Quarterly / Earnings Reports | Second Quarter (2Q) Update

EQT Midstream Partners Second Quarter 2015 Results

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| Thursday,July 23,2015

EQT Midstream Partners, LP and EQT GP Holdings, LP announced second quarter 2015 financial and operating results.

Q2 Highlights:

Announced agreement to construct natural gas header pipeline for Range Resources
Completed the east side expansion project for Antero Resources
Increasing EQM distributable cash flow guidance for 2015 to $390 - $400 million

Guidance

EQM forecasts third quarter 2015 adjusted EBITDA of $112 - $117 million and full-year 2015 adjusted EBITDA of $435 - $445 million. EQM is also increasing its full-year distributable cash flow forecast to $390 - $400 million. EQM is targeting annual distribution growth of 20% through 2017, which equates to more than 40% annual distribution growth at EQGP over the same time period. The financial and distribution guidance does not include financial impacts of potential acquisitions.

Project Update

Natural Gas Header Pipeline for Range Resources

As announced today in a separate news release, EQM will invest approximately $250 million for the construction of 32 miles of pipeline and installation of approximately 32,000 horsepower of compression. The natural gas header pipeline will support Range Resources' dry Marcellus and Utica development in southwestern Pennsylvania. EQM plans to complete the project in two phases, with phase one expected to be in-service by the third quarter of 2016 and phase two by mid-year 2017. The majority of capital investment is expected to occur throughout 2016 and the first half of 2017. The pipeline will provide greater than half a billion cubic feet per day of firm capacity and is backed by a long-term firm capacity reservation commitment.

EQM Capital Expenditures

Expansion

In the second quarter, EQM continued its gathering infrastructure expansion with approximately $68 million in investments related to gathering pipeline and compression projects for EQT and third-party producers. A majority of the investment was related to the Jupiter Gathering System (Jupiter) and the Northern West Virginia Marcellus Gathering System (NWV Gathering). EQM forecasts total gathering related investments of approximately $195 - $205 million in 2015.

EQM invested approximately $34 million in the Ohio Valley Connector (OVC) project during the second quarter. The OVC is estimated to cost $300 million, of which approximately $120 - $130 million will be invested in 2015.

EQM also invested $20 million during the quarter in other transmission expansion projects - most notably the east side expansion project for Antero Resources, which was placed into service during the quarter and added 100 MMcf per day of transmission capacity. EQM transmission capacity now stands at 3.1 Bcf per day. Investments of approximately $50 million for transmission projects are expected in 2015.

While no capital contribution was made to Mountain Valley Pipeline, LLC during the second quarter, EQM continues to expect total capital contributions to Mountain Valley Pipeline of approximately $105 - $115 million in 2015.

Expansion capital expenditures totaled $122 million in the second quarter. EQM forecasts 2015 total expansion capital expenditures including capital contributions to Mountain Valley Pipeline of approximately $470 - $500 million.

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 expected reimbursements, totaled $1.9 million in the second quarter 2015. EQM forecasts full-year 2015 ongoing maintenance capital expenditures of approximately $20 - $25 million.

Financial Results

EQT Midstream Partners (EQM) net income for the quarter totaled $91.3 million, adjusted EBITDA was $110.5 million, and distributable cash flow was $102.8 million. EQM adjusted operating income was $99.8 million, or 43% higher than the same quarter last year. The non-GAAP financial measures are reconciled in the Non-GAAP Disclosures section of this news release.

EQT GP Holdings, LP (EQGP) owns a 30.2% limited partner interest and 2% general partner interest, along with 100% of the incentive distribution rights in EQM. EQGP completed its initial public offering of 26.45 million common units on May 15, 2015. Net income attributable to EQGP for the second quarter totaled $28.7 million.

In December 2013, EQM entered into a capital lease with EQT for its Allegheny Valley Connector facilities (AVC), which includes a 200-mile pipeline regulated by the Federal Energy Regulatory Commission (FERC). EQM operates the AVC and the related revenues and expenses are included in the financial statements; however, the monthly lease payment to EQT offsets the impact on distributable cash flow. As a result, second quarter 2015 operating results are discussed on an adjusted basis, excluding the AVC. Payments due under the lease totaled $3.4 million for the second quarter. The revenues and expenses associated with the AVC are found in the reconciliation table in the Non-GAAP Disclosures section of this news release.

EQM second quarter adjusted operating revenues increased $35.7 million, or 35%, compared to the same quarter last year. The increase was primarily due to increased contracted firm transmission capacity and increased gathered volumes. Adjusted operating expenses were up $5.6 million versus the second quarter of 2014, consistent with the growth of the business.

Quarterly Distribution

EQM

For the second quarter of 2015, EQM will pay a quarterly cash distribution of $0.64 per unit. The distribution will be paid on August 14, 2015 to all unitholders of record at the close of business on August 4, 2015. The quarterly cash distribution is $0.12 per unit, or 23% higher, than the second quarter of 2014.

EQGP

For the second quarter of 2015, EQGP will pay an initial distribution of $0.04739 per unit. The prorated distribution reflects the 47 day period from the initial public offering closing to the end of the quarter and corresponds to a full quarterly distribution of $0.09175 per unit. The distribution will be paid on August 24, 2015 to EQGP unitholders of record at the close of business on August 4, 2015.