1,862,089
derivatives (d)
Total sales volume (MMcfe)                                                                                       198,399                                                                154,537                                                                  758,967                                                                  603,082
Average realized price ($/Mcfe)                                                                                $    2.92                                                              $    3.03                                                              $      2.47                                                              $      3.09
                                                                                                                                                                                                                                                                                                                                                   
(a)   The Company’s volume weighted NYMEX natural gas price (actual
                         average NYMEX natural gas price ($/MMBtu) was $2.98 and $2.27 for
                         the three months ended December 31, 2016 and 2015, respectively; and
                         $2.46 and $2.66 for the years ended December 31, 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, ethane 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 supplemental financial measure.
                          
                                                                                                                                                                      EQT PRODUCTION
                                                                                                                                                                   RESULTS OF OPERATIONS
                                                                                                                                                                                                 
                                                                                                                                             Three Months Ended                                                                                                                             Year Ended
                                                                                                                                                December 31,                                                                                                                               December 31,
                                                                                         -------------------------------------------------------------------------------------------------------------------                            -------------------------------------------------------------------------------------------------------------
                                                                                                                2016                                                 2015                                                                    2016                                             2015
                                                                                         ---------------------------------------------------                     --------------------------------------------------                     ----------------------------------------------------                     ------------------------------------------
OPERATIONAL DATA
                                                                                                                                                                                                                                                                                                                  
Sales volume detail (MMcfe):
Marcellus (a)                                                                                                  173,707                                                                131,581                                                                  660,146                                                                             505,102
Other (b)                                                                                    24,692                           22,956                             98,821                                        97,980
                                                                                         -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------------
Total production sales volume (c)                                                                              198,399                                                                154,537                                                                  758,967                                                                             603,082
                                                                                                                                                                                                                                                                                                                  
Average daily sales volume (MMcfe/d)                                                                             2,157                                                                  1,680                                                                    2,074                                                                               1,652
                                                                                                                                                                                                                                                                                                                  
Average realized price ($/Mcfe)                                                                             $     2.92                                                              $    3.03                                                              $      2.47                                                              $                 3.09
                                                                                                                                                                                                                                                                                                                  
Gathering to EQT Gathering ($/Mcfe)                                                                         $     0.46                                                              $    0.54                                                              $      0.48                                                              $                 0.51
Transmission to EQT Transmission ($/Mcfe)                                                                   $     0.22                                                              $    0.21                                                              $      0.20                                                              $                 0.20
Third party gathering and transmission ($/Mcfe)                                                             $     0.39                                                              $    0.29                                                              $      0.32                                                              $                 0.29
Processing ($/Mcfe)                                                                                         $     0.18                                                              $    0.15                                                              $      0.16                                                              $                 0.17
Lease operating expenses (LOE), excluding production taxes ($/Mcfe)                                         $     0.14                                                              $    0.18                                                              $      0.15                                                              $                 0.19
Production taxes ($/Mcfe)                                                                                   $     0.10                                                              $    0.09                                                              $      0.08                                                              $                 0.10
Production depletion ($/Mcfe)                                                                               $     1.06                                                              $    1.24                                                              $      1.06                                                              $                 1.18
                                                                                                                                                                                                                                                                                                                  
DD&A (thousands):
Production depletion                                                                                        $  209,475                                                              $ 191,910                                                              $   803,883                                                              $              713,651
Other DD&A                                                                                   14,290                           13,321                             55,135                                        51,647
                                                                                         -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------------
Total DD&A                                                                                                  $  223,765                                                              $ 205,231                                                              $   859,018                                                              $              765,298
                                                                                                                                                                                                                                                                                                                  
Capital expenditures (thousands) (d)                                                                        $  979,160                                                              $ 401,162                                                              $ 2,073,907                                                              $            1,893,750
                                                                                                                                                                                                                                                                                                                  
FINANCIAL DATA (thousands)
                                                                                                                                                                                                                                                                                                                  
Revenues:
Sales of natural gas, oil and NGLs                                                                          $  522,099                                                              $ 364,254                                                              $ 1,594,997                                                              $            1,690,360
Pipeline and net marketing services                                                                             12,852                                                                  5,223                                                                   41,048                                                                              55,542
(Loss) gain on derivatives not designated as hedges                                        (216,649 )                                           176,648                           (248,991 )                                                        385,762
                                                                                         -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------------
Total operating revenues                                                                                       318,302                                                                546,125                                                                1,387,054                                                                           2,131,664
                                                                                                                                                                                                                                                                                                                  
Operating expenses:
Gathering                                                                                                      106,076                                                                 89,918                                                                  413,758                                                                             330,562
Transmission                                                                                                   106,373                                                                 69,671                                                                  341,569                                                                             268,368
Processing                                                                                                      36,435                                                                 23,824                                                                  124,864                                                                             100,329
LOE, excluding production taxes                                                                                 27,999                                                                 28,457                                                                  112,509                                                                             116,527
Production taxes                                                                                                20,735                                                                 13,178                                                                   62,317                                                                              61,408
Exploration                                                                                                      4,026                                                                 29,842                                                                   13,410                                                                              61,970
SG&A                                                                                                            45,032                                                                 40,041                                                                  180,426                                                                             172,725
DD&A                                                                                                           223,765                                                                205,231                                                                  859,018                                                                             765,298
Impairment of long-lived assets                                                               6,939                          118,217                              6,939                                       122,469
                                                                                         -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------------
Total operating expenses                                                                                       577,380                                                                618,379                                                                2,114,810                                                                           1,999,656
Gain on sale/exchange of assets                                                               8,025                                -                              8,025                                             -
                                                                                         -------------------- -------- --------------------                      -------------------- ------- --------------------                      -------------------- --------- --------------------                      -------------------- --------------------
Operating (loss) income                                                                                     $ (251,053 )                                                            $ (72,254 )                                                            $  (719,731 )                                                            $              132,008
                                                                                         ==================== ======== ====================                      ==================== ======= ====================                      ==================== ========= ====================                      ==================== ====================
                                                                                                                                                                                                                                                                                                                                       
(a)   Includes Upper Devonian wells.
(b)                      Includes 2,971 MMcfe and 2,442 MMcfe for the three months ended
                         December 31, 2016 and 2015, respectively; and 14,612 MMcfe and 4,173
                         MMcfe of Utica sales volume for the years ended December 31, 2016
                         and 2015, respectively.
(c)                      NGLs and crude oil were converted to Mcfe at the rate of six Mcfe
                         per barrel for all periods.
(d)                      Includes cash capital expenditures of $638.4 million and non-cash
                         capital expenditures of $83.9 million related to acquisitions during
                         the three months ended December 31, 2016. Includes cash capital
                         expenditures of $1,051.2 million and non-cash capital expenditures
                         of $87.6 million related to acquisitions during the year-ended
                         December 31, 2016.
                          
                                                                                                                         EQT GATHERING
                                                                                                                     RESULTS OF OPERATIONS
                                                                                                                           
                                                                                             Three Months Ended                                                                                            Year Ended
                                                                                                December 31,                                                                                              December 31,
                                                               -------------------------------------------------------------------------                          ---------------------------------------------------------------------------------------
                                                                           2016                           2015                                             2016                                  2015
                                                               -----------------------------                     ----------------------------                     -----------------------------                     ------------------------------------------
FINANCIAL DATA                                                                                                                             (Thousands, other than per day amounts)
Firm reservation fee revenue                                                      $  90,110                                         $ 76,600                                         $ 339,237                                         $              267,517
Volumetric based fee revenues:
 Usage fees under firm contracts (a)                                                  6,893                                            7,739                                            38,408                                                         33,021
 Usage fees under interruptible contracts                          3,186                         6,362                         19,849                                      34,567
                                                               -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- --------------------
   Total volumetric based fee revenues                            10,079                        14,101                         58,257                                      67,588
                                                               -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- --------------------
     Total operating revenues                                    100,189                        90,701                        397,494                                     335,105
                                                               -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- --------------------
                                                                                                                                                                                                                     
Operating expenses:
 Operating and maintenance                                                           10,627                                            8,989                                            38,367                                                         37,011
 Selling, general and administrative                                                 10,907                                            7,004                                            39,678                                                         30,477
 Depreciation and amortization                                     7,902                         6,777                         30,422                                      24,360
                                                               -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- --------------------
   Total operating expenses                                       29,436                        22,770                        108,467                                      91,848
                                                               -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- --------------------
                                                                                                                                                                                                                     
Operating income                                                                  $  70,753                                         $ 67,931                                         $ 289,027                                         $              243,257
                                                               ==================== =======                      ==================== ======                      ==================== =======                      ==================== ====================
                                                                                                                                                                                                                     
OPERATIONAL DATA
Gathered volume (BBtu per day)
 Firm capacity reservation                                                            1,697                                            1,297                                             1,553                                                          1,140
 Volumetric based services (b)                                       285                           430                            420                                         485
                                                               -------------------- -------                      -------------------- ------                      -------------------- -------                      -------------------- --------------------
   Total gathered volume                                                              1,982                                            1,727                                             1,973                                                          1,625
                                                                                                                                                                                                                     
Capital expenditures                                                              $  47,560                                         $ 43,109                                         $ 295,315                                         $              225,537
                                                                                                                                                                                                                                          
(a)   Includes fees on volume gathered in excess of firm contracted
                         capacity.
(b)                      Includes volume gathered under interruptible contracts and volume
                         gathered in excess of firm contracted capacity.
                          
                                                                                                                                   EQT TRANSMISSION
                                                                                                                                 RESULTS OF OPERATIONS
                                                                                                                                                   
                                                                                                                     Three Months Ended                                                                                            Year Ended
                                                                                                                        December 31,                                                                                              December 31,
                                                                                        ------------------------------------------------------------------------                          ---------------------------------------------------------------------------------------
                                                                                                    2016                          2015                                             2016                                  2015
                                                                                        ----------------------------                     ----------------------------                     -----------------------------                     ------------------------------------------
FINANCIAL DATA                                                                                                                                                      (Thousands, other than per day amounts)
Firm reservation revenue                                                                                   $ 87,813                                         $ 65,139                                         $ 277,816                                         $              247,231
Volumetric based fee revenues:
 Usage fees under firm contracts (a)                                                                          3,405                                           12,429                                            45,679                                                         42,646
 Usage fees under interruptible contracts                                                  3,607                         2,444                         14,625                                       7,954
                                                                                        -------------------- ------                      -------------------- ------                      -------------------- -------                      -------------------- --------------------
   Total volumetric based fee revenues                                                     7,012                        14,873                         60,304                                      50,600
                                                                                        -------------------- ------                      -------------------- ------                      -------------------- -------                      -------------------- --------------------
     Total operating revenues                                                             94,825                        80,012                        338,120                                     297,831
                                                                                        -------------------- ------                      -------------------- ------                      -------------------- -------                      -------------------- --------------------
                                                                                                                                                                                                                                             
Operating expenses:
 Operating and maintenance                                                                                   10,899                                            9,462                                            34,846                                                         33,092
 Selling, general and administrative                                                                          8,477                                            7,320                                            33,083                                                         31,425
 Depreciation and amortization                                                            11,612                         6,236                         32,269                                      25,535
                                                                                        -------------------- ------                      -------------------- ------                      -------------------- -------                      -------------------- --------------------
   Total operating expenses                                                               30,988                        23,018                        100,198                                      90,052
                                                                                        -------------------- ------                      -------------------- ------                      -------------------- -------                      -------------------- --------------------
                                                                                                                                                                                                                                             
Operating income                                                                                           $ 63,837                                         $ 56,994                                         $ 237,922                                         $              207,779
                                                                                        ==================== ======                      ==================== ======                      ==================== =======                      ==================== ====================
                                                                                                                                                                                                                                             
OPERATIONAL DATA
Transmission pipeline throughput (BBtu per day)
 Firm capacity reservation                                                                                    2,054                                            1,730                                             1,651                                                          1,841
 Volumetric based services (b)                                                                57                           387                            430                                         281
                                                                                        -------------------- ------                      -------------------- ------                      -------------------- -------                      -------------------- --------------------
   Total transmission pipeline throughput                                                                     2,111                                            2,117                                             2,081                                                          2,122
                                                                                                                                                                                                                                             
Average contracted firm transmission reservation commitments (BBtu                                            3,485                                            2,795                                             2,814                                                          2,624
per day)
                                                                                                                                                                                                                                             
Capital expenditures                                                                                       $ 38,092                                         $ 67,065                                         $ 292,049                                         $              203,706
                                                                                                                                                                                                                                                                  
(a)   Includes commodity charges and fees on volume transported in excess
                         of firm contracted capacity.
(b)                      Includes volume transported under interruptible contracts and volume
                         transported in excess of firm contracted capacity.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170202005165r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170202005165/en/

SOURCE: EQT Corporation

EQT analyst inquiries please contact: 
Patrick Kane - Chief Investor Relations Officer, 412-553-7833 
pkane@eqt.com 
or 
EQT Midstream Partners / EQT GP Holdings analyst inquiries please contact: 
Nate Tetlow - Investor Relations Director, 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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