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…
Leading Appalachian E&P Company 2010 operating income 470.5 million 5.2 Tcfe proved res. 11,000 pipeline miles 275,000 customers 3.4 3.4MM MMacres acres www.eqt.com 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
Marcellus Play 500,000 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…
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…
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…
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…
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
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…
/Mcfe /Mcfe 0.00 1.00 2.00 3.00 4.00 0.00 3.00 6.00 9.00 12.00 SWN EQT EQT UPL www.eqt.com RRC SWN As of 12/31/09 As of 12/31/09 AREX PETD 1.03 UPL AREX NBL CLR HK EOG 0.91 EP RRC PQ KWK NFX…
EQT Midstream Gather, process and transport EQT Productions gas 11,000 miles of gathering pipe 249,000 HP compression 970 miles of FERC regulated pipelines Equitrans interconnects 5 interstate pipelines 63 Bcfe of underground…
Equitrans Expansion Total capacity 700 MMcfd Total expansion opportunity: Approximately 1,030 MMcfd for 270 MM Capacity Year (MMcfd) MM 2011 230 94 2012 330 126 Provides takeaway from new MarkWest (WV) processing plant Future…
Kentucky Processing Facility Sale Sale of KY processing assets to MarkWest Gas processing plants 100 MMcfd cryogenic plant 75 MMcfd Joule-Thomson plant Sale price = 230 MM 18 MM reduction in annual cash flow Anchor shipper…
Interstate Capacity Contract with El Paso TGP Northeast Expansion Project Links EQT Production to northeast and southeast markets 350,000 Dth/d capacity TGP Expansion to New York Equitrans Hub 300,000 Dth/d capacity to Henry Hub…
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
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…
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…
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 develop our reserves profitably Superior and sustainable production sales growth www.eqt.com 22
Appendix www.eqt.com 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
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,…
Risk Management Hedging 2011 2012 2013 Swaps Total Volume (Bcfe) 56 24 - Average Price per Mcf (NYMEX)* 4.86 5.27 - Puts Total Volume (Bcfe) 3 Average Floor Price per Mcf (NYMEX)* 7.35 Collars Total Volume (Bcfe) 21 21 15…
Price Reconciliation Three Months Year Ended Ended December 31, December 31, 2010 2009 2010 2009 Average NYMEX price ( / Mcfe) 3.80 3.93 4.39 3.99 Average net liquids revenues 1.11 1.36 1.02 0.79 Average basis 0.12 0.05 0.13…
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…
Rates of Returns by Major Plays 250% Marcellus 5-year strip Huron 5.50 200% CBM 150% IRR 100% 50% 0% 4.00 5.00 6.00 7.00 *New infrastructure carried in economics NYMEX www.eqt.com 30
2010 Operational Review Top Marcellus Wells Flow (MMcfd) Operator Well County, State 22.2* EQT Corp. 590384 Cooper Greene, PA 21.0 Atlas Energy Resources Unknown Westmoreland, PA 20.0 Cabot Oil & Gas Unknown Susquehanna, PA 20.0…
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…
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…
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