10-KPeriod: FY2014

EQT Corp Annual Report, Year Ended Dec 31, 2014

Filed February 12, 2015For Securities:EQT

Summary

EQT Corporation's 2014 10-K report highlights significant growth in both its Production and Midstream segments. The company achieved record production sales volumes, a 26% increase year-over-year, driven by a 38% surge in Marcellus production. The Midstream segment also saw robust growth, with gathered volumes up 27% and net income increasing substantially, largely due to EQT Production's development activities. Key strategic moves in 2014 included a major gathering system contribution to EQT Midstream Partners, LP (EQM) for $1.18 billion, a public offering by EQM raising over $900 million, an asset exchange with Range Resources in the Permian Basin, and the announcement of two significant pipeline projects: the Ohio Valley Connector (OVC) and the Mountain Valley Pipeline (MVP). These developments underscore EQT's strategy to leverage its Appalachian Basin position and expand its midstream infrastructure to support production growth and serve growing market demand.

Financial Highlights

48 data points
Beta

Net Income

$386.96M

EPS (Diluted)

$2.54

Total Assets

$12.04B

Cash & Equivalents

$1.08B

Free Cash Flow

-$862.56M

Financial Statements
Beta
SG&A Expenses$238.13M
Operating Expenses$1.65B
Operating Income$853.39M
Interest Expense$136.54M
Net Income$386.96M
EPS (Basic)$2.55
EPS (Diluted)$2.54
Shares Outstanding (Basic)151.55M
Shares Outstanding (Diluted)152.51M

Key Highlights

  • 1Record annual production sales volumes, up 26% to 476.3 Bcfe, with Marcellus volumes increasing by 38%.
  • 2EQT Midstream Partners, LP (EQM) reported record gathered volumes (up 27%) and a significant increase in net income.
  • 3Completed the Jupiter Transaction, contributing a high-pressure gathering system to EQM for $1.18 billion.
  • 4EQM completed a public offering, raising approximately $902.5 million in net proceeds.
  • 5Initiated the construction and ownership of the Ohio Valley Connector (OVC) pipeline, with an estimated cost of $300 million.
  • 6Announced the formation of the Mountain Valley Pipeline (MVP) joint venture, with an estimated total cost of $2.5 billion to $3.5 billion.
  • 7Increased total proved reserves by 29% to 10.7 Tcfe, with the majority in the Marcellus shale play.

Frequently Asked Questions

EQT's revenue growth in 2014 was primarily driven by a significant increase in production sales volumes, up 26% year-over-year, largely from its Marcellus shale acreage. The midstream segment also contributed positively through increased gathered and transmission volumes.

In 2014, EQT Midstream made significant progress on infrastructure, including announcing plans for the Ohio Valley Connector (OVC) pipeline and the Mountain Valley Pipeline (MVP). These projects are crucial for expanding the company's capacity to transport natural gas from the Appalachian Basin to higher-demand markets.

EQT focused on profitable development of its reserves, particularly in the Marcellus play, utilizing technology for extended lateral horizontal drilling. The company increased its proved reserves by 29% to 10.7 Tcfe in 2014, demonstrating a strong commitment to growing its production base while maintaining a focus on cost efficiency.

The public offering by EQM, which raised approximately $902.5 million, provided EQT with significant capital to fund its midstream development projects, such as the OVC and MVP pipelines. This capital raise, along with the Jupiter Transaction contribution, strengthens the midstream segment's ability to support the company's overall growth strategy.