Equitable Resources Reports Third Quarter Earnings

PITTSBURGH, October 25, 2007/ PRNewswire-FirstCall/ — Equitable Resources, Inc. (NYSE: EQT) today announced third quarter 2007 earnings of $0.27 per diluted share on net income of $32.9 million. This compares with diluted earnings of $0.26 per share on net income of $31.8 million in the third quarter of 2006.

Quarterly Results by Business

Equitable Supply

Equitable Supply had operating income for the quarter of $62.2 million, slightly lower than the $63.2 million earned in the same period last year. Production revenues were $93.4 million, essentially unchanged from the third quarter 2006 as slightly lower reported volumes were offset by a higher average well-head price. Production sales volumes decreased by 0.5 Bcfe to 19.0 Bcfe as volumes from new wells were more than offset by 1.2 Bcfe from wells sold in the second quarter of 2007 and by normal declines. The average well-head sales price increased by 3% to $4.78 per Mcfe.

Gathering operating income was $6.3 million, $3.2 million lower than the third quarter 2006. The decrease in operating income was a result of the gathering asset contribution to Nora Gathering, LLC. Gathered volumes, gathering revenues and gathering-related expenses related to the Nora Field gathering activities are no longer included in Equitable Supply’s operating results. The Company reported Equity in Earnings of $1.3 million from its ownership in Nora Gathering, LLC.

Total operating expenses for the 2007 third quarter totaled $55.0 million compared to $57.8 million in the 2006 third quarter. The decrease is primarily attributable to lower expenses due to the Nora Field transaction and lower selling, general and administrative expenses related to reserves established in the third quarter 2006 for royalty disputes and legal expenses, partially offset by higher depreciation, depletion and amortization.

Equitable Utilities

Equitable Utilities had operating income for the third quarter of $4.1 million compared to $4.0 million reported for the same period last year. Net operating revenues for the three months ended September 30, 2007 were $40.9 million compared to $39.7 million for the same period last year, as higher Marketing net revenues resulting from storage optimization were partially offset by lower distribution and pipeline net revenues.

Total operating expenses for the quarter were $36.8 million, $1.1 million higher than the $35.7 million reported during the same period last year. Increases in general overhead and operating and maintenance costs were partially offset by a reduction of expenses incurred in connection with the transition planning for the pending acquisition of Peoples Natural Gas and Hope Gas. Equitable incurred $1.3 million of costs associated with transition planning for Peoples and Hope in the quarter, $2.4 million less than in the third quarter of 2006.

Other Business

Roaring Fork Field

In September 2007, the Company purchased 12.3 Bcf of proved reserves in the Equitable operated Roaring Fork Field in Virginia, consisting of approximately 10.1 Bcf of proved developed reserves and approximately 2.2 Bcf of proved undeveloped reserves, for $28.5 million. The purchase increased the Company’s working interest by 13.5% to approximately 97.0%.

Hedging

There was no change to the Company’s hedge position during the quarter. The approximate volumes and prices of Equitable’s hedges for the last three months of 2007 through 2009 are:

	2007**		2008		2009
Swaps
Total Volume (Bcf)	13		50		37
Average Price per Mcf (NYMEX)*	$	4.72	$	4.62	$	5.91

Collars
Total Volume (Bcf)	3		10		10
Average Floor Price per Mcf (NYMEX)*	$	7.61	$	7.61	$	7.61
Average Cap Price per Mcf (NYMEX)*	$	11.27	$	11.27	$	11.27

* The above price is based on a conversion rate of 1.05 MMbtu/Mcf

**October through December

Operating Income

The Company reports operating income by segment in this press release. Both interest and income taxes are controlled on a consolidated, corporate-wide basis, and are not allocated to the segments.

The following table reconciles operating income by segment as reported in this press release to the consolidated operating income reported in the Company’s financial statements:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006
Operating income (thousands):
Equitable Supply	$	62,166		$	63,230		$	188,203		$	200,656
Equitable Utilities	4,107			3,969			84,185			78,858
Unallocated expenses	(8,905		)	(6,064		)	(54,647		)	(16,603		)
Operating Income	$	57,368		$	61,135		$	217,741		$	262,911

Other segment financial measures identified in this press release are reconciled to the most comparable financial measures calculated in accordance with GAAP on the attached operational and financial reports.

Equitable’s teleconference with securities analysts, which begins at 10:30 a.m. Eastern Time today, will be broadcast live via Equitable’s website, http://www.eqt.com, and will be available for seven days.

Equitable Resources is an integrated energy company with emphasis on Appalachian area natural gas supply, gathering, processing, transmission and distribution. For information, please visit Equitable’s website, http://www.eqt.com.

Equitable Resources management speaks to investors from time to time. Slides for these discussions will be available online via Equitable’s website. The slides are updated periodically.

Forward-Looking Statements

Disclosures in this press release contain forward-looking statements. Statements that do not relate strictly to historical or current facts are forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of the Company and its subsidiaries, including guidance regarding the Company’s drilling programs and initiatives, infrastructure projects, production and sales volumes, marketing revenues and margins, executive compensation, capital expenditures, the pending acquisition of The Peoples Natural Gas Company and Hope Gas, Inc. and the financing of that acquisition and the Company’s move to a holding company structure. A variety of factors could cause the Company’s actual results to differ materially from the anticipated results or other expectations expressed in the Company’s forward-looking statements. The risks and uncertainties that may affect the operations, performance and results of the Company’s business and forward-looking statements include, but are not limited to, those set forth under Item 1A, “Risk Factors” of the Company’s most recently filed Form 10-K.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

EQUITABLE RESOURCES, INC. AND SUBSIDIARIES

STATEMENTS OF CONSOLIDATED INCOME (UNAUDITED)

(Thousands except per share amounts)

	Three Months Ended September 30,				Nine Months Ended September 30,

	2007		2006		2007		2006

Operating revenues	$	226,806	$	232,801	$	976,592	$	914,127
Cost of sales	68,722		72,155		405,687		367,085
Net operating revenues	158,084		160,646		570,905		547,042

*Operating expenses:*
Operation and maintenance	25,602		25,282		78,614		74,252
Production	16,009		16,176		48,646		47,965
Selling, general and administrative	32,198		32,904		143,978		90,659
Office consolidation impairment charges	—		—		—		(2,908		)
Depreciation, depletion and amortization	26,907		25,149		81,926		74,163
Total operating expenses	100,716		99,511		353,164		284,131

Operating income	57,368		61,135		217,741		262,911

Gain on sale of assets, net	—		—		119,401		—

Other income	2,204		489		5,530		886

Equity in earnings of nonconsolidated investments	1,423		70		2,198		120

Interest expense	11,557		12,779		35,604		36,128
Income before income taxes	49,438		48,915		309,266		227,789
Income taxes	16,513		17,120		112,380		79,726

*Net income*	$	32,925	$	31,795	$	196,886	$	148,063

*Earnings per share of common stock:*
Basic:
Weighted average common shares outstanding	121,380		120,172		121,319		119,929
Net income	$	0.27	$	0.26	$	1.62	$	1.23

Diluted:
Weighted average common shares outstanding	122,838		122,103		122,818		121,961
Net income	$	0.27	$	0.26	$	1.60	$	1.21

(A) Due to the seasonal nature of the Company’s natural gas distribution and energy marketing business, and the volatility of gas and oil commodity prices, the interim statements for the three and nine month periods are not indicative of results for a full year.

EQUITABLE SUPPLY

OPERATIONAL AND FINANCIAL REPORT

(UNAUDITED)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2007			2006			2007			2006

*OPERATIONAL DATA*

*Production*:

Natural gas and oil production (MMcfe)	20,636			20,852			62,076			60,815
Company usage, line loss (MMcfe)	(1,684		)	(1,410		)	(4,383		)	(3,929		)
Total sales volumes (MMcfe)	18,952			19,442			57,693			56,886
Average (well-head) sales price ($/Mcfe)	$	4.78		$	4.66		$	4.85		$	4.82

Lease operating expense excluding production taxes ($/Mcfe)	$	0.34		$	0.32		$	0.33		$	0.30
Production taxes ($/Mcfe)	$	0.44		$	0.45		$	0.46		$	0.48
Production depletion ($/Mcfe)	$	0.70		$	0.62		$	0.70		$	0.62

*Gathering*:
Gathered volumes (MMcfe)	20,352			26,723			73,462			80,273
Average gathering fee ($/Mcfe)	$	1.17		$	1.05		$	1.12		$	1.02
Gathering and compression expense ($/Mcfe)	$	0.54		$	0.42		$	0.48		$	0.39
Gathering and compression depreciation ($/Mcfe)	$	0.17		$	0.14		$	0.16		$	0.14

(in thousands)
Production operating income	$	55,885		$	53,690		$	163,109		$	172,357
Gathering operating income	6,281			9,540			25,094			28,299
Total operating income	$	62,166		$	63,230		$	188,203		$	200,656

Production depletion	$	14,440		$	12,888		$	43,509		$	37,619
Gathering and compression depreciation	3,496			3,811			11,723			11,399
Other depreciation, depletion and amortization	1,445			1,083			4,246			3,059
Total depreciation, depletion and amortization	$	19,381		$	17,782		$	59,478		$	52,077

Capital expenditures (thousands)	$	175,012		$	82,580		$	470,486		$	204,961

*FINANCIAL DATA (Thousands)*
Production revenues	$	93,428		$	92,949		$	287,669		$	281,141
Gathering revenues	23,726			28,042			82,626			81,626
Total operating revenues	117,154			120,991			370,295			362,767

Operating expenses:
Lease operating expenses excluding production taxes	6,949			6,753			20,235			18,543
Production taxes	9,060			9,423			28,411			29,422
Gathering and compression	10,891			11,123			35,512			31,547
Selling, general and administrative	8,707			12,680			38,456			30,522
Depreciation, depletion and amortization	19,381			17,782			59,478			52,077
Total operating expenses	54,988			57,761			182,092			162,111

Operating income	$	62,166		$	63,230		$	188,203		$	200,656

Gain on sale of assets, net	$	—		$	—		$	119,401		$	—
Equity in earnings of nonconsolidated investments	$	1,379		$	71		$	2,085		$	53

EQUITABLE UTILITIES