Skip to main content March 2011 Analyst Presentation – EQT Corp | Shale Experts
Loading...
Pm

March 2011 Analyst Presentation – EQT Corp

EQT Corp · Mar 10, 2011 · 30 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. March 2011 Analyst Presentation – EQT Corp – slide 1
    Analyst Presentation March 2011
  2. March 2011 Analyst Presentation – EQT Corp – slide 2
    Key Investment Highlights We have extensive reserves of natural gas (as of 12/31/10) 5.2 Tcfe Proved; 35 years R/P 21.2 Tcfe 3P; 150 years R/P 32 Tcfe Potential; 200 years R/P We have proven ability to profitably develop our…
  3. March 2011 Analyst Presentation – EQT Corp – slide 3
    Leading Appalachian E&P Company 2010 operating income 470.5 million 5.2 Tcfe proved res. 11,000 pipeline miles 275,000 customers 3.5 3.5MM MMacres acres www.eqt.com 4
  4. March 2011 Analyst Presentation – EQT Corp – slide 4
    Reserves By Play As of December 31, 2010 5.2 Tcfe proved reserves 21.2 Tcfe 3P reserves Oth er 1.6 Other 0.8 Marcellus 2.9 Huron 1.5 Marcellus 12.2 Huron 7.4 32 Tcfe Total Resource Potential www.eqt.com 5
  5. March 2011 Analyst Presentation – EQT Corp – slide 5
    Marcellus Play 520,000 EQT acres 3 wells 12.2 Tcfe 3P OH 20 Tcfe resource potential 5.3 MM / well 59 wells PA 7.3 Bcfe EUR / well MD 5,300 ft average length 24 wells 86 wells in 2011 WV EQT Acreage Extended laterals…
  6. March 2011 Analyst Presentation – EQT Corp – slide 6
    Marcellus Productivity Improvements Drilling/Completions Lessons Learned Pad Drilling & Skid Packages for Rigs Conventional Construction costs spread over pad wells Reduces rig mobilization costs (from approximately 200,000 to…
  7. March 2011 Analyst Presentation – EQT Corp – slide 7
    Marcellus Productivity Improvements Geology Lessons Learned Targeting is important for: Best reservoir characteristics Most brittle rock Best porosity & permeability Maximum gas filled porosity Maximum natural fracturing Best…
  8. March 2011 Analyst Presentation – EQT Corp – slide 8
    Marcellus Economics 78% ATAX Return at 5.00 NYMEX 700% Wellhead IRR After Gathering, Transmission, LOE IRR 600% After Tax IRR 500% All-in returns 400% IRR 300% 200% 100% 0% 4.00 5.00 6.00 7.00 8.00 NYMEX…
  9. March 2011 Analyst Presentation – EQT Corp – slide 9
    Huron Play 2.7 MM EQT acres WV 7.4 Tcfe 3P 10 Tcfe resource potential 1.4 Bcfe EUR / well KY 1.4 MM / well 58 wells 5,200 ft average length VA 58 wells in 2011 EQT Acreage High liquids content adds to return Focus near…
  10. March 2011 Analyst Presentation – EQT Corp – slide 10
    Production By Play Horizontal Shale Drilling Driving Growth 600 Marcellus Huron horizontal CBM Vertical Production MMcfd 300 Began horizontal drilling 0 2006 2007 2008 2009 2010 2011E www.eqt.com 11
  11. March 2011 Analyst Presentation – EQT Corp – slide 11
    EQTs Performance Horizontal Shale Drilling Driving Growth Horizontal Marcellus Total Sales Volumes 200 400,000 100 80 300,000 Number of wells 150 Feet of pay 60 200,000 Bcfe 40 100 100,000 20 0 0 50 2008…
  12. March 2011 Analyst Presentation – EQT Corp – slide 12
    Industry Leading Cost Structure 6.00 3-year F&D (all sources) Mean = 2.81 0.93 /Mcfe 3.00 0.00 APA PVA APC EAC WLL SWN DVN WMB VQ UPL NBL BEXP QEP EP NFX ME…
  13. March 2011 Analyst Presentation – EQT Corp – slide 13
    EQT Midstream Gather, process and transport EQT Productions gas 11,000 miles of gathering pipe 225,000 HP compression 800 miles of FERC regulated pipelines Equitrans interconnects 5 interstate pipelines 63 Bcfe of underground…
  14. March 2011 Analyst Presentation – EQT Corp – slide 14
    Equitrans Expansion Total capacity 700 MMcfd Total expansion opportunity: Approximately 1,030 MMcfd for 270 MM Capacity Year (MMcfd) MM 2011 130 94 2012 430 126 Provides takeaway from new MarkWest (WV) processing plant Future…
  15. March 2011 Analyst Presentation – EQT Corp – slide 15
    Kentucky Processing Facility Sale Sale of KY processing assets to MarkWest closed on 2/1/11 Gas processing plants 100 MMcfd cryogenic plant 75 MMcfd Joule-Thomson plant Sale price = 230 MM 18 MM reduction in annual cash flow…
  16. March 2011 Analyst Presentation – EQT Corp – slide 16
    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 Expected completion YE…
  17. March 2011 Analyst Presentation – EQT Corp – slide 17
    Regional Distributor . PA, WV, KY 275,000 customers Natural Gas Vehicles (NGV) Building refueling station in Pittsburgh Targeting return to base fleets www.eqt.com 18
  18. March 2011 Analyst Presentation – EQT Corp – slide 18
    Pittsburghs Strip District NGV Station 1.6 million Equitable Gas Company investment 0.7 million Pennsylvania state grant Break-even = 20 vehicles 12% return = 45 vehicles Targeting 1,500 return to base vehicles within 5 miles of…
  19. March 2011 Analyst Presentation – EQT Corp – slide 19
    Corporate Citizenship Safety our first priority All accidents are preventable Company goal = zero incidents Committed to the protection of: The environment The communities where we drill and work Our employees and contractors…
  20. March 2011 Analyst Presentation – EQT Corp – slide 20
    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…
  21. March 2011 Analyst Presentation – EQT Corp – slide 21
    Investment Summary Extensive reserves of natural gas Proven ability to develop our reserves profitably Superior and sustainable production sales growth www.eqt.com 22
  22. March 2011 Analyst Presentation – EQT Corp – slide 22
    Appendix www.eqt.com 23
  23. March 2011 Analyst Presentation – EQT Corp – slide 23
    Capital Investment Summary 1,344 1,400 Midstream Production 1,200* 1,200 Distribution 964 970 1,000 777 MM 800 600 400 200 0 2007 2008 2009 2010 2011E *Excludes acquisitions www.eqt.com 25
  24. March 2011 Analyst Presentation – EQT Corp – slide 24
    Ample Financial Flexibility to Execute Business Plan Debt ratings Moodys Standard & Poors Fitch Long-term debt Baa1 BBB BBB+ Outlook Negative Negative Stable Commercial paper P-2 A-3 F2 Strong balance sheet ( thousands,…
  25. March 2011 Analyst Presentation – EQT Corp – slide 25
    Risk Management Hedging 2011 2012 2013 Swaps Total Volume (Bcfe) 56 24 - Average Price per Mcf (NYMEX)* 4.86 5.27 - Total Volume (Bcfe) 3 Average Floor Price per Mcf (NYMEX)* 7.35 Collars Total Volume (Bcfe) 21 21 15…
  26. March 2011 Analyst Presentation – EQT Corp – slide 26
    Price Reconciliation Three Months Year Ended Ended December 31, December 31, 2010 2009 2010 2009 Average NYMEX price ( / Mcfe) 3.80 4.17 4.39 3.99 Average net liquids revenues 1.11 1.12 1.02 0.79 Average basis 0.12 0.05 0.13…
  27. March 2011 Analyst Presentation – EQT Corp – slide 27
    Per Unit Operating Expenses Three Months Ended Year Ended December 31, December 31, 2010 2009 2010 2009 Production segment costs: ( / Mcfe) LOE 0.25 0.33 0.24 0.30 Production taxes 0.22 0.28 0.24 0.30 SG&A 0.40 0.27 0.41 0.35…
  28. March 2011 Analyst Presentation – EQT Corp – slide 28
    2010 Operational Review Top Marcellus Wells Flow (MMcfd) Operator Well County, State 23.0* EQT Corp 590036 Phillips Greene, PA 22.2* EQT Corp. 590384 Cooper Greene, PA 21.0 Atlas Energy Resources Unknown Westmoreland, PA 20.0 Cabot…
  29. March 2011 Analyst Presentation – EQT Corp – slide 29
    Marcellus Horizontal Decline Curve 1,400 1,200 EUR / well 7.3 Bcfe Cost / well 5.3 million 1,000 Unit development cost / Mcfe 0.73 ATAX IRR 5 NYMEX 78% 800 MMcfe / Yr 600 400 200 - 1 3 5 7 9 11 13 15 17 19 21…
  30. March 2011 Analyst Presentation – EQT Corp – slide 30
    Major Plays Huron, Marcellus, CBM Miss. Big Lime Berea Sand c Cleveland Shale c c Huron Play 30 2,700 c Lower Huron Siltstone c CBM Play Pennsylvanian (low pressure) c 2,000 Lower Huron Shale c (low pressure) c c…

From the store

Browse maps, data & reports in the Shale Experts store