Consolidated Variable Interest Entities

As of September 30, 2018, the Company determined EQGP and EQM to be variable interest entities. In addition, as of December 31, 2017, RMP was also a variable interest entity. As discussed in Note B, on July 23, 2018, pursuant to the Midstream Merger Agreement, RMP and RMP's general partner were acquired by EQM and became wholly owned subsidiaries of EQM. Through EQT's ownership and control of EQGP's general partner, EQM's general partner and RMP's general partner, EQT has or had the power to direct the activities that most significantly impact the economic performance of EQGP, EQM and RMP. In addition, through EQT's limited partner interest in EQGP and EQGP's general partner interest, limited partner interest and IDRs in EQM, EQT has the obligation to absorb the losses of EQGP and EQM and the right to receive benefits from EQGP and EQM, in accordance with such interests. Furthermore, through EQT's limited partner interest and IDRs in RMP, EQT had the obligation to absorb the losses of RMP and the right to receive benefits from RMP, in accordance with such interests. As EQT has or had a controlling financial interest in, and is the primary beneficiary of, EQGP, EQM and RMP, EQT consolidates EQGP, EQM and did consolidate RMP. See Note 13 to the Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for additional information related to the consolidated variable interest entities.

The risks associated with the operations of EQGP, EQM and RMP are discussed in their respective Annual Reports on Form 10-K for the year ended December 31, 2017, as updated by any Quarterly Reports on Form 10-Q. See further discussion of the impact that EQT's ownership and control of EQGP, EQM and RMP have or had on EQT's financial position, results of operations and cash flows included in EQT's Annual Report on Form 10-K for the year ended December 31, 2017, including in the section captioned "Management's Discussion and Analysis of Financial Condition and Results of Operations." See Notes C, D and E for further discussion of EQGP, EQM and RMP, respectively.

The following table presents amounts included in the Company's Condensed Consolidated Balance Sheets that were for the use or obligation of EQGP or EQM as of September 30, 2018 and December 31, 2017.



Classification	September 30, 2018		December 31, 2017
	(Thousands)
Assets:
Cash and cash equivalents	$	6,062	$	2,857
Accounts receivable	58,358		28,804
Prepaid expenses and other	4,798		8,470
Property, plant and equipment, net	5,608,358		2,804,059
Goodwill	1,384,872		—
Intangible assets, net	586,500		—
Investment in nonconsolidated entity	1,300,430		460,546
Other assets	23,599		22,458
Liabilities:
Accounts payable	$	134,027	$	47,042
Other current liabilities	526,299		133,531
Credit facility borrowings	22,000		180,000
Senior Notes	3,455,296		987,352
Other liabilities and credits	31,010		20,273

The following table summarizes EQGP's Statements of Consolidated Operations and Cash Flows for the three and nine months ended September 30, 2018 and 2017.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(Thousands)
Operating revenues	$	364,584		$	207,193		$	1,110,307		$	609,585
Operating expenses	133,665			62,230			370,880			180,218
Other expenses	23,534			2,556			37,632			6,418
Net income	$	207,385		$	142,407		$	701,795		$	422,949

Net cash provided by operating activities	$	422,938		$	159,911		$	863,009		$	479,566
Net cash used in investing activities	(575,624		)	(117,637		)	(2,252,293		)	(324,936		)
Net cash (used in) provided by financing activities	(536,246		)	(48,128		)	1,340,446			(208,150		)

The following table presents amounts included in the Company’s Condensed Consolidated Balance Sheet that is for the use or obligation of RMP as of December 31, 2017.



Classification	December 31, 2017
	(Thousands)
Assets:
Cash and cash equivalents	$	10,538
Accounts receivable	12,246
Prepaid expenses and other	1,327
Property, plant and equipment, net	1,431,802
Goodwill	1,346,918
Liabilities:
Accounts payable	$	24,634
Other current liabilities	4,200
Credit facility borrowings	286,000
Other liabilities and credits	9,360