OTHER BUSINESS

2012 Capital Expenditures

EQT invested $1,400 million in capital projects during 2012. This included $992 million for EQT Production, including $135 million for acreage acquisitions; $376 million for EQT Midstream; and $32 million for Distribution infrastructure projects and other corporate items.

Initial Public Offering - EQT Midstream Partners, LP

On July 2, 2012, EQT Midstream Partners, LP (NYSE: EQM) completed its initial public offering (IPO) of 14,375,000 common units at $21.00 per common unit. EQT received $231 million cash and retained a 57.4% limited partner interest and a 2% general partner interest. EQT Midstream Partners results are consolidated in the EQT Corporation financial results.

Utility Sale

On December 20, 2012, the Company announced that it has entered into a definitive agreement for the transfer of its natural gas distribution business, Equitable Gas Company, to Peoples Natural Gas, subject to receipt of regulatory approvals. As part of the transaction, EQT will receive cash proceeds of $720 million, subject to certain purchase price adjustments, and select midstream assets and commercial arrangements, which are expected to generate at least $40 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) per year. The Company realized a $4.5 million unallocated SG&A expense in the fourth quarter related to the transaction.

Dividend

Concurrent with the December 20, 2012 announcement referenced above, EQT reduced its dividend, effective January 2013. The new annual dividend rate of $0.12 per share reflects the blend of EQT’s two remaining core businesses – a dividend-supporting midstream business, and a capital-intensive, rapidly growing production business.

Interest Rate Hedge

During the third quarter 2011, the Company entered into an interest rate hedge in anticipation of refinancing $200 million of long-term debt scheduled to mature in November 2012. Given the strong liquidity position at year end, and visibility of future capital, the Company retired the debt using cash on hand and recognized a $23 million expense to close the interest rate hedge.

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