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…
Low Price Environment Impact Focus on highest EUR opportunities Greene County, PA Tioga County, PA Focus on liquids-rich acreage Doddridge County, WV Wetzel County, WV Commit to additional processing and gathering in WV Huron…
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 8
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 50wells 132 wells in 2012 WV EQT Acreage Extended…
Industry Leading Cost Structure 3-year F&D (all sources) Mean = 2.07 1.13 /Mcfe For the three years ended 12/31/11 Per Unit Operating Expenses 0.78 Mean = 1.55 /Mcfe Year ended 12/31/11 www.eqt.com 11
Liquids Marcellus Wet Gas Economics 35% of EQTs Marcellus acreage is wet Liquids Fractionation NGLs 2.86 / Mcf(1) (C3+) Wellhead Gas Cryogenic 1 Mcf Processing Btu = 1200 1.80 Gal / Mcf Methane Ethane 0.80 - 0.85 Mcf 2 3…
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…
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…
Marcellus Market Overview Infrastructure The Critical Link Current production: 4.0 Bcf/d Infrastructure constraints exist Marcellus Production Forecast Low cost basin 16 Bcf/d Fragmented acreage profile Larger system provides…
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…
Interstate Capacity Contracts TGP and TETCO Firm access to downstream markets TGP: 300,000 Dth/d of capacity to northern New Jersey / New York 350 MDth/d TETCO: 150,000 Dth/d of 300 MDth/d capacity to eastern New 150 MDth/d…
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 21
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 26
Capital Investment Summary 1,800 1,600 1,365 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 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 ( thousands,…
Risk Management Hedging 2012** 2013 2014 Swaps Total Volume (Bcfe) 77 70 42 Average Price per Mcf (NYMEX)* 5.17 5.15 4.82 Collars Total Volume (Bcfe) 16 15 14 Average Floor Price per Mcf (NYMEX)* 6.51 6.12 6.37 Average Cap…
Price Reconciliation Three Months Ended March 31, 2012 2011 Revenues ( / Mcfe) Average NYMEX price 2.74 4.11 Hedge impact 1.42 0.46 Average basis 0.00 0.19 Average net liquids revenue 0.96 1.08 Average hedge adjusted price 5.12…
Per Unit Operating Expenses Three Months Ended March 31, 2012 2011 Production segment costs: ( / Mcfe) LOE 0.20 0.18 Production taxes 0.18* 0.19 SG&A 0.38 0.35 0.76 0.72 Midstream segment costs: ( / Mcfe) Gathering,…
Appendix Non-GAAP Reconciliation Adjusted Midstream EBITDA (millions) 2008 2009 2010 2011 Midstream operating income 120 154 179 417 Add: depreciation and amortization 35 53 62 57 Less: gains on dispositions 203 Less: Big Sandy…
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 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…
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…
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