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Financial Information by Business Segment | 9 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
Financial Information by Business Segment | Financial Information by Business Segment Prior to the Rice Merger, the Company reported its results of operations through three business segments: EQT Production, EQT Gathering and EQT Transmission. These reporting segments reflected the Company's lines of business and were reported in the same manner in which the Company evaluated its operating performance through September 30, 2017. Following the Rice Merger, the Company adjusted its internal reporting structure to incorporate the newly acquired assets. The Company conducted its business through five business segments: EQT Production, EQM Gathering (formerly known as EQT Gathering), EQM Transmission (formerly known as EQT Transmission), RMP Gathering and RMP Water. On July 23, 2018, pursuant to the Midstream Merger Agreement, RMP and the RMP General Partner each became wholly owned subsidiaries of EQM as a result of the Midstream Mergers. The Company now conducts its business through four business segments: EQT Production, EQM Gathering, EQM Transmission and EQM Water. Rice Olympus, Strike Force Holdings and Rice West Virginia were businesses and the Drop-Down Transaction was a transaction between entities under common control; therefore, EQM recorded the assets and liabilities of these entities at their carrying amounts to EQT on the effective date of the transaction. EQM also recast its consolidated financial statements to retrospectively reflect the pre-acquisition results as if the entities were owned by EQM from the date of the Rice Merger, November 13, 2017, as that is the date those entities came under the common control of EQT. In addition, the assets associated with the investment in the MVP Joint Venture were included within the headquarters segment assets balance prior to June 30, 2018. The investment in the MVP Joint Venture is now included in the transmission segment as this segment classification better aligns with the ultimate operations of the MVP. Segment asset balances at December 31, 2017 have been reclassified to conform to this presentation.
Three Months Ended September 30, 2018 | EQT Production |  | EQM Gathering |  | EQM Transmission |  | EQM Water |  | Intersegment Eliminations |  | EQT Corporation
Revenues: | (Thousands)
Sales of natural gas, oil and NGLs | $ | 1,046,989 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,046,989 |
Pipeline, water and net marketing services | 6,132 |  |  | 252,861 |  |  | 89,350 |  |  | 22,373 |  |  | (255,760 | ) |  | 114,956 |
Loss on derivatives not designated as hedges | (3,075 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (3,075 | )
Total operating revenues | $ | 1,050,046 |  |  | $ | 252,861 |  |  | $ | 89,350 |  |  | $ | 22,373 |  |  | $ | (255,760 | ) |  | $ | 1,158,870 |
Three Months Ended September 30, 2017 | EQT Production |  | EQM Gathering |  | EQM Transmission |  | Intersegment Eliminations |  | EQT Corporation
Revenues: | (Thousands)
Sales of natural gas, oil and NGLs | $ | 552,953 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 552,953 |
Pipeline and net marketing services | 9,140 |  |  | 116,522 |  |  | 89,771 |  |  | (144,598 | ) |  | 70,835 |
Gain on derivatives not designated as hedges | 35,625 |  |  | — |  |  | — |  |  | — |  |  | 35,625 |
Total operating revenues | $ | 597,718 |  |  | $ | 116,522 |  |  | $ | 89,771 |  |  | $ | (144,598 | ) |  | $ | 659,413 |
Nine Months Ended September 30, 2018 | EQT Production |  | EQM Gathering |  | EQM Transmission |  | EQM Water |  | Intersegment Eliminations |  | EQT Corporation
Revenues: | (Thousands)
Sales of natural gas, oil and NGLs | $ | 3,264,728 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,264,728 |
Pipeline and net marketing services | 42,382 |  |  | 731,440 |  |  | 285,429 |  |  | 93,438 |  |  | (775,913 | ) |  | 376,776 |
Gain on derivatives not designated as hedges | 5,620 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,620 |
Total operating revenues | $ | 3,312,730 |  |  | $ | 731,440 |  |  | $ | 285,429 |  |  | $ | 93,438 |  |  | $ | (775,913 | ) |  | $ | 3,647,124 |
Nine Months Ended September 30, 2017 | EQT Production |  | EQM Gathering |  | EQM Transmission |  | Intersegment Eliminations |  | EQT Corporation
Revenues: | (Thousands)
Sales of natural gas, oil and NGLs | $ | 1,803,132 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,803,132 |
Pipeline and net marketing services | 31,656 |  |  | 330,996 |  |  | 272,184 |  |  | (418,337 | ) |  | 216,499 |
Gain on derivatives not designated as hedges | 222,693 |  |  | — |  |  | — |  |  | — |  |  | 222,693 |
Total operating revenues | $ | 2,057,481 |  |  | $ | 330,996 |  |  | $ | 272,184 |  |  | $ | (418,337 | ) |  | $ | 2,242,324 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (Thousands)
Operating income (loss): |  |  |  |  |  |  |  |  |
EQT Production (a) | $ | (121,678 | ) |  | $ | 12,201 |  |  | $ | (2,127,323 | ) |  | $ | 322,634 |
EQM Gathering | 177,902 |  |  | 85,932 |  |  | 510,755 |  |  | 243,061 |
EQM Transmission | 58,691 |  |  | 59,770 |  |  | 198,784 |  |  | 189,237 |
EQM Water | (3,093 | ) |  | — |  |  | 35,627 |  |  | — |
Unallocated expenses and intersegment eliminations (b) | (39,998 | ) |  | (19,876 | ) |  | (169,566 | ) |  | (35,802 | )
Total operating income (loss) | $ | 71,824 |  |  | $ | 138,027 |  |  | $ | (1,551,723 | ) |  | $ | 719,130 |
(a) | Impairment of long-lived assets of $0.3 billion and $2.7 billion are included in EQT Production operating income for the three and nine months ended September 30, 2018, respectively. See Note Q.
(b) | Unallocated expenses consist of compensation expense, administrative costs and the amortization expense related to non-compete agreements with former Rice executives. Administrative costs include transaction costs of $29.3 million and $85.7 million for the three and nine months ended September 30, 2018, respectively. Amortization expense related to non-compete agreements with former Rice executives was $10.4 million and $31.0 million for the three and nine months ended September 30, 2018, respectively.
Intersegment eliminations include the elimination of profit on water services that are provided to EQT Production and capitalized as part of development costs of $3.2 million and $50.7 million for the three and nine months ended September 30, 2018, respectively. Reconciliation of operating income (loss) to net income (loss):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (Thousands) |  |  |  |
Total operating income (loss) | $ | 71,824 |  |  | $ | 138,027 |  |  | $ | (1,551,723 | ) |  | $ | 719,130 |
Other income | 21,755 |  |  | 6,526 |  |  | 43,092 |  |  | 15,880 |
Interest expense | 93,042 |  |  | 50,377 |  |  | 240,059 |  |  | 137,110 |
Income tax (benefit) expense | (62,911 | ) |  | (11,281 | ) |  | (503,505 | ) |  | 119,093 |
Net income (loss) | $ | 63,448 |  |  | $ | 105,457 |  |  | $ | (1,245,185 | ) |  | $ | 478,807 |
| September 30, 2018 |  | December 31, 2017
| (Thousands)
Segment assets: |  |  |  |  |
EQT Production | $ | 19,278,308 |  |  | $ | 21,015,132 |
EQM Gathering | 5,994,891 |  |  | 5,681,404 |
EQM Transmission | 2,813,644 |  |  | 1,923,427 |
EQM Water | 141,403 |  |  | 185,079 |
Total operating segments | 28,228,246 |  |  | 28,805,042 |
Headquarters assets, including cash and short-term investments | 433,083 |  |  | 717,562 |
Total assets | $ | 28,661,329 |  |  | $ | 29,522,604 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (Thousands)
Depreciation and depletion: (c) |  |  |  |  |  |  |  |  |
EQT Production | $ | 391,083 |  |  | $ | 224,103 |  |  | $ | 1,161,718 |  |  | $ | 654,411 |
EQM Gathering | 25,359 |  |  | 9,983 |  |  | 72,309 |  |  | 28,398 |
EQM Transmission | 12,357 |  |  | 12,261 |  |  | 37,228 |  |  | 35,793 |
EQM Water | 5,851 |  |  | — |  |  | 17,420 |  |  | — |
Other | 661 |  |  | 213 |  |  | 2,201 |  |  | 693 |
Total | $ | 435,311 |  |  | $ | 246,560 |  |  | $ | 1,290,876 |  |  | $ | 719,295 |
Expenditures for segment assets: (d) |  |  |  |  |  |  |  |  |
EQT Production (e) | $ | 855,494 |  |  | $ | 449,303 |  |  | $ | 2,225,435 |  |  | $ | 1,850,482 |
EQM Gathering | 194,477 |  |  | 48,182 |  |  | 515,072 |  |  | 150,728 |
EQM Transmission | 37,626 |  |  | 22,312 |  |  | 84,517 |  |  | 73,679 |
EQM Water | 7,981 |  |  | — |  |  | 17,358 |  |  | — |
Other and intersegment eliminations (f) | 10,284 |  |  | 2,502 |  |  | (32,864 | ) |  | 7,097 |
Total | $ | 1,105,862 |  |  | $ | 522,299 |  |  | $ | 2,809,518 |  |  | $ | 2,081,986 |
(c) | Excludes amortization of intangible assets.
(d) | Includes the capitalized portion of non-cash stock-based compensation costs, non-cash acquisitions and the impact of capital accruals. The impact of accrued capital expenditures includes the reversal of the prior period accrual as well as the current period estimate, both of which are non-cash items. The net impact of these non-cash items was $(51.8) million and $44.3 million for the three months ended September 30, 2018 and 2017, respectively, and $(45.2) million and $102.7 million for the nine months ended September 30, 2018 and 2017, respectively. These non-cash items are excluded from capital expenditures on the Statements of Condensed Consolidated Cash Flows. Expenditures for segment assets does not include consideration for the Rice Merger.
(e) | The three and nine months ended September 30, 2017 included $7.8 million and $819.0 million of cash capital expenditures, respectively, and the nine months ended September 30, 2017 included $7.5 million of non-cash capital expenditures for the acquisitions discussed in Note P.
(f) | Intersegment eliminations include profit on water services that are provided to EQT Production and capitalized as part of development costs.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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