Businessweek

EQT Corporation operates as an integrated energy company in the United States. Segments The company operates through three segments: EQT Production, EQT Midstream, and Distribution. EQT Production The EQT Production segment operates as a natural gas producer in the Appalachian Basin with 6.0 trillion cubic feet (Tcfe) of proved natural gas and crude oil reserves across 3.5 million acres, including approximately 530,000 acres in the Marcellus play, as of December 31, 2012. EQT Production’s properties are located primarily in Pennsylvania, West Virginia, Kentucky, and Virginia. EQT Midstream The EQT Midstream segment provides gathering, transmission, and storage services for the company’s produced gas and to independent third parties in the Appalachian Basin. EQT Midstream owns or operates approximately 10,300 miles of gathering line and 244 compressor units with approximately 285,000 horsepower of installed capacity, as well as other general property and equipment. EQT Midstream also owns and operates a regulated transmission and storage system. These operations consist of an approximately 700 mile regulated interstate pipeline system that connects to 5 interstate pipelines and multiple distribution companies and is supported by 14 associated natural gas storage reservoirs with approximately 400 million cubic feet (MMcf) per day of peak delivery capability and 32 Bcf of working gas capacity. The transmission and storage system stretches throughout north central West Virginia and southwestern Pennsylvania. Distribution The Distribution segment, through its regulated natural gas distribution subsidiary, Equitable Gas Company, LLC (Equitable Gas), distributes and sells natural gas to residential, commercial and industrial customers in southwestern Pennsylvania, West Virginia and eastern Kentucky; operates a small gathering system in Pennsylvania; and provides off-system sales activities which include the purchase and delivery of gas to customers. This segment owns and operates natural gas distribution and gathering facilities, as well as other general property and equipment in western Pennsylvania, West Virginia, and Kentucky. The distribution operations consist of approximately 4,000 miles of pipe in Pennsylvania, West Virginia, and Kentucky. Seasonality: Equitable Gas’ revenues are seasonal, with approximately 67% of calendar year 2012 revenues occurring during the winter heating season (the months of January, February, March, November, and December). Strategy The company’s strategy is to maximize shareholder value by profitably developing its undeveloped Marcellus reserves, and utilizing its gathering and transmission assets that are positioned in the Marcellus Shale and in close proximity to the northeastern United States markets. Markets and Customers Natural Gas Sales: EQT’s produced natural gas is sold to marketers, utilities and industrial customers located mainly in the Appalachian area. Natural Gas Transmission, Storage, and Marketing: Services offered by the company include commodity procurement, sales, delivery, risk management, and other services. Customers of EQT Midstream’s gas transportation, storage, risk management and related services are affiliates and third parties in the northeastern United States, including Dominion Resources, Inc., Keyspan Corporation, NiSource, Inc., PECO Energy Company, and UGI Energy Services, Inc. EQT Energy’s commodity procurement, sales, delivery, risk management, and other services are offered to natural gas producers and energy consumers, including large industrial, utility, commercial, and institutional end-users. Natural Gas Distribution: The company’s Distribution segment provides natural gas distribution services to approximately 277,400 customers, consisting of 258,500 residential customers and 18,900 commercial and industrial customers in southwestern Pennsylvania, municipalities in northern West Virginia, and field line sales, also referred to as farm tap service, in eastern Kentucky and West Virginia. Regulation EQT Midstream has both non-regulated and regulated operations. The interstate natural gas transmission systems and storage operations are regulated by the Federal Energy Regulatory Commission (FERC), and certain gathering lines are also subject to rate regulation by the FERC. Equitable Gas’ distribution rates, terms of service and certain contracts with affiliates are subject to regulation by the Pennsylvania Public Utility Commission and the West Virginia Public Service Commission. History EQT Corporation was founded in 1925.