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Pletcher J.,EQT Production | Scarr A.,EQT Production | Smith J.,EQT Production | Swadi S.,Smith International Inc. | Rogers C.,Smith International Inc.
Proceedings - SPE Annual Technical Conference and Exhibition | Year: 2010

EQT Production has implemented a new technique for drilling horizontal wells in the hard formations of the Appalachian Basin. Air percussion drilling has been adopted for use horizontally in the Berea sandstone, a hard and abrasive sandstone reservoir that had been traditionally drilled with roller cone bits. The evolution of the technology started with a packed-hole assembly that was trialed on three wells using stabilizer placement to provide directional control in the horizontal. The results were promising as penetration rates increased, but many trips were required to keep the wellbore in the desired target zone. To improve directional control, a percussion BHA with a bent housing positive displacement motor (PDM) was implemented. The introduction of the positive displacement motor with the air hammer produced the same penetration rates seen in the packed-hole assembly while providing the directional control needed. Since mid 2009, the PDM percussion assembly has become the standard practice for drilling Berea horizontal wells, replacing the roller cone BHA. Through June 2010, over 40 wells have been drilled using the assembly. The lateral portion for a majority of the wells is now drilled in one run, reducing total drilling time from 22 to 13 days, dry hole costs by over one half and total well costs by about one third. Copyright 2010, Society of Petroleum Engineers.


News Article | December 12, 2016
Site: www.businesswire.com

PITTSBURGH--(BUSINESS WIRE)--EQT Corporation (NYSE: EQT) today announced the Company’s 2017 capital expenditure (CAPEX) forecast of $1.5 billion, excluding business development and land acquisitions, and including $1.3 billion for well development. Funding will be provided by cash generated from operations, and cash-on-hand. EQT forecasts 2017 production sales volume of 810 – 830 Bcfe, which includes volume growth of 70 Bcfe, the majority of which stems from the previous year's drilling program. The majority of the volume expected from the 2017 drilling program will be realized in 2018, at which time EQT forecasts production volume growth of 15 – 20% per year for several years. EQT’s 2017 CAPEX forecast excludes CAPEX for EQT Midstream Partners, LP (NYSE: EQM), a master limited partnership controlled by EQT Corporation and consolidated in EQT’s financial statements. EQM announced its 2017 financial and CAPEX forecast today in a separate news release, which can be found at www.eqtmidstreampartners.com. In 2017, the Company plans to drill 119 Marcellus wells with an average lateral length of 7,000 feet – all of which will be on multi-well pads to maximize operational efficiency and well economics. The Marcellus drilling program will focus on the Company’s core Marcellus acreage, with 76 wells in Pennsylvania and 43 wells in West Virginia. The Company plans to drill 81 Upper Devonian wells with an average lateral length of 7,300 feet. These wells will be limited to co-development on Marcellus pads in Pennsylvania. The Company plans to drill seven deep Utica exploratory wells with an average lateral length of 6,800 feet. EQT owns approximately 490,000 net acres that the Company believes to be prospective for the deep Utica. Also announced today by EQT, is a modification to the Company’s midstream agreement with Williams Ohio Valley Midstream, LLC (Williams) related to the dedicated portion of the approximately 62,500 Marcellus acres EQT acquired from Statoil USA Onshore Properties, Inc. earlier this year. Under the new agreement, EQT has committed firm volumes of 50 MMcfe per day initially and growing to 200 MMcfe per day by the fourth year. In addition to the existing right to provide wellhead gathering services, EQM can now provide high pressure pipeline services on the volume in excess of the commitment. EQM is currently coordinating with EQT Production to design a midstream system to support the Marcellus well development plans on this acreage. The investment opportunity for EQM is estimated to be $600 million for full buildout of wellhead gathering and high pressure pipeline services. Based on current NYMEX natural gas prices, adjusted operating cash flow attributable to EQT is projected to be approximately $1,200 million for 2017, which includes approximately $200 million from EQT’s interest in EQT GP Holdings, LP (NYSE: 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 EBITDA, respectively, calculated in accordance with GAAP. *EQT will utilize Rex 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. The Company’s total natural gas production hedge position through 2019 is: The Company intends to release full-year 2016 earnings and host a live webcast for security analysts on February 2, 2017. The webcast will be available at www.eqt.com and will begin at 10:30 a.m. ET. Adjusted operating cash flow attributable to EQT is a non-GAAP supplemental financial measure that is presented as an indicator of an oil and gas exploration and production company’s ability to internally fund exploration and development activities and to service or incur additional debt. EQT includes this information because management believes that changes in operating assets and liabilities relate to the timing of cash receipts and disbursements and therefore may not relate to the period in which the operating activities occurred. Adjusted operating cash flow attributable to EQT is EQT’s net cash provided by operating activities, less changes in other assets and liabilities, adjusted to exclude EQM adjusted EBITDA (a non-GAAP supplemental measure described below), and to include the EQGP cash distribution payable to EQT. Management believes that removing the impact on operating cash flows of the public unitholders of EQM and EQGP that is otherwise required to be consolidated in EQT’s results provides useful information to an EQT investor. Adjusted operating cash flow attributable to EQT should not be considered as an alternative to net cash provided by operating activities presented in accordance with GAAP. 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. As used in this news release, EBITDA is defined as earnings before interest, taxes, depreciation, and amortization expense. EBITDA is not a financial measure calculated in accordance with GAAP. EBITDA is a non-GAAP supplemental financial measure that EQT’s management and external users of EQT’s financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess: (i) EQT’s performance versus prior periods; (ii) EQT’s operating performance as compared to other companies in its industry; (iii) the ability of EQT’s assets to generate sufficient cash flow to make distributions to its investors; (iv) EQT’s ability to incur and service debt and fund capital expenditures; and (v) the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. EQT has not provided projected net income (loss) or reconciliations of projected EBITDA to projected net income (loss), the most comparable financial measure calculated in accordance with GAAP. EQT does not provide guidance with respect to its average realized price or income taxes, among other items, that are reconciling items between EBITDA and net income (loss). Natural gas prices are volatile and out of EQT’s control, and the timing of transactions and the income tax effects of future transactions and other items are difficult to accurately predict. Further, management believes a reliable forecasted effective tax rate is not available because small fluctuations in estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate for 2017. Consequently, EQT is not able to provide a projected net income (loss) that would be useful to investors. Therefore, projected net income (loss) and reconciliations of projected EBITDA to projected net income (loss) are not available without unreasonable effort. As used in this news release, EQT Midstream Partners (EQM) defines adjusted EBITDA as EQM’s net income plus EQM’s interest expense, depreciation and amortization expense, income tax expense (benefit) (if applicable), payments received by EQM from its preferred interest in EQT Energy Supply LLC, and non-cash long-term compensation expense less EQM’s other non-cash adjustments (if applicable), equity income, AFUDC-equity, capital lease payments and adjusted EBITDA of acquisitions prior to the acquisition dates. EQM 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 believes that EQM adjusted EBITDA provides useful information to investors in assessing EQT's financial condition and results of operations. EQM 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. EQM 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 EQM adjusted EBITDA may be defined differently by other companies in EQT's or EQM's industries, the definition of EQM adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing the utility of the measure. 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. 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. Disclosures in this news release contain certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Statements that do not relate strictly to historical or current facts are forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this news release specifically include the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of the Company and its subsidiaries, including guidance regarding the Company's strategy to develop its Marcellus, deep Utica and other reserves; drilling plans and programs (including the number, type, feet of pay and location of wells to be drilled, the number and type of drilling rigs and the number of multi-pad wells); projected production sales volume and growth rates (including liquids sales volume and growth rates); technology, (including drilling and completion techniques); projected unit costs, average differential and net marketing services revenue; projected adjusted operating cash flow attributable to EQT, projected EBITDA, including projected EQM adjusted EBITDA, and projected net income attributable to noncontrolling interests; projected capital expenditures, capital budget, and sources of funds for capital expenditures; future Company plans for volumes in excess of the Company’s commitments to Williams; and projected cash flows resulting from the Company’s limited partner interests in EQGP. These statements involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The Company has based these forward-looking statements on current expectations and assumptions about future events. While the Company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond the Company's control. The risks and uncertainties that may affect the operations, performance and results of the Company's business and forward-looking statements include, but are not limited to, those set forth under Item 1A, "Risk Factors" of the Company's Form 10-K for the year ended December 31, 2015, as updated by any subsequent Form 10-Qs. Any forward-looking statement speaks only as of the date on which such statement is made and the Company does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise. Information in this news release regarding EQGP and its subsidiaries, including EQM, is derived from publicly available information published by the partnerships.


Franquet J.A.,Baker Hughes Inc. | Mitra A.,Baker Hughes Inc. | Warrington D.S.,Baker Hughes Inc. | Moos D.,Baker Hughes Inc. | And 2 more authors.
Society of Petroleum Engineers - Canadian Unconventional Resources Conference 2011, CURC 2011 | Year: 2011

Exploitation of unconventional shale gas reservoirs depends on successful hydraulic fracturing and horizontal drilling. Mineralogy, organic matter content, acoustic anisotropy, and in-situ stress all play an important role for well completion design. As part of a comprehensive site study of the Upper Devonian Huron shale, borehole acoustic and mineralogy logging data, in addition to conventional logs, were acquired in a vertical well prior to hydraulic fracturing and microseismic monitoring of a series of laterals drilled from the same location. The acoustic data was processed for compressional wave, cross-dipole shear, Stoneley-derived horizontal shear, radial velocity variations, and borehole Stoneley reflectivity indicators. The cross-dipole anisotropy and the near-well radial slowness variations provided information about intrinsic anisotropy and stress sensitivity to determine the source of dipole-mode anisotropy. Significant transverse acoustic anisotropy was detected and used to obtain vertical and horizontal dynamic elastic properties. The mineralogy and petrophysical analysis were used to generate a micromechanical constitutive model to reproduce numerically the laboratory stress-strain behavior of the rock, from which quasi-static mechanical properties were determined. These were calibrated against triaxial tests on core samples from an offset well, and the vertical and horizontal static elastic rock properties were used to estimate the vertical variation of the horizontal stress. The resulting stress profile, along with accurate mineralogy and petrophysical analysis, provides important information to select the best vertical locations of lateral wells and to identify natural fracture barriers. Copyright 2011, Society of Petroleum Engineers.


Blood D.R.,EQT Production | Lash G.G.,State University of New York at Fredonia
Special Paper of the Geological Society of America | Year: 2015

Pyrite framboid diameters were examined in 31 samples taken from 2 Marcellus Shale cores recovered from Greene County, Pennsylvania, and Upshur County, West Virginia (USA). Analysis of framboid diameters in those samples from the more proximally located Upshur County core suggests that anoxic to anoxic-euxinic conditions persisted during accumulation of the transgressive-regressive cycle (MSS1) that comprises the Union Springs Member of the Marcellus Shale, with intermittent episodes of dysoxia. An increased abundance of large framboids documented from the overlying transgressive-regressive cycle (MSS2), which comprises the bulk of the Oatka Creek Member of the Marcellus Shale, indicates improved bottom-water conditions. Redox conditions recorded by framboid diameters of the MSS1 cycle of the Greene County core are generally similar to those of the Upshur County core; however, conditions in that region of the basin from which the Greene County core was recovered appear to have remained dominantly anoxic to anoxic-euxinic. Furthermore, the presence of small syngenetic framboids and large diagenetic framboids in the same thin section samples suggests that redox conditions fluctuated on a temporal scale beyond that observed at the scale of a centimeter-scale thin section. Framboid diameter trends established for both cores enhance our understanding of how much redox conditions varied both spatially and stratigraphically during accumulation of the Marcellus Shale. © 2015 The Geological Society of America. All rights reserved.


Lash G.G.,State University of New York at Fredonia | Blood D.R.,EQT Production
Marine and Petroleum Geology | Year: 2014

Variations in the concentration of redox sensitive elements combined with pyrite framboid size data documented from a Marcellus Formation (Middle Devonian) core recovered from southwestern Pennsylvania elucidate the redox, organic matter accumulation, and diagenetic history of these deposits in this region of the basin. Uranium and Mo enrichment and Fe/Al display sharp increases coincident with diminishing Th/U upward through the initial 3rd order trangressive systems tract (lower Union Springs Member). These data as well as abundant small (<6μm) pyrite framboids record establishment of strongly reducing benthic conditions, perhaps related to the expansion of an oxygen minimum zone induced by increased surface productivity. Strongly anoxic, even euxinic, conditions were interrupted by episodes of dysoxia, perhaps seasonal or longer term. Overlying regressive systems tract (RST) deposits record modestly improved redox conditions, likely a reflection of a receding oxygen minimum zone as base level dropped. A subsequent 3rd order base level rise and renewed expansion of the oxygen minimum zone triggered by increased surface productivity resulted in the accumulation of the organic-rich lower Oatka Creek Member. Still, the mix of abundant small and subordinate large (>10μm) framboids preserves the record of oxygen deficient to sulfidic bottom conditions frequently interrupted by episodes of (dys)oxia. Improving redox conditions through the overlying RST were accompanied by a two-fold increase in Al and consequent dilution of the organic matter flux and authigenic trace metal uptake at the sediment-water interface. The upper half of the Oatka Creek comprises a depositional sequence not obvious from core inspection or gamma-ray signature but revealed by Mo enrichment and Al concentration profiles. Diagenetic modification of the Marcellus includes several horizons of authigenic calcium carbonate concretions and marked Ba enrichment. Both features reflect the effects of non-steady state microbial diagenesis within a methane-rich sedimentary column. © 2014 Elsevier Ltd.


Starr J.,EQT Production
SEG Technical Program Expanded Abstracts | Year: 2011

The closure stress is the stress needed to hold open a fracture in rock once it has been created. Understanding closure stress is important when developing a gas shale like the Marcellus in the Appalachian Basin. It determines the existence of stress barriers, the extent of the expected drainage area, the type of proppant needed, etc. As such, it affects the completion design and drilling targets. Closure stress is commonly assumed to be equivalent to the minimum horizontal stress and can be calculated using the uniaxial stress equation. This equation has several parameters and has been expanded to account for tectonic strain and anisotropic tectonic strain (Theircelin and Plumb 1994). However, the goal of this paper is to simplify this equation and limit the parameters to something that can be estimated readily from seismic data. This paper makes the case that in the Appalachian Basin, estimating Poisson's ratio is sufficient to understand the changes in the stress gradient of the Marcellus shale relative to the surrounding layers both vertically and laterally. © 2011 Society of Exploration Geophysicists.


Zinn C.,EQT Production | Blood D.R.,EQT Production | Morath P.,EQT Production
SPE Eastern Regional Meeting | Year: 2011

It is common industry knowledge that horizontal shale gas development is enhanced by drilling in the orientation parallel to the local minimum principal horizontal stress such that the induced hydraulic fractures grow parallel to the maximum horizontal stress during completion. Given the incongruous nature of mineral leases in the Marcellus Shale play, operators often drill in orientations that are sub parallel to this preferred azimuth in the interest of saturating acreage positions. What remains unknown is the degree to which this deviation from the preferred azimuth affects treatment pressures and/or more importantly well productivity. This case study will incorporate proprietary and public data in order to relate Marcellus well productivity to deviation from preferred horizontal well azimuth. In the effort to assess the impact horizontal wellbore azimuth bears on completions and well productivity, the productivity of wells in EQT's core development areas has been correlated with the well's deviation from minimum horizontal principal stress as determined from the analysis of over 25 image logs and cores across Pennsylvania and West Virginia. Furthermore, over 500 public domain wells released from the PA DEP and WV Geological Survey have been parsed and normalized to determine whether or not similar correlations can be made. The conclusions drawn from this study will determine if productivity is related to preferred wellbore azimuth and the regional variability of the relationship. Technical, logistical, and economic analysis will be applied to conclusions. This study has drawn some value from initial Marcellus public datasets that, while statistically significant in size, often lack in detail. The shortcomings of this large dataset will be normalized by the detailed datasets acquired from EQT's core development areas. The ability to relate deviation from preferred wellbore azimuth to productivity will allow EQT and other operators to develop acreage more efficiently and optimize capital allocation. Copyright 2011, Society of Petroleum Engineers.


News Article | February 20, 2017
Site: www.ogj.com

EQT Production Co., a subsidiary of Pittsburgh-based EQT Corp., has won a bankruptcy auction to acquire 53,400 core net Marcellus acres, including drilling rights on 44,100 net acres in the Utica, from Stone Energy Corp., Lafayette, La., for $527 million.


News Article | February 15, 2017
Site: www.ogj.com

EQT Production Co., a subsidiary of Pittsburgh-based EQT Corp., has won a bankruptcy auction to acquire 53,400 core net Marcellus acres, including drilling rights on 44,100 net acres in the Utica, from Stone Energy Corp., Lafayette, La., for $527 million.


PITTSBURGH--(BUSINESS WIRE)--EQT Midstream Partners, LP (NYSE: EQM) today announced its 2017 financial and capital expenditure (CAPEX) forecast. EQM net income is projected to be $555 - $595 million, adjusted EBITDA is expected to be $670 - $710 million, and distributable cash flow is expected to be $590 - $630 million. At least 80% of 2017 revenue is expected to be generated from firm reservation fees under long-term contracts. See the Non-GAAP Disclosures section for important disclosures regarding adjusted EBITDA and distributable cash flow, which are non-GAAP financial measures, along with disclosures regarding the most comparable GAAP financial measures. Also announced today by EQT, is a modification to the Company’s midstream agreement with Williams Ohio Valley Midstream, LLC (Williams) related to the dedicated portion of the approximately 62,500 Marcellus acres EQT acquired from Statoil USA Onshore Properties, Inc. earlier this year. Under the new agreement, EQT has committed firm volumes of 50 MMcfe per day initially and growing to 200 MMcfe per day by the fourth year. In addition to the existing right to provide wellhead gathering services, EQM can now provide high pressure pipeline services on the volume in excess of the commitment. EQM is currently coordinating with EQT Production to design a midstream system to support the Marcellus well development plans on this acreage. The investment opportunity for EQM is estimated to be $600 million for full buildout of wellhead gathering and high pressure pipeline services. EQM forecasts 20% growth in the annual per unit distribution in 2017, which will result in EQT GP Holdings, LP (NYSE: EQGP) per unit distribution growth of approximately 40%. Beginning in 2018, EQM is targeting annual per unit distribution growth of 15% - 20% for several years. For EQGP, the corresponding annual per unit distribution growth target is 30% - 40%. EQM forecasts 2017 growth CAPEX and capital contributions to Mountain Valley Pipeline, LLC (MVP JV), to be approximately $500 - $850 million; and ongoing maintenance CAPEX to be approximately $35 million, net of expected reimbursements. The capital investments are related to materials, land, engineering design, environmental work, and construction activities. Based on the previously issued Notice of Schedule by the Federal Energy Regulatory Commission (FERC), MVP JV expects the Final Environmental Impact Study to be published in March 2017. MVP JV has secured a total of 2 Bcf per day of firm capacity commitments at 20-year terms and is targeting a late 2018 in-service date. EQM plans to install approximately 30 miles of gathering pipeline and 10,000 horsepower compression in its gathering systems across Northern West Virginia and Southwestern Pennsylvania during 2017. The gathering investments are supported by EQT Production development on its core Marcellus acreage position. EQM transmission investments include Equitrans expansion projects and modernization projects on the Allegheny Valley Connector (AVC). The Equitrans expansion projects are designed to increase deliverable capacity to EQM’s Mobley hub, which is the origin of both the Ohio Valley Connector and the MVP. The projects include additional compression, pipeline looping and new header pipelines. In total, the projects will add up to 1.5 Bcf per day of capacity by the end of 2018, consistent with the expected MVP in-service date. The AVC modernization projects primarily consist of the replacement of approximately 20 miles of pipeline. On October 1, 2016, phase one of the natural gas header pipeline for Range Resources was placed into service, providing 75 MMcf per day of firm capacity. EQM expects to complete construction of the project’s second phase in Q2 of 2017, which includes the installation of approximately 25 miles of pipeline and 32,000 horsepower compression. Upon completion, the header pipeline will provide total firm capacity of 600 MMcf per day, which is fully reserved under a ten-year contract. EQM and EQGP intend to release full-year 2016 earnings and host a live webcast for security analysts on February 2, 2017. The webcast will be available at www.eqtmidstreampartners.com and will begin at 11:30 a.m. ET. As used in this news release, EQM defines adjusted EBITDA as net income plus interest expense, depreciation and amortization expense, income tax expense (benefit) (if applicable), Preferred Interest payments received post conversion and non-cash long-term compensation expense less other non-cash adjustments (if applicable), equity income, AFUDC – equity, capital lease payments and adjusted EBITDA of acquisitions prior to the acquisition dates. As used in this news release, EQM defines distributable cash flow as adjusted EBITDA less interest expense excluding capital lease interest and interest income on the Preferred Interest, capitalized interest and AFUDC – debt, and ongoing maintenance capital expenditures net of reimbursements. Distributable cash flow should not be viewed as indicative of the actual amount of cash that EQM has available for distributions from operating surplus or that EQM plans to distribute. Adjusted EBITDA and distributable cash flow are non-GAAP supplemental financial measures that management and external users of EQM’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, use to assess: EQM believes that adjusted EBITDA and distributable cash flow provide useful information to investors in assessing EQM’s results of operations and financial condition. Adjusted EBITDA and distributable cash flow should not be considered as alternatives to net income, operating income, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities. Additionally, because adjusted EBITDA and distributable cash flow may be defined differently by other companies in its industry, EQM’s definitions of adjusted EBITDA and distributable cash flow may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. EQM has not provided projected net cash provided by operating activities or reconciliations of its projected adjusted EBITDA and projected distributable cash flow to projected net income and projected net cash provided by operating activities, the most comparable financial measures calculated in accordance with GAAP. EQM 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. EQM is unable to project these timing differences with any reasonable degree of accuracy to a specific day, three or more months in advance. Therefore, EQM is unable to provide projected net cash provided by operating activities, or the related reconciliation of projected distributable cash flow to projected net cash provided by operating activities. Further, EQM does not provide guidance with respect to the intra-year timing of its or MVP JV’s capital spending, which impact AFUDC-debt and equity and equity earnings, among other items, that are reconciling items between adjusted EBITDA and 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 net income, adjusted EBITDA and distributable cash flow to allow for the variability in the timing of spending and the impact on the related reconciling items, many of which interplay with each other. Therefore, the reconciliations of projected adjusted EBITDA to projected net income and projected net cash provided by operating activities to distributable cash flow are not available without unreasonable effort. 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. 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. 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 EQGP and its subsidiaries, including EQM, including guidance regarding infrastructure programs (including the timing, cost, capacity, expected interconnects with facilities and pipelines and sources of funding with respect to transmission and gathering projects, including the MVP project); the timing, cost, capacity and expected interconnects with facilities and pipelines of the MVP; compound annual growth rate; projected capital commitments, projected capital contributions and projected capital expenditures, including the amount and timing of capital expenditures reimbursable by EQT, capital budget and sources of funds for capital expenditures; distribution amounts, rates and growth; projected net income, projected adjusted EBITDA and projected distributable cash flow; projected revenues generated from firm reservation fees under long-term contracts; future EQT plans for volumes in excess of EQT’s commitments to Williams; and liquidity and financing requirements, including funding sources and availability. 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. EQM and EQGP have based these forward-looking statements on current expectations and assumptions about future events. While EQM and EQGP consider 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 partnerships’ control. The risks and uncertainties that may affect the operations, performance and results of EQM’s and EQGP’s business and forward-looking statements include, but are not limited to, those set forth under Item 1A, “Risk Factors” of EQM’s Form 10-K for the year ended December 31, 2015 as filed with the SEC and Item 1A, “Risk Factors” of EQGP’s Form 10-K for the year ended December 31, 2015 as filed with the SEC, in each case as may be updated by any subsequent Form 10-Qs. Any forward-looking statement speaks only as of the date on which such statement is made, and neither EQM nor EQGP intends 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 EQT Corporation and its subsidiaries, other than EQM and EQGP, is derived from publicly available information published by EQT.

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