Skip to main content Q3 2013 Earnings Call – EQT Corp Investor Presentation | Shale Experts
Loading...
Pm

Q3 2013 Earnings Call – EQT Corp

EQT Corp · Oct 24, 2013 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q3 2013 Earnings Call – EQT Corp – slide 1
    Analyst Presentation October 24, 2013
  2. Q3 2013 Earnings Call – EQT Corp – slide 2
    Key Investment Highlights Extensive reserves of natural gas* 6.0 Tcfe Proved; 23 years R/P 25.9 Tcfe 3P; 100 years R/P 35.4 Tcfe Total Resource Potential; 135 years R/P Proven ability to profitably develop our reserves 40%…
  3. Q3 2013 Earnings Call – EQT Corp – slide 3
    Leading Appalachian E&P Company 2012 operating income 470.5 million 6.0 Tcfe proved res. 11,000 pipeline miles 275,000 customers 3.5 MM acres www.eqt.com 6
  4. Q3 2013 Earnings Call – EQT Corp – slide 4
    Production By Play Marcellus Shale drilling driving growth 1,400 Marcellus 1,200 Huron horizontal CBM 1,000 Vertical Production MMcf/d 800 600 Began horizontal drilling 400 200 0 2006 2007 2008 2009 2010 2011…
  5. Q3 2013 Earnings Call – EQT Corp – slide 5
    Reserves By Play Proved Reserve Growth 25.9 Tcfe 3P reserves 7,000 (as of December 31, 2012) CBM/Other 6,004 6,000 Huron 5,365 761 Marcellus 5,220 5,000 889 866 965 4,068 Huron 7.4 4,000 1,062 Bcfe 991 1,475 3,110 Other…
  6. Q3 2013 Earnings Call – EQT Corp – slide 6
    Marcellus Play Central PA 560,000 EQT acres 87% NRI / 85% HBP 15.7 Tcfe 3P 21.0 Tcfe resource potential Southwestern PA 146 wells in 2013 70% YOY production growth 50% of acreage will utilize RCS Northern WV Near term…
  7. Q3 2013 Earnings Call – EQT Corp – slide 7
    Marcellus Play Southwestern PA Prolific dry gas region 105,000 EQT acres 1,200 locations 149 wells online* 67 wells in 2013 Kevech Pad 4,800 foot laterals 2 wells 2,762 Avg Lateral Length per well 87 acre spacing 10,112 Mcfe…
  8. Q3 2013 Earnings Call – EQT Corp – slide 8
    Marcellus Play Northern West Virginia Wet Gas Area Enhanced economics from liquids uplift Big 176 Pad 6 wells 3,688 Avg Lateral Length per well 90,000 EQT acres 8,103 Mcfe Avg 30-day IP per well 1,065 locations 96 wells…
  9. Q3 2013 Earnings Call – EQT Corp – slide 9
    Marcellus Play Central Pennsylvania Early stages of acreage delineation 80,000 EQT acres Frano Pad 2 wells 3,614 Avg Lateral Length per well 727 locations 7,970 Mcfe Avg 30-day IP per well 42 wells online* 6 wells in 2013…
  10. Q3 2013 Earnings Call – EQT Corp – slide 10
    Marcellus Economics IRR - Blended Marcellus Development Areas 250% Wellhead After OpEx After Tax 200% 150% 100% 50% PRICE ATAX IRR 4.00 58% 4.50 76% 5.00 96% 0% 3.00 3.50 4.00 4.50 5.00 See appendix for IRR by…
  11. Q3 2013 Earnings Call – EQT Corp – slide 11
    Upper Devonian Play 170,000 EQT acres 5 - 6 MM / well 22 wells in 2013 6.0 Bcfe EUR / well 4,800 ft avg lateral length 2013 drilling program to delineate acreage position www.eqt.com 14
  12. Q3 2013 Earnings Call – EQT Corp – slide 12
    Utica Play 13,600 EQT acres Guernsey County, Ohio 9.4 MM / well 8 wells in 2013 6,000 ft avg lateral length in 2013 EQT CNX Chesapeake Range Enervest Eclipse Anadarko XTO Gulfport HG Energy www.eqt.com 15
  13. Q3 2013 Earnings Call – EQT Corp – slide 13
    Industry Leading Cost Structure 7.50 3-year F&D (all sources) 1.30 Mean = 2.99 5.00 /Mcfe 2.50 0.00 PQ SD SM RRC SWN CHK EQT NBL QEP EOG COG NFX CLR PXD WLL PETD DVN…
  14. Q3 2013 Earnings Call – EQT Corp – slide 14
    Liquids Volume Growth and Marcellus Price Uplift 35% of EQTs Marcellus acreage is wet NGL Volume Growth Marcellus Liquids Price Uplift 5,000 (1200 Btu Gas) 7.00 4,500 NGLs (1.8 Gal/Mcf) 6.12 6.00 BTU Premium 4,000 NYMEX (1)…
  15. Q3 2013 Earnings Call – EQT Corp – slide 15
    Midstream Overview Transmission & Storage Gathering Marketing EQT Midstream Total Transmission capacity (BBtu/d) 2,100 Miles of transmission pipeline 700 Marcellus gathering capacity (BBtu/d) 1,115 Miles of Marcellus gathering…
  16. Q3 2013 Earnings Call – EQT Corp – slide 16
    Midstream Overview EQT Production sales drives EQT Midstream EBITDA growth 70% of Midstream revenues from EQT Corporation Fixed fee contracts Transmission contracts with 9-year weighted average life* Minimal direct commodity…
  17. Q3 2013 Earnings Call – EQT Corp – slide 17
    EQT Midstream Partners, LP (NYSE: EQM) Equitrans transmission and storage 2.1 Tbtu/d current capacity 700 mile FERC-regulated interstate pipeline 32 Bcf of working gas storage Highlights market valuation of midstream assets EQT…
  18. Q3 2013 Earnings Call – EQT Corp – slide 18
    EQT Midstream Marcellus Gathering Total 2012 2013 capacity year-end capacity after (MMcf/d) capacity additions additions Pennsylvania 765 400 1,165 West Virginia 350 0 350 Total 1,115 400 1,515 2013 CAPEX 190 MM 2013…
  19. Q3 2013 Earnings Call – EQT Corp – slide 19
    Distribution Pending Transaction Sale of Equitable Gas to Peoples Natural Gas Expected regulatory approval by year-end 2013 720MM cash + midstream assets Marcellus midstream assets 40 MM annual EBITDA* 200 miles of transmission…
  20. Q3 2013 Earnings Call – EQT Corp – slide 20
    Pittsburghs Strip District NGV Station 1.6 million investment Sales Volumes Expect cashflow break-even volumes (200,000 gal) in 2013 12% return = 450,000 gal/yr. 31% 25% Vehicles have the potential to use 20 25 Tcf / year in the…
  21. Q3 2013 Earnings Call – EQT Corp – slide 21
    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…
  22. Q3 2013 Earnings Call – EQT Corp – slide 22
    Drilling and Hydraulic Fracturing 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…
  23. Q3 2013 Earnings Call – EQT Corp – slide 23
    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…
  24. Q3 2013 Earnings Call – EQT Corp – slide 24
    Appendix www.eqt.com 27
  25. Q3 2013 Earnings Call – EQT Corp – slide 25
    Capital Investment Summary 1,800 1,515* 1,217 1,222* 1,120 1,200 MM 933 600 0 2009 2010 2011 2012 2013F Midstream Production Distribution *Excludes acquisitions and EQT Midstream Partners, LP www.eqt.com 28
  26. Q3 2013 Earnings Call – EQT Corp – slide 26
    Marcellus Play Type Curves by Area - 4,800 lateral 12,000 Southwestern PA 11,000 10,000 Northern WV - Wet 9,000 Central PA 8,000 Daily Production (Mcfed) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1 11 21…
  27. Q3 2013 Earnings Call – EQT Corp – slide 27
    Marcellus Play Acres Within Each Core Development Area EQT has 560,000 total Marcellus acres Expect to develop in three areas for several years Active areas represent 275,000 acres and 2,875 locations EQT has 105,000 additional…
  28. Q3 2013 Earnings Call – EQT Corp – slide 28
    Marcellus Economics IRR - Southwestern PA 300% Wellhead After OpEx After Tax 250% 200% 150% 100% PRICE ATAX IRR 50% 4.00 63% 4.50 88% 5.00 119% 0% 3.00 3.50 4.00 4.50 5.00 Oil price held constant at 92.50 /bbl…
  29. Q3 2013 Earnings Call – EQT Corp – slide 29
    Marcellus Economics IRR - Northern WV Wet Gas Area 300% Wellhead After OpEx After Tax 250% 200% 150% 100% PRICE ATAX IRR 50% 4.00 82% 4.50 99% 5.00 118% 0% 3.00 3.50 4.00 4.50 5.00 Oil price held constant at…
  30. Q3 2013 Earnings Call – EQT Corp – slide 30
    Marcellus Economics IRR - Central PA 80% Wellhead After OpEx After Tax 70% 60% 50% 40% 30% 20% PRICE ATAX IRR 4.00 20% 10% 4.50 28% 5.00 37% 0% 3.00 3.50 4.00 4.50 5.00 Oil price held constant at 92.50 /bbl…
  31. Q3 2013 Earnings Call – EQT Corp – slide 31
    Upper Devonian IRR 160% Wellhead Wellhead After OpEx ATAX 140% 120% 100% 80% 60% 40% NYMEX ATAX IRR 4.00 44% 20% 4.50 55% 5.00 66% 0% 3.00 3.50 4.00 4.50 5.00 Realized Price www.eqt.com 34
  32. Q3 2013 Earnings Call – EQT Corp – slide 32
    Marcellus & Utica Capacity EQT Capacity & Firm Sales Long-Haul Pipeline Outlets MDth/d 1,400 1,200 FIRM SALES 1,000 (LONG-TERM) FIRM SALES (SHORT- TERM) 800 BACKHAUL CAPACITY 600 400 FORWARD EQT Production areas…
  33. Q3 2013 Earnings Call – EQT Corp – slide 33
    EQT Midstream Partners, LP (NYSE: EQM) Sunrise Pipeline Sale July 22, 2013 EQT Midstream Partners acquired 507.5 MM cash 110 million additional consideration pending third- party transportation agreement 32.5 MM of common and…
  34. Q3 2013 Earnings Call – EQT Corp – slide 34
    Ample Financial Flexibility to Execute Business Plan Debt ratings Moodys Standard & Poors Fitch Long-term debt Baa3 BBB BBB- Outlook Stable Stable Stable Strong balance sheet ( thousands, except net debt / capital) As of…
  35. Q3 2013 Earnings Call – EQT Corp – slide 35
    Risk Management Hedging 2013** 2014 2015 Fixed Price Total Volume (Bcf) 51 163 70 Average Price per Mcf (NYMEX)* 4.56 4.43 4.57 Collars Total Volume (Bcf) 6 24 23 4.95 5.05 5.03 Average Floor Price per Mcf (NYMEX)* Average…
  36. Q3 2013 Earnings Call – EQT Corp – slide 36
    Price Reconciliation Three Months Ended Nine Months Ended September 30, September 30, 2013 2012 2013 2012 in thousands, unless noted Liquids Gross NGL Revenue 43,786 33,545 144,469 112,807 BTU Premium (Ethane sold as natural…
  37. Q3 2013 Earnings Call – EQT Corp – slide 37
    Per Unit Operating Expenses Three Months Ended Nine Months Ended UNIT COSTS September 30, September 30, 2013 2012 2013 2012 Production segment costs: ( / Mcfe) LOE 0.15 0.18 0.16 0.19 Production taxes* 0.14 0.16 0.14 0.17 SG&A…
  38. Q3 2013 Earnings Call – EQT Corp – slide 38
    Appendix Non-GAAP Reconciliation Adjusted Midstream EBITDA (millions) 2008 2009 2010 2011 2012 Midstream operating income 120 154 179 417 237 Add: depreciation and amortization 35 53 62 57 65 Less: gains on dispositions 203 0 Less:…

From the store

Browse maps, data & reports in the Shale Experts store