EQT (EQT) 10-Q 29 Oct 09 2009 Q3 Quarterly report Financial data

Statements of Consolidated Inco

Statements of Consolidated Income (USD $)
In Thousands, except Per Share data	3 Months Ended Sep. 30, 2009	3 Months Ended Sep. 30, 2008	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Operating revenues	$218,357	$297,827	$925,800	$1,167,610
Operating expenses:
Purchased gas costs	13,573	82,114	257,171	471,644
Operation and maintenance	34,561	30,333	101,042	84,537
Production	16,153	23,076	46,033	59,965
Exploration	4,526	3,508	12,252	4,901
Selling, general and administrative	59,906	(38,199)	125,237	66,196
Depreciation, depletion and amortization	49,706	34,269	140,483	97,085
Total operating expenses	178,425	135,101	682,218	784,328
Operating income	39,932	162,726	243,582	383,282
Other income	511	611	1,799	5,709
Equity in earnings of nonconsolidated investments	1,950	1,557	4,682	4,548
Interest expense	32,393	13,012	78,096	40,992
Income before income taxes	10,000	151,882	171,967	352,547
Income taxes	7,091	55,684	70,420	130,438
Net income	$2,909	$96,198	$101,547	$222,109
Basic:
Weighted average common shares outstanding (in shares)	130,850	130,540	130,806	126,223
Net income (in dollars per share)	0.02	0.74	0.78	1.76
Diluted:
Weighted average common shares outstanding (in shares)	131,505	131,558	131,450	127,288
Net income (in dollars per share)	0.02	0.73	0.77	1.74
Dividends declared per common share (in dollars per share)	0.22	0.22	0.66	0.66

Statements of Condensed Consoli

Statements of Condensed Consolidated Cash Flows (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Cash flows from operating activities:
Net income	$101,547	$222,109
Adjustments to reconcile net income to cash provided by operating activities:
Provision for losses on accounts receivable	(2,110)	8,591
Depreciation, depletion, and amortization	140,483	97,085
Other income	(1,799)	(5,709)
Equity in earnings of nonconsolidated investments	(4,682)	(4,548)
Deferred income taxes	94,799	195,381
Restricted stock and stock option expenses	5,208	4,152
Excess tax benefits from share-based payment arrangements	(400)	(1,129)
Decrease (increase) in inventory	60,484	(57,450)
Decrease in accounts receivable and unbilled revenues	176,121	66,551
Decrease (increase) in margin deposits	7,442	(24,742)
Decrease in accounts payable	(213,206)	(10,565)
Change in derivative instruments at fair value, net	51,658	(56,958)
Changes in other assets and liabilities	137,040	(105,897)
Net cash provided by operating activities	552,585	326,871
Cash flows from investing activities:
Capital expenditures	(636,066)	(959,962)
Capital contributions to Nora Gathering, LLC	(6,400)	(22,800)
Investment in available-for-sale securities	(3,000)	(3,000)
Net cash used in investing activities	(645,466)	(985,762)
Cash flows from financing activities:
Dividends paid	(86,517)	(82,589)
Proceeds from issuance of common stock		560,739
Proceeds from issuance of long-term debt	700,000	500,000
Debt issuance costs	(6,874)	(6,645)
Repayments and retirements of long term debt	(2,000)
Decrease short-term loans	(319,917)	(356,333)
Decrease note payable to Nora Gathering, LLC		(29,329)
Proceeds from exercises under employee compensation plans	293	842
Excess tax benefits from share-based payment arrangements	400	1,129
Net cash provided by financing activities	285,385	587,814
Net increase (decrease) in cash and cash equivalents	192,504	(71,077)
Cash and cash equivalents at beginning of period		81,711
Cash and cash equivalents at end of period	192,504	10,634
Cash paid during the period for:
Interest, net of amount capitalized	50,668	25,616
Income taxes, net of refunds	($103,229)	$6,855

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (USD $)
In Thousands	Sep. 30, 2009	Dec. 31, 2008
Current assets:
Cash and cash equivalents	$192,504
Accounts receivable (less accumulated provision for doubtful accounts: September 30, 2009, $16,270; December 31, 2008, $26,636)	76,452	209,008
Unbilled revenues	8,475	49,930
Margin deposits with financial institutions		4,434
Inventory	195,654	288,182
Derivative instruments, at fair value	162,901	192,191
Prepaid expenses and other	94,170	183,437
Total current assets	730,156	927,182
Equity in nonconsolidated investments	180,083	169,241
Property, plant and equipment	6,160,969	5,503,921
Less: accumulated depreciation and depletion	1,527,121	1,406,402
Net property, plant and equipment	4,633,848	4,097,519
Investments, available-for-sale	34,798	25,880
Regulatory assets	79,723	83,525
Other assets	31,025	26,315
Total assets	5,689,633	5,329,662
Current liabilities:
Current portion of long-term debt	2,300	4,300
Short-term loans		319,917
Accounts payable	143,526	356,732
Margin deposits from financial institutions	3,008
Derivative instruments, at fair value	135,737	175,889
Other current liabilities	210,004	185,770
Total current liabilities	494,575	1,042,608
Long-term debt	1,949,200	1,249,200
Deferred income taxes and investment tax credits	901,553	781,520
Unrecognized tax benefits	64,470	47,553
Pension and other post-retirement benefits	57,137	69,409
Other credits	110,666	89,279
Total liabilities	3,577,601	3,279,569
Common stockholders' equity:
Common stock, no par value, authorized 320,000 shares; shares issued: September 30, 2009 and December 31, 2008, 157,630	950,827	948,497
Treasury stock, shares at cost: September 30, 2009, 26,711; December 31, 2008, 26,764 (net of shares at cost held in trust for deferred compensation of 160, $2,720 and 163, $2,784)	(482,315)	(483,464)
Retained earnings	1,668,826	1,653,797
Accumulated other comprehensive loss	(25,306)	(68,737)
Total common stockholders' equity	2,112,032	2,050,093
Total liabilities and stockholders' equity	$5,689,633	$5,329,662

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (parenthetical) (USD $)
In Thousands	Sep. 30, 2009	Dec. 31, 2008
Condensed Consolidated Balance Sheets
Accumulated provision for doubtful accounts, accounts receivable (in dollars)	$16,270	$26,636
Common stock, authorized shares	320,000	320,000
Common stock, shares issued	157,630	157,630
Treasury stock, shares	26,711	26,764
Treasury stock, held in trust for deferred compensation	160	163
Treasury stock, held in trust for deferred compensation, cost (in dollars)	$2,720	$2,784

Financial Statements

Financial Statements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements
Financial Statements	A. Financial Statements The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with United States generally accepted accounting principles 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 generally accepted accounting principles for complete financial statements. In this Form 10-Q, references to we, us, our, EQT, EQT Corporation, and the Company refer collectively to EQT Corporation and its consolidated subsidiaries. In the opinion of management, these statements include all adjustments (consisting of only normal recurring accruals, unless otherwise disclosed in this Form 10-Q) necessary for a fair presentation of the financial position of EQT Corporation and its subsidiaries as of September 30, 2009, and the results of its operations and cash flows for the three and nine month periods ended September 30, 2009 and 2008. Certain previously reported amounts have been reclassified to conform to the current year presentation. The balance sheet at December 31, 2008 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. Due to the seasonal nature of the Companys natural gas distribution and storage businesses and the volatility of commodity prices, the interim statements for the three and nine month periods ended September 30, 2009 are not necessarily indicative of the results that may be expected for the year ending December 31, 2009. For further information, refer to the consolidated financial statements and footnotes thereto included in EQT Corporations Annual Report on Form 10-K for the year ended December 31, 2008, as well as Managements Discussion and Analysis of Financial Condition and Results of Operations on page 20 of this document.

Segment Information

Segment Information
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements
Segment Information	B. Segment Information Operating segments are revenue-producing components of the enterprise for which separate financial information is produced internally and are subject to evaluation by the Companys chief operating decision maker in deciding how to allocate resources. The Company reports its operations in three segments, which reflect its lines of business. The EQT Production segment includes the Companys exploration for, and development and production of, natural gas, and a limited amount of crude oil, in the Appalachian Basin. EQT Midstreams operations include the natural gas gathering, processing, transportation and storage activities of the Company as well as sales of natural gas liquids (NGLs). Distributions operations are primarily comprised of the state-regulated natural gas distribution activities of the Company. Operating segments are evaluated on their contribution to the Companys consolidated results based on operating income, equity in earnings of nonconsolidated investments and other income. Interest expense and income taxes are managed on a consolidated basis. Headquarters costs are billed to the operating segments based upon a fixed allocation of the headquarters annual operating budget. Actual headquarters expenses in excess of budget, which are primarily related to incentive compensation and administrative costs, are not allocated to the operating segments. Substantially all of the Companys operating revenues, income from operations and assets are generated or located in the United States. Three Months EndedSeptember 30, Nine Months EndedSeptember 30, 2009 2008 2009 2008 Revenues from external customers: EQT Production $ 91,922 $ 122,083 $ 279,570 $ 352,109 EQT Midstream 124,065 186,114 366,939 561,216 Distribution 54,599 88,789 425,865 459,482 Less: intersegment revenues (a) (52,229) (99,159) (146,574) (205,197) Total $ 218,357 $ 297,827 $ 925,800 $ 1,167,610 Operating income: EQT Production $ 31,522 $ 67,296 $ 109,587 $ 201,805 EQT Midstream 37,878 29,772 119,660 114,254 Distribution 3,230 (1,772) 56,435 38,207 Unallocated (expense) income (b) (32,698) 67,430 (42,100) 29,016 Total $ 39,932 $ 162,726 $ 243,582 $ 383,282 Reconciliation of operating income to net income: Other income: EQT Midstream $ 342 $ 460 $ 1,247 $ 5,307 Distribution 169 151 552 402 Total $ 511 $ 611 $ 1,799 $ 5,709 Equity in earnings of nonconsolidated investments: EQT Production $ 3 $ 129 $ 50 $ 373 EQT Midstream 1,946 1,363 4,608 3,989 Unallocated 1 65 24 186 Total $ 1,950 $ 1,557 $ 4,682 $ 4,548 Interest expense 32,393 13,012

Derivative Instruments

Derivative Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements
Derivative Instruments	C. Derivative Instruments Natural Gas Hedging Instruments The Companys primary market risk exposure is the volatility of future prices for natural gas and natural gas liquids, which can affect the operating results of the Company primarily through the EQT Production and EQT Midstream segments. The Companys overall objective in its commodity hedging program is to ensure an adequate level of return for the well development and infrastructure investments at these segments. The Company uses non-leveraged derivative commodity instruments that are placed with major financial institutions whose creditworthiness is continually monitored to reduce the effect of this volatility. Futures contracts obligate the Company to buy or sell a designated commodity at a future date for a specified price and quantity at a specified location. Swap agreements involve payments to or receipts from counterparties based on the differential between a fixed and variable price 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. Put option contracts provide protection from dropping prices and require the counterparty to pay the Company if the index price falls below the contract price. The Company also engages in a limited number of 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 interest rate fluctuations on short or long-term debt. The Company recognizes all derivative instruments as either assets or liabilities at fair value. The accounting for the changes in fair value of the Companys derivative instruments depends on the use of the derivative instruments. At contract inception, the Company designates its derivative instruments as hedging or trading activities. To the extent that a derivative instrument has been designated and qualifies as a cash flow hedge, the effective portion of the change in fair value of the derivative instrument is reported as a component of accumulated other comprehensive loss, net of tax, and is subsequently reclassified into earnings, in the same caption associated with the forecasted transaction, in the same period or periods during which the hedged forecasted transaction affects earnings. For derivative instruments that have not been designated as cash flow hedges, the change in fair value for the instrument is recognized in the Statements of Consolidated Income as operating revenues each period. Exchange-traded instruments are generally settled with offsetting positions. Over the counter (OTC) arrangements require settlement in cash. Settlements of derivative commodity instruments are reported as a component of cash flows from operations in the accompanying Statements of Condensed Consolidated Cash Flows. The various derivative commodity instruments used by the Company to hedge its exposure to variability in expected future cash flows associated with the fluctuations in the price of natural gas related to the Companys forecasted sale of equity prod

Investments, Available-For-Sale

Investments, Available-For-Sale
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements
Investments, Available-For-Sale	D. Investments, Available-For-Sale As of September 30, 2009, the investments classified by the Company as available-for-sale consist of $34.8 million of equity and bond funds intended to fund plugging and abandonment and other liabilities for which the Company self-insures. Unrealized gains or losses with respect to temporarily impaired investments classified as available-for-sale are recognized within the Condensed Consolidated Balance Sheets as a component of equity, accumulated other comprehensive loss. The Company evaluates these investments quarterly and if the Company subsequently determines that a loss is other-than-temporary, any unrealized losses stemming from such impaired investments will be recognized in earnings. September 30, 2009 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Thousands) Equity funds $ 21,942 $ 4,747 $ $ 26,689 Bond funds 7,468 641 8,109 Total investments $ 29,410 $ 5,388 $ $ 34,798 December 31, 2008 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Thousands) Equity funds $ 20,219 $ $ $ 20,219 Bond funds 5,661 5,661 Total investments $ 25,880 $ $ $ 25,880 During the nine month periods ended September 30, 2009 and 2008, the Company purchased additional securities with a cost basis totaling $3.0 million and $3.0 million.

Fair Value Measurements

Fair Value Measurements
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements
Fair Value Measurements	E. Fair Value Measurements The Company has an established process for determining fair value for its financial instruments, principally derivative commodity instruments and available-for-sale investments. Fair value is based on quoted market prices, where available. If quoted market prices are not available, fair value is based upon models that use as inputs market-based parameters, including but not limited to forward curves, discount rates, broker quotes, volatilities, and nonperformance risk. Nonperformance risk considers the effect of the Companys credit standing on the fair value of liabilities and the effect of the counterpartys 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 Companys or counterpartys credit rating and the yield of a risk free instrument and credit default swaps rates where applicable. The Company has categorized its financial instruments 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). Financial instruments included in Level 1 include the Companys futures contracts and available-for-sale investments, while instruments included in Level 2 include the majority of the Companys swap agreements, and instruments included in Level 3 include the Companys collar and option agreements and a portion of the Companys swap agreements. Since the adoption of fair value accounting, the Company has not made any changes to its classification of financial instruments in any category. The fair value of financial instruments included in Level 2 is based on industry models that use significant observable inputs, including NYMEX forward curves and LIBOR-based discount rates. Swaps included in Level 3 are valued using internal models; these internal models are validated each period with non-binding broker price quotes. The Company has not experienced significant differences between internally calculated values and broker price quotes. Collars and options included in Level 3 are valued using internal models calculated with market derived volatilities. The Company uses NYMEX forward curves to value futures, NYMEX swaps, collars and options. The NYMEX 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 period: Fair value measurements at reporting date using Description September30, 2009 Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (Thousands) Assets Investments, available-for-sale $ 34,798 $ 34,798 $ $ Derivative instruments, at fair value 162,901 16,273 59,855 86,773 Total assets $ 197

Comprehensive

Comprehensive (Loss) Income
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements
Comprehensive (Loss) Income	F. Comprehensive (Loss) Income Total comprehensive (loss) income, net of tax, was as follows: Three Months Ended September30, Nine Months Ended September30, 2009 2008 2009 2008 (Thousands) Net income $ 2,909 $ 96,198 $ 101,547 $ 222,109 Other comprehensive (loss) income: Net change in cash flow hedges (22,348) 479,727 38,765 94,195 Unrealized gain (loss) on investments, available-for-sale 2,651 (2,413) 3,502 (5,007) Pension and other post-retirement benefit plans: Prior service cost (86) (70) (258) (212) Net loss 371 395 1,113 1,184 Settlement loss 103 76 309 228 Total comprehensive (loss) income $ (16,400) $ 573,913 $ 144,978 $ 312,497 The components of accumulated other comprehensive loss, net of tax, are as follows: September30, December31, 2009 2008 (Thousands) Net unrealized gain (loss) from hedging transactions $ 9,546 $ (29,219) Unrealized gain on available-for-sale securities 3,502 Pension and other post-retirement benefits adjustment (38,354) (39,518) Accumulated other comprehensive loss $ (25,306) $ (68,737)

Share-Based Compensation

Share-Based Compensation
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements
Share-Based Compensation	G. Share-Based Compensation Share-based compensation expense (income) recorded by the Company was as follows: Three Months Ended September30, Nine Months Ended September30, 2009 2008 2009 2008 (Thousands) 2005 Executive Performance Incentive Program $ $(84,231) $ $ (41,684) 2008 Executive Performance Incentive Program 211 248 559 248 2009 Shareholder Value Plan 24,299 30,614 2007 Supply Long-Term Incentive Program 1,367 (520) 4,166 391 Restricted stock awards 872 1,771 2,858 3,630 Non-qualified stock options 783 522 2,350 522 Non-employee directors share-based awards 670 (3,101) 366 (821) Total share-based compensation expense (income) $ 28,202 $(85,311) $ 40,913 $ (37,714) Executive Performance Incentive Programs The vesting of the stock units granted under the 2005 Executive Performance Incentive Program (2005 Program) occurred on December31, 2008, after the ordinary close of the performance period, and payment was made on that day. The Company accounted for these awards as liability awards and as such recorded compensation expense for the remeasurement of the fair value of the awards at the end of each reporting period. During the three months ended September30, 2008, the Company decreased its assumptions for both the ultimate share price and the payout multiple at the end of the performance period to approximately $37 per share and 175%, respectively. The settlement of the units granted under the 2008 Executive Performance Incentive Program (2008 Program) will occur after the performance period, December31, 2011, at a payout multiple between zero and 300%, which is dependent upon the level of total shareholder return relative to a predefined peer groups total shareholder return during the 3.5 year performance period and production sales revenues (at a fixed price) for approximately the same period. Payment of awards is expected to be in cash based on the price of the Companys common stock at the end of the performance period. Participants have no rights with respect to awards under the 2008 Program prior to payment. The Company accounts for these awards as liability awards and as such records compensation expense for the remeasurement of the fair value of the awards at the end of each reporting period. The Company continually monitors its stock price and performance in order to assess the affect on the ultimate payout under the 2008 Program. The Companys current assumptions for the ultimate share price and payout multiple are $50 and 100% of the units awarded, respectively. As of September30, 2009, approximately 59,000 units were outstanding under the 2008 Program. 2009 Shareholder Value Plan The settlement of the units granted under the 2009 Shareholder Value Plan (2009 SVP) will occur after the performance period utilizing a payout factor of between zero and 250%, dependent upon a combination of the level of total shareholder return relative to a predefined peer group and the Company

Income Taxes

Income Taxes
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements
Income Taxes	H. Income Taxes The Company estimates an annual effective income tax rate based on projected results for the year and applies this rate to income before taxes to calculate income tax expense. Any refinements made due to subsequent information that affects the estimated annual effective income tax rate are reflected as adjustments in the current period. Separate effective income tax rates are calculated for net income from continuing operations and any other separately reported net income items, such as discontinued operations. The Companys effective income tax rate for the nine months ending September30, 2009 was 40.9%. The Company currently estimates the annual effective income tax rate to be approximately 40.9%. The estimated annual effective income tax rate as of September30, 2008 was 37.3%. The 2009 increase in the expected annual effective tax rate is primarily the result of nondeductible compensation expense and a West Virginia law change in 2008 that created a discrete benefit. The Company has a method change request pending with the Internal Revenue Service (IRS) which, if approved, will reduce the estimated annual effective income tax rate by approximately 1.9% for 2009. On March31, 2008, West Virginia enacted legislation, effective for the Companys tax year beginning January1, 2009, that contemplates a reduction of West Virginias corporate net income tax rate over the next nine years. As a result of this law change, the Company recorded a tax benefit of $4.6 million to reflect an overall decrease in the Companys expected deferred tax liability as of the effective date of each respective income tax rate reduction. This benefit was included in the first quarter 2008 income tax expense. There were no material changes to the Companys methodology for unrecognized tax benefits during the nine months ended September30, 2009. Increases to the unrecognized tax benefit balance during the nine months ended September30, 2009 were primarily attributable to certain pending changes in the Companys accounting for repairs expenditures for tax purposes. The consolidated federal income tax liability of the Company has been settled with the IRS through 2000. In December2008, the Joint Committee on Taxation (JCT) approved the settlement of all issues related to the 1998 through 2000 audit. The Company received a final net tax refund of $3.8 million, including interest, for these years. As of September30, 2009, the IRS has completed its audit and review of the Companys federal income tax filings for the 2001 through 2005 years and the Company has received approximately $3.0 million of the total expected $3.4 million refund relating to the agreed upon audit adjustments for these years. In Septemberof 2009, the JCT approved the settlement of all issues related to the 2001 through 2005 audit excluding the Companys research and experimentation (RE) tax credits claimed for such years. The RE credits have been referred to the Appeals Division of the IRS. The Company also is the subject of various state income tax examinations. The Company believes that it is appropriately reserved for any uncertain tax positions claimed during thes

Long-Term Debt

Long-Term Debt
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements
Long-Term Debt	I. Long-Term Debt September 30, December31, 2009 2008 (Thousands) 5.15% notes, due March1, 2018 $200,000 $200,000 5.15% notes, due November15, 2012 200,000 200,000 5.00% notes, due October1, 2015 150,000 150,000 6.50% notes, due April1, 2018 500,000 500,000 8.13% notes, due April1, 2019 700,000 7.75% debentures, due July15, 2026 115,000 115,000 Medium-term notes: 8.5% to 9.0% SeriesA, due 2009 thru 2021 48,500 50,500 7.3% to 7.6% SeriesB, due 2013 thru 2023 30,000 30,000 7.6% SeriesC, due 2018 8,000 8,000 1,951,500 1,253,500 Less debt payable within one year 2,300 4,300 Total long-term debt $1,949,200 $1,249,200 The indentures and other agreements governing the Companys indebtedness contain certain restrictive financial and operating covenants including covenants that restrict the Companys ability to incur indebtedness, incur liens, enter into sale and leaseback transactions, complete acquisitions, merge, sell assets and perform certain other corporate actions. The covenants do not contain a rating trigger. Therefore, a change in Companys debt rating would not trigger a default under the indentures and other agreements governing the Companys indebtedness. Aggregate maturities of long-term debt are $2.3 million in 2009, $0 in 2010, $6.0 millionin 2011, $200.0 million in 2012 and $10.0 million in 2013.

Pension and Other Postretiremen

Pension and Other Postretirement Benefit Plans
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements
Pension and Other Postretirement Benefit Plans	J. Pension and Other Postretirement Benefit Plans The Companys costs related to its defined benefit pension and other postretirement benefit plans for the three and nine months ended September30, 2009 and 2008 were as follows: Pension Benefits Other Benefits Three Months Ended September30, 2009 2008 2009 2008 (Thousands) Components of net periodic benefit cost Service cost $ 109 $ 44 $ 144 $ 110 Interest cost 906 1,080 537 610 Expected return on plan assets (1,145) (1,333) Amortization of prior service cost 4 29 (226) (226) Recognized net actuarial loss 298 312 437 511 Settlement loss 173 237 Net periodic benefit cost $ 345 $ 369 $ 892 $ 1,005 Pension Benefits Other Benefits Nine months ended September30, 2009 2008 2009 2008 (Thousands) Components of net periodic benefit cost Service cost $ 327 $ 132 $ 432 $ 330 Interest cost 2,718 3,240 1,611 1,830 Expected return on plan assets (3,435) (3,999) Amortization of prior service cost 12 87 (678) (678) Recognized net actuarial loss 894 936 1,311 1,533 Settlement loss 519 489 Net periodic benefit cost $ 1,035 $ 885 $ 2,676 $ 3,015

Fair Value of Financial Instrum

Fair Value of Financial Instruments
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements
Fair Value of Financial Instruments	K. Fair Value of Financial Instruments The carrying value of cash equivalents and short-term loans approximates fair value due to the short maturity of the instruments. Available-for-sale securities and derivative instruments are reported in the Condensed Consolidated Balance Sheets at fair value. See Notes C, D and E. The estimated fair value of long-term debt on the Condensed Consolidated Balance Sheets at September30, 2009 and December31, 2008 was approximately $2 billion and $1 billion, respectively. The fair value was estimated using the Companys established fair value methodology based on discounted values using a current discount rate reflective of the remaining maturity.

Recently Issued Accounting Stan

Recently Issued Accounting Standards
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements
Recently Issued Accounting Standards	L. Recently Issued Accounting Standards Employers Disclosures about Post-Retirement Benefit Plan Assets In December2008, the FASB issued Employers Disclosures about Post-Retirement Benefit Plan Assets. The disclosures required by this guidance are intended to enhance the transparency surrounding the types of assets and associated risks in an employers defined benefit pension or other post-retirement plan. The new disclosures are required to be included in the financial statements for fiscal years ending after December15, 2009. The Company is currently evaluating the affect that this guidance will have on its consolidated financial statement disclosures. Accounting for Variable Interest Entities In June2009, the FASB issued amendments to improve financial reporting by enterprises involved with variable interest entities. The amendments are effective as of the beginning of the first annual reporting period after November15, 2009. The Company is currently evaluating the affect that these amendments will have on its consolidated financial statements. Accounting for Transfers of Financial Assets In June2009, the FASB issued an amendment to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferors continuing involvement, if any, in transferred financial assets. The amendment eliminates the concept of a qualifying special-purpose entity for accounting purposes and must be applied as of the beginning of the first annual reporting period beginning after November15, 2009. This amendment must be applied to transfers occurring on or after the effective date and the disclosure provisions must be applied to transfers that occurred both before and after the effective date. The Company is currently evaluating the affect that this amendment will have on its consolidated financial statements. Oil and Gas Reporting Requirements In December2008, the U.S. Securities and Exchange Commission (SEC) approved amendments to its oil and gas reporting requirements. The amendments are intended to provide investors with a more meaningful and comprehensive understanding of oil and gas reserves by better aligning the oil and gas disclosure requirements with current practices and technology. The amendments are effective for annual reports for fiscal years ending on or after December31, 2009. In September2009, the FASB issued a proposed Accounting Standards Update to align the oil and gas reserve estimation and disclosure requirements of Extractive Industries Oil and Gas with the requirements of the SECs amendments to its oil and gas reporting requirements. The FASBs proposed amendment would also be effective for annual reporting periods ending on or after December31, 2009, and applied prospectively as a change in estimate. The Company has determined that the SEC amendments and proposed FASB amendments will not have an affect on the Companys results of operations, cash flows or financial posit

Other Events

Other Events
	9 Months Ended Sep. 30, 2009 USD / shares
Notes to Condensed Consolidated Financial Statements
Other Events	M. Other Events During the third quarter of 2009, the Company completed the relocation of its corporate headquarters and other operations to downtown Pittsburgh. As a result of the relocation, the Company recorded impairment expense of $4.0 million as selling, general and administrative expense in the Statements of Consolidated Income. On May15, 2009, the Company completed a public offering of $700 million in aggregate principal amount of 8.125% Senior Notes (Senior Notes) due June1, 2019. The proceeds from the offering were used to repay short-term borrowings under the Companys revolving credit facility and will fund part of the Companys 2009 capital program. The indenture governing the Senior Notes contains covenants that limit the Companys 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 all or substantially all of the Companys assets. The Company has evaluated subsequent events through October29, 2009, the date the financial statements were issued.

Document and Entity Information

Document and Entity Information (USD $)
	9 Months Ended Sep. 30, 2009	Jun. 30, 2008
Document and Entity Information
Entity Registrant Name	EQT Corp
Entity Central Index Key	0000033213
Document Type	10-Q
Document Period End Date	2009-09-30
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		$8,892,460,969
Entity Common Stock, Shares Outstanding	130,919,247