Key Investment Highlights We have 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 We have proven ability to profitably develop our reserves Superior and…
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 17 wells 12.7 Tcfe 3P OH 20.8 Tcfe resource potential 6.7 MM / well* 74 wells PA 7.3 Bcfe EUR / well* MD 5,300 ft average length 41 wells 132 wells in 2012 WV EQT Acreage Extended…
Marcellus Economics 43% ATAX Return at 4.00 NYMEX www.eqt.com 10
Marcellus New Frac Design Standard Frac Design, 300 Stages Treatment Interval 300 (5 clusters, 60 spacing) Standard New Design Design 3 stages 6 stages Total number of 677 1843 events Average events 226 307 per stage New…
EQTs Performance Horizontal Shale Drilling Driving Growth Horizontal Marcellus Total Sales Volumes 300 600,000 140 250 500,000 120 Number of wells 100 400,000 200 Feet of pay 80 300,000 Bcfe 60 150 200,000 40…
Industry Leading Cost Structure 3-year F&D (all sources) 1.13 Mean = 2.78 /Mcfe For the three years ended 12/31/10; except EQT for the three years ended 2011 Per Unit Operating Expenses 0.78 Mean = 1.54 /Mcfe Year ended…
EQT Midstream Gathering Additions Total Capacity 2012 capacity at year- capacity after (MMcfd) end 2011 additions additions Tioga Pennsylvania 440 285 725 65 MMcfd Expansion West Virginia 85 160 245 Longhorn Total 525 445 970 40…
Interstate Capacity Contract with El Paso TGP Northeast Expansion Project Links EQT Production to northeast and southeast markets 350,000 Dth/d capacity to New York 300,000 Dth/d capacity to Henry Hub www.eqt.com 16
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 17
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…
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 22
Capital Investment Summary 1,800 1,465 1,600 1,400 1,258 1,124 1,200 MM 933 889 1,000 800 600 400 200 0 2008 2009 2010 2011 2012F *Excludes acquisitions Midstream Production Distribution www.eqt.com 23
Ample Financial Flexibility to Execute Business Plan Debt ratings Moodys Standard & Poors Fitch Long-term debt Baa2 BBB BBB Outlook Negative Stable Stable Commercial paper P-2 A-2 F2 Strong balance sheet Manageable debt…
Risk Management Hedging * Based on a conversion rate of 1.05 MMBtu / Mcf As of January 26, 2012 www.eqt.com 25
Price Reconciliation www.eqt.com 26
Per Unit Operating Expenses Three Months Ended Year Ended December 31, December 31, 2011 2010 2011 2010 Production segment costs: ( / Mcfe) LOE 0.20 0.25 0.20 0.24 Production taxes 0.18 0.22 0.20 0.24 SG&A 0.29 0.40 0.31 0.41…
Liquids Marcellus Wet Gas Economics Liquids Fractionation NGLs 2.82 / Mcf(1) (C3+) Wellhead Gas Cryogenic 1 Mcf Processing Btu = 1200 1.80 Gal / Mcf Residue Gas Natural Gas & Ethane 0.94 Mcf 3.22 / Mcf(2) Btu = 1116…
2011 Operational Review Top Marcellus Wells Production (Bcf) Owner Well Name County 3.0 EQT Production Cooper 590387-A Greene 2.3 Cabot Oil & Gas Depaola 3 Susquehanna 2.1 EQT Production D Iams 590036 Greene 2.0 Cabot Oil & Gas…
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 31
Marcellus Play Acres Within Each Type Curve Area Curve Total acres, PA Total acres, WV Total acres of locations 9.0 Bcf 112,000 50,000 162,000 1,330 7.4 Bcf 90,000 22,000 112,000 915 6.4 Bcf 51,000 207,000 258,000 2,125 Total…
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