Operating cash flow is on the rise; per unit operating costs
decline 26%
EQT Corporation (NYSE: EQT) today announced financial and
operational performance results for the first quarter 2018.
Highlights:
- Announced plan to separate midstream
and upstream businesses
- Announced midstream streamlining
transaction details
- Recorded $2.3 billion non-cash
impairment charge for Huron and Permian Plays
- Increase in adjusted operating cash
flow of 116%
- Decrease of 26% in Production’s per
unit cash operating costs
Financial Results Three Months Ended
March 31, ($ millions, except EPS)
2018
2017 Difference Net (loss) income attributable to EQT
$ (1,586.0) $ 164.0 $ (1,750.0) Adjusted net income attributable to
EQT (a non-GAAP measure) $ 268.3 $ 75.9 $ 192.4 Diluted earnings
per share (EPS) $ (5.99) $ 0.95 $ (6.94) Adjusted earnings per
diluted share (EPS) (a non-GAAP measure) $ 1.01 $ 0.44 $ 0.57 Net
cash provided by operating activities $ 904.4 $ 514.8 $ 389.6
Adjusted operating cash flow attributable to EQT (a non-GAAP
measure) $ 718.4 $ 332.4 $ 386.0
Net loss attributable to EQT for the first quarter 2018 was
impacted by an impairment charge of $2.3 billion associated with
the Huron and Permian Plays; increases in other operating costs;
lower gains on derivatives not designated as hedges; and higher
interest expense, which more than offset higher revenue from an 88%
increase in sales volume, lower corporate income taxes, and higher
pipeline and net marketing services revenue. Net cash provided by
operating activities was higher as a result of an increase in sales
volume, partly offset by an increase in cash operating costs.
Adjusted net income attributable to EQT increased 253% for
the first quarter 2018, excluding the impairment charge, non-cash
derivative gains, and approximately $35.7 million of
transaction-related expenses. Adjusted operating cash flow
attributable to EQT increased 116%, including the
transaction-related expenses and excluding the non-controlling
interests in EQT Midstream Partners, LP (EQM) and Rice Midstream
Partners LP (RMP).
The Non-GAAP Disclosures section of this news release provides
reconciliations of non-GAAP financial measures to the most
comparable GAAP financial measure, as well as important disclosures
regarding certain projected non-GAAP financial measures.
RESULTS BY
BUSINESS
EQT PRODUCTION Financial Results Three Months
Ended March 31, ($ millions, except average realized
price)
2018 2017 Difference Sales
volume (Bcfe) 357.0 189.9 167.1 Pipeline and net marketing services
$ 59.6 $ 14.5 $ 45.1 Operating revenue $ 1,348.6 $ 828.7 $ 519.9
Adjusted operating revenue (a non-GAAP measure) $ 1,188.0 $ 665.0 $
523.0 Operating expenses $ 3,242.4 $ 571.1 $ 2,671.3 Operating
(loss) income $ (1,893.8) $ 257.5 $ (2,151.3) Adjusted operating
income (a non-GAAP measure) $ 338.1 $ 110.2 $ 227.9 Average
realized price ($/Mcfe) $ 3.33 $ 3.50 $ (0.17)
The $2,151.3 million decrease in operating income in the quarter
was primarily due to a recorded impairment charge of $2,329.0
million associated with non-core production assets and retained
pipeline assets in the Huron and Permian plays; lower gains on
derivatives not designated as hedges; a lower average realized
price; and higher operating expenses, partially offset by increased
sales volume of produced natural gas and NGLs. The increase in
sales of natural gas, oil and NGLs was primarily a result of the
acquisition of Rice, in addition to increased production from the
2016 and 2017 drilling programs.
The decrease in the average realized price for the quarter was
primarily due to a decrease in the average NYMEX natural gas price,
partly offset by an increase in the average natural gas
differential and higher liquids prices.
Operating expenses for the quarter were $2,671.3 million higher
than the same period last year. In addition to the impairment,
depreciation, depletion and amortization expense (DD&A)
increased $189.0 million; gathering expense increased $69.6
million; transmission expense increased $59.4 million; and
processing expense increased $2.3 million, primarily due to
increased produced volumes. Per unit cash operating expenses
decreased 26%.
Wells Drilled (spud)
Marcellus Upper Devonian Ohio
Utica (net) Q1 2018 24 2 6 2018 Forecast 134 16 25 Q2 2018
Forecast 35 – 40 3 – 5 8 – 10
- Q1 2018 average lateral lengths:
Marcellus 14,000; Upper Devonian 16,800; Ohio Utica 11,700
- 2018 forecasted average lateral
lengths: Marcellus 12,600; Upper Devonian 15,800; Ohio Utica
11,000
Wells Turned-in-line (TIL)
Marcellus Upper Devonian Ohio
Utica (net) Q1 2018 25 5 4 2018 Forecast 160 – 170 20 – 25 20 –
25 Q2 2018 Forecast 48 – 53 3 – 5 4 – 6
- Q1 2018 average lateral lengths:
Marcellus 7,900; Upper Devonian 11,300; Ohio Utica 10,000
- 2018 forecasted average lateral
lengths: Marcellus 8,700; Upper Devonian 11,300; Ohio Utica
11,500
Marcellus Horizontal Well Status (cumulative since
inception)*
As of As of As of
As of As of 3/31/18** 12/31/17**
9/30/17 6/30/17 3/31/17 Wells drilled (spud)
1,763 1,743 1,288 1,259 1,216 Wells online 1,444 1,424 1,060 1,028
1,013 Wells complete, not online 35 21 21 15 20 Wells drilled,
uncompleted 284 298 207 216 183
*These totals may differ from previous
presentations to account for purchases, dispositions, wells
plugged, or that have had a change in target formation to/from
Marcellus.
**Includes 77 wells acquired in 2016 and
570 wells acquired in 2017.
EQT MIDSTREAM PARTNERS, LP (EQM)
The first quarter 2018 financial results for EQM were released
today and provide operational results, as well as updates on
significant midstream projects under development by EQM. This news
release is available at www.eqtmidstreampartners.com. The summary
results are:
EQM Gathering Financial Results
Three Months Ended March 31, ($
millions)
2018 2017 Difference
Operating revenue $ 125.9 $ 102.3 $ 23.6 Operating expenses $ 27.0
$ 28.6 $ (1.6) Operating income $ 98.9 $ 73.7 $ 25.2
Operating income increased 34% in the first quarter 2018
compared to first quarter 2017, primarily due to higher revenues
driven by production development in the Marcellus Shale. Revenue
from firm reservation fees represented 87% of total revenue during
the quarter.
Operating expenses were $1.6 million lower, primarily as a
result of decreased SG&A due to lower personnel costs, partly
offset by increased depreciation and amortization expense due to
additional assets placed in-service.
EQM Transmission Financial Results
Three Months Ended March 31, ($
millions)
2018 2017 Difference
Operating revenue $ 106.9 $ 97.7 $ 9.2 Operating expenses $ 27.5 $
26.1 $ 1.4 Operating income $ 79.4 $ 71.6 $ 7.8
The increase in operating income in the first quarter 2018
compared to first quarter 2017 was primarily due to higher
contractual rates on existing contracts with third parties and
affiliates, third parties contracting for additional firm capacity
and increased seasonal storage-related services. Revenue from firm
reservation fees represented 91% of total revenues during the
quarter.
Operating expenses were $1.4 million higher primarily as a
result of increased operating and maintenance expense due to
additional assets placed in-service.
OTHER BUSINESS
NewCo
On February 21, 2018, the Company announced a plan to separate
its upstream and midstream businesses, creating a standalone
publicly traded corporation (NewCo) that will focus on midstream
operations. The separation is intended to qualify as tax-free to
EQT shareholders for U.S. federal income tax purposes and is
expected to be completed by the end of the third quarter 2018.
Under the separation plan, EQT shareholders will retain their
shares of EQT stock and receive a proportional share of the new
independent midstream company.
Permian Sale
EQT entered into an agreement to sell its Permian Basin assets
located in Texas for $64 million. The sale, expected to close by
end of June 2018, will reduce the Company’s 2018 production sales
volume guidance by 5 Bcfe.
Streamlining Transaction
The Company also announced a plan of action for the midstream
streamlining transaction that includes:
- A drop-down of the Rice retained
midstream assets to EQM for $1.52 billion -- $1.15 billion in cash
plus approximately 5.9 million EQM common units, and EQM’s
acquisition of Gulfport’s 25% ownership in the Strike Force
Gathering System for $175 million in cash
- A merger of EQM and Rice Midstream
Partners LP in a unit-for-unit transaction at an exchange
ratio of 0.3319x, which implies a transaction value of $2.4
billion, including $325 million of assumed RMP debt
- The sale of RMP’s Incentive
Distribution Rights to EQT GP Holdings, LP (NYSE: EQGP) for 36.3
million EQGP common units, which is equivalent to $937 million
Please see the associated news release on the EQM-EQGP website
at www.eqtmidstreampartners.com, or on the RMP website at
www.ricemidstream.com.
EQM / EQGP / RMP Distributions
On April 24, 2018, EQM approved a cash distribution to its
unitholders of $1.065 per unit for the first quarter. EQGP approved
a cash distribution to its unitholders of $0.258 per unit for the
first quarter 2018. RMP also approved a cash distribution to its
unitholders of $0.3049 per unit for the first quarter 2018.
Calculation of Net Income Attributable to Non-controlling
Interest (NCI)
The results of EQGP, EQM, RMP and Strike Force Midstream LLC
(Strike Force) are consolidated in EQT’s results. For the first
quarter 2018, EQT’s results reflected earnings of $141.0 million,
or $0.53 per diluted share, attributable to the publicly held
partnership interests and the minority interest in Strike
Force.
Three Months Ended March 31, 2018
Unitholder interest in net
Non-controlling NCI interest in
(millions)
income (a)
interest (NCI) EQT earnings EQM $ 133.1 71.65 % $
95.3 EQGP $ 80.7 9.94 % $ 8.0 RMP $ 49.2 71.89 % $ 35.3 Strike
Force $ 9.9 25.00 % $ 2.4 Total $ 141.0 (a) Excludes
incentive distribution rights
Hedging
As of April 24, 2018, the approximate volumes and prices of the
Company’s derivative commodity instruments hedging sales of
produced gas for 2018 through 2020 were:
2018(a)
2019 2020 NYMEX Swaps Total Volume (Bcf) 496
445 313 Average Price per Mcf (NYMEX) $ 3.08 $ 2.99 $ 3.01
Collars Total Volume (Bcf) 85 74 − Average Floor Price per
Mcf (NYMEX) $ 3.28 $ 3.12 $ − Average Cap Price per Mcf (NYMEX) $
3.79 $ 3.60 $ −
Puts (Long) Total Volume (Bcf) 5 3 −
Average Floor Price per Mcf (NYMEX) $ 2.98 $ 3.15 $ −
(a)April-December 2018
- The Company sold calendar 2018, 2019,
and 2020 calls for approximately 76, 97, and 103 Bcf at a strike
price of $3.47, $3.55, and $3.47 per Mcf, respectively. The Company
also purchased calendar year 2018, 2019 and 2020 calls for
approximately 26, 42, and 35 Bcf at strike prices of $3.34, $3.36,
and $3.36 per Mcf, respectively.
- The Company sold calendar 2018 and 2019
puts for approximately 3 Bcf at a strike price of $2.66 and $3.15
per Mcf, respectively.
- The average price is based on a
conversion rate of 1.05 MMBtu/Mcf.
Operating (Loss) Income
The Company reports operating (loss) income by segment in this
news release. Interest, income taxes, and unallocated expense are
controlled on a consolidated, corporate-wide basis and are not
allocated to the segments.
The following table reconciles operating (loss) income by
segment, as reported in this news release, to the consolidated
operating (loss) income reported in the Company’s financial
statements:
Three Months Ended March 31,
(thousands)
2018 2017 Operating (loss) income:
EQT Production $ (1,893,807 ) $ 257,549 EQM Gathering 98,891 73,704
EQM Transmission 79,451 71,604 RMP Gathering 44,095 − RMP Water
11,370 − Unallocated expense and intersegment eliminations
(63,516 ) (11,880 ) Operating (loss) income $ (1,723,516 ) $
390,977
Unallocated expenses consist primarily of compensation expense
and administrative costs, including transaction costs of $35.7
million. Intersegment eliminations include water services that are
provided to EQT Production and capitalized as part of development
costs.
NON-GAAP DISCLOSURES
Adjusted Net Income Attributable to EQT and Adjusted Earnings
per Diluted Share (Adjusted EPS)
Adjusted net income attributable to EQT and adjusted EPS are
non-GAAP supplemental financial measures that are presented because
they are important measures used by management to evaluate
period-to-period comparisons of earnings trends. Adjusted net
income attributable to EQT and adjusted EPS should not be
considered as alternatives to net (loss) income attributable to EQT
or earnings per diluted share (EPS) presented in accordance with
GAAP. Adjusted net income attributable to EQT as presented excludes
the revenue impact of changes in the fair value of derivative
instruments prior to settlement, asset and lease impairments,
transaction costs and certain other items that impact comparability
between periods. Management utilizes adjusted net income
attributable to EQT to evaluate earnings trends because the measure
reflects only the impact of settled derivative contracts; thus, the
income from natural gas sales is not impacted by the often-volatile
fluctuations in the fair value of derivatives prior to settlement.
The measure also excludes other items that affect the comparability
of results or that are not indicative of trends in the ongoing
business. Management believes that adjusted net income attributable
to EQT as presented provides useful information for investors for
evaluating period-over-period earnings.
The table below reconciles adjusted net income attributable to
EQT and adjusted EPS with net (loss) income attributable to EQT and
EPS as derived from the statements of consolidated operations.
Three Months Ended March 31, (thousands,
except per share information)
2018 2017 Net
(loss) income attributable to EQT, as reported $ (1,585,994 ) $
163,992 Add back / (deduct): Asset and lease impairments 2,332,924
1,837 Transaction costs 35,711 − Gain on derivatives not designated
as hedges (62,592 ) (140,742 ) Net cash settlements paid on
derivatives not designated as hedges (38,629 ) (8,967 ) Premiums
received for derivatives that settled during the period 234 526 Tax
impact of non-GAAP items* (413,306 ) 59,233
Adjusted net income attributable to EQT $ 268,348 $ 75,879
Diluted weighted average common shares outstanding 265,169
173,511 Diluted EPS, as adjusted $ 1.01 $ 0.44 *Blended tax
rates of 18.23% and 40.2% were applied to the items under the
caption “Add back (deduct)” for the three months ended March 31,
2018 and 2017, respectively. This represents the incremental tax
(expense) benefit that would have been incurred had these items
been excluded from net (loss) income attributable to EQT.
Operating Cash Flow, Adjusted Operating Cash Flow
Attributable to EQT and Adjusted Operating Cash Flow Attributable
to EQT Production
Operating cash flow, adjusted operating cash flow attributable
to EQT and adjusted operating cash flow attributable to EQT
Production are non-GAAP supplemental financial measures that are
presented as indicators of an oil and gas exploration and
production company’s ability to internally fund exploration and
development activities and to service or incur additional debt. EQT
includes this information because management believes that changes
in operating assets and liabilities relate to the timing of cash
receipts and disbursements and therefore may not relate to the
period in which the operating activities occurred. Adjusted
operating cash flow attributable to EQT is EQT’s net cash provided
by operating activities, less changes in other assets and
liabilities, adjusted to exclude EQM and RMP adjusted EBITDA, plus
EQM and RMP interest expense plus the EQGP and RMP cash
distributions payable to EQT. Prior to EQT’s 2018 operational
forecast announcement in December 2017, the Company’s calculation
of adjusted operating cash flow attributable to EQT did not include
the addition of EQM’s and RMP’s interest expense. The Company
believes it is preferable to present this non-GAAP supplemental
financial measure with this adjustment as it better reflects EQT’s
cash flows by excluding the cost of debt for EQM and RMP. EQT has
recast all periods presented to be consistent with this change in
the definition of adjusted operating cash flow attributable to EQT.
Management believes that removing the impact on operating cash
flows of the public unitholders of EQGP, EQM and RMP that is
otherwise required to be consolidated in EQT’s results provides
useful information to an EQT investor. As used in this news
release, adjusted operating cash flow attributable to EQT
Production means the EQT Production segment’s total operating
revenues less the EQT Production segment’s cash operating expense,
less gains (losses) on derivatives not designated as hedges, plus
net cash settlements received (paid) on derivatives not designated
as hedges, plus premiums received (paid) for derivatives that
settled during the period, plus EQT Production asset impairments
(if applicable). Operating cash flow, adjusted operating cash flow
attributable to EQT, and adjusted operating cash flow attributable
to EQT Production should not be considered as alternatives to net
cash provided by operating activities presented in accordance with
GAAP. The table below reconciles operating cash flow and adjusted
operating cash flow attributable to EQT with net cash provided by
operating activities, as derived from the statements of
consolidated cash flows to be included in EQT’s report on Form 10-Q
for the three months ended March 31, 2018.
Three Months Ended March 31, (thousands)
2018 2017 Net cash provided by operating
activities $ 904,412 $ 514,817 Add back / (deduct) Changes in other
assets and liabilities 240 (67,485 ) Operating
cash flow (a non-GAAP measure) 904,652 447,332 (Deduct) / add back:
EQM adjusted EBITDA(1) (204,431 ) (168,664 ) RMP adjusted EBITDA(1)
(69,534 ) – EQM net interest expense 10,833 7,926 RMP net interest
expense 1,954 – Cash distribution payable to EQT from EQGP(2)
61,846 45,786 Cash distribution payable to EQT from RMP(3)
13,121 – Adjusted operating cash flow
attributable to EQT $ 718,441 $ 332,380 (1)
EQM adjusted EBITDA and RMP adjusted EBITDA are non-GAAP
supplemental financial measures reconciled in this section. (2)
Cash distribution payable to EQT for the three months ended March
31, 2018 and 2017, represents the distribution payable from EQGP to
EQT related to the respective period. (3) Cash distribution payable
to EQT for the three months ended March 31, 2018 represents the
distribution payable from RMP to EQT related to the respective
period.
EQT has not provided projected net cash provided by operating
activities or reconciliations of projected adjusted operating cash
flow attributable to EQT or EQT Production to projected net cash
provided by operating activities, the most comparable financial
measure calculated in accordance with GAAP. EQT is unable to
project net cash provided by operating activities because this
metric includes the impact of changes in operating assets and
liabilities related to the timing of cash receipts and
disbursements that may not relate to the period in which the
operating activities occurred. EQT is unable to project these
timing differences with any reasonable degree of accuracy without
unreasonable efforts such as predicting the timing of its and
customers’ payments, with accuracy to a specific day, three or more
months in advance. Furthermore, EQT does not provide guidance with
respect to its average realized price, among other items, that
impact reconciling items between net cash provided by operating
activities and adjusted operating cash flow attributable to EQT and
EQT Production, as applicable. Natural gas prices are volatile and
out of EQT’s control, and the timing of transactions and the income
tax effects of future transactions and other items are difficult to
accurately predict. Therefore, EQT is unable to provide projected
net cash provided by operating activities, or the related
reconciliations of projected adjusted operating cash flow
attributable to EQT and EQT Production to projected net cash
provided by operating activities, without unreasonable effort.
EQT Production Adjusted Operating Revenue
The table below reconciles EQT Production adjusted operating
revenues, a non-GAAP supplemental financial measure, to EQT
Production total operating revenue, as reported in the EQT
Production Results of Operations, its most directly comparable
financial measure calculated in accordance with GAAP. Refer to the
Financial Information by Business Segment footnote to be included
in EQT’s report on Form 10-Q for the three months ended March 31,
2018, for a reconciliation of EQT Production total operating
revenue to EQT Corporation total operating revenue.
EQT Production adjusted operating revenue (also referred to as
total natural gas & liquids sales, including cash settled
derivatives) is presented because it is an important measure used
by the Company’s management to evaluate period-over-period
comparisons of earnings trends. EQT Production adjusted operating
revenue as presented excludes the revenue impact of changes in the
fair value of derivative instruments prior to settlement and the
revenue impact of certain pipeline and net marketing services.
Management utilizes EQT Production adjusted operating revenue to
evaluate earnings trends because the measure reflects only the
impact of settled derivative contracts and thus does not impact the
revenue from natural gas sales with the often volatile fluctuations
in the fair value of derivatives prior to settlement. EQT
Production adjusted operating revenue also excludes "Pipeline and
net marketing services" because management considers this revenue
to be unrelated to the revenue for its natural gas and liquids
production. EQT Production "Pipeline and net marketing services"
includes revenue for gathering services provided to third-parties,
as well as both the cost of and recoveries on third-party pipeline
capacity not used for EQT Production sales volume. Management
further believes that EQT Production adjusted operating revenue, as
presented, provides useful information to investors for evaluating
period-over-period earnings trends.
Calculation of EQT Production Adjusted Operating
Revenue
Three Months EndedMarch
31,
$ in thousands (unless noted)
2018 2017 EQT
Production total operating revenue, as reported on segment page $
1,348,602 $ 828,662 (Deduct) / add back: Gain on derivatives not
designated as hedges (62,592 ) (140,742 ) Net cash settlements paid
on derivatives not designated as hedges (38,629 ) (8,967 ) Premiums
received for derivatives that settled during the period 234 526
Pipeline and net marketing services (59,636 ) (14,455
) EQT Production adjusted operating revenue, a non-GAAP measure $
1,187,979 $ 665,024 Total sales volumes (MMcfe) 357,005 189,934
Average realized price ($/Mcfe) 3.33 3.50
EQT Production Adjusted Operating Income (Loss)
The table below reconciles EQT Production adjusted operating
income (loss), a non-GAAP supplemental financial measure, to EQT
Production operating income (loss), as reported in the EQT
Production Results of Operations. Refer to the Operating Income
(Loss) section in this news release for a reconciliation of EQT
Production total operating income (loss) to EQT Corporation total
operating income (loss), as reported.
EQT Production adjusted operating income is presented because it
is an important measure used by EQT’s management to evaluate
period-over-period comparisons of earnings trends. EQT Production
adjusted operating income should not be considered as an
alternative to EQT Corporation operating (loss) income presented in
accordance with GAAP. EQT Production adjusted operating income
excludes the revenue impact of changes in the fair value of
derivative instruments prior to settlement and asset and lease
impairments. Management utilizes EQT Production adjusted operating
income to evaluate earnings trends because the measure reflects
only the impact of settled derivative contracts and thus the income
from natural gas sales is not impacted by the often volatile
fluctuations in the fair value of derivatives prior to settlement.
The measure also excludes certain other items that affect the
comparability of results and are not indicative of trends in the
ongoing business. Management believes that EQT Production adjusted
operating income as presented provides useful information for
investors for evaluating period-over-period earnings.
Three Months Ended March 31, (thousands)
2018 2017 EQT Production operating (loss)
income, as reported on segment page $ (1,893,807 ) $ 257,549
(Deduct) / add back: Gain on derivatives not designated as hedges
(62,592 ) (140,742 ) Net cash settlements received (paid) on
derivatives not designated as hedges (38,629 ) (8,967 ) Premiums
received for derivatives that settled during the period 234 526
Asset and lease impairments 2,332,924 1,837
EQT Production adjusted operating income $ 338,130 $
110,203
EQM Adjusted EBITDA
As used in this news release, EQM adjusted EBITDA means EQM’s
net income plus EQM’s net interest expense, depreciation and
amortization expense, preferred interest payments and non-cash
long-term compensation expense less EQM’s equity income and
AFUDC-equity. EQM adjusted EBITDA is a non-GAAP supplemental
financial measure that management and external users of EQT’s
consolidated financial statements, such as industry analysts,
investors, lenders and rating agencies, use to assess the effects
of the noncontrolling interests in relation to:
- EQT's operating performance as compared
to other companies in its industry;
- the ability of EQT's assets to generate
sufficient cash flow to make distributions to its investors;
- EQT's ability to incur and service debt
and fund capital expenditures; and
- the viability of acquisitions and other
capital expenditure projects and the returns on investment of
various investment opportunities.
EQT believes that EQM EBITDA provides useful information to
investors in assessing the impact of the noncontrolling interest in
EQM on EQT's financial condition and results of operations. EQM
adjusted EBITDA should not be considered as an alternative to EQM’s
net income, operating income, or any other measure of financial
performance or liquidity presented in accordance with GAAP. EQM
adjusted EBITDA has important limitations as an analytical tool
because it excludes some, but not all, items that affect EQM's net
income. Additionally, because adjusted EBITDA may be defined
differently by other companies in EQT's or EQM's industries, the
definition of EQM adjusted EBITDA may not be comparable to
similarly titled measures of other companies, thereby diminishing
the utility of the measure. The table below reconciles EQM adjusted
EBITDA with EQM’s net income, as derived from the statements of
consolidated operations to be included in EQM’s report on Form 10-Q
for the three months ended March 31, 2018.
Three Months Ended March 31, (thousands)
2018 2017 Net income $ 177,218 $ 143,196 Add
back: Net interest expense 10,833 7,926 Depreciation and
amortization expense 23,179 20,547 Preferred interest payments
2,746 2,746 Non-cash long-term compensation expense 331 225 Less:
Equity income (8,811 ) (4,277 ) AFUDC – equity (1,065 )
(1,699 ) EQM Adjusted EBITDA $ 204,431 $ 168,664
RMP Adjusted EBITDA
RMP adjusted EBITDA means RMP’s net income plus RMP’s net
interest expense, depreciation expense, and non-cash compensation
expense. RMP adjusted EBITDA is a non-GAAP supplemental financial
measure that management and external users of EQT’s consolidated
financial statements, such as industry analysts, investors, lenders
and rating agencies, use to assess the effects of the
noncontrolling interests in relation to:
- EQT's operating performance as compared
to other companies in its industry;
- the ability of EQT's assets to generate
sufficient cash flow to make distributions to its investors;
- EQT's ability to incur and service debt
and fund capital expenditures; and
- the viability of acquisitions and other
capital expenditure projects and the returns on investment of
various investment opportunities.
EQT believes that RMP adjusted EBITDA provides useful
information to investors in assessing the impact of the
noncontrolling interest in RMP on EQT's financial condition and
results of operations. RMP adjusted EBITDA should not be considered
as an alternative to RMP’s net income, operating income, or any
other measure of financial performance or liquidity presented in
accordance with GAAP. RMP adjusted EBITDA has important limitations
as an analytical tool because it excludes some, but not all, items
that affect RMP's net income. Additionally, because adjusted EBITDA
may be defined differently by other companies in EQT's or RMP's
industries, the definition of RMP adjusted EBITDA may not be
comparable to similarly titled measures of other companies, thereby
diminishing the utility of the measure. The table below reconciles
RMP adjusted EBITDA with RMP’s net income, as derived from the
statements of consolidated operations to be included in RMP’s
report on Form 10-Q for the three months ended March 31, 2018.
Three Months Ended March 31, (thousands)
2018 2017 Net income $ 53,517 $ – Add back:
Net interest expense 1,954 – Depreciation expense 13,895 – Non-cash
compensation expense 168 – RMP Adjusted EBITDA
$ 69,534 $ –
First Quarter 2018 Webcast
Information
The Company's conference call with securities analysts begins at
10:30 a.m. ET today and will be broadcast live via the Company's
web site at www.eqt.com, and on the investor information page of
the Company’s web site at ir.eqt.com, with a replay available for
seven days following the call.
EQT Midstream Partners, LP and EQT GP Holdings, LP, for which
EQT Corporation is the parent company, will also host a joint
conference call with security analysts today, beginning at 11:30
a.m. ET. The call will be broadcast live via
www.eqtmidstreampartners.com, with a replay available for seven
days following the call.
About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on
Appalachian area natural gas production, gathering, and
transmission. With nearly 130 years of experience and a
long-standing history of good corporate citizenship, EQT is the
largest producer of natural gas in the United States. As a leader
in the use of advanced horizontal drilling technology, EQT is
committed to minimizing the impact of drilling-related activities
and reducing its overall environmental footprint. Through safe and
responsible operations, EQT is helping to meet our nation’s growing
demand for clean-burning energy, while continuing to provide a
rewarding workplace and enrich the communities where its employees
live and work. EQT owns the general partner interest and a 90%
limited partner interest in EQT GP Holdings, LP, which owns the
general partner interest, all of the incentive distribution rights,
and a portion of the limited partner interest in EQT Midstream
Partners, LP. EQT also owns the general partner interest, all of
the incentive distribution rights, and a 28% limited partner
interest in Rice Midstream Partners LP.
Visit EQT Corporation at www.EQT.com; and to learn more about
EQT’s sustainability efforts, please visit https://csr.eqt.com.
About EQT Midstream
Partners:
EQT Midstream Partners, LP is a growth-oriented limited
partnership formed by EQT Corporation to own, operate, acquire, and
develop midstream assets in the Appalachian Basin. The Partnership
provides midstream services to EQT Corporation and third-party
companies through its strategically located transmission, storage,
and gathering systems that service the Marcellus and Utica regions.
The Partnership owns approximately 950 miles of FERC-regulated
interstate pipelines; and also owns approximately 1,800 miles of
high- and low-pressure gathering lines.
Visit EQT Midstream Partners, LP at
www.eqtmidstreampartners.com.
About EQT GP Holdings:
EQT GP Holdings, LP is a limited partnership that owns the
general partner interest, all of the incentive distribution rights,
and a portion of the limited partner interests in EQT Midstream
Partners, LP. EQT Corporation owns the general partner interest and
a 90% limited partner interest in EQT GP Holdings, LP.
Visit EQT GP Holdings, LP at www.eqtmidstreampartners.com.
About Rice Midstream
Partners:
Rice Midstream Partners LP is a fee-based, growth-oriented
limited partnership formed to own, operate, develop and acquire
midstream assets in the Appalachian basin. RMP provides midstream
services to EQT Corporation and third-party companies through its
natural gas gathering, compression and water assets in the rapidly
developing dry gas cores of the Marcellus and Utica Shales.
Visit Rice Midstream Partners LP at www.ricemidstream.com.
EQT Management speaks to investors from time to time and the
analyst presentation for these discussions, which is updated
periodically, is available via the Company’s investor relationship
website at http://ir.eqt.com.
Cautionary Statements
The United States Securities and Exchange Commission (SEC)
permits oil and gas companies, in their filings with the SEC, to
disclose only proved, probable and possible reserves that a company
anticipates as of a given date to be economically and legally
producible and deliverable by application of development projects
to known accumulations. We use certain terms, such as “EUR”
(estimated ultimate recovery) and “3P” (proved, probable and
possible), that the SEC’s guidelines prohibit us from including in
filings with the SEC. These measures are by their nature more
speculative than estimates of reserves prepared in accordance with
SEC definitions and guidelines and accordingly are less
certain.
Total sales volume per day (or daily production) is an
operational estimate of the daily production or sales volume on a
typical day (excluding curtailments).
Disclosures in this news release contain certain forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended. Statements that do not relate strictly to
historical or current facts are forward-looking. Without limiting
the generality of the foregoing, forward-looking statements
contained in this news release specifically include the
expectations of plans, strategies, objectives and growth and
anticipated financial and operational performance of the Company
and its subsidiaries, including guidance regarding the Company’s
strategy to develop its reserves; drilling plans and programs
(including the number, type, average length-of-pay or lateral
length and location of wells to be drilled and number and type of
drilling rigs); projected natural gas prices, basis and average
differential; total resource potential, reserves and EUR; projected
Company and third party production sales volume and growth rates
(including liquids sales volume and growth rates); projected unit
costs and well costs; projected pipeline and net marketing services
revenues; projected gathering and transmission volume and growth
rates; infrastructure programs (including the timing, cost and
capacity of the transmission and gathering expansion projects); the
cost, capacity, timing of regulatory approvals and anticipated
in-service date of the Mountain Valley Pipeline (MVP) project; the
ultimate terms, partners and structure of the MVP joint venture;
technology (including drilling and completion techniques);
acquisition transactions; the projected general and administrative
savings, capital efficiency savings and other operating
efficiencies and synergies resulting from the Rice Merger, and the
Company’s ability to achieve the anticipated synergies and
efficiencies; monetization transactions, including asset sales,
joint ventures or other transactions involving the Company’s
assets; whether the Company will sell its Ohio midstream assets to
EQM and the timing of such transaction or transactions; the timing
of the Company’s announcement of a decision for addressing its
sum-of-the-parts discount, and the impact of the results of such
review; the projected cash flows resulting from the Company’s
partnership interests in EQGP and RMP; internal rate of return
(IRR) and returns per well; projected capital contributions and
expenditures; potential future impairments of the Company’s assets;
liquidity and financing requirements, including funding sources and
availability; changes in the Company’s or EQM’s credit ratings;
projected net income attributable to noncontrolling interests,
adjusted operating cash flow attributable to EQT, adjusted
operating cash flow attributable to EQT Production, EBITDA,
revenues and cash-on-hand; hedging strategy; the effects of
government regulation and litigation; projected dividend and
distribution amounts and rates; and tax position, projected
effective tax rate and the impact of changes in tax laws. These
forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from projected
results. Accordingly, investors should not place undue reliance on
forward-looking statements as a prediction of actual results. The
Company has based these forward-looking statements on current
expectations and assumptions about future events. While the Company
considers these expectations and assumptions to be reasonable, they
are inherently subject to significant business, economic,
competitive, regulatory and other risks and uncertainties, many of
which are difficult to predict and beyond the Company’s control.
The risks and uncertainties that may affect the operations,
performance and results of the Company’s business and
forward-looking statements include, but are not limited to, those
set forth under Item 1A, “Risk Factors,” of the Company’s Form 10-K
for the year ended December 31, 2017 as filed with the SEC, as
updated by any subsequent Form 10-Qs
Any forward-looking statement speaks only as of the date on
which such statement is made and the Company does not intend to
correct or update any forward-looking statement, whether as a
result of new information, future events or otherwise.
Information in this news release regarding EQGP and its
subsidiaries, including EQM, and RMP is derived from publicly
available information published or to be published by the
partnerships.
Additional Information and Where to Find It
In connection with their proposed business combination
transaction, EQM and RMP intend to file a registration statement on
Form S-4, containing a proxy statement/prospectus (the S-4) with
the SEC. This communication is not a substitute for the
registration statement, definitive proxy statement/prospectus or
any other documents that EQM or RMP may file with the SEC or send
to RMP unitholders in connection with the proposed transaction.
UNITHOLDERS OF RMP ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED
WITH THE SEC, INCLUDING THE FORM S-4 AND THE DEFINITIVE PROXY
STATEMENT/PROSPECTUS INCLUDED THEREIN IF AND WHEN FILED, AND ANY
OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. When
available, investors and security holders will be able to obtain
copies of these documents, including the proxy statement/prospectus
and the registration statement, and any other documents that may be
filed with the SEC with respect to the proposed transaction free of
charge at the SEC’s website, http://www.sec.gov or as described in
the following paragraph.
The documents filed with the SEC by EQT and its publicly traded
subsidiaries (including EQM, RMP and EQGP) may be obtained free of
charge at the applicable website (www.eqt.com for EQT,
www.eqtmidstreampartners.com for EQGP and EQM, and
www.ricemidstream.com for RMP) or by requesting them by mail at EQT
Corporation, 625 Liberty Avenue, Suite 1700, Pittsburgh, PA 15222,
Attention: Investor Relations, or by telephone at (412)
553-5700.
Participants in the Solicitation
EQT, EQM, RMP and EQGP (EQM, RMP and EQGP collectively, the
Partnerships) and certain of their respective directors and
executive officers may be deemed to be participants in the
solicitation of proxies from the unitholders of RMP in connection
with the proposed transaction. Information about the directors and
executive officers of the general partners of EQM, RMP and EQGP is
set forth, respectively, in the Annual Report on Form 10-K for the
year ended December 31, 2017 filed by such Partnership with the SEC
on February 15, 2018 and certain of the Partnerships’ respective
Current Reports on Form 8-K. Information regarding EQT’s executive
officers is available in its Annual Report on Form 10-K for the
year ended December 31, 2017 filed by EQT with the SEC on February
15, 2018, EQT’s definitive proxy statement for its 2017 annual
meeting of shareholders filed with the SEC on February 17, 2017 and
certain of EQT’s Current Reports on Form 8-K. These documents can
be obtained free of charge from the sources indicated above. Other
information regarding the participants in the proxy solicitation
and a description of their direct and indirect interests, by
security holdings or otherwise, will be contained in the proxy
statement/prospectus and other relevant materials to be filed with
the SEC when they become available.
2018 GUIDANCE
See the Non-GAAP Disclosures section for important information
regarding the non-GAAP financial measures included in this news
release, including reasons why EQT is unable to provide projections
of its 2018 net cash provided by operating activities, the most
comparable financial measure to adjusted operating cash flow
attributable to EQT and EQT Production, calculated in accordance
with GAAP.
PRODUCTION Q2 2018 2018 Total
production sales volume (Bcfe) 360 – 370 1,520 – 1,550 Liquids
sales volume, excluding ethane (Mbbls) 3,275 – 3,295 12,300 –
12,600 Ethane sales volume (Mbbls) 1,200 – 1,300 4,900 – 5,200
Total liquids sales volume (Mbbls) 4,475 – 4,595 17,200 – 17,800
Marcellus / Utica Rigs 8 – 10 Top-hole rigs 4 – 5 Frac Crews
9 – 11 Unit Costs ($ / Mcfe) Gathering to EQM and RMP $ 0.48
– 0.50 Transmission to EQM $ 0.11 – 0.13 Third-party gathering and
transmission $ 0.39 – 0.41 Processing $ 0.10 – 0.12 LOE, excluding
production taxes $ 0.07 – 0.09 Production taxes $ 0.06 – 0.08
SG&A $ 0.10 – 0.12 DD&A $ 1.10 – 1.12 Development costs ($
/ Mcfe) $ 0.41 – 0.43 Average differential ($ / Mcf) $ (0.40) –
(0.30) $ (0.40) – (0.30) Pipeline and net marketing services ($MM)
$ 15 – 20 $ 70 – 80
FINANCIAL ($MM) Net income
attributable to noncontrolling interest ($MM) $ 120 – 130 $ 530 –
540
ADJUSTED OPERATING CASH FLOW ($MM) Adjusted
operating cash flow attributable to EQT Production $ 2,400 – 2,500
Distributions to EQT from EQM, EQGP and RMP $ 350 – 400 Interest,
taxes, and other items $ (25) – 25 Adjusted operating cash flow
attributable to EQT $ 2,750 – 2,850
Based on current NYMEX natural gas prices
of $2.88.
Adjusted operating cash flow does not include the proceeds, costs
or tax impacts of the separation.
EQT CORPORATION
AND SUBSIDIARIES Statements of Consolidated Operation
Three Months Ended March 31, 2018
2017 Revenues: (Thousands except per share amount)
Sales of natural gas, oil and NGLs $ 1,226,374 $ 673,465 Pipeline,
water and net marketing services 144,617 79,962 Gain on derivatives
not designated as hedges 62,592 140,742 Total
operating revenues 1,433,583 894,169 Operating expenses:
Transportation and processing 190,140 133,706 Operation and
maintenance 25,740 16,817 Production 60,123 45,672 Exploration
5,104 3,122 Selling, general and administrative 52,615 71,957
Depreciation, depletion and amortization 437,893 231,918 Impairment
of long-lived assets 2,329,045 – Transaction costs 35,711 –
Amortization of intangible assets 20,728 –
Total operating expenses 3,157,099 503,192
Operating (loss) income (1,723,516 ) 390,977 Other
income 9,585 3,048 Interest expense 70,013
42,655 (Loss) income before income taxes (1,783,944 )
351,370 Income tax (benefit) expense (338,965 )
100,665 Net (loss) income (1,444,979 ) 250,705 Less: Net income
attributable to noncontrolling interests 141,015
86,713 Net (loss) income attributable to EQT Corporation $
(1,585,994 ) $ 163,992 Earnings per share of common stock
attributable to EQT Corporation: Basic: Weighted average common
stock outstanding 264,877 173,213 Net (loss)
income $ (5.99 ) $ 0.95 Diluted: Weighted average common
stock outstanding 264,877 173,511 Net (loss)
income $ (5.99 ) $ 0.95 Dividends declared per common share $ 0.03
$ 0.03
EQT CORPORATION AND SUBSIDIARIES
PRICE RECONCILIATION Three Months
Ended March 31, in thousands (unless noted)
2018 (e)
2017 NATURAL GAS Sales volume (MMcf) 329,404
164,464 NYMEX price ($/MMBtu) (a) $ 2.98 $ 3.31 Btu uplift
0.20 0.28 Natural gas price ($/Mcf) $ 3.18 $
3.59 Basis ($/Mcf) (b) 0.13 (0.16 ) Cash settled basis swaps
(not designated as hedges) ($/Mcf) (0.15 ) 0.03
Average differential, including cash settled basis swaps
($/Mcf) $ (0.02 ) $ (0.13 ) Average adjusted price ($/Mcf) $
3.16 $ 3.46 Cash settled derivatives (cash flow hedges) ($/Mcf) –
0.01 Cash settled derivatives (not designated as hedges) ($/Mcf)
0.04 (0.07 ) Average natural gas price,
including cash settled derivatives ($/Mcf) $ 3.20 $ 3.40
Natural gas sales, including cash settled derivatives
$ 1,055,065 $ 559,199
LIQUIDS NGLs (excluding
ethane): Sales volume (MMcfe) (c) 18,391 17,140 Sales volume
(Mbbls) 3,065 2,857 Price ($/Bbl) $ 37.50 31.41 Cash settled
derivatives (not designated as hedges) ($/Bbl) (1.21 ) $
(0.54 ) Average NGL price, including cash settled derivatives
($/Bbl) $ 36.29 $ 30.87 NGL sales $ 111,236 $ 88,197
Ethane: Sales volume (MMcfe) (c) 7,997 6,973 Sales volume
(Mbbls) 1,333 1,162 Price ($/Bbl) $ 7.90 $ 6.65
Ethane sales 10,532 7,732
Oil: Sales volume (MMcfe) (c)
1,213 1,357 Sales volume (Mbbls) 202 226 Price ($/Bbl) $ 55.15
$ 43.75 Oil sales 11,146 9,896 Total liquids
sales volume (MMcfe) (c ) 27,601 25,470 Total liquids sales volume
(Mbbls) 4,600 4,245 Liquids sales $ 132,914 $ 105,825
TOTAL PRODUCTION Total natural gas & liquids sales,
including cash settled derivatives (d) $ 1,187,979 $ 665,024 Total
sales volume (MMcfe) 357,005 189,934 Average realized price
($/Mcfe) $ 3.33 $ 3.50 (a) The Company’s volume
weighted NYMEX natural gas price (actual average NYMEX natural gas
price ($/MMBtu) was $3.00 and $3.32 for the three months ended
March 31, 2018 and 2017, respectively). (b) Basis represents the
difference between the ultimate sales price for natural gas and the
NYMEX natural gas price. (c) NGLs, ethane and crude oil were
converted to Mcfe at the rate of six Mcfe per barrel for all
periods. (d) Also referred to in this report as EQT Production
adjusted operating revenues, a non-GAAP supplemental financial
measure. (e) EQT Production includes the results of production
operations acquired in the Rice Merger, which occurred on November
13, 2017.
EQT PRODUCTION RESULTS OF
OPERATIONS Three Months Ended March 31,
2018(a) 2017 OPERATIONAL DATA Sales volume
detail (MMcfe): Marcellus (b) 288,773 166,369 Ohio Utica 47,510 130
Other 20,722 23,435 Total production sales
volumes (c) 357,005 189,934 Average daily sales volumes (MMcfe/d)
3,967 2,110 Average realized price ($/Mcfe) $ 3.33 $ 3.50
Gathering to EQM and RMP ($/Mcfe) $ 0.46 $ 0.48 Transmission to EQM
($/Mcfe) $ 0.13 $ 0.23 Third party gathering and transmission
($/Mcfe) $ 0.41 $ 0.48 Processing ($/Mcfe) $ 0.13 $ 0.23 Lease
operating expenses (LOE), excluding production taxes ($/Mcfe) $
0.10 $ 0.13 Production taxes ($/Mcfe) $ 0.07 $ 0.11 Production
depletion ($/Mcfe) $ 1.07 $ 1.04 Depreciation, depletion and
amortization (DD&A) (thousands): Production depletion $ 380,464
$ 197,462 Other DD&A 19,594 13,635 Total
DD&A $ 400,058 $ 211,097 Capital expenditures
(thousands) (d) $ 675,028 $ 945,458
FINANCIAL DATA
(thousands) Revenues: Sales of natural gas, oil and NGLs $
1,226,374 $ 673,465 Pipeline and net marketing services 59,636
14,455 Gain on derivatives not designated as hedges 62,592
140,742 Total operating revenues 1,348,602 828,662
Operating expenses: Gathering 176,465 106,915 Transmission
178,016 118,596 Processing 45,023 42,760 LOE, excluding production
taxes 35,415 25,194 Production taxes 24,520 20,478 Exploration
5,104 3,122 Selling, general and administrative (SG&A) 38,376
42,951 DD&A 400,058 211,097 Amortization of intangible assets
10,387 – Impairment of long-lived assets 2,329,045
– Total operating expenses 3,242,409
571,113 Operating (loss) income $ (1,893,807 ) $ 257,549 (a)
Operational Data for EQT Production includes results of
operations for production operations and retained midstream
operations acquired in the Rice Merger, which occurred on November
13, 2017. (b) Includes Upper Devonian wells. (c) NGLs, ethane and
crude oil were converted to Mcfe at the rate of six Mcfe per barrel
for all periods. (d) Expenditures for segment assets in the EQT
Production segment included $36.8 million and $42.7 million for
fill-ins and bolt-ons associated with legacy EQT acreage for the
three months ended March 31, 2018 and 2017, respectively.
Expenditures included $44.3 million associated with retained
midstream assets during the three months ended March 31, 2018. The
three months ended March 31, 2017 included $669.5 million of cash
and $15.4 million of non-cash capital expenditures for
acquisitions.
EQM GATHERING RESULTS OF
OPERATIONS Three Months Ended March 31,
2018 2017 FINANCIAL DATA (Thousands,
except per day amounts) Firm reservation fee revenues $
109,933 $ 94,271 Volumetric based fee revenues: Usage fees under
firm contracts (a) 12,108 4,821 Usage fees under interruptible
contracts 3,867 3,237 Total volumetric based fee
revenues 15,975 8,058 Total operating revenues
125,908 102,329 Operating expenses: Operating and maintenance
10,625 10,340 SG&A 5,654 9,425 Depreciation and amortization
10,738 8,860 Total operating expenses 27,017
28,625 Operating income $ 98,891 $ 73,704
OPERATIONAL DATA Gathered volumes (BBtu per day) Firm
capacity reservation 1,964 1,728 Volumetric based services (b)
600 224 Total gathered volumes 2,564 1,952 Capital
expenditures $ 68,933 $ 48,838 (a) Includes fees on
volumes gathered in excess of firm contracted capacity. (b)
Includes volumes gathered under interruptible contracts and volumes
gathered in excess of firm contracted capacity.
EQM TRANSMISSION RESULTS OF OPERATIONS
Three Months Ended March 31, 2018 2017
FINANCIAL DATA (Thousands, except per day amounts)
Firm reservation fee revenues $ 97,775 $ 92,274 Volumetric based
fee revenues: Usage fees under firm contracts (a) 3,822 2,857 Usage
fees under interruptible contracts 5,337 2,612 Total
volumetric based fee revenues 9,159 5,469 Total
operating revenues 106,934 97,743 Operating expenses: Operating and
maintenance 7,551 6,477 SG&A 7,491 7,975 Depreciation and
amortization 12,441 11,687 Total operating expenses
27,483 26,139 Operating income $ 79,451 $
71,604
OPERATIONAL DATA Transmission pipeline
throughput (BBtu per day) Firm capacity reservation 2,815 2,119
Volumetric based services (b) 42 31 Total
transmission pipeline throughput 2,857 2,150 Average
contracted firm transmission reservation commitments (BBtu per day)
4,140 3,743 Capital expenditures $ 18,929 $ 21,389
(a) Includes fees on volumes transported in excess of
firm contracted capacity as well as commodity charges and fees on
all volumes transported under firm contracts. (b) Includes volumes
transported under interruptible contracts and volumes transported
in excess of firm contracted capacity.
RMP
GATHERING RESULTS OF OPERATIONS Three Months
Ended March 31, 2018 2017 (a)
FINANCIAL DATA (Thousands, except per day amounts)
Operating revenues Gathering revenues $ 52,730 $ – Compression
revenues 8,771 – Total operating revenues
61,501 – Operating expenses: Operation and maintenance
expense 3,189 – General and administrative expense 6,093 –
Depreciation expense 8,124 – Total operating
expenses 17,406 – Operating income $
44,095 $ –
OPERATIONAL DATA Gathered volumes
(BBtu/d) 1,697 – Compression volumes (BBtu/d) 1,248 – Capital
expenditures $ 20,940 $ – (a) This table sets forth
selected financial and operational data for RMP Gathering. The
Company acquired RMP Gathering on November 13, 2017 as part of the
Rice Merger.
RMP WATER RESULTS OF
OPERATIONS Three Months Ended March 31,
2018 2017 (a) FINANCIAL DATA
(Thousands, other than per day amounts) Water services
revenues 22,963 – Operating expenses: Operation and
maintenance expense 4,711 – General and administrative expense
1,111 – Depreciation expense 5,771 – Total
operating expenses 11,593 – Operating
income $ 11,370 $ –
OPERATIONAL DATA Water services
volumes (MMgal) 434 – Capital expenditures $ 2,375 $ – (a)
This table sets forth selected financial and operational
data for RMP Water. The Company acquired RMP Water on November 13,
2017 as part of the Rice Merger.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180426005446/en/
EQT analyst inquiries:Patrick Kane, 412-553-7833Chief
Investor Relations Officerpkane@eqt.comorEQT Midstream Partners
/ EQT GP Holdings / Rice Midstream Partners analyst
inquiries:Nate Tetlow, 412-553-5834Investor Relations
Directorntetlow@eqt.comorMedia inquiries:Natalie Cox,
412-395-3941Corporate Director, Communicationsncox@eqt.com
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