EQT (EQT) 10-Q 28 Apr 10 2010 Q1 Quarterly report Financial data

Statements of Consolidated Inco

Statements of Consolidated Income (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Statements of Consolidated Income
Operating revenues	$436,640	$469,403
Operating expenses:
Purchased gas costs	113,962	209,007
Operation and maintenance	34,339	31,590
Production	16,800	15,020
Exploration	1,335	3,311
Selling, general and administrative	39,212	29,750
Depreciation, depletion and amortization	61,879	44,589
Total operating expenses	267,527	333,267
Operating income	169,113	136,136
Other income	527	590
Equity in earnings of nonconsolidated investments	2,527	1,122
Interest expense	34,134	19,243
Income before income taxes	138,033	118,605
Income taxes	49,968	46,612
Net income	$88,065	$71,993
Basic:
Weighted average common shares outstanding (in shares)	134,084	130,743
Net income (in dollars per share)	0.66	0.55
Diluted:
Weighted average common shares outstanding (in shares)	135,009	131,400
Net income (in dollars per share)	0.65	0.55
Dividends declared per common share (in dollars per share)	0.22	0.22

Statements of Condensed Consoli

Statements of Condensed Consolidated Cash Flows (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities:
Net income	$88,065	$71,993
Adjustments to reconcile net income to cash provided by operating activities:
Provision for losses on accounts receivable	4,000	1,140
Depreciation, depletion, and amortization	61,879	44,589
Other income	(34)	(590)
Equity in earnings of nonconsolidated investments	(2,527)	(1,122)
Equity award expense	3,244	1,935
Deferred income taxes	50,150	56,417
Excess tax benefits from share-based payment arrangements	0	(127)
Decrease in inventory	69,926	141,100
(Increase) decrease in accounts receivable and unbilled revenues	(5,374)	51,285
Increase in margin deposits	(10,542)	(1,253)
Decrease in accounts payable	(62,154)	(157,951)
Change in derivative instruments at fair value, net	1,619	41,953
Changes in other assets and liabilities	77,161	(36,723)
Net cash provided by operating activities	275,413	212,646
Cash flows from investing activities:
Capital expenditures	(217,527)	(207,715)
Capital contribution to Nora Gathering, LLC	0	(4,500)
Investment in available-for-sale securities	(750)	(3,000)
Net cash used in investing activities	(218,277)	(215,215)
Cash flows from financing activities:
Dividends paid	(28,818)	(28,833)
Proceeds from issuance of common stock, net	527,735	0
(Decrease) increase in short-term loans	(5,000)	31,050
Proceeds from exercises under employee compensation plans	1,973	225
Excess tax benefits from share-based payment arrangements	0	127
Net cash provided by financing activities	495,890	2,569
Net increase in cash and cash equivalents	553,026	0
Cash and cash equivalents at beginning of period	0	0
Cash and cash equivalents at end of period	553,026	0
Cash paid during the period for:
Interest, net of amount capitalized	12,762	12,130
Net income tax refunds received	$124,142	$3,981

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (USD $)
In Thousands	Mar. 31, 2010	Dec. 31, 2009
Current assets:
Cash and cash equivalents	$553,026	$0
Accounts receivable (less accumulated provision for doubtful accounts: March 31, 2010, $21,205; December 31, 2009, $16,792)	172,727	155,574
Unbilled revenues	22,521	38,300
Inventory	113,031	182,957
Derivative instruments, at fair value	244,193	163,879
Prepaid expenses and other	12,438	154,456
Total current assets	1,117,936	695,166
Equity in nonconsolidated investments	184,321	181,866
Property, plant and equipment	6,694,452	6,478,486
Less: accumulated depreciation and depletion	1,619,619	1,563,755
Net property, plant and equipment	5,074,833	4,914,731
Investments, available-for-sale	38,334	36,156
Regulatory assets	98,688	99,144
Other assets	45,721	30,194
Total assets	6,559,833	5,957,257
Current liabilities:
Short-term loans	0	5,000
Accounts payable	186,833	248,987
Derivative instruments, at fair value	112,426	132,518
Other current liabilities	172,576	226,169
Total current liabilities	471,835	612,674
Long-term debt	1,949,200	1,949,200
Deferred income taxes and investment tax credits	1,131,010	1,039,473
Unrecognized tax benefits	54,501	56,621
Pension and other post-retirement benefits	47,125	47,615
Other credits	107,649	100,644
Total liabilities	3,761,320	3,806,227
Common stockholders' equity:
Common stock, no par value, authorized 320,000 shares; shares issued: March 31, 2010 and December 31, 2009, 170,130 and 157,630, respectively	1,473,179	952,237
Treasury stock, shares at cost: March 31, 2010, 26,557; December 31, 2009, 26,699	(479,532)	(482,125)
Retained earnings	1,754,605	1,695,358
Accumulated other comprehensive income (loss)	50,261	(14,440)
Total common stockholders' equity	2,798,513	2,151,030
Total liabilities and stockholders' equity	$6,559,833	$5,957,257

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (parenthetical) (USD $)
In Thousands	Mar. 31, 2010	Dec. 31, 2009
Condensed Consolidated Balance Sheets
Accounts receivable, accumulated provision for doubtful accounts (in dollars)	$21,205	$16,792
Common stock, no par value (in dollars per share)
Common stock, authorized shares	320,000	320,000
Common stock, shares issued	170,130	157,630
Treasury stock, shares	26,557	26,699

Financial Statements

Financial Statements
	3 Months Ended Mar. 31, 2010
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 Form10-Q and Article10 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 Form10-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 Form10-Q) necessary for a fair presentation of the financial position of EQT Corporation and subsidiaries as of March31, 2010, and the results of its operations and cash flows for the three month periods ended March31, 2010 and 2009. Certain previously reported amounts have been reclassified to conform to the current year presentation. The balance sheet at December31, 2009 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 month period ended March31, 2010 are not necessarily indicative of the results that may be expected for the year ending December31, 2010. For further information, refer to the consolidated financial statements and footnotes thereto included in EQT Corporations Annual Report on Form10-K for the year ended December31, 2009 as well as Managements Discussion and Analysis of Financial Condition and Results of Operations on page21 of this document.

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Segment Information
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 (NGL). Distributions operations primarily comprise 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 certain 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. EQT Corporation and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) Three Months EndedMarch31, 2010 2009 (Thousands) Revenues from external customers: EQT Production $ 128,990 $ 97,763 EQT Midstream 185,465 123,374 Distribution 222,255 293,172 Less: intersegment revenues (a) (100,070 ) (44,906 ) Total $ 436,640 $ 469,403 Operating income: EQT Production $ 58,493 $ 44,417 EQT Midstream 67,315 48,980 Distribution 47,419 43,852 Unallocated expenses (b) (4,114 ) (1,113 ) Total $ 169,113 $ 136,136 Reconciliation of operating income to net income: Equity in earnings of nonconsolidated investments: EQT Production $ 42 $ 36 EQT Midstream 2,464 1,067 Unallocated 21 19 Total $ 2,527 $ 1,122 Other income: EQT Midstream $ 195 $ 550 Distribution 332 40 Total $ 527 $ 590 Interest expense 34,134 19,243 Income taxes 49,968 46,612 Net income $ 88,065 $ 71,993 March31, December31, 2010 2009 Segment Assets: (Thousands) EQT Production $ 3,161,725 $ 2,931,053 EQT Midstream 1,969,251 1,984,525 Distribution 812,241 860,222 Total operating segments 5,943,217 5,775,800 Headquarters assets, including cash and short-term investments 616,616 181,457 Total assets $ 6,559,833 $ 5,957,257 EQT Corporation and Subsidiaries N

Derivative Instruments

Derivative Instruments
	3 Months Ended Mar. 31, 2010
Derivative Instruments
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 to reduce the effect of this commodity price volatility. These instruments are placed with major financial institutions whose creditworthiness is continually monitored. 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 income (loss), net of tax, and is subsequently reclassified into earnings, in the same caption associated with the forecasted transaction and 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 Company

Investments, Available-For-Sale

Investments, Available-For-Sale
	3 Months Ended Mar. 31, 2010
Investments, Available-For-Sale
Investments, Available-For-Sale	D. Investments, Available-For-Sale As of March31, 2010, the investments classified by the Company as available-for-sale consist of approximately $38.3 million of equity and bond funds intended to fund plugging and abandonment and other liabilities for which the Company self-insures. March31, 2010 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Thousands) Equity funds $23,021 $6,914 $ $29,935 Bond funds 7,705 694 8,399 Total investments $30,726 $7,608 $ $38,334 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 income (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. During the three month periods ended March31, 2010 and 2009, the Company purchased additional securities with a cost basis totaling $0.8 million and $3.0 million, respectively. The Company uses the average cost method to determine the cost of securities sold.

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Fair Value Measurements
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. The Company also considers 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 an insignificant 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 each 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 that use significant unobservable inputs; 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 March31, 2010 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 $ 38,334 $ 38,334 $ $ Derivative instruments, at fair value 244,193 8,72

Comprehensive Income

Comprehensive Income
	3 Months Ended Mar. 31, 2010
Comprehensive Income
Comprehensive Income	F. Comprehensive Income Total comprehensive income, net of tax, was as follows: Three Months Ended March31, 2010 2009 (Thousands) Net income $ 88,065 $ 71,993 Other comprehensive income: Net change in cash flow hedges 63,443 85,837 Unrealized gain (loss) on investments, available-for-sale 855 (1,603 ) Pension and other post-retirement benefit plans 403 388 Total comprehensive income $ 152,766 $ 156,615 The components of accumulated other comprehensive income (loss), net of tax, are as follows: March31, December31, 2010 2009 (Thousands) Net unrealized gain from hedging transactions $ 78,740 $ 15,297 Unrealized gain on available-for-sale securities 4,945 4,090 Pension and other post-retirement benefits adjustment (33,424 ) (33,827 ) Accumulated other comprehensive income (loss) $ 50,261 $ (14,440 )

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Income Taxes
Income Taxes	G. 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 three months ending March31, 2010 is 36.2%. The estimated annual effective income tax rate as of March31, 2009 was 39.3%. The Company currently estimates the 2010 annual effective income tax rate to be approximately 36.2%. The decrease in the expected annual effective tax rate from 2009 is primarily the result of a decrease in limitations imposed on certain state tax losses. In addition, carrying 2009 losses back to receive a cash refund of taxes paid in prior years resulted in the loss of certain deductions, thereby increasing the overall 2009 rate. There were no material changes to the Companys methodology or to the balance recorded for unrecognized tax benefits during the three months ended March31, 2010. The Internal Revenue Service (IRS) has completed its audit and review of the Companys federal income tax filings through 2005. The only unresolved issue relates to the research and experimentation tax credits of $3.8 million claimed by the Company for years 2001 through 2005 which is currently at the Appeals Division of the IRS. The IRS is scheduled to begin its audit and review of the Companys federal income tax filings for the 2006 through 2009 years during the second quarter of 2010. 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 the periods to be reviewed. The Worker, Homeownership and Business Assistance Act of 2009 extended the applicability of the tax net operating loss carryback provision from 2 years to 5 years for either the 2008 or 2009 tax year. The Company elected to carryback its 2009 tax operating loss under this new law and received a refund of $121.5 million from the IRS during the first quarter of 2010. EQT also received a refund of $115.2 million primarily in the second quarter of 2009 from the IRS relating to the 2008 net operating loss carryback. These net operating losses were primarily generated from intangible drilling costs (IDC) for the Companys drilling program that are deducted currently for tax purposes and from accelerated tax depreciation for expansion of the Companys midstream business. The Reconciliation Act and the Health Care Act passed in Marchof 2010 eliminated the deduction allowed in regard to companies receiving Medicare PartD subsidies. The Company does not receive any such subsidies and was not impacted by this law change.

Short-Term Loans

Short-Term Loans
	3 Months Ended Mar. 31, 2010
Short-Term Loans
Short-Term Loans	H. Short-Term Loans On October27, 2006, the Company entered into a $1.5 billion, five-year revolving credit agreement, which replaced the Companys previous $1 billion, five-year revolving credit agreement. On December15, 2006, the maturity date was extended to October26, 2011. Additionally, the Company may request two one-year extensions of the stated maturity date; however, these extensions require the approval of 51% of the lenders underwriting the credit facility. The revolving credit agreement may be used for working capital, capital expenditures, share repurchases and other purposes including support of a commercial paper program. Subject to certain terms and conditions, the Company may, on a one time basis, request that the lenders commitments be increased to an aggregate amount of up to $2.0 billion. Each lender in the facility may decide if it will increase its commitment. The credit facility is underwritten by a syndicate of 15 financial institutions each of which is obligated to fund its pro-rata portion of any borrowings by the Company. Lehman Brothers Bank, FSB (Lehman) is one of the 15 financial institutions in the syndicate and had committed to make loans not exceeding $95 million under the facility. Lehman failed to fund its portion of all recent borrowings by the Company which effectively reduces the total amount available under the facility to $1,405 million. The Company is not required to maintain compensating bank balances. The Companys debt issuer credit ratings, as determined by SP, Moodys or Fitch, on the Companys non-credit-enhanced, senior unsecured long-term debt, determine the level of fees associated with its lines of credit in addition to the interest rate charged by the counterparties on any amounts borrowed against the lines of credit; the lower the Companys debt credit rating, the higher the level of fees and borrowing rate. As of March31, 2010, the Company had no loans outstanding under the revolving credit facility. An irrevocable standby letter of credit of $23.9 million was outstanding at March31, 2010. As of December31, 2009, the Company had outstanding short-term loans under the revolving credit facility of $5.0 million and an irrevocable standby letter of credit of $24.4 million. Commitment fees averaging approximately one-twelfth of one percent in 2010 and 2009 were paid to maintain credit availability under the revolving credit facility. The weighted average interest rate for short-term loans outstanding as of December31, 2009 was 0.51% per annum. The maximum amount of outstanding short-term loans at any time during the three months ended March31, 2010 and 2009 was $139.7 million and $491.7 million, respectively. The average daily balance of short-term loans outstanding during the three months ended March31, 2010 and 2009 was approximately $86.1 million and $384.0 million at weighted average annual interest rates of 0.47% and 0.72%, respectively.

Long-Term Debt

Long-Term Debt
	3 Months Ended Mar. 31, 2010
Long-Term Debt
Long-Term Debt	I. Long-Term Debt March31, 2010 December31, 2009 (Thousands) 5.15% notes, due November15, 2012 $200,000 $200,000 5.00% notes, due October1, 2015 150,000 150,000 5.15% notes, due March1, 2018 200,000 200,000 6.50% notes, due April1, 2018 500,000 500,000 8.13% notes, due June1, 2019 700,000 700,000 7.75% debentures, due July15, 2026 115,000 115,000 Medium-term notes: 8.5% to 9.0% SeriesA, due 2011 thru 2021 46,200 46,200 7.3% to 7.6% SeriesB, due 2013 thru 2023 30,000 30,000 7.6% SeriesC, due 2018 8,000 8,000 1,949,200 1,949,200 Less debt payable within one year Total long-term debt $1,949,200 $1,949,200 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 long-term indebtedness. Aggregate maturities of long-term debt are $0 in 2010, $6.0 million in 2011, $200.0 millionin 2012, $10.0 million in 2013 and $5.0 million in 2014.

Pension and Other Postretiremen

Pension and Other Postretirement Benefit Plans
	3 Months Ended Mar. 31, 2010
Pension and Other Postretirement Benefit Plans
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 months ended March31, 2010 and 2009 were as follows: Pension Benefits Other Benefits Three Months Ended March31, 2010 2009 2010 2009 (Thousands) Components of net periodic benefit cost Service cost $150 $109 $154 $144 Interest cost 847 906 494 537 Expected return on plan assets (1,072) (1,145) Amortization of prior service cost 4 (226) (226) Recognized net actuarial loss 331 298 399 437 Settlement loss 210 173 Net periodic benefit cost $466 $345 $821 $892

Fair Value of Financial Instrum

Fair Value of Financial Instruments
	3 Months Ended Mar. 31, 2010
Fair Value of Financial Instruments
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 March31, 2010 and December31, 2009 was approximately $2 billion. The fair value was estimated using the Companys established fair value methodology. Where quoted market prices are not available, the Company uses an internal model which uses significant observable inputs including market discount rates consistent with the associated risk and term of the Companys long-term debt.

Recently Issued Accounting Stan

Recently Issued Accounting Standards
	3 Months Ended Mar. 31, 2010
Recently Issued Accounting Standards
Recently Issued Accounting Standards	L. Recently Issued Accounting Standards Disclosures about Fair Value Measurements In January2010, the Financial Accounting Standards Board (FASB) issued an amendment intended to enhance fair value disclosures, improve the transparency of the inputs and assumptions used to measure the fair value of assets and liabilities reported, and improve comparability with International Financial Reporting Standards. During the three months ended March31, 2010, the Company adopted certain provisions of this amendment; this did not have a material effect on the Companys financial statements. Other provisions of the amendment are effective for fiscal years beginning after December15, 2010. The Company is currently evaluating the affect that this amendment will have on its consolidated financial statement disclosures.

Acquisitions

Acquisitions
	3 Months Ended Mar. 31, 2010
Acquisitions
Acquisitions	M. Acquisitions On March2, 2010, the Company announced that it will acquire approximately 58,000 net acres in the Marcellus Shale from a group of private operators and landowners. The acreage is located primarily in Cameron, Clearfield, Elk and Jefferson counties in Pennsylvania. The purchase includes a 200 mile gathering system, with associated rights of way, and approximately 100 producing vertical wells. The Company will pay approximately $280 million for these assets, 90% in EQT stock and 10% in cash. Following the closing of the acquisition, the Company will hold approximately 500,000 net acres in the high pressure Marcellus Shale fairway.

Earnings Per Share

Earnings Per Share
	3 Months Ended Mar. 31, 2010
Earnings Per Share
Earnings Per Share	N. Earnings Per Share The computation of basic and diluted earnings per common share is shown in the table below: Three Months EndedMarch31, 2010 2009 (Thousands, except pershare amounts) Basic earnings per common share: Net income $ 88,065 $ 71,993 Average common shares outstanding 134,084 130,743 Basic earnings per common share $ 0.66 $ 0.55 Diluted earnings per common share: Net income $ 88,065 $ 71,993 Average common shares outstanding 134,084 130,743 Potentially dilutive securities Stock options and awards (a) 925 657 Total 135,009 131,400 Diluted earnings per common share $ 0.65 $ 0.55 (a)Options to purchase 1,241,566 and 977,127 shares of common stock were not included in the computation of diluted earnings per common share for the three months ended March31, 2010 and 2009, respectively, because the options exercise prices were greater than the average market prices of common shares as of the respective dates.

Other Events

Other Events
	3 Months Ended Mar. 31, 2010
Other Events
Other Events	O. Other Events On March16, 2010, the Company completed a public offering of 12,500,000 shares of its common stock, no par value (the Common Stock), at an offering price to the public of $44.00 per share. The proceeds from the offering are being used to accelerate development of the Marcellus Shale and Huron/Berea plays. The underwriters in this transaction also exercised their over-allotment option to purchase 225,000 additional shares of the Companys Common Stock on April14, 2010 at an offering price to the public of $44.00 per share.

Subsequent Events

Subsequent Events
	3 Months Ended Mar. 31, 2010
Subsequent Events
Subsequent Events	P. Subsequent Events The Company has evaluated subsequent events through the date of financial statement issuance.

Document and Entity Information

Document and Entity Information
	3 Months Ended Mar. 31, 2010
Document and Entity Information
Entity Registrant Name	EQT Corp
Entity Central Index Key	0000033213
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	143,573,133
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1