2017 Results Announced for EQT Midstream Partners and EQT GP Holdings

PITTSBURGH–(BUSINESS WIRE)–EQT Midstream Partners, LP (NYSE: EQM) today announced full-year and
fourth quarter 2017 results. For the year, EQM net income totaled $571.9
million, adjusted EBITDA was $689.5 million, net cash provided by
operating activities was $650.6 million, and distributable cash flow was
$614.8 million. EQM operating income in 2017 was $580.7 million. For the
fourth quarter, EQM net income totaled $146.6 million, adjusted EBITDA
was $185.1 million, net cash provided by operating activities was $170.3
million, and distributable cash flow was $159.2 million. EQM operating
income in the fourth quarter 2017 was $149.0 million. The Non-GAAP
Disclosures section of this news release provides reconciliations of
non-GAAP financial measures to their most comparable GAAP financial
measure.

EQT GP Holdings, LP (NYSE: EQGP) today announced net income attributable
to EQGP of $262.0 million for 2017 and $70.3 million for the fourth
quarter 2017.

EQM 2017 Highlights:

• Increased EQM per unit distribution by 20% year-over-year
• Maintained a 1.34x coverage ratio for the year
• Generated 91% of operating revenue from firm reservation fees
• Received FERC Certificate for Mountain Valley Pipeline in October
• Placed the final phase of the header pipeline for Range Resources
  in-service in May
• Added Hammerhead pipeline to organic project backlog

EQM fourth quarter 2017 operating income was 18% higher compared to
2016, after excluding a $10.5 million non-cash charge to depreciation
and amortization expense in the fourth quarter. The non-cash charge
related to a revaluation of differences between regulatory and tax bases
in property, plant, and equipment. Operating revenue increased $29.5
million, or 15%, compared to the same quarter last year. The increase
was primarily due to higher contracted firm transmission and gathering
capacity. In the fourth quarter, 88% of operating revenue was generated
by firm reservation fees. Operating expenses, excluding the non-cash
charge, were up $4.6 million versus the fourth quarter of 2016,
primarily from higher depreciation and amortization, and operating and
maintenance expenses as a result of the growing asset base.

QUARTERLY DISTRIBUTIONS

EQM

For the fourth quarter of 2017, EQM paid a quarterly cash distribution
of $1.025 per unit on February 14, 2018 to EQM unitholders of record at
the close of business on February 2, 2018. The quarterly cash
distribution was 5% higher than the third quarter of 2017 and was 21%
higher than the fourth quarter of 2016.

EQM is targeting annual per unit distribution growth of 15% – 20% for
several years.

EQGP

For the fourth quarter of 2017, EQGP will pay a quarterly cash
distribution of $0.244 per unit, which will be paid on February 23, 2018
to EQGP unitholders of record at the close of business on February 2,
2018. The quarterly cash distribution is 7% higher than the third
quarter of 2017 and is 38% higher than the fourth quarter 2016
distribution. For the quarter, EQGP expects to receive $65.7 million of
cash distributions from EQM and distribute $64.9 million.

EQGP is targeting annual per unit distribution growth of 30% – 40% for
several years.

EQM EXPANSION & ONGOING MAINTENANCE CAPITAL
EXPENDITURES

Expansion

Expansion capital expenditures and capital contributions to Mountain
Valley Pipeline, LLC (MVP JV), totaled $115 million in the fourth
quarter and $425 million in 2017.

Ongoing Maintenance

Ongoing maintenance capital expenditures are cash expenditures made to
maintain, over the long-term, EQM operating capacity or operating
income. EQM ongoing maintenance capital expenditures, net of
reimbursements, totaled $13 million in the fourth quarter 2017 and $28
million for the year. Ongoing maintenance capital expenditures are
expected to be $35 – $40 million in 2018, net of expected reimbursements.

PROJECT UPDATE

Mountain Valley Pipeline

The Federal Energy Regulatory Commission (FERC) issued a Certificate of
Public Convenience and Necessity for the Mountain Valley Pipeline (MVP)
project in October 2017. As of December 2017, MVP JV had received all of
the necessary federal permits required for the project. In early January
2018, MVP JV began filing requests for partial Notices to Proceed with
the FERC, and subsequently has received permission to begin construction
activities in certain areas along the route. The 303-mile pipeline is
estimated to cost $3.5 billion, with EQM funding its proportional share,
or approximately $1.6 billion. MVP JV has secured a total of 2 Bcf per
day of firm capacity commitments at 20-year terms and continues to
target a late 2018 in-service date.

Hammerhead Pipeline

The Hammerhead pipeline is designed as a 1.2 Bcf per day gathering
header pipeline that will traverse approximately 55 miles from
southwestern Pennsylvania to Mobley, West Virginia, where both the MVP
and the Ohio Valley Connector originate. The pipeline is estimated to
cost $460 million and is expected to be placed in-service during the
third quarter of 2019.

NON-GAAP DISCLOSURES

EQM Adjusted EBITDA and Distributable Cash Flow

As used in this news release, EQM adjusted EBITDA means EQM’s net income
plus net interest expense, depreciation and amortization expense,
payments on EQM's preferred interest in EQT Energy Supply, LLC
(Preferred Interest) received post conversion and non-cash long-term
compensation expense (if applicable) less equity income and AFUDC –
equity. As used in this news release, distributable cash flow means EQM
adjusted EBITDA less net interest expense excluding interest income on
the Preferred Interest, capitalized interest and AFUDC – debt, and
ongoing maintenance capital expenditures net of expected reimbursements.
Distributable cash flow should not be viewed as indicative of the actual
amount of cash that EQM has available for distributions from operating
surplus or that EQM plans to distribute. Adjusted EBITDA and
distributable cash flow are non-GAAP supplemental financial measures
that management and external users of EQM’s consolidated financial
statements, such as industry analysts, investors, lenders and rating
agencies, use to assess:

• EQM’s operating performance as compared to other publicly traded
  partnerships in the midstream energy industry without regard to
  historical cost basis or, in the case of adjusted EBITDA, financing
  methods;
• the ability of EQM’s assets to generate sufficient cash flow to make
  distributions to EQM unitholders;
• EQM’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.

EQM believes that adjusted EBITDA and distributable cash flow provide
useful information to investors in assessing EQM’s results of operations
and financial condition. Adjusted EBITDA and distributable cash flow
should not be considered as alternatives to net income, operating
income, net cash provided by operating activities or any other measure
of financial performance or liquidity presented in accordance with GAAP.
Adjusted EBITDA and distributable cash flow have important limitations
as analytical tools because they exclude some, but not all, items that
affect net income and net cash provided by operating activities.
Additionally, because adjusted EBITDA and distributable cash flow may be
defined differently by other companies in its industry, EQM’s definition
of adjusted EBITDA and distributable cash flow may not be comparable to
similarly titled measures of other companies, thereby diminishing the
utility of the measures. The table below reconciles adjusted EBITDA and
distributable cash flow with net income and net cash provided by
operating activities as derived from the statements of consolidated
operations and cash flows to be included in EQM’s annual report on Form
10-K for the year ended December 31, 2017.

Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA)

EBITDA means the earnings before interest, taxes and depreciation of the
Rice Energy Inc. (Rice) retained midstream assets. EBITDA of these
assets is a non-GAAP supplemental financial measure that management and
external users of EQM’s consolidated financial statements, such as
industry analysts, investors, lenders and rating agencies, use to assess
the impact of the potential sale of the retained midstream assets from
EQT Corporation (EQT) to EQM through one or more drop-down transactions
on EQM’s future results of operations.

EQM believes that the projected EBITDA of the retained midstream assets
provides useful information to investors in assessing the impact of the
potential drop-down transactions on EQM’s future results of operations.
EBITDA should not be considered as an alternative to net income,
operating income, or any other measure of financial performance or
liquidity presented in accordance with GAAP. EBITDA has important
limitations as an analytical tool because it excludes some, but not all,
items that affect net income. Additionally, because EBITDA may be
defined differently by other companies in EQM’s industry, the definition
of EBITDA may not be comparable to similarly titled measures of other
companies, thereby diminishing the utility of the measure.

EQM has not provided projected net income from the retained midstream
assets, the most comparable financial measure calculated in accordance
with GAAP, or a reconciliation of projected EBITDA to projected net
income of the assets. The retained midstream assets are operated as part
of EQT’s Production business segment, and EQT does not allocate certain
costs, such as interest and tax expenses, to individual assets within
its business segments. Therefore, the projected net income of the
retained midstream assets and a reconciliation of projected EBITDA of
the assets to projected net income from those assets are not available
without unreasonable effort.

Q4 2017 Webcast Information

EQM and EQGP will host a joint live webcast with security analysts today
at 11:30 a.m. ET. Topics include fourth quarter and full-year 2017
financial results, operating results, and other matters. The webcast is
available at www.eqtmidstreampartners.com,
with a replay available for seven days following the call.

EQT, which owns EQGP’s general partner and holds a 90% limited partner
interest in EQGP, will also host a webcast with security analysts today
at 10:30 a.m. ET. EQM and EQGP unitholders are encouraged to listen to
EQT’s webcast, as the discussion may include topics relevant to EQM and
EQGP, such as EQT's financial and operational results, and specific
reference to EQM and EQGP fourth quarter and full-year 2017 results. The
webcast can be accessed via www.eqt.com,
with a replay available for seven days following the call.

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.

EQM and EQGP management speak to investors from time to time and the
analyst presentation for these discussions, which is updated
periodically, is available via the EQM and EQGP website at www.eqtmidstreampartners.com.

Cautionary Statements

EQT is under no obligation to sell the Rice retained midstream assets to
EQM, is not restricted from competing with EQM and may acquire,
construct or dispose of midstream assets without any obligation to offer
EQM the opportunity to purchase or construct the assets.

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 EQGP
and its subsidiaries, including EQM, including guidance regarding EQM’s
gathering and transmission and storage revenue and volume growth;
infrastructure programs (including the timing, cost, capacity and
sources of funding with respect to gathering and transmission projects);
the cost, capacity, timing of regulatory approvals and anticipated
in-service date of the MVP; the ultimate terms, partners and structure
of the MVP joint venture; asset acquisitions, including EQM’s ability to
complete any asset purchases from EQT and third parties and anticipated
synergies and accretion associated with any acquisition; the expected
benefits to EQM resulting from EQT's acquisition of Rice, including
whether EQT will sell the Rice retained midstream assets to EQM and the
timing of the transaction or transactions; the timing of EQT’s
announcement of a decision for addressing its sum-of-the-parts discount,
and the impact of the results of such review on EQGP and EQM; internal
rate of return (IRR); compound annual growth rate (CAGR); capital
commitments, projected capital contributions and capital and operating
expenditures, including the amount and timing of capital expenditures
reimbursable by EQT, capital budget and sources of funds for capital
expenditures; liquidity and financing requirements, including funding
sources and availability; distribution amounts, rates and growth;
projected net income, projected adjusted EBITDA, projected EBITDA for
the Rice retained midstream assets and projected distributable cash
flow; the timing and amount of future issuances of EQM common units
under EQM’s $750 million at the market equity distribution program;
changes in EQM’s credit ratings; the effects of government regulation
and litigation; and tax position, including the anticipated 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. EQM and EQGP have based these forward-looking statements on
current expectations and assumptions about future events. While EQM and
EQGP consider 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 partnerships’ control. The risks and
uncertainties that may affect the operations, performance and results of
EQM’s and EQGP’s business and forward-looking statements include, but
are not limited to, those set forth under (i) Item 1A, “Risk Factors” of
EQM’s Form 10-K for the year ended December 31, 2016 as filed with the
Securities and Exchange Commission (SEC) and Item 1A, “Risk Factors” of
EQGP’s Form 10-K for the year ended December 31, 2016 as filed with the
SEC, and (ii) Item 1A, “Risk Factors” of EQM’s Form 10-K for the year
ended December 31, 2017 to be filed with the SEC and Item 1A, “Risk
Factors” of EQGP’s Form 10-K for the year ended December 31, 2017 to be
filed with the SEC, in each case as may be updated by any subsequent
Form 10-Qs. Any forward-looking statement speaks only as of the date on
which such statement is made, and neither EQM nor EQGP intends 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 EQT Corporation and its
subsidiaries, other than EQM and EQGP, is derived from publicly
available information published by EQT.

This release serves as qualified notice to nominees under Treasury
Regulation Sections 1.1446-4(b)(4) and (d). Please note that 100% of
EQM’s and EQGP’s distributions to foreign investors are attributable to
income that is effectively connected with a United States trade or
business. Accordingly, all of EQM’s and EQGP’s distributions to foreign
investors are subject to federal income tax withholding at the highest
effective tax rate for individuals or corporations, as applicable.
Nominees, and not EQM or EQGP, as applicable, are treated as the
withholding agents responsible for withholding on the distributions
received by them on behalf of foreign investors.

Contacts

EQT Midstream Partners, LP and EQT GP Holdings, LP
Analyst
inquiries:
Nate Tetlow – Investor Relations Director,
412-553-5834
[email protected]
or
Patrick
Kane – Chief Investor Relations Officer, 412-553-7833
[email protected]
or
Media
inquiries:
Natalie Cox – Corporate Director, Communications,
412-395-3941
[email protected]

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