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March 2013 Analyst Presentation – EQT Corp

EQT Corp · Mar 10, 2013 · 31 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 2013 Analyst Presentation – EQT Corp – slide 1
    Analyst Presentation March 2013
  2. March 2013 Analyst Presentation – 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 Reserve Potential; 135 years R/P Proven ability to profitably develop our reserves 30%…
  3. March 2013 Analyst Presentation – EQT Corp – slide 3
    Leading Appalachian E&P Company 2012 operating income 470.5 million 3.5 MM acres www.eqt.com 6
  4. March 2013 Analyst Presentation – EQT Corp – slide 4
    Production By Play Marcellus Shale drilling driving growth 1,200 Marcellus Huron horizontal 1,000 CBM Vertical 800 Production MMcfd 600 Began horizontal drilling 400 200 0 2006 2007 2008 2009 2010 2011 2012 2013E…
  5. March 2013 Analyst Presentation – EQT Corp – slide 5
    Reserves By Play Proved Reserve Growth 7,000 CBM/Other 6,004 6,000 Huron 5,365 761 Marcellus 5,220 5,000 889 866 965 4,068 4,000 1,062 Bcfe 991 1,475 3,110 Other 0.8 3,000 1,477 2,000 2,016 4,278 3,414 2,879…
  6. March 2013 Analyst Presentation – EQT Corp – slide 6
    Marcellus Play 530,000 EQT acres 15.0 Tcfe 3P OH 17 19.5 Tcfe resource potential 7.3 MM / well* PA 153 wells in 2013 52 8.8 Bcfe EUR / well* MD 84 4,500 ft average length in 2013 WV EQT Acreage 134 of 153 wells in 2013…
  7. March 2013 Analyst Presentation – EQT Corp – slide 7
    Marcellus Economics 53% ATAX Return at 4.00 NYMEX 200% Wellhead IRR After Gathering, Transmission, LOE IRR After Tax IRR 150% 100% 50% 0% 3.00 3.50 4.00 4.50 5.00 NYMEX www.eqt.com 10
  8. March 2013 Analyst Presentation – EQT Corp – slide 8
    Upper Devonian Play 170,000 EQT acres 5 - 6 MM / well 11 wells in 2013 4,200 avg lateral length in 2013 2013 drilling program to delineate acreage position www.eqt.com 11
  9. March 2013 Analyst Presentation – EQT Corp – slide 9
    Utica Play 16,000 gross acres 13,600 net acres Guernsey County, Ohio 9.4 MM / well 8 wells in 2013 6,000 avg lateral length in 2013 EQT CNX Chesapeake Range Enervest Eclipse Anadarko XTO Gulfport HG Energy www.eqt.com…
  10. March 2013 Analyst Presentation – EQT Corp – slide 10
    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…
  11. March 2013 Analyst Presentation – EQT Corp – slide 11
    Liquids Volume Growth and Marcellus Price Uplift 35% of EQTs Marcellus acreage is wet Additional 100 MMcfe / day capacity by YE 2013 NGL Volume Growth Marcellus Liquids Price Uplift (1200 Btu Gas) 4,500 7.00 NGLs (1.8 Gal/Mcf)…
  12. March 2013 Analyst Presentation – EQT Corp – slide 12
    Midstream Overview Transmission & Storage Gathering Marketing EQT Midstream Total* Transmission capacity (BBtu/d) 1,700 Miles of transmission pipeline 700 Marcellus gathering capacity (BBtu/d) 1,115 Miles of Marcellus gathering…
  13. March 2013 Analyst Presentation – EQT Corp – slide 13
    Midstream Overview EQT Production sales drives Midstream EBITDA growth 70% of Midstream revenues from EQT Corporation Fixed fee contracts Transmission contracts with 10-year weighted average life* Minimal direct commodity exposure…
  14. March 2013 Analyst Presentation – EQT Corp – slide 14
    EQT Midstream Partners, LP EQT Alignment Equitrans transmission and storage 1.4 TBtu/d capacity 700 mile FERC-regulated interstate pipeline 32 Bcf of working gas storage Highlights market valuation of midstream assets EQT…
  15. March 2013 Analyst Presentation – EQT Corp – slide 15
    EQT Midstream Equitrans - Sunrise Project Owned by EQT Corp. Operated by EQT Midstream Partners 225 MM capital project 314 BBtu/d capacity Connects MarkWest processing plant to TETCO Expansion opportunity Incremental 470…
  16. March 2013 Analyst Presentation – EQT Corp – slide 16
    EQT Midstream Marcellus Gathering 2013 CAPEX 190 MM 2013 Capacity Additions Jupiter 200 MMcfd Applegate 150 MMcfd Terra 50 MMcfd * Capacity for each system represents estimated year-end 2013 capacity www.eqt.com 19
  17. March 2013 Analyst Presentation – EQT Corp – slide 17
    Distribution Pending Transaction Sale of Equitable Gas to Peoples Natural Gas Expected approval by year-end 2013 720MM cash + midstream assets Marcellus midstream assets 40 MM annual EBITDA* 200 miles of transmission pipe 15…
  18. March 2013 Analyst Presentation – EQT Corp – slide 18
    Pittsburghs Strip District NGV Station 1.6 million investment Expect cashflow break-even volumes (200,000 gal) in 2013 12% return = 450,000 gal/yr. Vehicles have the potential to use 20 25 Bcf / year in the U.S. www.eqt.com…
  19. March 2013 Analyst Presentation – EQT Corp – slide 19
    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…
  20. March 2013 Analyst Presentation – EQT Corp – slide 20
    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…
  21. March 2013 Analyst Presentation – EQT Corp – slide 21
    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…
  22. March 2013 Analyst Presentation – EQT Corp – slide 22
    Appendix www.eqt.com 25
  23. March 2013 Analyst Presentation – EQT Corp – slide 23
    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 26
  24. March 2013 Analyst Presentation – EQT Corp – slide 24
    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 200 MDth/d TETCO:…
  25. March 2013 Analyst Presentation – EQT Corp – slide 25
    Ample Financial Flexibility to Execute Business Plan Debt ratings Moodys Standard & Poors Fitch Long-term debt Baa2 BBB BBB- Outlook Under review for downgrade Stable Stable Commercial paper P-2 A-2 F3 Strong balance sheet…
  26. March 2013 Analyst Presentation – EQT Corp – slide 26
    Risk Management Hedging * The average price is based on a conversion rate of 1.05 MMBtu/Mcf As of January 24, 2013 www.eqt.com 29
  27. March 2013 Analyst Presentation – EQT Corp – slide 27
    Price Reconciliation *Due to the sale of unused capacity on the El Paso 300 line that was not under long-term resale agreements at prices below the capacity charge, third-party gathering and transmission rates increased by 0.04 per…
  28. March 2013 Analyst Presentation – EQT Corp – slide 28
    Per Unit Operating Costs Three Months Ended Year Ended December 31, December 31, 2012 2011 2012 2011 Production segment costs: ( / Mcfe) LOE 0.15 0.20 0.18 0.20 Production taxes* 0.16 0.18 0.16 0.20 SG&A 0.29 0.29 0.31 0.31…
  29. March 2013 Analyst Presentation – EQT Corp – slide 29
    Appendix Non-GAAP Reconciliation www.eqt.com 32
  30. March 2013 Analyst Presentation – EQT Corp – slide 30
    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
  31. March 2013 Analyst Presentation – EQT Corp – slide 31
    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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