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Financial Information by Business Segment
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Financial Information by Business Segment
Financial Information by Business Segment
 
Operating segments are revenue-producing components of the enterprise for which separate financial information is produced internally and which are subject to evaluation by the Company’s chief operating decision maker in deciding how to allocate resources.
 
The Company reports its operations in two segments, which reflect its lines of business.  The EQT Production segment includes the Company’s exploration for, development and production of and sales of, natural gas and natural gas liquids (NGLs) in the Appalachian and Permian Basins.  The EQT Midstream segment’s operations include the natural gas gathering, transmission and storage activities of the Company, including ownership and operation of EQGP and EQM. EQT Midstream also provides marketing services for the benefit of EQT Production.

Operating segments are evaluated on their contribution to the Company’s consolidated results based on operating income. Other income, interest and income taxes are managed on a consolidated basis. Headquarters’ costs are billed to the operating segments based upon an allocation of the headquarters’ annual operating budget.  Differences between budget and actual headquarters’ expenses are not allocated to the operating segments.
 
Substantially all of the Company’s operating revenues, income from operations and assets are generated or located in the United States.
Three Months Ended June 30, 2016
EQT
Production
 
EQT Midstream
 
Intersegment Eliminations
 
EQT Corporation
Revenues:
 
 
 
 
 
 
 
Sales of natural gas, oil and NGLs
$
304,532

 
$
—

 
$
—

 
$
304,532

Pipeline and marketing services
2,123

 
214,298

 
(158,729
)
 
57,692

Loss on derivatives not designated as hedges
(234,693
)
 
—

 
—

 
(234,693
)
Total operating revenues
$
71,962

 
$
214,298

 
$
(158,729
)
 
$
127,531

Three Months Ended June 30, 2015
EQT
Production (a)
 
EQT Midstream
 
Intersegment Eliminations (a)
 
EQT Corporation
Revenues:
 
 
 
 
 
 
 
Sales of natural gas, oil and NGLs
$
373,756

 
$
—

 
$
—

 
$
373,756

Pipeline and marketing services
9,822

 
193,348

 
(141,597
)
 
61,573

Gain (loss) on derivatives not designated as hedges
5,177

 
(918
)
 
—

 
4,259

Total operating revenues
$
388,755

 
$
192,430

 
$
(141,597
)
 
$
439,588

Six Months Ended June 30, 2016
EQT Production
 
EQT Midstream
 
Intersegment Eliminations
 
EQT Corporation
Revenues:
 
 
 
 
 
 
 
Sales of natural gas, oil and NGLs
$
668,959

 
$
—

 
$
—

 
$
668,959

Pipeline and marketing services
6,709

 
439,027

 
(316,397
)
 
129,339

Loss on derivatives not designated as hedges
(125,698
)
 
—

 
—

 
(125,698
)
Total operating revenues
$
549,970

 
$
439,027

 
$
(316,397
)
 
$
672,600


Six Months Ended June 30, 2015
EQT
Production (a)
 
EQT Midstream
 
Intersegment Eliminations (a)
 
EQT Corporation
Revenues:
 
 
 
 
 
 
 
Sales of natural gas, oil and NGLs
$
960,164

 
$
—

 
$
—

 
$
960,164

Pipeline and marketing services
22,959

 
402,228

 
(278,798
)
 
146,389

Gain (loss) on derivatives not designated as hedges
49,423

 
(1,572
)
 
—

 
47,851

Total operating revenues
$
1,032,546

 
$
400,656

 
$
(278,798
)
 
$
1,154,404


(a)
For the three and six months ended June 30, 2016,  EQT Production presented affiliated gathering and transmission costs as operating expenses for consistency with the presentation of third party costs.  Historically, these affiliated costs have been presented as revenue deductions.  Certain previously reported amounts have been reclassified to conform with current year presentation.

 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
 
(Thousands)
Operating (loss) income:
 

 
 

 
 

 
 

EQT Production
$
(444,000
)
 
$
(66,886
)
 
$
(455,254
)
 
$
118,957

EQT Midstream
124,528

 
108,192

 
266,387

 
237,931

Unallocated expenses (b)
(5,020
)
 
(8,272
)
 
(8,424
)
 
(9,095
)
Total operating (loss) income
$
(324,492
)
 
$
33,034

 
$
(197,291
)
 
$
347,793


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

Reconciliation of operating (loss) income to net (loss) income:
Total operating (loss) income
$
(324,492
)
 
$
33,034

 
$
(197,291
)
 
$
347,793

Other income
7,644

 
2,689

 
12,484

 
3,628

Interest expense
36,305

 
36,833

 
72,485

 
74,049

Income tax benefit
(172,346
)
 
(64,857
)
 
(164,910
)
 
(7,543
)
Net (loss) income
$
(180,807
)
 
$
63,747

 
$
(92,382
)
 
$
284,915


 
As of June 30, 2016
 
As of December 31, 2015
 
(Thousands)
Segment assets:
 

 
 

EQT Production
$
8,800,022

 
$
8,995,853

EQT Midstream
3,576,276

 
3,226,138

Total operating segments
12,376,298

 
12,221,991

Headquarters assets, including cash and short-term investments
2,406,888

 
1,754,181

Total assets
$
14,783,186

 
$
13,976,172


 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
 
(Thousands)
Depreciation, depletion and amortization:
 

 
 

 
 

 
 

EQT Production
$
197,864

 
$
173,331

 
$
392,700

 
$
344,794

EQT Midstream
26,678

 
23,393

 
53,011

 
46,588

Other
87

 
95

 
149

 
182

Total
$
224,629

 
$
196,819

 
$
445,860

 
$
391,564

 
 
 
 
 
 
 
 
Expenditures for segment assets (c):
 

 
 

 
 

 
 

EQT Production (d)
$
237,043

 
$
520,315

 
$
468,656

 
$
1,002,289

EQT Midstream
201,211

 
164,542

 
342,131

 
237,117

Other
1,175

 
716

 
2,188

 
1,609

Total
$
439,429

 
$
685,573

 
$
812,975

 
$
1,241,015

 
(c)
Includes a portion of non-cash stock-based compensation expense and the impact of capital accruals.
(d)
Expenditures for segment assets in the EQT Production segment include $34.8 million and $88.1 million for property acquisitions during the three months ended June 30, 2016 and 2015, respectively, and $68.1 million and $139.1 million for property acquisitions during the six months ended June 30, 2016 and 2015, respectively.