Document and Entity Information
Document and Entity Information shares in Thousands | 9 Months Ended |
Sep. 30, 2018shares | |
Document and Entity Information | |
Entity Registrant Name | EQT Corp |
Entity Central Index Key | 33,213 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Emerging Growth | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 254,426 |
Statements of Consolidated Oper
Statements of Consolidated Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues: | ||||
Sales of natural gas, oil and NGLs | $ 1,158,418 | $ 3,613,395 | ||
(Loss) gain on derivatives not designated as hedges | (3,075) | $ 35,625 | 5,620 | $ 222,693 |
Total operating revenues | 1,158,870 | 659,413 | 3,647,124 | 2,242,324 |
Operating expenses: | ||||
Transportation and processing | 186,407 | 136,219 | 576,597 | 404,743 |
Operation and maintenance | 29,892 | 19,589 | 82,218 | 54,721 |
Production | 42,751 | 39,513 | 149,471 | 129,461 |
Exploration | 15,772 | 2,436 | 42,058 | 9,039 |
Selling, general and administrative | 65,400 | 66,263 | 195,828 | 190,891 |
Depreciation and depletion | 435,311 | 246,560 | 1,290,876 | 719,295 |
Impairment/loss on sale of long-lived assets | 259,279 | 0 | 2,706,438 | 0 |
Transaction costs | 31,506 | 10,806 | 93,176 | 15,044 |
Amortization of intangible assets | 20,728 | 0 | 62,185 | 0 |
Total operating expenses | 1,087,046 | 521,386 | 5,198,847 | 1,523,194 |
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 (loss) before income taxes | 537 | 94,176 | (1,748,690) | 597,900 |
Income tax (benefit) expense | (62,911) | (11,281) | (503,505) | 119,093 |
Net income (loss) | 63,448 | 105,457 | (1,245,185) | 478,807 |
Less: Net income attributable to noncontrolling interests | 103,141 | 82,117 | 362,696 | 250,349 |
Net (loss) income attributable to EQT Corporation | $ (39,693) | $ 23,340 | $ (1,607,881) | $ 228,458 |
Basic: | ||||
Weighted average common stock outstanding (in shares) | 259,560 | 173,476 | 262,816 | 173,368 |
Net (loss) income (in dollars per share) | $ (0.15) | $ 0.13 | $ (6.12) | $ 1.32 |
Diluted: | ||||
Weighted average common stock outstanding (in shares) | 259,560 | 173,675 | 262,816 | 173,572 |
Net (loss) income (in dollars per share) | $ (0.15) | $ 0.13 | $ (6.12) | $ 1.32 |
Dividends declared per common share (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.09 | $ 0.09 |
Sales of natural gas, oil and NGLs | ||||
Revenues: | ||||
Sales of natural gas, oil and NGLs | $ 1,046,989 | $ 552,953 | $ 3,264,728 | $ 1,803,132 |
Pipeline, water and net marketing services | ||||
Revenues: | ||||
Pipeline, water and net marketing services | $ 114,956 | $ 70,835 | $ 376,776 | $ 216,499 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 63,448 | $ 105,457 | $ (1,245,185) | $ 478,807 |
Net change in cash flow hedges: | ||||
Natural gas, net of tax benefit of $(150), $(955), $(413), and $(2,640) | (430) | (1,451) | (1,183) | (4,011) |
Interest rate, net of tax expense of $10, $26, $54, and $78 | 52 | 36 | 132 | 108 |
Other post-retirement benefits liability adjustment, net of tax expense of $29, $49, $89, and $148 | 86 | 77 | 258 | 230 |
Other comprehensive loss | (292) | (1,338) | (793) | (3,673) |
Comprehensive income (loss) | 63,156 | 104,119 | (1,245,978) | 475,134 |
Less: Comprehensive income attributable to noncontrolling interests | 103,141 | 82,117 | 362,696 | 250,349 |
Comprehensive (loss) income attributable to EQT Corporation | $ (39,985) | $ 22,002 | $ (1,608,674) | $ 224,785 |
Statements of Consolidated Co_2
Statements of Consolidated Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Natural gas, tax benefit | $ (150) | $ (955) | $ (413) | $ (2,640) |
Interest rate, tax expense | 10 | 26 | 54 | 78 |
Other post-retirement benefits liability adjustment, tax expense | $ 29 | $ 49 | $ 89 | $ 148 |
Statements of Condensed Consoli
Statements of Condensed Consolidated Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (1,245,185) | $ 478,807 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Deferred income taxes | (502,853) | 121,704 |
Depreciation and depletion | 1,290,876 | 719,295 |
Amortization of intangible assets | 62,185 | 0 |
Amortization of financing costs | 9,591 | 0 |
Asset and lease impairments | 2,742,022 | 5,053 |
Provision for (recoveries of) losses on accounts receivable | 9 | (1,230) |
Other income | (43,092) | (15,880) |
Stock-based compensation expense | 23,137 | 27,894 |
Gain on derivatives not designated as hedges | (5,620) | (222,693) |
Cash settlements paid on derivatives not designated as hedges | (27,401) | (6,837) |
Changes in other assets and liabilities: | ||
Accounts receivable | (7,713) | 64,057 |
Accounts payable | 205,360 | (15,446) |
Other items, net | (55,926) | 56,648 |
Net cash provided by operating activities | 2,445,390 | 1,211,372 |
Cash flows from investing activities: | ||
Capital expenditures | (2,854,670) | (1,152,865) |
Capital expenditures for acquisitions | 0 | (818,957) |
Proceeds from Huron Divestiture (see Note Q) | 523,595 | 0 |
Sales of investments in trading securities | 0 | 283,758 |
Capital contributions to Mountain Valley Pipeline, LLC | (446,049) | (103,448) |
Proceeds from sale of Permian Basin assets | 57,664 | 0 |
Net cash used in investing activities | (2,719,460) | (1,791,512) |
Cash flows from financing activities: | ||
Proceeds from issuance of EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP) Senior Notes | 2,500,000 | 0 |
Increase in borrowings on credit facilities | 6,219,500 | 334,000 |
Repayment of borrowings on credit facilities | (7,508,500) | (229,000) |
Dividends paid | (23,736) | (15,620) |
Distributions to noncontrolling interests | (279,539) | (172,498) |
Repayments and retirements of Senior Notes | (7,999) | 0 |
Proceeds from awards under employee compensation plans | 1,946 | 0 |
Cash paid for taxes related to net settlement of share-based incentive awards | (21,910) | (18,030) |
Debt discount and issuance costs and revolving credit facility origination fees | (34,249) | (13,679) |
Acquisition of 25% of Strike Force Midstream LLC | (175,000) | 0 |
Repurchase and retirement of common stock | (538,876) | 0 |
Repurchase of common stock | (27) | (15) |
Net cash provided by (used in) financing activities | 131,610 | (114,842) |
Net change in cash, cash equivalents and restricted cash | (142,460) | (694,982) |
Cash, cash equivalents and restricted cash at beginning of period | 147,315 | 1,178,540 |
Cash and cash equivalents at end of period | 4,855 | 483,558 |
Cash paid during the period for: | ||
Interest, net of amount capitalized | 163,688 | 113,618 |
Income taxes, net | $ 193 | $ 9,702 |
Statements of Condensed Conso_2
Statements of Condensed Consolidated Cash Flows (Unaudited) (Parenthetical) | Sep. 30, 2018 |
Statement of Cash Flows [Abstract] | |
Percentage of voting interests acquired | 25.00% |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 4,855 | $ 147,315 |
Accounts receivable (less accumulated provision for doubtful accounts: $8,235 at September 30, 2018 and $8,226 at December 31, 2017) | 882,386 | 725,236 |
Derivative instruments, at fair value | 315,564 | 241,952 |
Prepaid expenses and other | 31,853 | 48,552 |
Total current assets | 1,234,658 | 1,163,055 |
Property, plant and equipment | 28,022,769 | 30,990,309 |
Less: accumulated depreciation and depletion | 4,892,875 | 6,105,294 |
Net property, plant and equipment | 23,129,894 | 24,885,015 |
Intangible assets, net | 674,175 | 736,360 |
Goodwill | 1,998,726 | 1,998,726 |
Investment in nonconsolidated entity | 1,300,430 | 460,546 |
Other assets | 323,446 | 278,902 |
Total assets | 28,661,329 | 29,522,604 |
Current liabilities: | ||
Current portion of Senior Notes | 699,527 | 7,999 |
Accounts payable | 978,757 | 654,624 |
Derivative instruments, at fair value | 183,677 | 139,089 |
Other current liabilities | 784,115 | 430,525 |
Total current liabilities | 2,646,076 | 1,232,237 |
Credit facility borrowings | 472,000 | 1,761,000 |
Senior Notes | 7,336,570 | 5,562,555 |
Deferred income taxes | 1,212,867 | 1,768,900 |
Other liabilities and credits | 776,424 | 783,299 |
Total liabilities | 12,443,937 | 11,107,991 |
Shareholders’ equity: | ||
Common stock, no par value, authorized 320,000 shares, shares issued: 257,225 at September 30, 2018 and 267,871 at December 31, 2017 | 8,684,169 | 9,388,903 |
Treasury stock, shares at cost: 2,799 at September 30, 2018 (including 299 held in rabbi trust) and 3,551 at December 31, 2017 (including 253 held in rabbi trust) | (50,014) | (63,602) |
Retained earnings | 2,369,271 | 3,996,775 |
Accumulated other comprehensive loss | (3,251) | (2,458) |
Total common shareholders’ equity | 11,000,175 | 13,319,618 |
Noncontrolling interests in consolidated subsidiaries | 5,217,217 | 5,094,995 |
Total equity | 16,217,392 | 18,414,613 |
Total liabilities and equity | $ 28,661,329 | $ 29,522,604 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, accumulated provision for doubtful accounts | $ 8,235 | $ 8,226 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized shares (in shares) | 320,000,000 | 320,000,000 |
Common stock, shares issued (in shares) | 257,225,000 | 267,871,000 |
Treasury stock, shares at cost (in shares) | 2,799,000 | 3,551,000 |
Treasury stock, shares held in rabbi trust (in shares) | 299,000 | 253,000 |
Statements of Condensed Conso_3
Statements of Condensed Consolidated Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests in Consolidated Subsidiaries | |
Beginning Balance (in shares) at Dec. 31, 2016 | 172,827 | |||||
Beginning Balance at Dec. 31, 2016 | $ 9,119,247 | $ 3,349,166 | $ 2,509,073 | $ 2,042 | $ 3,258,966 | |
Comprehensive income (net of tax): | ||||||
Net income (loss) | 478,807 | 228,458 | 250,349 | |||
Net change in cash flow hedges: | ||||||
Natural gas, net of tax benefit | (4,011) | (4,011) | ||||
Interest rate, net of tax expense | 108 | 108 | ||||
Other post-retirement benefit liability adjustment, net of tax expense | 230 | 230 | ||||
Dividends | (15,620) | (15,620) | ||||
Stock-based compensation plans, net (in shares) | 516 | |||||
Stock-based compensation plans, net | 18,414 | $ 18,224 | 190 | |||
Distributions to noncontrolling interests | (172,498) | (172,498) | ||||
Ending Balance (in shares) at Sep. 30, 2017 | 173,343 | |||||
Ending Balance at Sep. 30, 2017 | 9,424,677 | $ 3,367,390 | 2,721,911 | (1,631) | 3,337,007 | |
Comprehensive income (net of tax): | ||||||
Net income (loss) | 105,457 | |||||
Net change in cash flow hedges: | ||||||
Natural gas, net of tax benefit | (1,451) | |||||
Other post-retirement benefit liability adjustment, net of tax expense | 77 | |||||
Ending Balance (in shares) at Sep. 30, 2017 | 173,343 | |||||
Ending Balance at Sep. 30, 2017 | 9,424,677 | $ 3,367,390 | 2,721,911 | (1,631) | 3,337,007 | |
Net change in cash flow hedges: | ||||||
Change in accounting principle | [1] | 4,113 | 4,113 | |||
Beginning Balance (in shares) at Dec. 31, 2017 | 264,320 | |||||
Beginning Balance at Dec. 31, 2017 | 18,414,613 | $ 9,325,301 | 3,996,775 | (2,458) | 5,094,995 | |
Comprehensive income (net of tax): | ||||||
Net income (loss) | (1,245,185) | (1,607,881) | 362,696 | |||
Net change in cash flow hedges: | ||||||
Natural gas, net of tax benefit | (1,183) | (1,183) | ||||
Interest rate, net of tax expense | 132 | 132 | ||||
Other post-retirement benefit liability adjustment, net of tax expense | 258 | 258 | ||||
Dividends | (23,736) | (23,736) | ||||
Stock-based compensation plans, net (in shares) | 752 | |||||
Stock-based compensation plans, net | 5,425 | $ 4,472 | 953 | |||
Distributions to noncontrolling interests | (279,539) | (279,539) | ||||
Repurchase and retirement of common stock (in shares) | (10,646) | |||||
Repurchase and retirement of common stock | (538,876) | $ (538,876) | ||||
Purchase of Strike Force Midstream LLC noncontrolling interests | (175,000) | 1,818 | (176,818) | |||
Change in ownership of consolidated subsidiaries | 56,370 | $ (158,560) | 214,930 | |||
Ending Balance (in shares) at Sep. 30, 2018 | 254,426 | |||||
Ending Balance at Sep. 30, 2018 | 16,217,392 | $ 8,634,155 | 2,369,271 | (3,251) | 5,217,217 | |
Comprehensive income (net of tax): | ||||||
Net income (loss) | 63,448 | |||||
Net change in cash flow hedges: | ||||||
Natural gas, net of tax benefit | (430) | |||||
Other post-retirement benefit liability adjustment, net of tax expense | 86 | |||||
Ending Balance (in shares) at Sep. 30, 2018 | 254,426 | |||||
Ending Balance at Sep. 30, 2018 | $ 16,217,392 | $ 8,634,155 | $ 2,369,271 | $ (3,251) | $ 5,217,217 | |
[1] | Related to adoption of ASU No. 2016-01. See Notes K and S for additional information. |
Statements of Condensed Conso_4
Statements of Condensed Consolidated Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Natural gas, tax expense (benefit) | $ (413) | $ (2,640) |
Interest rate, tax expense (benefit) | 54 | 78 |
Other post-retirement benefits liability adjustment, tax expense | $ 89 | $ 148 |
Dividends (in dollars per share) | $ 0.09 | $ 0.09 |
EQM | ||
Distributions to noncontrolling interests (in dollars per share) | 3.18 | 2.675 |
EQGP | ||
Distributions to noncontrolling interests (in dollars per share) | 0.808 | $ 0.578 |
Rice Midstream Partners, LP | ||
Distributions to noncontrolling interests (in dollars per share) | $ 0.5966 |
Financial Statements
Financial Statements | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statements | Financial Statements The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with United States generally accepted accounting principles (GAAP) for interim financial information and with the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States GAAP for complete financial statements. In the opinion of management, these statements include all adjustments (consisting of only normal recurring accruals, unless otherwise disclosed in this Quarterly Report on Form 10-Q) necessary for a fair presentation of the financial position of EQT Corporation and subsidiaries as of September 30, 2018 and December 31, 2017 , the results of its operations for the three and nine month periods ended September 30, 2018 and 2017 and its cash flows and equity for the nine month periods ended September 30, 2018 and 2017 . Certain previously reported amounts have been reclassified to conform to the current year presentation. In this Quarterly Report on Form 10-Q, references to “we,” “us,” “our,” “EQT,” “EQT Corporation,” and the “Company” refer collectively to EQT Corporation and its consolidated subsidiaries. The balance sheet at December 31, 2017 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and related footnotes as well as “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . During the third quarter of 2018, the Company repurchased 9,946,382 shares at an average price of $50.29 pursuant to the Company's previously announced $500 million share repurchase program. This exhausted the Company's share repurchase authorization under such program. On November 13, 2017, the Company completed its previously announced acquisition of Rice Energy Inc. (Rice) pursuant to the Agreement and Plan of Merger, dated June 19, 2017 (as amended, the Rice Merger Agreement), by and among the Company, Rice and a wholly owned indirect subsidiary of the Company (RE Merger Sub). Pursuant to the terms of the Rice Merger Agreement, on November 13, 2017, RE Merger Sub merged with and into Rice (the Rice Merger) with Rice continuing as the surviving corporation and a wholly owned indirect subsidiary of the Company. Immediately thereafter, Rice merged with and into another wholly owned indirect subsidiary of the Company. As a result of the Rice Merger, the Company also acquired Rice's interests in RM Partners LP (formerly known as Rice Midstream Partners LP) (RMP). See Note E . The purchase price allocation for the Rice Merger remains preliminary as of September 30, 2018 . Unaudited Pro Forma Information The following unaudited pro forma combined financial information presents the Company’s results as though the Rice Merger had been completed at January 1, 2017. The pro forma combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the Rice Merger taken place on January 1, 2017; furthermore, the financial information is not intended to be a projection of future results. (in thousands, except per share data) (unaudited) Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Pro forma operating revenues $ 1,042,363 $ 3,491,790 Pro forma net income $ 120,301 $ 602,684 Pro forma net income attributable to noncontrolling interests $ (118,353 ) $ (338,546 ) Pro forma net income attributable to EQT $ 1,948 $ 264,138 Pro forma income per share (basic) $ 0.01 $ 1.00 Pro forma income per share (diluted) $ — $ 0.99 |
Midstream Streamlining Transact
Midstream Streamlining Transactions and Financing | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Midstream Streamlining Transactions and Financing | Midstream Streamlining Transactions and Financing In February 2018, the Company's Board of Directors unanimously approved a plan to separate its upstream and midstream businesses, creating a standalone publicly traded corporation, Equitrans Midstream Corporation (Equitrans Midstream), which will focus on midstream operations (the Separation). Equitrans Midstream will own the midstream interests held by EQT. The Separation is intended to qualify as tax-free to EQT shareholders for U.S. federal income tax purposes. Under the Separation plan, EQT shareholders will retain their shares of the Company's stock and receive a pro-rata distribution of 80.1% of the outstanding shares of Equitrans Midstream common stock. In connection with announcing the planned Separation, the Company also announced its plans to pursue (i) a sale of Rice retained midstream assets acquired by EQT in connection with the Rice Merger to EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP) (EQM) (NYSE: EQM), (ii) a merger of EQM and RMP, and (iii) a sale of RMP’s incentive distribution rights (RMP IDRs) to EQGP Holdings, LP (formerly known as EQT GP Holdings, LP) (EQGP) (NYSE: EQGP)((i), (ii) and (iii) collectively, the Midstream Streamlining Transactions). On April 25, 2018, EQT, Rice Midstream Holdings LLC (Rice Midstream), a wholly owned subsidiary of the Company, EQM and EQM Gathering Holdings, LLC (EQM Gathering), a wholly owned subsidiary of EQM, entered into a contribution and sale agreement pursuant to which EQM Gathering agreed to acquire all the outstanding limited liability company interests in each of (i) EQM West Virginia Midstream Holdings LLC (formerly known as Rice West Virginia Midstream LLC) (Rice West Virginia), (ii) EQM Olympus Midstream LLC (formerly known as Rice Olympus Midstream LLC) (Rice Olympus) and (iii) Strike Force Midstream Holdings LLC (Strike Force Holdings), which owns a 75% limited liability company interest in Strike Force Midstream LLC (Strike Force Midstream), in exchange for an aggregate of 5,889,282 EQM common units and cash consideration of $1.15 billion , plus working capital adjustments (the Drop-Down Transaction). The Drop-Down Transaction was completed on May 22, 2018 with an effective date of May 1, 2018. In connection with the Drop-Down Transaction, the Company recorded a $15.5 million gain to additional paid-in-capital, a decrease in noncontrolling interest in consolidated subsidiary of $20.3 million and an increase to deferred tax liability of $4.8 million . On May 1, 2018, pursuant to the Purchase and Sale Agreement dated April 25, 2018, by and among EQM, EQM Gathering, Gulfport Energy Corporation (Gulfport) and an affiliate of Gulfport, EQM Gathering acquired the remaining 25% limited liability company interest in Strike Force Midstream not owned by Strike Force Holdings for $175 million (the Gulfport Transaction). As a result, EQM has owned 100% of Strike Force Midstream since May 1, 2018. On May 22, 2018, pursuant to an Incentive Distribution Rights Purchase and Sale Agreement dated April 25, 2018, by and among the Company, Rice Midstream GP Holdings LP (Rice Midstream GP Holdings), a wholly owned subsidiary of the Company that owned the RMP IDRs, and EQGP, EQGP acquired all of the issued and outstanding RMP IDRs in exchange for 36,293,766 EQGP common units (the RMP IDR Purchase). As a result of the RMP IDR Purchase, EQT's percentage ownership of the outstanding EQGP common units increased from approximately 90.1% to approximately 91.3% . In connection with the RMP IDR Purchase, the Company recorded a $35.1 million loss to additional paid-in-capital, an increase in noncontrolling interest in consolidated subsidiary of $46.1 million and a decrease to deferred tax liability of $11.0 million . On April 25, 2018, EQM entered into an Agreement and Plan of Merger (the Midstream Merger Agreement) with RMP, EQM Midstream Management LLC (formerly known as Rice Midstream Management LLC), the general partner of RMP (the RMP General Partner), EQM Midstream Services, LLC (formerly known as EQT Midstream Services, LLC), the general partner of EQM (the EQM General Partner), EQM Acquisition Sub, LLC, a wholly owned subsidiary of EQM (Merger Sub), EQM GP Acquisition Sub, LLC, a wholly owned subsidiary of EQM (GP Merger Sub), and, solely for certain limited purposes set forth therein, the Company. Pursuant to the Midstream Merger Agreement, on July 23, 2018, Merger Sub and GP Merger Sub merged with and into RMP and the RMP General Partner, respectively, with RMP and the RMP General Partner surviving as wholly owned subsidiaries of EQM (the Midstream Mergers). Pursuant to the Midstream Merger Agreement, each of the RMP common units issued and outstanding immediately prior to the effective time of the Midstream Mergers was converted into the right to receive 0.3319 EQM common units (the Midstream Mergers Consideration), the issued and outstanding RMP IDRs were canceled and each outstanding award of phantom units in respect of RMP common units fully vested and converted into the right to receive the Midstream Mergers Consideration, less applicable tax withholding, in respect of each RMP common unit subject thereto. The aggregate Midstream Mergers Consideration consisted of approximately 34 million EQM common units. Following completion of the Midstream Mergers, RMP's common units ceased to be publicly traded. An indirect wholly owned subsidiary of the Company received 9,554,530 EQM common units as Midstream Mergers Consideration. In connection with the Midstream Mergers, the Company recorded a $138.8 million loss to additional paid-in capital, an increase in noncontrolling interest in consolidated subsidiary of $189.1 million and a decrease to deferred tax liability of approximately $50.3 million . Also in connection with the completion of the Midstream Mergers, on July 23, 2018, EQM repaid approximately $260 million of borrowings outstanding under the Credit Agreement, dated as of December 22, 2014, by and among RMP, as parent guarantor, RM Operating LLC (formerly known as Rice Midstream OpCo LLC), a wholly owned subsidiary of RMP (RMP OpCo), as borrower, Wells Fargo Bank, N.A., as administrative agent, and the lenders and other parties from time to time party thereto (the RMP Credit Agreement), and the RMP Credit Agreement was terminated. On April 25, 2018, EQM entered a $2.5 billion unsecured multi-draw 364-day term loan facility with a syndicate of lenders (the EQM Term Loan Facility). The EQM Term Loan Facility was used to fund the cash consideration for the Drop-Down Transaction, to repay borrowings under EQM’s $1 billion credit facility, and for other general partnership purposes. During the second quarter of 2018, the balance outstanding under the EQM Term Loan Facility was repaid, and the EQM Term Loan Facility was terminated on June 25, 2018 in connection with EQM's issuance of the EQM 2018 Senior Notes (described in the following section). During the second quarter of 2018, EQM issued 4.75% senior notes due July 15, 2023 in the aggregate principal amount of $1.1 billion , 5.50% senior notes due July 15, 2028 in the aggregate principal amount of $850 million and 6.50% senior notes due July 15, 2048 in the aggregate principal amount of $550 million (collectively, the EQM 2018 Senior Notes). The offering of the EQM 2018 Senior Notes resulted in net proceeds of approximately $2,465.8 million , inclusive of a discount of $11.8 million and estimated debt issuance costs of $22.4 million . The net proceeds were used to repay the balance outstanding under the EQM Term Loan Facility and the RMP Credit Agreement and the remainder is expected to be used for general partnership purposes. The EQM 2018 Senior Notes were issued pursuant to new supplemental indentures to EQM's existing indenture dated August 1, 2014. The EQM 2018 Senior Notes contain covenants that limit EQM's ability to, among other things, incur certain liens securing indebtedness, engage in certain sale and leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of substantially all of EQM's assets. Acquisitions On February 1, 2017, the Company acquired approximately 14,000 net Marcellus acres located in Marion, Monongalia and Wetzel Counties of West Virginia from a third-party. On February 27, 2017, the Company acquired approximately 85,000 net Marcellus acres, including drilling rights on approximately 44,000 net Utica acres and current natural gas production of approximately 110 MMcfe per day, from Stone Energy Corporation. The acquired acres are primarily located in Wetzel, Marshall, Tyler and Marion Counties of West Virginia. The acquired assets also included 174 Marcellus wells, 120 of which were producing at the time of the acquisition, and 20 miles of gathering pipeline. On June 30, 2017, the Company acquired approximately 11,000 net Marcellus acres, and the associated Utica drilling rights from a third-party. The acquired acres are primarily located in Allegheny, Washington and Westmoreland Countries of Pennsylvania. The Company paid net cash of $740.1 million for the 2017 acquisitions during the nine months ended September 30, 2017 . The preliminary fair value assigned to the acquired property, plant and equipment as of the opening balance sheet dates totaled $750.1 million . In connection with the 2017 acquisitions, the Company assumed approximately $5.3 million of net current liabilities and $4.7 million of non-current liabilities. Fair Value Measurement As these acquisitions qualified as business combinations under GAAP, the fair value of the acquired assets was determined using a market approach for the undeveloped acreage and a discounted cash flow model under the income approach for the wells. Significant unobservable inputs used in the analysis included the determination of estimated developed reserves and forward pricing estimates. As a result, valuation of the acquired assets was a Level 3 fair value measurement. |
EQGP Holdings, LP
EQGP Holdings, LP | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
EQGP Holdings, LP | EQGP Holdings, LP In January 2015, the Company formed EQGP to own the Company's partnership interests in EQM. As of September 30, 2018, EQT owns 276,008,766 EQGP common units, which represent a 91.3% limited partner interest, and the entire non-economic general partner interest in EQGP. EQGP owned the following EQM partnership interests as of September 30, 2018 , which represent EQGP’s only cash-generating assets: 21,811,643 EQM common units, representing a 17.9% limited partner interest in EQM; 1,443,015 EQM general partner units, representing a 1.2% general partner interest in EQM; and all of EQM’s incentive distribution rights (IDRs), which entitle EQGP to receive up to 48.0% of all incremental cash distributed in a quarter after $0.5250 has been distributed in respect of each common unit and general partner unit of EQM for that quarter. Through EQGP's general partner interest, limited partner interest and IDRs in EQM, EQGP has a controlling financial interest in EQM; therefore, EQGP consolidates EQM. The Company is the ultimate parent company of EQGP and EQM. On October 23, 2018, the Board of Directors of EQGP's general partner declared a cash distribution to EQGP’s unitholders for the third quarter of 2018 of $0.315 per common unit, or approximately $95.3 million . The distribution will be paid on November 14, 2018 to unitholders of record, including the Company, at the close of business on November 2, 2018. Based on the EQGP common units outstanding on October 25, 2018 , the cash distributions by EQGP to EQT for the third quarter 2018 will be approximately $87.0 million . EQM Midstream Partners, LP In January 2012, the Company formed EQM to own, operate, acquire and develop midstream assets in the Appalachian Basin. EQM provides midstream services to the Company and third parties. EQM is consolidated in the Company’s financial statements. The Company records the noncontrolling interest of the EQM public limited partners in its financial statements. In addition to the EQM common units owned by EQGP, as of September 30, 2018, EQT owned 5,889,282 EQM common units representing an additional 6.7% limited partner interest in EQM. On October 23, 2018, the Board of Directors of EQM's general partner declared a cash distribution to EQM’s unitholders for the third quarter of 2018 of $1.115 per common unit. The cash distribution will be paid on November 14, 2018 to unitholders of record, including EQGP, as of the close of business on November 2, 2018. Based on the EQM common units outstanding on October 25, 2018 , the cash distributions by EQM to EQGP for the third quarter 2018 will be approximately $97.8 million consisting of: $24.3 million in respect of its limited partner interest, $2.5 million in respect of its general partner interest and $71.0 million in respect of its IDRs. The distribution amounts to EQGP related to its general partner interest and IDRs in EQM are subject to change if EQM issues additional common units on or prior to the record date for the third quarter 2018 distribution. Based on the EQM common units outstanding on October 25, 2018 , the cash distributions by EQM to EQT for the third quarter 2018 will be approximately $17.2 million . |
EQM Midstream Partners, LP
EQM Midstream Partners, LP | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
EQM Midstream Partners, LP | EQGP Holdings, LP In January 2015, the Company formed EQGP to own the Company's partnership interests in EQM. As of September 30, 2018, EQT owns 276,008,766 EQGP common units, which represent a 91.3% limited partner interest, and the entire non-economic general partner interest in EQGP. EQGP owned the following EQM partnership interests as of September 30, 2018 , which represent EQGP’s only cash-generating assets: 21,811,643 EQM common units, representing a 17.9% limited partner interest in EQM; 1,443,015 EQM general partner units, representing a 1.2% general partner interest in EQM; and all of EQM’s incentive distribution rights (IDRs), which entitle EQGP to receive up to 48.0% of all incremental cash distributed in a quarter after $0.5250 has been distributed in respect of each common unit and general partner unit of EQM for that quarter. Through EQGP's general partner interest, limited partner interest and IDRs in EQM, EQGP has a controlling financial interest in EQM; therefore, EQGP consolidates EQM. The Company is the ultimate parent company of EQGP and EQM. On October 23, 2018, the Board of Directors of EQGP's general partner declared a cash distribution to EQGP’s unitholders for the third quarter of 2018 of $0.315 per common unit, or approximately $95.3 million . The distribution will be paid on November 14, 2018 to unitholders of record, including the Company, at the close of business on November 2, 2018. Based on the EQGP common units outstanding on October 25, 2018 , the cash distributions by EQGP to EQT for the third quarter 2018 will be approximately $87.0 million . EQM Midstream Partners, LP In January 2012, the Company formed EQM to own, operate, acquire and develop midstream assets in the Appalachian Basin. EQM provides midstream services to the Company and third parties. EQM is consolidated in the Company’s financial statements. The Company records the noncontrolling interest of the EQM public limited partners in its financial statements. In addition to the EQM common units owned by EQGP, as of September 30, 2018, EQT owned 5,889,282 EQM common units representing an additional 6.7% limited partner interest in EQM. On October 23, 2018, the Board of Directors of EQM's general partner declared a cash distribution to EQM’s unitholders for the third quarter of 2018 of $1.115 per common unit. The cash distribution will be paid on November 14, 2018 to unitholders of record, including EQGP, as of the close of business on November 2, 2018. Based on the EQM common units outstanding on October 25, 2018 , the cash distributions by EQM to EQGP for the third quarter 2018 will be approximately $97.8 million consisting of: $24.3 million in respect of its limited partner interest, $2.5 million in respect of its general partner interest and $71.0 million in respect of its IDRs. The distribution amounts to EQGP related to its general partner interest and IDRs in EQM are subject to change if EQM issues additional common units on or prior to the record date for the third quarter 2018 distribution. Based on the EQM common units outstanding on October 25, 2018 , the cash distributions by EQM to EQT for the third quarter 2018 will be approximately $17.2 million . |
RM Partners LP
RM Partners LP | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
RM Partners LP | RM Partners LP In connection with the Rice Merger, the Company acquired a 28.1% limited partner interest, all of the IDRs and the entire non-economic general partner interest in RMP. RMP's common units ceased to be publicly traded as a result of the Midstream Mergers. See the discussion of the RMP IDR Purchase and Midstream Mergers in Note B . Investment in Nonconsolidated Entity The Mountain Valley Pipeline, LLC (MVP Joint Venture) is constructing the Mountain Valley Pipeline (MVP), an estimated 300 -mile natural gas interstate pipeline spanning from northern West Virginia to southern Virginia. EQM is the operator of the MVP and owned a 45.5% interest in the MVP Joint Venture as of September 30, 2018 . The MVP Joint Venture is a variable interest entity because it has insufficient equity to finance its activities during the construction stage of the project. EQM is not the primary beneficiary because it does not have the power to direct the activities of the MVP Joint Venture that most significantly impact its economic performance. Certain business decisions require the approval of owners holding more than a 66 2/3% interest in the MVP Joint Venture and no one member owns more than a 66 2/3% interest. The MVP Joint Venture is an equity method investment for accounting purposes as EQM has the ability to exercise significant influence over operating and financial policies of the MVP Joint Venture. As currently designed, the MVP is estimated to cost a total of approximately $4.6 billion , excluding Allowance for Funds Used During Construction (AFUDC), with EQM funding approximately $2.2 billion through capital contributions made to the MVP Joint Venture, which includes approximately $65 million in excess of EQM's ownership interest. In 2018, EQM expects to provide capital contributions of $0.8 billion to $1.0 billion to the MVP Joint Venture. In September 2018, the MVP Joint Venture issued a capital call notice to MVP Holdco, LLC (MVP Holdco), a direct wholly owned subsidiary of EQM, for $456.0 million , of which $175.2 million was paid as of October 2018, and $280.8 million is expected to be paid in the fourth quarter of 2018. In addition, in September 2018, the MVP Joint Venture issued a capital call notice to MVP Holdco for $7.7 million for funding of the MVP Southgate project that is expected to be paid in the fourth quarter of 2018. The capital contribution payables have been reflected on the Condensed Consolidated Balance Sheet as of September 30, 2018 with corresponding increases to the Company's investment in the MVP Joint Venture. Equity income is EQM's portion of the MVP Joint Venture's AFUDC on construction of the MVP. As of September 30, 2018 , EQM had issued a $91 million performance guarantee in favor of the MVP Joint Venture. The guarantee provides performance assurances of MVP Holdco's obligations to fund its proportionate share of the MVP construction budget. As of September 30, 2018 , EQM's maximum financial statement exposure related to the MVP Joint Venture was approximately $1,391 million , which consists of the investment in nonconsolidated entity balance on the Condensed Consolidated Balance Sheet as of September 30, 2018 and amounts that could have become due under EQM's performance guarantee as of that date. Following the completion of the Separation, EQM expects the MVP Joint Venture guarantee will be approximately $345 million based on MVP Holdco's share of the estimated remaining MVP construction budget and terms of the agreement. In April 2018, the MVP Joint Venture announced the MVP Southgate project, a proposed 70 -mile interstate pipeline that will extend from the MVP at Pittsylvania County, Virginia to new delivery points in Rockingham and Alamance Counties, North Carolina. This MVP Southgate project is anchored by a firm capacity commitment from PSNC Energy. The preliminary MVP Southgate project cost estimate is $350 million to $500 million , which is expected to be spent in 2019 and 2020. As of September 30, 2018 , EQM had a 32.7% ownership interest in the MVP Southgate project and will operate the pipeline. Subject to approval by the FERC, the MVP Southgate project has a targeted in-service date of the fourth quarter 2020. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers As discussed in Note S , the Company adopted Accounting Standard Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) , on January 1, 2018 using the modified retrospective method of adoption. Adoption of the ASU did not require an adjustment to the opening balance of equity and did not materially change the Company's amount and timing of revenues. The Company applied the ASU only to contracts that were not completed as of January 1, 2018. The Company has elected to exclude all taxes from the measurement of transaction price. For the sale of natural gas, oil and natural gas liquids (NGLs), the Company generally considers the delivery of each unit (MMBtu or Bbl) to be a separate performance obligation that is satisfied upon delivery. These contracts typically require payment within 25 days of the end of the calendar month in which the gas is delivered. A significant number of these contracts contain variable consideration because the payment terms refer to market prices at future delivery dates. In these situations, the Company has not identified a standalone selling price because the terms of the variable payments relate specifically to the Company’s efforts to satisfy the performance obligations. Other contracts contain fixed consideration (i.e. fixed price contracts or contracts with a fixed differential to New York Mercantile Exchange (NYMEX) or index prices). The fixed consideration is allocated to each performance obligation on a relative standalone selling price basis, which requires judgment from management. For these contracts, the Company generally concludes that the fixed price or fixed differentials in the contracts are representative of the standalone selling price. Based on management’s judgment, the performance obligations for the sale of natural gas, oil and NGLs are satisfied at a point in time because the customer obtains control and legal title of the asset when the natural gas, oil or NGL is delivered to the designated sales point. The sales of natural gas, oil and NGLs as presented on the Statements of Consolidated Operations represent the Company’s share of revenues net of royalties and excluding revenue interests owned by others. When selling natural gas, oil and NGLs on behalf of royalty owners or working interest owners, the Company is acting as an agent and thus reports the revenue on a net basis. The Company provides gathering, transmission and storage services in two manners: firm service and interruptible service. Firm service contracts are typically long term and include firm reservation fees, which are fixed, monthly charges for the guaranteed reservation of pipeline or storage capacity. Volumetric based fees under firm contracts include usage fees and charges for actual volumes transported, gathered or stored in excess of firm contracted volume. Interruptible service contracts include volumetric based fees, which are charges for the volume of gas actually gathered, transported or stored and do not guarantee access to the pipeline or storage facility. These contracts can be short or long term. Firm and interruptible contracts are billed at the end of each calendar month, with payment typically due within 21 days. Based on total projected contractual revenues and including contracts associated with expected future capacity from expansion projects that are not yet fully constructed but for which EQM has entered into firm contracts, EQM's firm gathering contracts and firm transmission and storage contracts had weighted average remaining terms of approximately 8 and 15 years, respectively, as of December 31, 2017. Under a firm contract, the Company has a stand-ready obligation to provide the service over the life of the contract. The performance obligation for firm reservation fee revenue is satisfied over time as the pipeline capacity is made available to the customer. As such, the Company recognizes firm reservation fee revenue evenly over the contract period, using a time-elapsed output method to measure progress. The performance obligation for volumetric based fees under firm and interruptible contracts is generally satisfied upon the Company's monthly billing to the customer for actual volumes gathered, transported or stored during the month. The amount billed corresponds directly to the value of the Company’s performance to date as the customer obtains value as each volume is gathered, transported or stored. Certain of EQM's gas gathering agreements are structured with minimum volume commitments (MVC), which specify minimum quantities for which a customer will be charged regardless of actual quantities gathered under the contract. Revenue is recognized for MVCs when the performance obligation has been met, which is the earlier of when the gas is gathered or when it is remote that the producer will be able to meet its MVC. Water services revenues primarily represent fees charged by EQM for the delivery of fresh water to a customer at a specified delivery point. All of EQM’s water services revenues are generated pursuant to variable price per volume contracts with customers in the Appalachian Basin. For water services contracts, the only performance obligation in each contract is for EQM to provide water (usually a minimum daily volume) to the customer at any designated delivery point. This performance obligation is generally satisfied upon EQM’s monthly billing to the customer for the volume of water provided during the month. For water services arrangements, the customer is typically invoiced on a monthly basis with payment due 21 days after the receipt of the invoice. Because the Company's performance obligations have been satisfied and an unconditional right to consideration exists as of the balance sheet date, the Company has recognized amounts due from contracts with customers of $488.7 million as accounts receivable within the Condensed Consolidated Balance Sheet. The table below provides disaggregated information regarding the Company’s revenues, presented consistently with the Company’s segment reporting. Certain contracts that provide for the release of capacity that is not used to transport the Company’s produced volumes were deemed to be outside the scope of Revenue from Contracts with Customers. The cost of, and recoveries on, that capacity are reported within pipeline and net marketing services at EQT Production. Derivative contracts are also outside the scope of Revenue from Contracts with Customers. Three Months Ended September 30, 2018 Revenues from contracts with customers Other sources of revenue Total (Thousands) Natural gas sales $ 931,976 $ — $ 931,976 NGLs sales 106,621 — 106,621 Oil sales 8,392 — 8,392 Sales of natural gas, oil and NGLs $ 1,046,989 $ — $ 1,046,989 Pipeline and net marketing services at EQT Production $ 2,605 $ 3,527 $ 6,132 EQM Gathering: Firm reservation fee revenues 112,598 — 112,598 Volumetric based fee revenues: Usage fees under firm contracts 8,661 — 8,661 Usage fees under interruptible contracts 131,602 — 131,602 EQM Transmission: Firm reservation fee revenues 82,669 — 82,669 Volumetric based fee revenues: Usage fees under firm contracts 5,331 — 5,331 Usage fees under interruptible contracts 1,350 — 1,350 Water services at EQM Water 22,373 — 22,373 Intersegment eliminations (255,760 ) — (255,760 ) Pipeline, water and net marketing services $ 111,429 $ 3,527 $ 114,956 Loss on derivatives not designated as hedges $ — $ (3,075 ) $ (3,075 ) Total operating revenues $ 1,158,418 $ 452 $ 1,158,870 Nine Months Ended September 30, 2018 Revenues from contracts with customers Other sources of revenue Total (Thousands) Natural gas sales $ 2,877,660 $ — $ 2,877,660 NGLs sales 357,746 — 357,746 Oil sales 29,322 — 29,322 Sales of natural gas, oil and NGLs $ 3,264,728 $ — $ 3,264,728 Pipeline and net marketing services at EQT Production $ 14,273 $ 28,109 $ 42,382 EQM Gathering: Firm reservation fee revenues 334,233 — 334,233 Volumetric based fee revenues: Usage fees under firm contracts 30,725 — 30,725 Usage fees under interruptible contracts 366,482 — 366,482 EQM Transmission: Firm reservation fee revenues 262,666 — 262,666 Volumetric based fee revenues: Usage fees under firm contracts 13,981 — 13,981 Usage fees under interruptible contracts 8,782 — 8,782 Water services at EQM Water 93,438 — 93,438 Intersegment eliminations (775,913 ) — (775,913 ) Pipeline, water and net marketing services $ 348,667 $ 28,109 $ 376,776 Gain on derivatives not designated as hedges $ — $ 5,620 $ 5,620 Total operating revenues $ 3,613,395 $ 33,729 $ 3,647,124 The following table includes the transaction price allocated to the Company's remaining performance obligations on all contracts with fixed consideration. The table excludes all contracts that qualified for the exception to the relative standalone selling price method. Gathering firm reservation fees and transmission and storage firm reservation fees include amounts related to affiliate contracts. 2018 (a) 2019 2020 2021 2022 Thereafter Total (Thousands) Natural gas sales $ 20,173 $ 32,322 $ 1,237 $ — $ — $ — $ 53,732 Gathering firm reservation fees $ 114,771 $ 481,425 $ 557,352 $ 567,351 $ 566,062 $ 2,834,111 $ 5,121,072 Gathering revenues supported by MVCs $ — $ 65,700 $ 71,370 $ 71,175 $ 71,175 $ 136,875 $ 416,295 Transmission and storage firm reservation fees $ 94,077 $ 346,893 $ 344,328 $ 339,588 $ 334,522 $ 2,477,808 $ 3,937,216 (a) October 1 through December 31. |
Investment in Nonconsolidated E
Investment in Nonconsolidated Entity | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Nonconsolidated Entity | RM Partners LP In connection with the Rice Merger, the Company acquired a 28.1% limited partner interest, all of the IDRs and the entire non-economic general partner interest in RMP. RMP's common units ceased to be publicly traded as a result of the Midstream Mergers. See the discussion of the RMP IDR Purchase and Midstream Mergers in Note B . Investment in Nonconsolidated Entity The Mountain Valley Pipeline, LLC (MVP Joint Venture) is constructing the Mountain Valley Pipeline (MVP), an estimated 300 -mile natural gas interstate pipeline spanning from northern West Virginia to southern Virginia. EQM is the operator of the MVP and owned a 45.5% interest in the MVP Joint Venture as of September 30, 2018 . The MVP Joint Venture is a variable interest entity because it has insufficient equity to finance its activities during the construction stage of the project. EQM is not the primary beneficiary because it does not have the power to direct the activities of the MVP Joint Venture that most significantly impact its economic performance. Certain business decisions require the approval of owners holding more than a 66 2/3% interest in the MVP Joint Venture and no one member owns more than a 66 2/3% interest. The MVP Joint Venture is an equity method investment for accounting purposes as EQM has the ability to exercise significant influence over operating and financial policies of the MVP Joint Venture. As currently designed, the MVP is estimated to cost a total of approximately $4.6 billion , excluding Allowance for Funds Used During Construction (AFUDC), with EQM funding approximately $2.2 billion through capital contributions made to the MVP Joint Venture, which includes approximately $65 million in excess of EQM's ownership interest. In 2018, EQM expects to provide capital contributions of $0.8 billion to $1.0 billion to the MVP Joint Venture. In September 2018, the MVP Joint Venture issued a capital call notice to MVP Holdco, LLC (MVP Holdco), a direct wholly owned subsidiary of EQM, for $456.0 million , of which $175.2 million was paid as of October 2018, and $280.8 million is expected to be paid in the fourth quarter of 2018. In addition, in September 2018, the MVP Joint Venture issued a capital call notice to MVP Holdco for $7.7 million for funding of the MVP Southgate project that is expected to be paid in the fourth quarter of 2018. The capital contribution payables have been reflected on the Condensed Consolidated Balance Sheet as of September 30, 2018 with corresponding increases to the Company's investment in the MVP Joint Venture. Equity income is EQM's portion of the MVP Joint Venture's AFUDC on construction of the MVP. As of September 30, 2018 , EQM had issued a $91 million performance guarantee in favor of the MVP Joint Venture. The guarantee provides performance assurances of MVP Holdco's obligations to fund its proportionate share of the MVP construction budget. As of September 30, 2018 , EQM's maximum financial statement exposure related to the MVP Joint Venture was approximately $1,391 million , which consists of the investment in nonconsolidated entity balance on the Condensed Consolidated Balance Sheet as of September 30, 2018 and amounts that could have become due under EQM's performance guarantee as of that date. Following the completion of the Separation, EQM expects the MVP Joint Venture guarantee will be approximately $345 million based on MVP Holdco's share of the estimated remaining MVP construction budget and terms of the agreement. In April 2018, the MVP Joint Venture announced the MVP Southgate project, a proposed 70 -mile interstate pipeline that will extend from the MVP at Pittsylvania County, Virginia to new delivery points in Rockingham and Alamance Counties, North Carolina. This MVP Southgate project is anchored by a firm capacity commitment from PSNC Energy. The preliminary MVP Southgate project cost estimate is $350 million to $500 million , which is expected to be spent in 2019 and 2020. As of September 30, 2018 , EQM had a 32.7% ownership interest in the MVP Southgate project and will operate the pipeline. Subject to approval by the FERC, the MVP Southgate project has a targeted in-service date of the fourth quarter 2020. |
Consolidated Variable Interest
Consolidated Variable Interest Entities | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated Variable Interest Entities | 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 |
Financial Information by Busine
Financial Information by Business Segment | 9 Months Ended |
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 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. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company’s primary market risk exposure is the volatility of future prices for natural gas and NGLs, which can affect the operating results of the Company primarily at EQT Production. The Company’s overall objective in its hedging program is to protect cash flows from undue exposure to the risk of changing commodity prices. The Company primarily uses over the counter (OTC) derivative commodity instruments, primarily swap, collar and option agreements that are typically placed with financial institutions. The creditworthiness of all counterparties is regularly monitored. Swap agreements involve payments to or receipts from counterparties based on the differential between two prices for the commodity. Collar agreements require the counterparty to pay the Company if the index price falls below the floor price and the Company to pay the counterparty if the index price rises above the cap price. The Company sells call options that require the Company to pay the counterparty if the index price rises above the strike price and purchases call options that require the counterparty to pay the Company if the index price rises above the strike price. The Company engages in basis swaps to protect earnings from undue exposure to the risk of geographic disparities in commodity prices and interest rate swaps to hedge exposure to fluctuations in interest rates. The Company also engages in a limited number of swaptions. The Company recognizes all derivative instruments as either assets or liabilities at fair value on a gross basis. These derivative instruments are reported as either current assets or current liabilities due to their highly liquid nature. The Company can net settle its derivative instruments at any time. The Company discontinued cash flow hedge accounting in 2014; therefore, all changes in fair value of the Company’s derivative instruments are recognized within operating revenues in the Statements of Consolidated Operations. In connection with the Rice Merger, the Company assumed all outstanding derivative commodity instruments held by Rice. The assets and liabilities assumed were recognized at fair value at the closing date and subsequent changes in fair value were recognized within operating revenues in the Statements of Consolidated Operations. The derivative commodity instruments assumed were substantially similar to instruments previously held by the Company. Contracts which result in physical delivery of a commodity expected to be used or sold by the Company in the normal course of business are designated as normal purchases and sales and are exempt from derivative accounting. OTC arrangements require settlement in cash. The Company also enters into exchange traded derivative commodity instruments that are generally settled with offsetting positions. Settlements of derivative commodity instruments are reported as a component of cash flows from operations in the accompanying Statements of Condensed Consolidated Cash Flows. With respect to the derivative commodity instruments held by the Company, the Company hedged portions of expected sales of equity production and portions of its basis exposure covering approximately 3,005 Bcf of natural gas and 2,058 Mbbls of NGLs as of September 30, 2018 , and 2,148 Bcf of natural gas and 1,460 Mbbls of NGLs as of December 31, 2017 . The open positions at September 30, 2018 and December 31, 2017 had maturities extending through December 2024 and December 2022, respectively. The Company has netting agreements with financial institutions and its brokers that permit net settlement of gross commodity derivative assets against gross commodity derivative liabilities. The table below reflects the impact of netting agreements and margin deposits on gross derivative assets and liabilities as of September 30, 2018 and December 31, 2017 . The margin deposit within the table as of September 30, 2018 represents funds remitted to a broker for exchange traded derivative commodity instruments. As of September 30, 2018 Derivative instruments, recorded in the Condensed Consolidated Balance Sheet, gross Derivative instruments subject to master netting agreements Margin deposits remitted to counterparties Derivative instruments, net (Thousands) Asset derivatives: Derivative instruments, at fair value $ 315,564 $ (104,559 ) $ — $ 211,005 Liability derivatives: Derivative instruments, at fair value $ 183,677 $ (104,559 ) $ (11,110 ) $ 68,008 As of December 31, 2017 Derivative instruments, recorded in the Condensed Consolidated Balance Sheet, gross Derivative instruments subject to master netting agreements Margin deposits remitted to counterparties Derivative instruments, net (Thousands) Asset derivatives: Derivative instruments, at fair value $ 241,952 $ (86,856 ) $ — $ 155,096 Liability derivatives: Derivative instruments, at fair value $ 139,089 $ (86,856 ) $ — $ 52,233 Certain of the Company’s OTC derivative instrument contracts provide that if the Company’s credit ratings by Standard & Poor’s Rating Service (S&P) or Moody’s Investors Service (Moody’s) are lowered below investment grade, additional collateral must be deposited with the counterparty if the amounts outstanding on those contracts exceed certain thresholds. The additional collateral can be up to 100% of the derivative liability. As of September 30, 2018 , the aggregate fair value of all derivative instruments with credit risk-related contingent features that were in a net liability position was $109.2 million , for which the Company had no collateral posted on September 30, 2018 . If the Company’s credit rating by S&P or Moody’s had been downgraded below investment grade on September 30, 2018 , the Company would not have been required to post any additional collateral under the agreements with the respective counterparties. The required margin on the Company’s derivative instruments is subject to significant change as a result of factors other than credit rating, such as gas prices and credit thresholds set forth in agreements between the hedging counterparties and the Company. Investment grade refers to the quality of the Company’s credit as assessed by one or more credit rating agencies. The Company’s senior unsecured debt was rated BBB by S&P and Baa3 by Moody’s at September 30, 2018 . In order to be considered investment grade, the Company must be rated BBB- or higher by S&P and Baa3 or higher by Moody’s. Anything below these ratings is considered non-investment grade. See also "Security Ratings and Financing Triggers" under Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations." |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company records its financial instruments, principally derivative instruments, at fair value in its Condensed Consolidated Balance Sheets. The Company estimates the fair value using quoted market prices, where available. If quoted market prices are not available, fair value is based upon models that use market-based parameters as inputs, including forward curves, discount rates, volatilities and nonperformance risk. Nonperformance risk considers the effect of the Company’s credit standing on the fair value of liabilities and the effect of the counterparty’s credit standing on the fair value of assets. The Company estimates nonperformance risk by analyzing publicly available market information, including a comparison of the yield on debt instruments with credit ratings similar to the Company’s or counterparty’s credit rating and the yield of a risk-free instrument and credit default swaps rates where available. The Company has categorized its assets and liabilities recorded at fair value into a three-level fair value hierarchy, based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). Assets and liabilities in Level 2 primarily include the Company’s swap, collar and option agreements. Exchange traded commodity swaps are included in Level 1. The fair value of the commodity swaps included in Level 2 is based on standard industry income approach models that use significant observable inputs, including but not limited to NYMEX natural gas forward curves, LIBOR-based discount rates, basis forward curves and natural gas liquids forward curves. The Company’s collars, options and swaptions are valued using standard industry income approach option models. The significant observable inputs utilized by the option pricing models include NYMEX forward curves, natural gas volatilities and LIBOR-based discount rates. The NYMEX natural gas forward curves, LIBOR-based discount rates, natural gas volatilities, basis forward curves and NGLs forward curves are validated to external sources at least monthly. The following assets and liabilities were measured at fair value on a recurring basis during the applicable period: Fair value measurements at reporting date using Description As of September 30, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (Thousands) Assets Derivative instruments, at fair value $ 315,564 $ 7,661 $ 307,903 $ — Liabilities Derivative instruments, at fair value $ 183,677 $ 12,058 $ 171,619 $ — Fair value measurements at reporting date using Description As of December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (Thousands) Assets Derivative instruments, at fair value $ 241,952 $ — $ 241,952 $ — Liabilities Derivative instruments, at fair value $ 139,089 $ — $ 139,089 $ — The carrying values of cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of the instruments. The carrying values of borrowings under the Company's various credit facilities approximate fair value as the interest rates are based on prevailing market rates. The Company also has an immaterial investment in a fund that invests in companies developing technology and operating solutions for exploration and production companies for which it recognized a cumulative effect of accounting change in the first quarter 2018. The investment is valued using the net asset value as a practical expedient as provided in the financial statements received from fund managers. The Company estimates the fair value of its Senior Notes using its established fair value methodology. Because not all of the Company’s Senior Notes are actively traded, the fair value of the Company's Senior Notes are a Level 2 fair value measurement. Fair value for the Company's non-traded Senior Notes are estimated using a standard industry income approach model that utilizes a discount rate based on market rates for debt with similar remaining time to maturity and credit risk. The estimated fair value of Senior Notes (including EQM’s Senior Notes) on the Condensed Consolidated Balance Sheets was approximately $8.1 billion at September 30, 2018 and $5.7 billion at December 31, 2017 . The Company recognizes transfers between Levels as of the actual date of the event or change in circumstances that caused the transfer. There were no transfers between Levels 1, 2 and 3 during the periods presented. For information on the fair values of assets related to the impairments of proved and unproved oil and gas properties and of other long-lived assets, see Note Q and Note 1 in EQT's Annual Report on Form 10-K for the year ended December 31, 2017 . For information on the assets acquired in the Rice Merger and the assets acquired in other acquisition transactions, see Notes A and P . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the U.S. Congress enacted the law known as the Tax Cuts and Jobs Act of 2017 (Tax Reform Legislation), which made significant changes to U.S. federal income tax law, including lowering the federal corporate tax rate to 21% from 35% beginning January 1, 2018. The Company is still analyzing certain aspects of the Tax Reform Legislation and refining calculations, which could potentially impact the measurement of deferred tax balances or potentially give rise to new deferred tax amounts. The Company will refine its estimates to incorporate new or better information as it comes available through the filing date of its 2017 U.S. income tax returns in the fourth quarter of 2018. For the nine months ended September 30, 2018 and 2017 , the Company calculated the provision for income taxes by applying the annual effective tax rate for the full fiscal year to “ordinary” income or loss (pre-tax income or loss excluding unusual or infrequently occurring items) for the quarter. All of EQGP's, RMP’s and Strike Force Midstream’s income is included in the Company's pre-tax income (loss). However, the Company is not required to record income tax expense on income allocated to the noncontrolling public limited partners of EQGP and EQM, or to the noncontrolling public limited partners of RMP prior to the Midstream Mergers or to the portion of Strike Force Midstream’s income allocated to the minority owner prior to the closing of the Gulfport Transaction. The exclusion of this income is allocated to noncontrolling interest from the Company's taxable income which reduces the Company's effective tax rate in periods when the Company has consolidated pre-tax income and increases the Company's effective tax rate in periods when the Company has consolidated pre-tax loss. The Company recorded income tax benefit at an effective tax rate of 28.8% for the nine months ended September 30, 2018 and income tax expense at an effective tax rate of 19.9% for the nine months ended September 30, 2017 . The Company’s forecasted annual effective tax rate for 2018 was higher than the statutory rate due to the impact of income allocated to non-controlling limited partners on a forecasted consolidated pre-tax loss and the impact of state taxes. The state taxes increased the forecasted annual effective tax rate as compared to the statutory rate as a result of the pre-tax loss on entities with higher state applicable rates and pre-tax income on entities with lower state applicable rates. The Company’s effective tax rate for the nine months ended September 30, 2018 was lower because the amount of benefit recorded for the year-to-date is limited to the amount of benefit forecasted for the entire year. There were no material changes to the Company’s methodology for determining unrecognized tax benefits during the three months ended September 30, 2018 . |
Revolving Credit Facilities
Revolving Credit Facilities | 9 Months Ended |
Sep. 30, 2018 | |
Short-term Debt [Abstract] | |
Revolving Credit Facilities | Revolving Credit Facilities The Company has a $2.5 billion revolving credit facility that expires in July 2022. The Company had $0.5 billion in borrowings and no letters of credit outstanding under the credit facility as of September 30, 2018 . The Company had $1.3 billion in borrowings and $159.4 million of letters of credit outstanding under the credit facility as of December 31, 2017 . The maximum amount of outstanding borrowings at any time under the credit facility during the three and nine months ended September 30, 2018 was $0.7 billion and $1.6 billion , respectively, and the average daily balance of borrowings outstanding was approximately $0.3 billion and $0.9 billion , respectively, at a weighted average annual interest rate of approximately 3.6% and 3.3% , respectively. The Company had no borrowings or letters of credit outstanding under its credit facility at any time during the three and nine months ended September 30, 2017 . EQM has a $1 billion revolving credit facility that expires in July 2022. EQM had $22 million in borrowings and $1 million of letters of credit outstanding under the credit facility as of September 30, 2018 . EQM had $180 million in borrowings and no letters of credit outstanding under the credit facility as of December 31, 2017 . The maximum amount of outstanding borrowings under EQM’s revolving credit facility at any time during the three and nine months ended September 30, 2018 was $74 million and $420 million , respectively, and the average daily balance of borrowings outstanding was approximately $22 million and $147 million , respectively. EQM incurred interest at a weighted average annual interest rate of approximately 3.7% and 3.2% for the three and nine months ended September 30, 2018 , respectively. The maximum amount of outstanding borrowings under EQM's revolving credit facility at any time during each of the three and nine months ended September 30, 2017 was $177 million and the average daily balance of borrowings outstanding was approximately $95 million and $32 million , respectively. EQM incurred interest at a weighted average annual interest rate of approximately 2.7% for both the three and nine months ended September 30, 2017 . Prior to the Separation, EQM intends to increase its borrowing capacity from $1 billion up to $3 billion . See Note B to the Condensed Consolidated Financial Statements for a discussion of the borrowings on the EQM Term Loan Facility. As a result of the termination of the EQM Term Loan Facility, EQM expensed $3 million of deferred issuance costs. From April 25, 2018 through June 25, 2018, the maximum amount of EQM's outstanding borrowings under the EQM Term Loan Facility at any time was $1,825 million and the average daily balance was approximately $1,231 million . EQM incurred interest at a weighted average annual interest rate of approximately 3.3% for the period from April 25, 2018 through June 25, 2018. In connection with the completion of the Midstream Mergers discussed in Note B , on July 23, 2018, EQM repaid the approximately $260 million of borrowings outstanding under the RMP Credit Agreement and the RMP Credit Agreement was terminated. RMP OpCo had $286 million in borrowings and $1 million of letters of credit outstanding under the RMP Credit Agreement as of December 31, 2017 . The maximum amount of outstanding borrowings under the RMP Credit Agreement at any time from July 1, 2018 through July 23, 2018 and from January 1, 2018 through July 23, 2018 was $260 million and $375 million , respectively, and the average daily balance of borrowings outstanding during such periods was approximately $249 million and $300 million , respectively, at a weighted average annual interest rate of approximately 4.1% and 3.8% , respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share In periods when the Company reports a net loss, all options and restricted stock are excluded from the calculation of diluted weighted average shares outstanding because of their anti-dilutive effect on loss per share. As a result, all options and all restricted stock were excluded from the calculation of diluted earnings per share for the three and nine months ended September 30, 2018 . Potentially dilutive securities (options and restricted stock awards) included in the calculation of diluted earnings per share totaled 199,376 and 204,080 for the three and nine months ended September 30, 2017 , respectively. Options to purchase common stock excluded from potentially dilutive securities because they were anti-dilutive totaled 425,100 and 431,190 for the three and nine months ended September 30, 2017 , respectively. The impact of EQM’s and EQGP’s dilutive units did not have a material impact on the Company’s earnings per share calculations for any of the periods presented. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income by Component | 9 Months Ended |
Sep. 30, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Changes in Accumulated Other Comprehensive Income by Component | Changes in Accumulated Other Comprehensive Income by Component The following tables explain the changes in accumulated other comprehensive income (OCI) by component during the applicable period: Three Months Ended September 30, 2018 Natural gas cash flow hedges, net of tax Interest rate cash flow hedges, net of tax Other post- retirement benefit liability adjustment, net of tax Accumulated OCI, net of tax (Thousands) Accumulated OCI (loss), net of tax, as of July 1, 2018 $ 3,872 $ (475 ) $ (6,356 ) $ (2,959 ) (Gains) losses reclassified from accumulated OCI, net of tax (430 ) (a) 52 (a) 86 (b) (292 ) Accumulated OCI (loss), net of tax, as of September 30, 2018 $ 3,442 $ (423 ) $ (6,270 ) $ (3,251 ) Three Months Ended September 30, 2017 Natural gas cash Interest rate Other post- Accumulated (Thousands) Accumulated OCI (loss), net of tax, as of July 1, 2017 $ 7,047 $ (627 ) $ (6,713 ) $ (293 ) (Gains) losses reclassified from accumulated OCI, net of tax (1,451 ) (a) 36 (a) 77 (b) (1,338 ) Accumulated OCI (loss), net of tax, as of September 30, 2017 $ 5,596 $ (591 ) $ (6,636 ) $ (1,631 ) Nine Months Ended September 30, 2018 Natural gas cash flow hedges, net of tax Interest rate cash flow hedges, net of tax Other post- retirement benefit liability adjustment, net of tax Accumulated OCI, net of tax (Thousands) Accumulated OCI (loss), net of tax, as of January 1, 2018 $ 4,625 $ (555 ) $ (6,528 ) $ (2,458 ) (Gains) losses reclassified from accumulated OCI, net of tax (1,183 ) (a) 132 (a) 258 (b) (793 ) Accumulated OCI (loss), net of tax, as of September 30, 2018 $ 3,442 $ (423 ) $ (6,270 ) $ (3,251 ) Nine Months Ended September 30, 2017 Natural gas cash flow hedges, net of tax Interest rate cash flow hedges, net of tax Pension and other post- retirement benefits liability adjustment, net of tax Accumulated OCI, net of tax (Thousands) Accumulated OCI (loss), net of tax, as of January 1, 2017 $ 9,607 $ (699 ) $ (6,866 ) $ 2,042 (Gains) losses reclassified from accumulated OCI, net of tax (4,011 ) (a) 108 (a) 230 (b) (3,673 ) Accumulated OCI (loss), net of tax, as of September 30, 2017 $ 5,596 $ (591 ) $ (6,636 ) $ (1,631 ) (a) (Gains) losses reclassified from accumulated OCI, net of tax related to natural gas cash flow hedges were reclassified into operating revenues. Losses from accumulated OCI, net of tax related to interest rate cash flow hedges were reclassified into interest expense. (b) The accumulated OCI reclassification is attributable to the net actuarial loss and net prior service cost related to the Company’s post-retirement benefit plans. See Note 1 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. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | Midstream Streamlining Transactions and Financing In February 2018, the Company's Board of Directors unanimously approved a plan to separate its upstream and midstream businesses, creating a standalone publicly traded corporation, Equitrans Midstream Corporation (Equitrans Midstream), which will focus on midstream operations (the Separation). Equitrans Midstream will own the midstream interests held by EQT. The Separation is intended to qualify as tax-free to EQT shareholders for U.S. federal income tax purposes. Under the Separation plan, EQT shareholders will retain their shares of the Company's stock and receive a pro-rata distribution of 80.1% of the outstanding shares of Equitrans Midstream common stock. In connection with announcing the planned Separation, the Company also announced its plans to pursue (i) a sale of Rice retained midstream assets acquired by EQT in connection with the Rice Merger to EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP) (EQM) (NYSE: EQM), (ii) a merger of EQM and RMP, and (iii) a sale of RMP’s incentive distribution rights (RMP IDRs) to EQGP Holdings, LP (formerly known as EQT GP Holdings, LP) (EQGP) (NYSE: EQGP)((i), (ii) and (iii) collectively, the Midstream Streamlining Transactions). On April 25, 2018, EQT, Rice Midstream Holdings LLC (Rice Midstream), a wholly owned subsidiary of the Company, EQM and EQM Gathering Holdings, LLC (EQM Gathering), a wholly owned subsidiary of EQM, entered into a contribution and sale agreement pursuant to which EQM Gathering agreed to acquire all the outstanding limited liability company interests in each of (i) EQM West Virginia Midstream Holdings LLC (formerly known as Rice West Virginia Midstream LLC) (Rice West Virginia), (ii) EQM Olympus Midstream LLC (formerly known as Rice Olympus Midstream LLC) (Rice Olympus) and (iii) Strike Force Midstream Holdings LLC (Strike Force Holdings), which owns a 75% limited liability company interest in Strike Force Midstream LLC (Strike Force Midstream), in exchange for an aggregate of 5,889,282 EQM common units and cash consideration of $1.15 billion , plus working capital adjustments (the Drop-Down Transaction). The Drop-Down Transaction was completed on May 22, 2018 with an effective date of May 1, 2018. In connection with the Drop-Down Transaction, the Company recorded a $15.5 million gain to additional paid-in-capital, a decrease in noncontrolling interest in consolidated subsidiary of $20.3 million and an increase to deferred tax liability of $4.8 million . On May 1, 2018, pursuant to the Purchase and Sale Agreement dated April 25, 2018, by and among EQM, EQM Gathering, Gulfport Energy Corporation (Gulfport) and an affiliate of Gulfport, EQM Gathering acquired the remaining 25% limited liability company interest in Strike Force Midstream not owned by Strike Force Holdings for $175 million (the Gulfport Transaction). As a result, EQM has owned 100% of Strike Force Midstream since May 1, 2018. On May 22, 2018, pursuant to an Incentive Distribution Rights Purchase and Sale Agreement dated April 25, 2018, by and among the Company, Rice Midstream GP Holdings LP (Rice Midstream GP Holdings), a wholly owned subsidiary of the Company that owned the RMP IDRs, and EQGP, EQGP acquired all of the issued and outstanding RMP IDRs in exchange for 36,293,766 EQGP common units (the RMP IDR Purchase). As a result of the RMP IDR Purchase, EQT's percentage ownership of the outstanding EQGP common units increased from approximately 90.1% to approximately 91.3% . In connection with the RMP IDR Purchase, the Company recorded a $35.1 million loss to additional paid-in-capital, an increase in noncontrolling interest in consolidated subsidiary of $46.1 million and a decrease to deferred tax liability of $11.0 million . On April 25, 2018, EQM entered into an Agreement and Plan of Merger (the Midstream Merger Agreement) with RMP, EQM Midstream Management LLC (formerly known as Rice Midstream Management LLC), the general partner of RMP (the RMP General Partner), EQM Midstream Services, LLC (formerly known as EQT Midstream Services, LLC), the general partner of EQM (the EQM General Partner), EQM Acquisition Sub, LLC, a wholly owned subsidiary of EQM (Merger Sub), EQM GP Acquisition Sub, LLC, a wholly owned subsidiary of EQM (GP Merger Sub), and, solely for certain limited purposes set forth therein, the Company. Pursuant to the Midstream Merger Agreement, on July 23, 2018, Merger Sub and GP Merger Sub merged with and into RMP and the RMP General Partner, respectively, with RMP and the RMP General Partner surviving as wholly owned subsidiaries of EQM (the Midstream Mergers). Pursuant to the Midstream Merger Agreement, each of the RMP common units issued and outstanding immediately prior to the effective time of the Midstream Mergers was converted into the right to receive 0.3319 EQM common units (the Midstream Mergers Consideration), the issued and outstanding RMP IDRs were canceled and each outstanding award of phantom units in respect of RMP common units fully vested and converted into the right to receive the Midstream Mergers Consideration, less applicable tax withholding, in respect of each RMP common unit subject thereto. The aggregate Midstream Mergers Consideration consisted of approximately 34 million EQM common units. Following completion of the Midstream Mergers, RMP's common units ceased to be publicly traded. An indirect wholly owned subsidiary of the Company received 9,554,530 EQM common units as Midstream Mergers Consideration. In connection with the Midstream Mergers, the Company recorded a $138.8 million loss to additional paid-in capital, an increase in noncontrolling interest in consolidated subsidiary of $189.1 million and a decrease to deferred tax liability of approximately $50.3 million . Also in connection with the completion of the Midstream Mergers, on July 23, 2018, EQM repaid approximately $260 million of borrowings outstanding under the Credit Agreement, dated as of December 22, 2014, by and among RMP, as parent guarantor, RM Operating LLC (formerly known as Rice Midstream OpCo LLC), a wholly owned subsidiary of RMP (RMP OpCo), as borrower, Wells Fargo Bank, N.A., as administrative agent, and the lenders and other parties from time to time party thereto (the RMP Credit Agreement), and the RMP Credit Agreement was terminated. On April 25, 2018, EQM entered a $2.5 billion unsecured multi-draw 364-day term loan facility with a syndicate of lenders (the EQM Term Loan Facility). The EQM Term Loan Facility was used to fund the cash consideration for the Drop-Down Transaction, to repay borrowings under EQM’s $1 billion credit facility, and for other general partnership purposes. During the second quarter of 2018, the balance outstanding under the EQM Term Loan Facility was repaid, and the EQM Term Loan Facility was terminated on June 25, 2018 in connection with EQM's issuance of the EQM 2018 Senior Notes (described in the following section). During the second quarter of 2018, EQM issued 4.75% senior notes due July 15, 2023 in the aggregate principal amount of $1.1 billion , 5.50% senior notes due July 15, 2028 in the aggregate principal amount of $850 million and 6.50% senior notes due July 15, 2048 in the aggregate principal amount of $550 million (collectively, the EQM 2018 Senior Notes). The offering of the EQM 2018 Senior Notes resulted in net proceeds of approximately $2,465.8 million , inclusive of a discount of $11.8 million and estimated debt issuance costs of $22.4 million . The net proceeds were used to repay the balance outstanding under the EQM Term Loan Facility and the RMP Credit Agreement and the remainder is expected to be used for general partnership purposes. The EQM 2018 Senior Notes were issued pursuant to new supplemental indentures to EQM's existing indenture dated August 1, 2014. The EQM 2018 Senior Notes contain covenants that limit EQM's ability to, among other things, incur certain liens securing indebtedness, engage in certain sale and leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of substantially all of EQM's assets. Acquisitions On February 1, 2017, the Company acquired approximately 14,000 net Marcellus acres located in Marion, Monongalia and Wetzel Counties of West Virginia from a third-party. On February 27, 2017, the Company acquired approximately 85,000 net Marcellus acres, including drilling rights on approximately 44,000 net Utica acres and current natural gas production of approximately 110 MMcfe per day, from Stone Energy Corporation. The acquired acres are primarily located in Wetzel, Marshall, Tyler and Marion Counties of West Virginia. The acquired assets also included 174 Marcellus wells, 120 of which were producing at the time of the acquisition, and 20 miles of gathering pipeline. On June 30, 2017, the Company acquired approximately 11,000 net Marcellus acres, and the associated Utica drilling rights from a third-party. The acquired acres are primarily located in Allegheny, Washington and Westmoreland Countries of Pennsylvania. The Company paid net cash of $740.1 million for the 2017 acquisitions during the nine months ended September 30, 2017 . The preliminary fair value assigned to the acquired property, plant and equipment as of the opening balance sheet dates totaled $750.1 million . In connection with the 2017 acquisitions, the Company assumed approximately $5.3 million of net current liabilities and $4.7 million of non-current liabilities. Fair Value Measurement As these acquisitions qualified as business combinations under GAAP, the fair value of the acquired assets was determined using a market approach for the undeveloped acreage and a discounted cash flow model under the income approach for the wells. Significant unobservable inputs used in the analysis included the determination of estimated developed reserves and forward pricing estimates. As a result, valuation of the acquired assets was a Level 3 fair value measurement. |
Divestitures
Divestitures | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On June 19, 2018, the Company sold its non-core Permian Basin assets located in Texas for net proceeds of $57.7 million , subject to final purchase price adjustments (the Permian Divestiture). The assets sold in the Permian Divestiture included approximately 970 productive wells with current net production of approximately 20 MMcfe per day, approximately 350 miles of low-pressure gathering lines and 26 compressors. On July 18, 2018, the Company sold approximately 2.5 million non-core, net acres in the Huron Play for net proceeds of $523.6 million , subject to final purchase price adjustments (the Huron Divestiture). The assets sold in the Huron Divestiture included approximately 12,000 productive wells with current net production of approximately 200 MMcfe per day, approximately 6,400 miles of low-pressure gathering lines and 59 compressor stations. The Company retained the deep drilling rights across the divested acreage. During the first quarter of 2018 , the Company recorded an impairment of $2.3 billion associated with the production and related midstream assets in the Huron and Permian Plays. The impairment of these properties and related pipeline assets recorded during the first quarter of 2018 was due to the carrying value of the assets exceeding the undiscounted cash flows which were expected to result from the continued use and potential disposition of the underlying assets as well as management’s determination that it no longer intended to develop the associated unproved properties. The first quarter of 2018 impairment reduced these assets to their estimated fair value at that time of approximately $1 billion . The fair value of the impaired assets, as determined at March 31, 2018, was based on significant inputs that were not observable in the market and as such are considered to be Level 3 fair value measurements. See Note K for a description of the fair value hierarchy and Note 1 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for our policy on impairment of proved and unproved properties. Key assumptions included in the calculation of the fair value of the impaired assets as of March 31, 2018 included (i) reserves, including risk adjustments for probable and possible reserves; (ii) future commodity prices; (iii) to the extent available, market based indicators of fair value including estimated proceeds which could be realized upon a potential disposition; (iv) production rates based on the Company's experience with similar properties in which it operates; (v) estimated future operating and development costs; and (vi) a market-based weighted average cost of capital. In connection with the Permian Divestiture and the Huron Divestiture, the Company recorded an additional impairment/loss on sale of long-lived assets of $118.1 million during the second quarter of 2018 to write down the carrying value of the disposal groups to the estimated amounts to be received upon the closing of the transactions. In connection with the closing of the Huron Divestiture, the Company recorded a loss of $259.3 million during the third quarter of 2018 related to certain capacity contracts that the Company no longer has existing production to satisfy and does not plan to utilize in the future. The loss was recorded within operating expenses under the impairment/loss on sale of long-lived assets caption within the Statements of Consolidated Operations. The fair value of the loss for the initial measurement was based upon significant inputs that were not observable in the market and as such is considered a Level 3 fair value measurement. The key unobservable input in the calculation is the amount, if any, of potential future economic benefit from the contracts. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 24, 2018, the Company’s Board of Directors approved the completion of the Separation by means of a pro-rata distribution (the Distribution) of 80.1% of the outstanding common stock of Equitrans Midstream to the Company’s shareholders of record as of the close of business on November 1, 2018 (the Record Date). Pursuant to the plan of Distribution approved by the Company’s Board of Directors, each Company shareholder will receive 0.80 shares of Equitrans Midstream common stock for every one share of the Company’s common stock held as of the close of business on the Record Date. Shareholders will receive cash in lieu of fractional shares of Equitrans Midstream common stock. After considering that EQT will retain an additional 19.9% of Equitrans Midstream's common stock, total Equitrans Midstream shares outstanding after the Distribution are expected to be approximately 255 million shares. In connection with the Separation, the Company and its subsidiaries will enter into certain agreements with Equitrans Midstream to implement the legal and structural separation between the two companies, govern the relationship between the Company and Equitrans Midstream after completion of the Separation, and allocate between the Company and Equitrans Midstream, various assets, liabilities and obligations, including, among other things, employee benefits, litigation, contracts, equipment, real property, intellectual property and tax-related assets and liabilities. These agreements include a Separation and Distribution Agreement, Tax Matters Agreement, Employee Matters Agreement, Transition Services Agreement and Shareholder and Registration Rights Agreement, the form of which has been approved by the Company’s Board of Directors. The accompanying unaudited Condensed Consolidated Financial Statements include the historical results of Equitrans Midstream, as the Distribution is expected to be effective at 11:59 p.m. eastern time on November 12, 2018, which is after the most recent period reported in this Form 10-Q. In future filings, the historical results of the businesses that comprise Equitrans Midstream Corporation will be reported as discontinued operations in the Company’s Consolidated Financial Statements. As a result of the Separation and Distribution, the accompanying unaudited, interim Condensed Consolidated Financial Statements are not indicative of the Company’s future financial position, results of operations or cash flows. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers . The standard requires an entity to recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this standard on January 1, 2018 using the modified retrospective method of adoption. Adoption of the ASU did not require an adjustment to the opening balance of equity. The Company does not expect the standard to have a significant effect on its results of operations, liquidity or financial position in 2018. The Company implemented processes and controls to ensure new contracts are reviewed for the appropriate accounting treatment and to generate the disclosures required under the new standard in the first quarter of 2018. For the disclosures required by this ASU, see Note F . In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . The standard affects accounting for equity investments and financial liabilities under the fair value option, the presentation and disclosure requirements for financial instruments, and eliminates the cost method of accounting for equity investments. The Company adopted this standard in the first quarter of 2018 which resulted in a cumulative effect adjustment of $4.1 million on the Statement of Condensed Consolidated Equity. In February 2016, the FASB issued ASU No. 2016-02, Leases . The standard requires an entity to record assets and obligations for contracts currently recognized as operating leases. In July 2018, the FASB issued targeted improvements to this ASU in ASU 2018-11. This update provides entities with an optional transition method, which permits an entity to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company has elected to utilize the optional transition method. The ASU will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, with early adoption permitted. The Company is utilizing a lease accounting system to document its current population of contracts classified as leases, which will be updated as the lease population changes. The Company continues to evaluate new business processes and related internal controls and is assessing and documenting the accounting impacts related to the new standard. Although the evaluation is ongoing, the Company expects that the adoption will impact its financial statements as the standard requires recognition on the balance sheet of a right of use asset and corresponding lease liability. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments . This ASU amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, this ASU eliminates the probable initial recognition threshold in current GAAP and requires an entity to reflect its current estimate of all expected credit losses. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The ASU will be effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. The Company is currently evaluating the effect this standard will have on its financial statements and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash. This ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The Company adopted this standard in the first quarter of 2018. The Company had $75 million restricted cash at December 31, 2016. In accordance with ASU 2016-18, restricted cash is included in the beginning of period cash balance and excluded from investing activities on the Statements of Condensed Consolidated Cash Flows for the nine months ended September 30, 2017 . The Company had no restricted cash on the Condensed Consolidated Balance Sheet from March 31, 2017 through the current period. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations: Clarifying the Definition of a Business . This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be recorded as acquisitions (or disposals) of assets or businesses. The Company adopted this standard in the first quarter of 2018 with no significant effect on its financial statements or related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test of Goodwill Impairment . This ASU simplifies the quantitative goodwill impairment test requirements by eliminating the requirement to calculate the implied fair value of goodwill. Instead, a company would record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. The standard’s provisions are to be applied prospectively. The Company adopted this standard in the first quarter of 2018 with no significant effect on its financial statements or related disclosures. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . This ASU provides additional guidance on the presentation of net benefit cost in the income statement and on the components eligible for capitalization in assets. The Company adopted this standard in the first quarter of 2018 with no significant effect on its financial statements or related disclosures. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting . This ASU provides guidance regarding which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The Company adopted this standard in the first quarter of 2018 with no significant effect on its financial statements or related disclosures. This ASU will be applied prospectively to awards modified on or after the adoption date. In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows companies to reclassify stranded tax effects resulting from the Tax Reform Legislation from accumulated other comprehensive income to retained earnings. The ASU is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The reclassification permitted under this ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Reform Legislation is recognized. The Company is currently evaluating the effect this standard will have on its financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Changes to the Disclosure Requirements for Fair Value Measurement , which makes a number of changes to the hierarchy associated with Level 1, 2 and 3 fair value measurements and the related disclosure requirements. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect this standard will have on its financial statements and related disclosures but does not expect the adoption of this standard to have a material impact on its financial statements and related disclosures. |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers . The standard requires an entity to recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this standard on January 1, 2018 using the modified retrospective method of adoption. Adoption of the ASU did not require an adjustment to the opening balance of equity. The Company does not expect the standard to have a significant effect on its results of operations, liquidity or financial position in 2018. The Company implemented processes and controls to ensure new contracts are reviewed for the appropriate accounting treatment and to generate the disclosures required under the new standard in the first quarter of 2018. For the disclosures required by this ASU, see Note F . In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities . The standard affects accounting for equity investments and financial liabilities under the fair value option, the presentation and disclosure requirements for financial instruments, and eliminates the cost method of accounting for equity investments. The Company adopted this standard in the first quarter of 2018 which resulted in a cumulative effect adjustment of $4.1 million on the Statement of Condensed Consolidated Equity. In February 2016, the FASB issued ASU No. 2016-02, Leases . The standard requires an entity to record assets and obligations for contracts currently recognized as operating leases. In July 2018, the FASB issued targeted improvements to this ASU in ASU 2018-11. This update provides entities with an optional transition method, which permits an entity to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company has elected to utilize the optional transition method. The ASU will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, with early adoption permitted. The Company is utilizing a lease accounting system to document its current population of contracts classified as leases, which will be updated as the lease population changes. The Company continues to evaluate new business processes and related internal controls and is assessing and documenting the accounting impacts related to the new standard. Although the evaluation is ongoing, the Company expects that the adoption will impact its financial statements as the standard requires recognition on the balance sheet of a right of use asset and corresponding lease liability. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments . This ASU amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, this ASU eliminates the probable initial recognition threshold in current GAAP and requires an entity to reflect its current estimate of all expected credit losses. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The ASU will be effective for annual reporting periods beginning after December 15, 2019, including interim periods within that reporting period. The Company is currently evaluating the effect this standard will have on its financial statements and related disclosures. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows: Restricted Cash. This ASU requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The Company adopted this standard in the first quarter of 2018. The Company had $75 million restricted cash at December 31, 2016. In accordance with ASU 2016-18, restricted cash is included in the beginning of period cash balance and excluded from investing activities on the Statements of Condensed Consolidated Cash Flows for the nine months ended September 30, 2017 . The Company had no restricted cash on the Condensed Consolidated Balance Sheet from March 31, 2017 through the current period. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations: Clarifying the Definition of a Business . This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be recorded as acquisitions (or disposals) of assets or businesses. The Company adopted this standard in the first quarter of 2018 with no significant effect on its financial statements or related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test of Goodwill Impairment . This ASU simplifies the quantitative goodwill impairment test requirements by eliminating the requirement to calculate the implied fair value of goodwill. Instead, a company would record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value. The standard’s provisions are to be applied prospectively. The Company adopted this standard in the first quarter of 2018 with no significant effect on its financial statements or related disclosures. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . This ASU provides additional guidance on the presentation of net benefit cost in the income statement and on the components eligible for capitalization in assets. The Company adopted this standard in the first quarter of 2018 with no significant effect on its financial statements or related disclosures. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting . This ASU provides guidance regarding which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The Company adopted this standard in the first quarter of 2018 with no significant effect on its financial statements or related disclosures. This ASU will be applied prospectively to awards modified on or after the adoption date. In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU allows companies to reclassify stranded tax effects resulting from the Tax Reform Legislation from accumulated other comprehensive income to retained earnings. The ASU is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The reclassification permitted under this ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Reform Legislation is recognized. The Company is currently evaluating the effect this standard will have on its financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), Changes to the Disclosure Requirements for Fair Value Measurement , which makes a number of changes to the hierarchy associated with Level 1, 2 and 3 fair value measurements and the related disclosure requirements. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect this standard will have on its financial statements and related disclosures but does not expect the adoption of this standard to have a material impact on its financial statements and related disclosures. |
Financial Statements (Tables)
Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Acquisition, Pro Forma Information | The following unaudited pro forma combined financial information presents the Company’s results as though the Rice Merger had been completed at January 1, 2017. The pro forma combined financial information has been included for comparative purposes and is not necessarily indicative of the results that might have actually occurred had the Rice Merger taken place on January 1, 2017; furthermore, the financial information is not intended to be a projection of future results. (in thousands, except per share data) (unaudited) Three Months Ended September 30, 2017 Nine Months Ended September 30, 2017 Pro forma operating revenues $ 1,042,363 $ 3,491,790 Pro forma net income $ 120,301 $ 602,684 Pro forma net income attributable to noncontrolling interests $ (118,353 ) $ (338,546 ) Pro forma net income attributable to EQT $ 1,948 $ 264,138 Pro forma income per share (basic) $ 0.01 $ 1.00 Pro forma income per share (diluted) $ — $ 0.99 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The table below provides disaggregated information regarding the Company’s revenues, presented consistently with the Company’s segment reporting. Certain contracts that provide for the release of capacity that is not used to transport the Company’s produced volumes were deemed to be outside the scope of Revenue from Contracts with Customers. The cost of, and recoveries on, that capacity are reported within pipeline and net marketing services at EQT Production. Derivative contracts are also outside the scope of Revenue from Contracts with Customers. Three Months Ended September 30, 2018 Revenues from contracts with customers Other sources of revenue Total (Thousands) Natural gas sales $ 931,976 $ — $ 931,976 NGLs sales 106,621 — 106,621 Oil sales 8,392 — 8,392 Sales of natural gas, oil and NGLs $ 1,046,989 $ — $ 1,046,989 Pipeline and net marketing services at EQT Production $ 2,605 $ 3,527 $ 6,132 EQM Gathering: Firm reservation fee revenues 112,598 — 112,598 Volumetric based fee revenues: Usage fees under firm contracts 8,661 — 8,661 Usage fees under interruptible contracts 131,602 — 131,602 EQM Transmission: Firm reservation fee revenues 82,669 — 82,669 Volumetric based fee revenues: Usage fees under firm contracts 5,331 — 5,331 Usage fees under interruptible contracts 1,350 — 1,350 Water services at EQM Water 22,373 — 22,373 Intersegment eliminations (255,760 ) — (255,760 ) Pipeline, water and net marketing services $ 111,429 $ 3,527 $ 114,956 Loss on derivatives not designated as hedges $ — $ (3,075 ) $ (3,075 ) Total operating revenues $ 1,158,418 $ 452 $ 1,158,870 Nine Months Ended September 30, 2018 Revenues from contracts with customers Other sources of revenue Total (Thousands) Natural gas sales $ 2,877,660 $ — $ 2,877,660 NGLs sales 357,746 — 357,746 Oil sales 29,322 — 29,322 Sales of natural gas, oil and NGLs $ 3,264,728 $ — $ 3,264,728 Pipeline and net marketing services at EQT Production $ 14,273 $ 28,109 $ 42,382 EQM Gathering: Firm reservation fee revenues 334,233 — 334,233 Volumetric based fee revenues: Usage fees under firm contracts 30,725 — 30,725 Usage fees under interruptible contracts 366,482 — 366,482 EQM Transmission: Firm reservation fee revenues 262,666 — 262,666 Volumetric based fee revenues: Usage fees under firm contracts 13,981 — 13,981 Usage fees under interruptible contracts 8,782 — 8,782 Water services at EQM Water 93,438 — 93,438 Intersegment eliminations (775,913 ) — (775,913 ) Pipeline, water and net marketing services $ 348,667 $ 28,109 $ 376,776 Gain on derivatives not designated as hedges $ — $ 5,620 $ 5,620 Total operating revenues $ 3,613,395 $ 33,729 $ 3,647,124 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table includes the transaction price allocated to the Company's remaining performance obligations on all contracts with fixed consideration. The table excludes all contracts that qualified for the exception to the relative standalone selling price method. Gathering firm reservation fees and transmission and storage firm reservation fees include amounts related to affiliate contracts. 2018 (a) 2019 2020 2021 2022 Thereafter Total (Thousands) Natural gas sales $ 20,173 $ 32,322 $ 1,237 $ — $ — $ — $ 53,732 Gathering firm reservation fees $ 114,771 $ 481,425 $ 557,352 $ 567,351 $ 566,062 $ 2,834,111 $ 5,121,072 Gathering revenues supported by MVCs $ — $ 65,700 $ 71,370 $ 71,175 $ 71,175 $ 136,875 $ 416,295 Transmission and storage firm reservation fees $ 94,077 $ 346,893 $ 344,328 $ 339,588 $ 334,522 $ 2,477,808 $ 3,937,216 (a) October 1 through December 31. |
Consolidated Variable Interes_2
Consolidated Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of amounts included in balance sheets, consolidated operations and cash flows of EQGP and EQM | 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 |
Financial Information by Busi_2
Financial Information by Business Segment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of company's operating revenues, income from operations and assets | Three Months Ended September 30, 2018 EQT Production EQM Gathering EQM Transmission EQM 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 to income from continuing operations | 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 |
Schedule of segment assets | 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 |
Schedule of depreciation, depletion and amortization and expenditures for segment assets | 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. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of impact of netting agreements and margin deposits on gross derivative assets | The table below reflects the impact of netting agreements and margin deposits on gross derivative assets and liabilities as of September 30, 2018 and December 31, 2017 . The margin deposit within the table as of September 30, 2018 represents funds remitted to a broker for exchange traded derivative commodity instruments. As of September 30, 2018 Derivative instruments, recorded in the Condensed Consolidated Balance Sheet, gross Derivative instruments subject to master netting agreements Margin deposits remitted to counterparties Derivative instruments, net (Thousands) Asset derivatives: Derivative instruments, at fair value $ 315,564 $ (104,559 ) $ — $ 211,005 Liability derivatives: Derivative instruments, at fair value $ 183,677 $ (104,559 ) $ (11,110 ) $ 68,008 As of December 31, 2017 Derivative instruments, recorded in the Condensed Consolidated Balance Sheet, gross Derivative instruments subject to master netting agreements Margin deposits remitted to counterparties Derivative instruments, net (Thousands) Asset derivatives: Derivative instruments, at fair value $ 241,952 $ (86,856 ) $ — $ 155,096 Liability derivatives: Derivative instruments, at fair value $ 139,089 $ (86,856 ) $ — $ 52,233 |
Schedule of impact of netting agreements and margin deposits on gross derivative liabilities | The table below reflects the impact of netting agreements and margin deposits on gross derivative assets and liabilities as of September 30, 2018 and December 31, 2017 . The margin deposit within the table as of September 30, 2018 represents funds remitted to a broker for exchange traded derivative commodity instruments. As of September 30, 2018 Derivative instruments, recorded in the Condensed Consolidated Balance Sheet, gross Derivative instruments subject to master netting agreements Margin deposits remitted to counterparties Derivative instruments, net (Thousands) Asset derivatives: Derivative instruments, at fair value $ 315,564 $ (104,559 ) $ — $ 211,005 Liability derivatives: Derivative instruments, at fair value $ 183,677 $ (104,559 ) $ (11,110 ) $ 68,008 As of December 31, 2017 Derivative instruments, recorded in the Condensed Consolidated Balance Sheet, gross Derivative instruments subject to master netting agreements Margin deposits remitted to counterparties Derivative instruments, net (Thousands) Asset derivatives: Derivative instruments, at fair value $ 241,952 $ (86,856 ) $ — $ 155,096 Liability derivatives: Derivative instruments, at fair value $ 139,089 $ (86,856 ) $ — $ 52,233 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following assets and liabilities were measured at fair value on a recurring basis during the applicable period: Fair value measurements at reporting date using Description As of September 30, 2018 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (Thousands) Assets Derivative instruments, at fair value $ 315,564 $ 7,661 $ 307,903 $ — Liabilities Derivative instruments, at fair value $ 183,677 $ 12,058 $ 171,619 $ — Fair value measurements at reporting date using Description As of December 31, 2017 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (Thousands) Assets Derivative instruments, at fair value $ 241,952 $ — $ 241,952 $ — Liabilities Derivative instruments, at fair value $ 139,089 $ — $ 139,089 $ — |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income by Component (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of the changes in accumulated OCI by component | The following tables explain the changes in accumulated other comprehensive income (OCI) by component during the applicable period: Three Months Ended September 30, 2018 Natural gas cash flow hedges, net of tax Interest rate cash flow hedges, net of tax Other post- retirement benefit liability adjustment, net of tax Accumulated OCI, net of tax (Thousands) Accumulated OCI (loss), net of tax, as of July 1, 2018 $ 3,872 $ (475 ) $ (6,356 ) $ (2,959 ) (Gains) losses reclassified from accumulated OCI, net of tax (430 ) (a) 52 (a) 86 (b) (292 ) Accumulated OCI (loss), net of tax, as of September 30, 2018 $ 3,442 $ (423 ) $ (6,270 ) $ (3,251 ) Three Months Ended September 30, 2017 Natural gas cash Interest rate Other post- Accumulated (Thousands) Accumulated OCI (loss), net of tax, as of July 1, 2017 $ 7,047 $ (627 ) $ (6,713 ) $ (293 ) (Gains) losses reclassified from accumulated OCI, net of tax (1,451 ) (a) 36 (a) 77 (b) (1,338 ) Accumulated OCI (loss), net of tax, as of September 30, 2017 $ 5,596 $ (591 ) $ (6,636 ) $ (1,631 ) Nine Months Ended September 30, 2018 Natural gas cash flow hedges, net of tax Interest rate cash flow hedges, net of tax Other post- retirement benefit liability adjustment, net of tax Accumulated OCI, net of tax (Thousands) Accumulated OCI (loss), net of tax, as of January 1, 2018 $ 4,625 $ (555 ) $ (6,528 ) $ (2,458 ) (Gains) losses reclassified from accumulated OCI, net of tax (1,183 ) (a) 132 (a) 258 (b) (793 ) Accumulated OCI (loss), net of tax, as of September 30, 2018 $ 3,442 $ (423 ) $ (6,270 ) $ (3,251 ) Nine Months Ended September 30, 2017 Natural gas cash flow hedges, net of tax Interest rate cash flow hedges, net of tax Pension and other post- retirement benefits liability adjustment, net of tax Accumulated OCI, net of tax (Thousands) Accumulated OCI (loss), net of tax, as of January 1, 2017 $ 9,607 $ (699 ) $ (6,866 ) $ 2,042 (Gains) losses reclassified from accumulated OCI, net of tax (4,011 ) (a) 108 (a) 230 (b) (3,673 ) Accumulated OCI (loss), net of tax, as of September 30, 2017 $ 5,596 $ (591 ) $ (6,636 ) $ (1,631 ) (a) (Gains) losses reclassified from accumulated OCI, net of tax related to natural gas cash flow hedges were reclassified into operating revenues. Losses from accumulated OCI, net of tax related to interest rate cash flow hedges were reclassified into interest expense. (b) The accumulated OCI reclassification is attributable to the net actuarial loss and net prior service cost related to the Company’s post-retirement benefit plans. See Note 1 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. |
Financial Statements (Details)
Financial Statements (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2017 | |
Business Acquisition [Line Items] | |||
Stock repurchased during period (in shares) | 9,946,382 | ||
Average cost of repurchased shares (in dollars per share) | $ 50.29 | ||
Authorized repurchase amount | $ 500,000,000 | ||
Rice Merger Agreement | |||
Business Acquisition [Line Items] | |||
Pro forma operating revenues | $ 1,042,363,000 | $ 3,491,790,000 | |
Pro forma net income | 120,301,000 | 602,684,000 | |
Pro forma net income attributable to noncontrolling interests | (118,353,000) | (338,546,000) | |
Pro forma net income attributable to EQT | $ 1,948,000 | $ 264,138,000 | |
Pro forma income per share (basic) (in dollars per share) | $ 0.01 | $ 1 | |
Pro forma income per share (diluted) (in dollars per share) | $ 0 | $ 0.99 |
Midstream Streamlining Transa_2
Midstream Streamlining Transactions and Financing - Additional Information (Details) | Jul. 23, 2018USD ($)shares | May 22, 2018USD ($)shares | May 01, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | May 21, 2018 | Apr. 25, 2018USD ($) |
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses, gross | $ 0 | $ 818,957,000 | ||||||
Noncontrolling interest, decrease | $ 175,000,000 | |||||||
Drop-Down Transactions | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity interests issued and issuable (in shares) | $ 5,889,282 | |||||||
Payments to acquire businesses, gross | 1,150,000,000 | |||||||
Additional paid in capital, increase (decrease) | 15,500,000 | |||||||
Noncontrolling interest, decrease | 20,300,000 | |||||||
Deferred tax liabilities, increase (decrease) | 4,800,000 | |||||||
IDR Transaction | ||||||||
Business Acquisition [Line Items] | ||||||||
Additional paid in capital, increase (decrease) | (35,100,000) | |||||||
Increase from business combination | 46,100,000 | |||||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | $ 11,000,000 | |||||||
Midstream Mergers | ||||||||
Business Acquisition [Line Items] | ||||||||
Additional paid in capital, increase (decrease) | $ (138,800,000) | |||||||
Increase from business combination | 189,100,000 | |||||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | $ 50,300,000 | |||||||
EQM | Senior Notes | Senior Notes Due 2023 | ||||||||
Business Acquisition [Line Items] | ||||||||
Interest rate, stated percentage | 4.75% | 4.75% | ||||||
Face amount | $ 1,100,000,000 | $ 1,100,000,000 | ||||||
EQM | Senior Notes | Senior Notes Due 2028 | ||||||||
Business Acquisition [Line Items] | ||||||||
Interest rate, stated percentage | 5.50% | 5.50% | ||||||
Face amount | $ 850,000,000 | $ 850,000,000 | ||||||
EQM | Senior Notes | Senior Notes Due 2048 | ||||||||
Business Acquisition [Line Items] | ||||||||
Interest rate, stated percentage | 6.50% | 6.50% | ||||||
Face amount | $ 550,000,000 | $ 550,000,000 | ||||||
EQM | Senior Notes | The Notes | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from debt | 2,465,800,000 | |||||||
Unamortized discount | 11,800,000 | 11,800,000 | ||||||
Debt issuance costs, gross | 22,400,000 | 22,400,000 | ||||||
EQM | EQM Term Loan Facility | ||||||||
Business Acquisition [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 2,500,000,000 | |||||||
EQM | Revolving credit facility | ||||||||
Business Acquisition [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | ||||||
EQM | Gulfport Transaction | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire businesses and interest in affiliates | $ 175,000,000 | |||||||
EQM | Midstream Mergers | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity interest issued or issuable, number of shares (in shares) | shares | 34,000,000 | |||||||
Repayments of debt | $ 260,000,000 | |||||||
EQM | Midstream Mergers | Indirect Wholly Owned Subsidiary | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity interest issued or issuable, number of shares (in shares) | shares | 9,554,530 | |||||||
EQGP | IDR Transaction | ||||||||
Business Acquisition [Line Items] | ||||||||
Equity interest issued or issuable, number of shares (in shares) | shares | 36,293,766 | |||||||
Rice Midstream Partners, LP | Midstream Mergers | ||||||||
Business Acquisition [Line Items] | ||||||||
Common share conversion ratio | 0.3319 | |||||||
SpinCo | ||||||||
Business Acquisition [Line Items] | ||||||||
Distribution rate of common stock | 80.10% | 80.10% | ||||||
Strike Force Midstream LLC | Strike Force Midstream Holdings | ||||||||
Business Acquisition [Line Items] | ||||||||
General partner interest | 75.00% | |||||||
Strike Force Midstream LLC | EQM | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership percentage by parent | 25.00% | 100.00% | 100.00% | |||||
EQGP | IDR Transaction | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership percentage by parent | 91.30% | 90.10% |
EQGP Holdings, LP (Details)
EQGP Holdings, LP (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 14, 2018 | Oct. 23, 2018 | May 22, 2018 | Sep. 30, 2018 |
General Partner Common | ||||
Class of Stock [Line Items] | ||||
Incentive distribution rights distributed in respect of each common unit and general partner unit (in dollars per share) | $ 0.5250 | |||
Affiliated Entity | Limited Partner Common | ||||
Class of Stock [Line Items] | ||||
Number of common units (in shares) | 276,008,766 | |||
EQGP | ||||
Class of Stock [Line Items] | ||||
Percentage of all incremental cash distributed (up to) | 48.00% | |||
EQGP | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Cash distribution declared (in dollars per share) | $ 0.315 | |||
Cash distribution declared | $ 95.3 | |||
EQGP | General Partner | ||||
Class of Stock [Line Items] | ||||
General partner interest | 1.20% | |||
EQGP | Affiliated Entity | Limited Partner Common | ||||
Class of Stock [Line Items] | ||||
Number of common units (in shares) | 21,811,643 | |||
EQGP | Affiliated Entity | General Partner | ||||
Class of Stock [Line Items] | ||||
Number of general partner units (in shares) | 1,443,015 | |||
IDR Transaction | EQGP | ||||
Class of Stock [Line Items] | ||||
Equity interest issued or issuable, number of shares (in shares) | 36,293,766 | |||
EQGP | Affiliated Entity | Limited Partner Common | ||||
Class of Stock [Line Items] | ||||
Limited partner interest | 91.30% | |||
EQM | EQGP | Affiliated Entity | Limited Partner Common | ||||
Class of Stock [Line Items] | ||||
Limited partner interest | 17.90% | |||
Scenario, Forecast | EQGP | ||||
Class of Stock [Line Items] | ||||
Cash distributions paid | $ 87 |
EQM Midstream Partners, LP (Det
EQM Midstream Partners, LP (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 25, 2018 | Oct. 23, 2018 | Sep. 30, 2018 |
EQT Corporation | EQM | |||
Subsidiary or equity method investee | |||
Limited partner interest | 6.70% | ||
EQM | |||
Subsidiary or equity method investee | |||
Cash distribution declared | $ 17.2 | ||
EQM | Subsequent Event | |||
Subsidiary or equity method investee | |||
Distribution made to limited partner and general partner, cash distributions declared | $ 97.8 | ||
Cash distribution declared | 24.3 | ||
Distribution made to general partner, cash distributions declared | 2.5 | ||
Cash distribution declared related to IDRs | $ 71 | ||
General Partner | EQM | |||
Subsidiary or equity method investee | |||
Common unit, outstanding (in shares) | 5,889,282 | ||
General Partner | EQM | Subsequent Event | |||
Subsidiary or equity method investee | |||
Cash distribution declared (in dollars per share) | $ 1.115 |
RM Partners LP (Details)
RM Partners LP (Details) | Nov. 13, 2017 |
Rice Midstream Partners, LP | EQT Corporation | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Limited partner interest | 28.10% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||
Contract with customer, asset, net | $ 488,700 | $ 488,700 | |||
Revenues from contracts with customers | 1,158,418 | 3,613,395 | |||
(Loss) gain on derivatives not designated as hedges | (3,075) | $ 35,625 | 5,620 | $ 222,693 | |
Other sources of revenue | 452 | 33,729 | |||
Total operating revenues | 1,158,870 | 659,413 | $ 3,647,124 | 2,242,324 | |
Gathering, Transmission, and Storage Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Number of days in which payment is required | 21 days | ||||
Natural Gas Sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 931,976 | $ 2,877,660 | |||
Other sources of revenue, excluding gain (loss) on derivatives | 0 | 0 | |||
Total, excluding gain (loss) on derivatives | 931,976 | 2,877,660 | |||
NGLs Sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 106,621 | 357,746 | |||
Other sources of revenue, excluding gain (loss) on derivatives | 0 | 0 | |||
Total, excluding gain (loss) on derivatives | 106,621 | 357,746 | |||
Oil Sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 8,392 | 29,322 | |||
Other sources of revenue, excluding gain (loss) on derivatives | 0 | 0 | |||
Total, excluding gain (loss) on derivatives | 8,392 | $ 29,322 | |||
Natural Gas, Oil, and NGLs Sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Number of days in which payment is required | 25 days | ||||
Revenues from contracts with customers | 1,046,989 | $ 3,264,728 | |||
Other sources of revenue, excluding gain (loss) on derivatives | 0 | 0 | |||
Total, excluding gain (loss) on derivatives | 1,046,989 | $ 3,264,728 | |||
Water Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Number of days in which payment is required | 21 days | ||||
Pipeline, Water and Net Marketing Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 111,429 | $ 348,667 | |||
Other sources of revenue, excluding gain (loss) on derivatives | 3,527 | 28,109 | |||
Total, excluding gain (loss) on derivatives | 114,956 | 376,776 | |||
Intersegment Eliminations | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | (255,760) | (775,913) | |||
Other sources of revenue, excluding gain (loss) on derivatives | 0 | 0 | |||
Total, excluding gain (loss) on derivatives | (255,760) | (775,913) | |||
(Loss) gain on derivatives not designated as hedges | 0 | 0 | 0 | 0 | |
Total operating revenues | (255,760) | $ (144,598) | (775,913) | $ (418,337) | |
EQT Production | Pipeline and Net Marketing Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 2,605 | 14,273 | |||
Other sources of revenue, excluding gain (loss) on derivatives | 3,527 | 28,109 | |||
Total, excluding gain (loss) on derivatives | 6,132 | 42,382 | |||
EQM Gathering | Firm Reservation Fee Revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 112,598 | 334,233 | |||
Other sources of revenue, excluding gain (loss) on derivatives | 0 | 0 | |||
Total, excluding gain (loss) on derivatives | 112,598 | 334,233 | |||
EQM Gathering | Usage Fees Under Firm Contracts | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 8,661 | 30,725 | |||
Other sources of revenue, excluding gain (loss) on derivatives | 0 | 0 | |||
Total, excluding gain (loss) on derivatives | 8,661 | 30,725 | |||
EQM Gathering | Usage Fees Under Interruptible Contract | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 131,602 | 366,482 | |||
Other sources of revenue, excluding gain (loss) on derivatives | 0 | 0 | |||
Total, excluding gain (loss) on derivatives | 131,602 | 366,482 | |||
EQM Transmission | Firm Reservation Fee Revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 82,669 | 262,666 | |||
Other sources of revenue, excluding gain (loss) on derivatives | 0 | 0 | |||
Total, excluding gain (loss) on derivatives | 82,669 | 262,666 | |||
EQM Transmission | Usage Fees Under Firm Contracts | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 5,331 | 13,981 | |||
Other sources of revenue, excluding gain (loss) on derivatives | 0 | 0 | |||
Total, excluding gain (loss) on derivatives | 5,331 | 13,981 | |||
EQM Transmission | Usage Fees Under Interruptible Contract | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 1,350 | 8,782 | |||
Other sources of revenue, excluding gain (loss) on derivatives | 0 | 0 | |||
Total, excluding gain (loss) on derivatives | 1,350 | 8,782 | |||
EQM Water | Water Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues from contracts with customers | 22,373 | 93,438 | |||
Other sources of revenue, excluding gain (loss) on derivatives | 0 | 0 | |||
Total, excluding gain (loss) on derivatives | $ 22,373 | $ 93,438 | |||
Minimum | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract term | 8 years | ||||
Maximum | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract term | 15 years |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Remaining Performance Obligations (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Natural Gas Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 20,173 |
Remaining performance obligation, expected timing of satisfaction, period | 3 months |
Natural Gas Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 32,322 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Natural Gas Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 1,237 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Natural Gas Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Natural Gas Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Natural Gas Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Remaining performance obligation, expected timing of satisfaction, period | |
Natural Gas Sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 53,732 |
Gathering Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 114,771 |
Remaining performance obligation, expected timing of satisfaction, period | 3 months |
Gathering Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 481,425 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Gathering Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 557,352 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Gathering Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 567,351 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Gathering Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 566,062 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Gathering Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 2,834,111 |
Remaining performance obligation, expected timing of satisfaction, period | |
Gathering Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 5,121,072 |
Gathering Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 0 |
Remaining performance obligation, expected timing of satisfaction, period | 3 months |
Gathering Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 65,700 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Gathering Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 71,370 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Gathering Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 71,175 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Gathering Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 71,175 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Gathering Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 136,875 |
Remaining performance obligation, expected timing of satisfaction, period | |
Gathering Revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 416,295 |
Transmission and Storage Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 94,077 |
Remaining performance obligation, expected timing of satisfaction, period | 3 months |
Transmission and Storage Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 346,893 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Transmission and Storage Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 344,328 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Transmission and Storage Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 339,588 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Transmission and Storage Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 334,522 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Transmission and Storage Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 2,477,808 |
Remaining performance obligation, expected timing of satisfaction, period | |
Transmission and Storage Firm Reservation Fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 3,937,216 |
Investment in Nonconsolidated_2
Investment in Nonconsolidated Entity (Details) $ in Thousands | Oct. 25, 2018USD ($) | Sep. 30, 2018USD ($)mi | Apr. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($)mi | Sep. 30, 2017USD ($) | Dec. 31, 2020USD ($)mi | Dec. 31, 2018USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||||
Percent interest to require approval | 66.67% | |||||||
Payments to noncontrolling interests | $ 175,000 | $ 0 | ||||||
Variable Interest Entity, Not Primary Beneficiary | MVP Joint Venture | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Issuance of performance guarantee | $ 91,000 | 91,000 | ||||||
Maximum financial statement exposure | $ 1,391,000 | $ 1,391,000 | ||||||
Scenario, Forecast | Variable Interest Entity, Not Primary Beneficiary | MVP Joint Venture | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Issuance of performance guarantee | $ 345,000 | |||||||
EQM | MVP Joint Venture | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 45.50% | 45.50% | ||||||
Mountain Valley Pipeline | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Natural gas interstate pipeline (in miles) | mi | 300 | 300 | ||||||
Estimated project cost | $ 4,600,000 | |||||||
Mountain Valley Pipeline | EQM | Scenario, Forecast | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Payments to noncontrolling interests | 2,200,000 | |||||||
Amount in excess of ownership interest | $ 65,000 | |||||||
Mountain Valley Pipeline | EQM | Scenario, Forecast | Minimum | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Payments to noncontrolling interests | $ 800,000 | |||||||
Mountain Valley Pipeline | EQM | Scenario, Forecast | Maximum | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Payments to noncontrolling interests | $ 1,000,000 | |||||||
Mountain Valley Pipeline | MVP Joint Venture | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Capital call notice | $ 456,000 | |||||||
Mountain Valley Pipeline | MVP Joint Venture | Subsequent Event | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Capital call notice paid | $ 175,200 | |||||||
Mountain Valley Pipeline | MVP Joint Venture | Scenario, Forecast | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Capital call notice paid | $ 280,800 | |||||||
MVP Southgate Project | Minimum | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Estimated project cost | $ 350,000 | |||||||
MVP Southgate Project | Maximum | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Estimated project cost | $ 500,000 | |||||||
MVP Southgate Project | Scenario, Forecast | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Natural gas interstate pipeline (in miles) | mi | 70 | |||||||
MVP Southgate Project | EQM | MVP Joint Venture | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership percentage | 32.70% | 32.70% | ||||||
MVP Southgate Project | MVP Joint Venture | Scenario, Forecast | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Capital call notice paid | $ 7,700 |
Consolidated Variable Interes_3
Consolidated Variable Interest Entities - Balance Sheets (Details) - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
EQGP and EQM | Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 6,062 | $ 2,857 |
EQGP and EQM | Accounts receivable | ||
Variable Interest Entity [Line Items] | ||
Assets | 58,358 | 28,804 |
EQGP and EQM | Prepaid expenses and other | ||
Variable Interest Entity [Line Items] | ||
Assets | 4,798 | 8,470 |
EQGP and EQM | Property, plant and equipment, net | ||
Variable Interest Entity [Line Items] | ||
Assets | 5,608,358 | 2,804,059 |
EQGP and EQM | Goodwill | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,384,872 | 0 |
EQGP and EQM | Intangible assets, net | ||
Variable Interest Entity [Line Items] | ||
Assets | 586,500 | 0 |
EQGP and EQM | Investment in nonconsolidated entity | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,300,430 | 460,546 |
EQGP and EQM | Other assets | ||
Variable Interest Entity [Line Items] | ||
Assets | 23,599 | 22,458 |
EQGP and EQM | Accounts payable | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 134,027 | 47,042 |
EQGP and EQM | Other current liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 526,299 | 133,531 |
EQGP and EQM | Credit facility borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 22,000 | 180,000 |
EQGP and EQM | Senior Notes | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 3,455,296 | 987,352 |
EQGP and EQM | Other liabilities and credits | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 31,010 | 20,273 |
RMP | Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Assets | 10,538 | |
RMP | Accounts receivable | ||
Variable Interest Entity [Line Items] | ||
Assets | 12,246 | |
RMP | Prepaid expenses and other | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,327 | |
RMP | Property, plant and equipment, net | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,431,802 | |
RMP | Goodwill | ||
Variable Interest Entity [Line Items] | ||
Assets | 1,346,918 | |
RMP | Accounts payable | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 24,634 | |
RMP | Other current liabilities | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 4,200 | |
RMP | Credit facility borrowings | ||
Variable Interest Entity [Line Items] | ||
Liabilities | 286,000 | |
RMP | Other liabilities and credits | ||
Variable Interest Entity [Line Items] | ||
Liabilities | $ 9,360 |
Consolidated Variable Interes_4
Consolidated Variable Interest Entities - Statements of Operations and Cash Flows (Details) - EQGP - Variable Interest Entity, Primary Beneficiary - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Variable Interest Entity [Line Items] | ||||
Operating revenues | $ 364,584 | $ 207,193 | $ 1,110,307 | $ 609,585 |
Operating expenses | 133,665 | 62,230 | 370,880 | 180,218 |
Other (income) 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) |
Financial Information by Busi_3
Financial Information by Business Segment - Schedule of Revenue from External Customers and Operating Income (Details) $ in Thousands | Nov. 12, 2017segment | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2018segment | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) |
Operating segments information | ||||||
Number of reportable segments | segment | 3 | 5 | 4 | |||
Revenues: | ||||||
Sales of natural gas, oil and NGLs | $ 1,158,418 | $ 3,613,395 | ||||
(Loss) gain on derivatives not designated as hedges | (3,075) | $ 35,625 | 5,620 | $ 222,693 | ||
Total operating revenues | 1,158,870 | 659,413 | 3,647,124 | 2,242,324 | ||
Reconciliation of operating (loss) income to net (loss) income: | ||||||
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 | ||
Transaction costs | 31,506 | 10,806 | 93,176 | 15,044 | ||
Sales of natural gas, oil and NGLs | ||||||
Revenues: | ||||||
Sales of natural gas, oil and NGLs | 1,046,989 | 552,953 | 3,264,728 | 1,803,132 | ||
Pipeline, water and net marketing services | ||||||
Revenues: | ||||||
Pipeline, water and net marketing services | 114,956 | 70,835 | 376,776 | 216,499 | ||
EQT Production | ||||||
Reconciliation of operating (loss) income to net (loss) income: | ||||||
Impairment of long-lived assets | 300,000 | 2,700,000 | ||||
Operating Segments | EQT Production | ||||||
Revenues: | ||||||
(Loss) gain on derivatives not designated as hedges | (3,075) | 35,625 | 5,620 | 222,693 | ||
Total operating revenues | 1,050,046 | 597,718 | 3,312,730 | 2,057,481 | ||
Reconciliation of operating (loss) income to net (loss) income: | ||||||
Total operating income (loss) | (121,678) | 12,201 | (2,127,323) | 322,634 | ||
Operating Segments | EQT Production | Sales of natural gas, oil and NGLs | ||||||
Revenues: | ||||||
Sales of natural gas, oil and NGLs | 1,046,989 | 552,953 | 3,264,728 | 1,803,132 | ||
Operating Segments | EQT Production | Pipeline, water and net marketing services | ||||||
Revenues: | ||||||
Pipeline, water and net marketing services | 6,132 | 9,140 | 42,382 | 31,656 | ||
Operating Segments | EQM Gathering | ||||||
Revenues: | ||||||
(Loss) gain on derivatives not designated as hedges | 0 | 0 | 0 | 0 | ||
Total operating revenues | 252,861 | 116,522 | 731,440 | 330,996 | ||
Reconciliation of operating (loss) income to net (loss) income: | ||||||
Total operating income (loss) | 177,902 | 85,932 | 510,755 | 243,061 | ||
Operating Segments | EQM Gathering | Sales of natural gas, oil and NGLs | ||||||
Revenues: | ||||||
Sales of natural gas, oil and NGLs | 0 | 0 | 0 | 0 | ||
Operating Segments | EQM Gathering | Pipeline, water and net marketing services | ||||||
Revenues: | ||||||
Pipeline, water and net marketing services | 252,861 | 116,522 | 731,440 | 330,996 | ||
Operating Segments | EQM Transmission | ||||||
Revenues: | ||||||
(Loss) gain on derivatives not designated as hedges | 0 | 0 | 0 | 0 | ||
Total operating revenues | 89,350 | 89,771 | 285,429 | 272,184 | ||
Reconciliation of operating (loss) income to net (loss) income: | ||||||
Total operating income (loss) | 58,691 | 59,770 | 198,784 | 189,237 | ||
Operating Segments | EQM Transmission | Sales of natural gas, oil and NGLs | ||||||
Revenues: | ||||||
Sales of natural gas, oil and NGLs | 0 | 0 | 0 | 0 | ||
Operating Segments | EQM Transmission | Pipeline, water and net marketing services | ||||||
Revenues: | ||||||
Pipeline, water and net marketing services | 89,350 | 89,771 | 285,429 | 272,184 | ||
Operating Segments | EQM Water | ||||||
Revenues: | ||||||
(Loss) gain on derivatives not designated as hedges | 0 | 0 | ||||
Total operating revenues | 22,373 | 93,438 | ||||
Reconciliation of operating (loss) income to net (loss) income: | ||||||
Total operating income (loss) | (3,093) | 0 | 35,627 | 0 | ||
Operating Segments | EQM Water | Sales of natural gas, oil and NGLs | ||||||
Revenues: | ||||||
Sales of natural gas, oil and NGLs | 0 | 0 | ||||
Operating Segments | EQM Water | Pipeline, water and net marketing services | ||||||
Revenues: | ||||||
Pipeline, water and net marketing services | 22,373 | 93,438 | ||||
Intersegment Eliminations | ||||||
Revenues: | ||||||
Sales of natural gas, oil and NGLs | (255,760) | (775,913) | ||||
(Loss) gain on derivatives not designated as hedges | 0 | 0 | 0 | 0 | ||
Total operating revenues | (255,760) | (144,598) | (775,913) | (418,337) | ||
Reconciliation of operating (loss) income to net (loss) income: | ||||||
Income (loss) included in development costs | 3,200 | 50,700 | ||||
Intersegment Eliminations | Sales of natural gas, oil and NGLs | ||||||
Revenues: | ||||||
Sales of natural gas, oil and NGLs | 0 | 0 | 0 | 0 | ||
Intersegment Eliminations | Pipeline, water and net marketing services | ||||||
Revenues: | ||||||
Pipeline, water and net marketing services | (255,760) | (144,598) | (775,913) | (418,337) | ||
Unallocated Expenses and Intersegment Eliminations | ||||||
Reconciliation of operating (loss) income to net (loss) income: | ||||||
Total operating income (loss) | (39,998) | $ (19,876) | (169,566) | $ (35,802) | ||
Corporate, Non-Segment | ||||||
Reconciliation of operating (loss) income to net (loss) income: | ||||||
Transaction costs | 29,300 | 85,700 | ||||
Amortization | $ 10,400 | $ 31,000 |
Financial Information by Busi_4
Financial Information by Business Segment - Schedule of Segment Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Segment assets: | ||
Total assets | $ 28,661,329 | $ 29,522,604 |
Operating Segments | ||
Segment assets: | ||
Total assets | 28,228,246 | 28,805,042 |
Operating Segments | EQT Production | ||
Segment assets: | ||
Total assets | 19,278,308 | 21,015,132 |
Operating Segments | EQM Gathering | ||
Segment assets: | ||
Total assets | 5,994,891 | 5,681,404 |
Operating Segments | EQM Transmission | ||
Segment assets: | ||
Total assets | 2,813,644 | 1,923,427 |
Operating Segments | EQM Water | ||
Segment assets: | ||
Total assets | 141,403 | 185,079 |
Headquarters assets, including cash and short-term investments | ||
Segment assets: | ||
Total assets | $ 433,083 | $ 717,562 |
Financial Information by Busi_5
Financial Information by Business Segment - Schedule of Depreciation, Amortization, and Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Depreciation and depletion: | ||||
Depreciation and depletion | $ 435,311 | $ 246,560 | $ 1,290,876 | $ 719,295 |
Expenditures for segment assets: | ||||
Expenditures for segment assets | 1,105,862 | 522,299 | 2,809,518 | 2,081,986 |
Payments to acquire businesses, gross | 0 | 818,957 | ||
Operating Segments | EQT Production | ||||
Depreciation and depletion: | ||||
Depreciation and depletion | 391,083 | 224,103 | 1,161,718 | 654,411 |
Expenditures for segment assets: | ||||
Expenditures for segment assets | 855,494 | 449,303 | 2,225,435 | 1,850,482 |
Accrual (reversal) of capital expenditures | (51,800) | 44,300 | (45,200) | 102,700 |
Payments to acquire businesses, gross | 7,800 | 819,000 | ||
Capital expenditures incurred but not yet paid | 7,500 | |||
Operating Segments | EQM Gathering | ||||
Depreciation and depletion: | ||||
Depreciation and depletion | 25,359 | 9,983 | 72,309 | 28,398 |
Expenditures for segment assets: | ||||
Expenditures for segment assets | 194,477 | 48,182 | 515,072 | 150,728 |
Operating Segments | EQM Transmission | ||||
Depreciation and depletion: | ||||
Depreciation and depletion | 12,357 | 12,261 | 37,228 | 35,793 |
Expenditures for segment assets: | ||||
Expenditures for segment assets | 37,626 | 22,312 | 84,517 | 73,679 |
Operating Segments | EQM Water | ||||
Depreciation and depletion: | ||||
Depreciation and depletion | 5,851 | 0 | 17,420 | 0 |
Expenditures for segment assets: | ||||
Expenditures for segment assets | 7,981 | 0 | 17,358 | 0 |
Other | ||||
Depreciation and depletion: | ||||
Depreciation and depletion | 661 | 213 | 2,201 | 693 |
Expenditures for segment assets: | ||||
Expenditures for segment assets | $ 10,284 | $ 2,502 | $ (32,864) | $ 7,097 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)BcfMBbls | Dec. 31, 2017BcfMBbls | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Maximum additional collateral as percentage of derivative liability | 100.00% | |
Aggregate fair value of derivative instruments with credit-risk related contingencies | $ 109,200,000 | |
Collateral posted | $ 0 | |
Natural Gas Liquid Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Volume of derivative instruments (in Bcf, Mbbls) | MBbls | 2,058 | 1,460 |
Cash flow hedging | Commodity derivatives | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Volume of derivative instruments (in Bcf, Mbbls) | Bcf | 3,005 | 2,148 |
Derivative Instruments - Impact
Derivative Instruments - Impact of Netting Agreements and Margin Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Asset derivatives: | ||
Derivative instruments, recorded in the Condensed Consolidated Balance Sheet, gross | $ 315,564 | $ 241,952 |
Liability derivatives: | ||
Derivative instruments, recorded in the Condensed Consolidated Balance Sheet, gross | 183,677 | 139,089 |
Commodity derivatives | ||
Asset derivatives: | ||
Derivative instruments, recorded in the Condensed Consolidated Balance Sheet, gross | 315,564 | 241,952 |
Derivative instruments subject to master netting agreements | (104,559) | (86,856) |
Margin deposits remitted to counterparties | 0 | 0 |
Derivative instruments, net | 211,005 | 155,096 |
Liability derivatives: | ||
Derivative instruments, recorded in the Condensed Consolidated Balance Sheet, gross | 183,677 | 139,089 |
Derivative instruments subject to master netting agreements | (104,559) | (86,856) |
Margin deposits remitted to counterparties | (11,110) | 0 |
Derivative instruments, net | $ 68,008 | $ 52,233 |
Fair Value Measurements - Deriv
Fair Value Measurements - Derivative Instrument Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Derivative instruments, at fair value | $ 315,564 | $ 241,952 |
Fair value on a recurring basis | Quoted prices in active markets for identical assets (Level 1) | ||
Assets | ||
Derivative instruments, at fair value | 7,661 | 0 |
Liabilities | ||
Derivative instruments, at fair value | 12,058 | 0 |
Fair value on a recurring basis | Significant other observable inputs (Level 2) | ||
Assets | ||
Derivative instruments, at fair value | 307,903 | 241,952 |
Liabilities | ||
Derivative instruments, at fair value | 171,619 | 139,089 |
Fair value on a recurring basis | Significant unobservable inputs (Level 3) | ||
Assets | ||
Derivative instruments, at fair value | 0 | 0 |
Liabilities | ||
Derivative instruments, at fair value | 0 | 0 |
Fair value on a recurring basis | Fair value | ||
Assets | ||
Derivative instruments, at fair value | 315,564 | 241,952 |
Liabilities | ||
Derivative instruments, at fair value | $ 183,677 | $ 139,089 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Billions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Estimated fair value of long-term debt | $ 8.1 | $ 5.7 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 28.80% | 19.90% |
Revolving Credit Facilities (De
Revolving Credit Facilities (Details) - USD ($) | Jul. 23, 2018 | Jul. 23, 2018 | Jun. 25, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Jul. 23, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | Apr. 25, 2018 | Dec. 31, 2017 |
Revolving credit facility | EQM | |||||||||||
Line of Credit Facility | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | |||||||||
Amount of borrowings | 22,000,000 | 22,000,000 | $ 180,000,000 | ||||||||
Letters of credit outstanding under revolving credit facility | 1,000,000 | 1,000,000 | 0 | ||||||||
Maximum amount of outstanding short-term loans at any time during the period | 74,000,000 | $ 177,000,000 | 420,000,000 | $ 177,000,000 | |||||||
Average daily balance of short-term loans outstanding during the period | $ 22,000,000 | $ 95,000,000 | $ 147,000,000 | $ 32,000,000 | |||||||
Weighted average interest rates of average daily balance of short-term loans | 3.70% | 2.70% | 3.20% | 2.70% | |||||||
Repayments of lines of credit | $ 260,000,000 | ||||||||||
Revolving credit facility | EQM | Scenario, Forecast | |||||||||||
Line of Credit Facility | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 3,000,000,000 | ||||||||||
Revolving credit facility | EQT 2.5 Billion Facility | |||||||||||
Line of Credit Facility | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 2,500,000,000 | $ 2,500,000,000 | |||||||||
Amount of borrowings | 500,000,000 | $ 0 | 500,000,000 | $ 0 | 1,300,000,000 | ||||||
Letters of credit outstanding under revolving credit facility | 0 | 0 | 0 | 0 | 159,400,000 | ||||||
Maximum amount of outstanding short-term loans at any time during the period | 700,000,000 | $ 0 | 1,600,000,000 | $ 0 | |||||||
Average daily balance of short-term loans outstanding during the period | $ 300,000,000 | $ 900,000,000 | |||||||||
Weighted average interest rates of average daily balance of short-term loans | 3.60% | 3.30% | |||||||||
Revolving credit facility | RMP $850 Million Facility | |||||||||||
Line of Credit Facility | |||||||||||
Amount of borrowings | 286,000,000 | ||||||||||
Letters of credit outstanding under revolving credit facility | $ 1,000,000 | ||||||||||
Maximum amount of outstanding short-term loans at any time during the period | $ 260,000,000 | $ 375,000,000 | |||||||||
Average daily balance of short-term loans outstanding during the period | $ 249,000,000 | $ 300,000,000 | |||||||||
Weighted average interest rates of average daily balance of short-term loans | 4.10% | 3.80% | |||||||||
EQM Term Loan Facility | EQM | |||||||||||
Line of Credit Facility | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 2,500,000,000 | ||||||||||
Maximum amount of outstanding short-term loans at any time during the period | $ 1,825,000,000 | ||||||||||
Average daily balance of short-term loans outstanding during the period | $ 1,231,000,000 | ||||||||||
Write off of deferred debt issuance cost | $ 3,000,000 | ||||||||||
Weighted average interest rate | 3.30% |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||
Potentially dilutive securities included in calculation of diluted EPS (in shares) | 199,376 | 204,080 |
Options to purchase common stock excluded from potentially dilutive securities (in shares) | 425,100 | 431,190 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning Balance | $ 18,414,613 | $ 9,119,247 | ||
(Gains) losses reclassified from accumulated OCI, net of tax | $ (292) | $ (1,338) | (793) | (3,673) |
Ending Balance | 16,217,392 | 9,424,677 | 16,217,392 | 9,424,677 |
Cash flow hedge, net of tax | Natural gas cash flow hedges, net of tax | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning Balance | 3,872 | 7,047 | 4,625 | 9,607 |
(Gains) losses reclassified from accumulated OCI, net of tax | (430) | (1,451) | (1,183) | (4,011) |
Ending Balance | 3,442 | 5,596 | 3,442 | 5,596 |
Cash flow hedge, net of tax | Interest rate cash flow hedges, net of tax | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning Balance | (475) | (627) | (555) | (699) |
(Gains) losses reclassified from accumulated OCI, net of tax | 52 | 36 | 132 | 108 |
Ending Balance | (423) | (591) | (423) | (591) |
Other post- retirement benefit liability adjustment, net of tax | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning Balance | (6,356) | (6,713) | (6,528) | (6,866) |
(Gains) losses reclassified from accumulated OCI, net of tax | 86 | 77 | 258 | 230 |
Ending Balance | (6,270) | (6,636) | (6,270) | (6,636) |
Accumulated OCI, net of tax | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning Balance | (2,959) | (293) | (2,458) | 2,042 |
Ending Balance | $ (3,251) | $ (1,631) | $ (3,251) | $ (1,631) |
Acquisitions (Details)
Acquisitions (Details) a in Thousands, Mcfe in Thousands, $ in Millions | Jun. 30, 2017a | Feb. 27, 2017aMcfewellmi | Feb. 01, 2017a | Sep. 30, 2017USD ($) |
Bankruptcy Auction | ||||
Business Acquisition [Line Items] | ||||
Area of property acquired (in acres) | a | 85 | |||
Number of acres with drilling rights (in acres) | a | 44 | |||
Production of well (in Mcfe) | Mcfe | 110 | |||
Number of wells acquired | well | 174 | |||
Number of producing wells acquired | well | 120 | |||
Number of miles of pipeline acquired | mi | 20 | |||
Allegheny, Washington, and Westmore Counties | ||||
Business Acquisition [Line Items] | ||||
Area of property acquired (in acres) | a | 11 | |||
2017 Acquisitions | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire businesses | $ | $ 740.1 | |||
Property, plant, and equipment assumed | $ | 750.1 | |||
Current liabilities assumed | $ | 5.3 | |||
Noncurrent liabilities, assumed | $ | $ 4.7 | |||
Marion, Monongalia, and Wetzel Counties | ||||
Business Acquisition [Line Items] | ||||
Area of property acquired (in acres) | a | 14 |
Divestitures - Additional Infor
Divestitures - Additional Information (Details) $ in Thousands, a in Millions | Jul. 18, 2018USD ($)MMcfemiwellacompressor_station | Jun. 19, 2018USD ($)MMcfemiwellcompressor_station | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of productive assets | $ 57,700 | |||||||
Number of wells sold | well | 970 | |||||||
Reduction in sales volume | MMcfe | 20 | |||||||
Number of miles of gathering lines sold | mi | 350 | |||||||
Number of compressors sold | compressor_station | 26 | |||||||
Impairment of long-lived assets | $ 259,300 | $ 2,300,000 | ||||||
Oil and gas asset | $ 1,000,000 | |||||||
Gain (loss) on disposal and impairment | $ (259,279) | $ (118,100) | $ 0 | $ (2,706,438) | $ 0 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of productive assets | $ 523,600 | |||||||
Number of wells sold | well | 12,000 | |||||||
Reduction in sales volume | MMcfe | 200 | |||||||
Number of miles of gathering lines sold | mi | 6,400 | |||||||
Number of compressors sold | compressor_station | 59 | |||||||
Number of acres sold | a | 2.5 |
Subsequent Event (Details)
Subsequent Event (Details) - Scenario, Forecast shares in Millions | Nov. 12, 2018shares |
Equitrans Midstream | |
Subsequent Event [Line Items] | |
Percentage of ownership transferred | 80.10% |
Stock dividend, conversion ratio | 0.80 |
Percentage of ownership after transaction | 19.90% |
Equitrans Midstream | |
Subsequent Event [Line Items] | |
Investment owned (in shares) | 255 |
Recently Issued Accounting St_3
Recently Issued Accounting Standards Recently Issued Accounting Standards (Details) - USD ($) | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Change in accounting principle | [1] | $ 4,113,000 | |||
Restricted cash | $ 0 | $ 75,000,000 | |||
Accounting Standards Update 2016-01 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Change in accounting principle | $ 4,100,000 | ||||
[1] | Related to adoption of ASU No. 2016-01. See Notes K and S for additional information. |