This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

EQT Reports Second Quarter 2012 Earnings

Pilot Program to Convert Marcellus Drilling Rigs to Liquefied Natural Gas

On July 5, 2012, EQT announced the conversion of a drilling rig to liquefied natural gas (LNG), displacing the diesel used to power equipment at the well site. EQT is the first operator in the Marcellus Shale to convert a diesel rig to LNG, which will provide a cleaner burning alternative fuel for the region’s drilling operations. The rig is now operating in northern West Virginia and pending evaluation of the pilot program, the Company anticipates converting additional rigs in West Virginia and Pennsylvania. The LNG being used for EQT’s pilot program is produced locally from Marcellus natural gas reserves and is about 40% less expensive than diesel. Compared to diesel, natural gas emits between 20% and 30% less carbon dioxide and has a fraction of the emissions of nitrogen oxides, sulfur oxides, and particulates.

Operating Income

The Company reports operating income by segment in this press release. Interest, income taxes and unallocated income/(expense) are controlled on a consolidated, corporate-wide basis and are not allocated to the segments. The Company’s management reviews and reports segment results for operating revenues and purchased gas costs, net of third-party transportation costs.

The following table reconciles operating income by segment, as reported in this press release, to the consolidated operating income reported in the Company’s financial statements:
  Three Months Ended

June 30,
  Six Months Ended

June 30,
2012   2011 2012   2011
Operating income (thousands):
EQT Production $ 17,704 $ 99,759 $ 77,852 $ 182,088
EQT Midstream 59,750 52,243 115,886 141,661
Distribution 6,376 8,928 43,146 62,295
Unallocated expenses   (2,426 )   (7,760 )   (2,184 )   (12,462 )
Operating income $ 81,404   $ 153,170   $ 234,700   $ 373,582  

Unallocated expense is primarily due to certain incentive compensation and administrative costs that differ from budget and are not allocated to the operating segments.

5 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.06 -0.60%
FB $118.07 0.01%
GOOG $698.16 0.35%
TSLA $214.66 -3.50%
YHOO $37.00 2.80%


Chart of I:DJI
DOW 17,724.54 +73.28 0.42%
S&P 500 2,058.78 +7.66 0.37%
NASDAQ 4,738.4560 +12.8170 0.27%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs