Key Investment Highlights Extensive reserves of natural gas* 5.4 Tcfe Proved; 35 years R/P 21.4 Tcfe 3P; 150 years R/P 34 Tcfe Potential; 200 years R/P Proven ability to profitably develop our reserves Superior and sustainable…
Leading Appalachian E&P Company 2011 adjusted operating income* 658.4 million 5.4 Tcfe proved res. 11,000 pipeline miles 275,000 customers 3.5 MM acres *Excludes gain on dispositions; see slide for non-GAAP measures…
Reserves By Play December 31, 2011 5.4 Tcfe proved reserves 21.4 Tcfe 3P reserves Huron 1.1 Huron 7.7 Marcellus 3.4 Marcellus 12.7 Other 0.9 34 Tcfe Total Resource Potential www.eqt.com 7
Production By Play Marcellus Shale drilling driving growth 800 Marcellus Huron horizontal CBM Vertical Production MMcfd 400 Began horizontal drilling 0 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011…
Marcellus Play 530,000 EQT acres 12 wells 12.7 Tcfe 3P OH 20.8 Tcfe resource potential 6.1 MM / well* 70 wells PA 7.3 Bcfe EUR / well* MD 5,300 ft average length 50 wells 132 wells in 2012 WV EQT Acreage Extended…
Marcellus New Frac Design 49 wells planned in 2012 Standard Frac Design, 300 Stages Treatment Interval 300 (5 clusters, 60 spacing) Incremental cost of 1.2 MM per well 40% higher IP 20-25% higher EUR 100% return on incremental…
Industry Leading Cost Structure 7.50 3-year F&D (all sources) 5.00 Mean = 2.07 1.13 /Mcfe 2.50 0.00 PETD PXD NFX PVA HK CLR SWN EP SM PQ VQ SD WLL COG GDP EOG QEP…
Liquids Marcellus Wet Gas Economics 35% of EQTs Marcellus acreage is wet 120 MMcfe / day incremental processing capacity by YE 2012 Liquids Fractionation NGLs 1.67 / Mcf(1) (C3+) Wellhead Gas Cryogenic 1 Mcf Processing Btu =…
Midstream Overview Equitrans Transmission & Storage Gathering Marketing EQT Midstream Total Transmission capacity (MMBtu/d) 1,000 Miles of transmission pipeline 700 Marcellus gathering capacity (MMBtu/d) 525 Miles of Marcellus…
Midstream Overview EQT Production sales drives Midstream EBITDA growth 70% of Midstream revenues from EQT Corporation (2011) Fixed fee contracts Transmission contracts with 10-year weighted average life* Minimal direct commodity…
EQT Midstream Marcellus Gathering Additions Total 2012 capacity Current capacity after (MMcfd) capacity additions additions Tioga Pennsylvania 440 285 725 65 MMcfd Expansion West Virginia 85 160 245 Longhorn Total 525 445 970 40…
Equitrans Expansion Sunrise 2011 year-end capacity 1,000 MMcfd 2012 capacity expansions 700 MMcfd CapEx: 155 MM Expected to be on line during the third quarter 2012 www.eqt.com 17
EQT Midstream Partners, LP EQT Aligned with EQT Midstream Partners EQT received 232 million cash from IPO Maintain control of important complementary asset Aligns sponsor with EQT Midstream Partners Establish a source of ongoing low…
Interstate Capacity Contracts Access to downstream markets TGP: 350,000 Dth/d to NJ/NY TETCO: 150,000 Dth/d to NJ, 350 MDth/d year-end 2014 300 MDth/d Backhaul to Gulf Coast 150 MDth/d TGP: 300,000 Dth/d TETCO: 200,000 Dth/d to…
Regional Distributor . PA, WV, KY 275,000 customers Natural Gas Vehicles (NGV) Built refueling station in Pittsburgh, July 2011 Targeting return to base fleets www.eqt.com 20
Pittsburghs Strip District NGV Station 1.6 million Equitable Gas Company investment 0.7 million Pennsylvania state grant Break-even = 200,000 gallons 12% return = 450,000 gallons Targeting 1,500 return to base vehicles within 5…
Marcellus Rig Conversion EQT is first operator in Marcellus to use LNG to power drilling rig Two rigs converted One using Marcellus LNG One using Marcellus field gas Provides cleaner burning alternative fuel 20-30% less carbon…
Corporate Citizenship Safety our first priority All accidents are preventable Company goal = zero incidents Committed to: The environment Our employees and contractors The communities where we drill and work EQT Foundation…
Drilling and Fracing EQT meets or exceeds all federal, state and local regulations Industry leading spill prevention plans and results Supports the disclosure of frac fluid additives Utilize multiple barriers to protect drinking…
Investment Summary Extensive reserves of natural gas Proven ability to profitably develop our reserves Committed to maximize shareholder value by: Accelerating the monetization of our vast reserves Operating in a safe and…
Appendix www.eqt.com 26
Capital Investment Summary *Excludes acquisitions www.eqt.com 27
Ample Financial Flexibility to Execute Business Plan Debt ratings Moodys Standard & Poors Fitch Long-term debt Baa2 BBB BBB Outlook Negative Stable Negative Commercial paper P-2 A-2 F2 Strong balance sheet Manageable debt…
Risk Management Hedging * The average price is based on a conversion rate of 1.05 MMBtu/Mcf ** July through December As of July 25, 2012 www.eqt.com 29
Price Reconciliation www.eqt.com 30
Per Unit Operating Expenses *Excludes the retroactive PA Impact Fee of 0.01 per Mcfe and 0.06 per Mcfe for the three and six months ended June 30, 2012, respectively, for Marcellus wells spud prior to 2012. www.eqt.com 31
Appendix Non-GAAP Reconciliation www.eqt.com 32
Marcellus Play Type Curves by Area, 5,300 lateral Curve 3 : 6.4 Bcf Curve 2 : 7.4 Bcf 9.0 Bcf 7.4 Bcf 6.4 Bcf Curve 1: 9.0 Bcf www.eqt.com 33
Marcellus Play Acres Within Each Type Curve Area Curve Acres, PA Acres Wet, PA Acres Dry, PA % Wet Locations 9.0 112,500 1,900 110,600 2% 922 7.4 89,600 600 89,000 1% 734 6.4 51,500 27,000 24,500 52% 422 253,600 29,500 224,100 12%…
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