Skip to main content February 2012 Analyst Presentation – EQT Corp | Shale Experts
Loading...
Pm

February 2012 Analyst Presentation – EQT Corp

EQT Corp · Feb 10, 2012 · 29 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. February 2012 Analyst Presentation – EQT Corp – slide 1
    Analyst Presentation February 2012
  2. February 2012 Analyst Presentation – EQT Corp – slide 2
    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…
  3. February 2012 Analyst Presentation – EQT Corp – slide 3
    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…
  4. February 2012 Analyst Presentation – EQT Corp – slide 4
    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 6
  5. February 2012 Analyst Presentation – EQT Corp – slide 5
    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…
  6. February 2012 Analyst Presentation – EQT Corp – slide 6
    Marcellus Economics 43% ATAX Return at 4.00 NYMEX www.eqt.com 8
  7. February 2012 Analyst Presentation – EQT Corp – slide 7
    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…
  8. February 2012 Analyst Presentation – EQT Corp – slide 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…
  9. February 2012 Analyst Presentation – EQT Corp – slide 9
    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…
  10. February 2012 Analyst Presentation – EQT Corp – slide 10
    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…
  11. February 2012 Analyst Presentation – EQT Corp – slide 11
    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…
  12. February 2012 Analyst Presentation – EQT Corp – slide 12
    Equitrans Expansion 2011 year-end capacity 1,000 MMcfd 2012 capacity expansions 700 MMcfd CapEx: 155 MM www.eqt.com 14
  13. February 2012 Analyst Presentation – EQT Corp – slide 13
    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 15
  14. February 2012 Analyst Presentation – EQT Corp – slide 14
    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 16
  15. February 2012 Analyst Presentation – EQT Corp – slide 15
    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…
  16. February 2012 Analyst Presentation – EQT Corp – slide 16
    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…
  17. February 2012 Analyst Presentation – EQT Corp – slide 17
    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…
  18. February 2012 Analyst Presentation – EQT Corp – slide 18
    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…
  19. February 2012 Analyst Presentation – EQT Corp – slide 19
    Appendix www.eqt.com 21
  20. February 2012 Analyst Presentation – EQT Corp – slide 20
    Capital Investment Summary 1,465 1,258 1,124 MM 933 889 *Excludes acquisitions Midstream Production Distribution www.eqt.com 22
  21. February 2012 Analyst Presentation – EQT Corp – slide 21
    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…
  22. February 2012 Analyst Presentation – EQT Corp – slide 22
    Risk Management Hedging 2012 2013 2014 Swaps Total Volume (Bcfe) 101 70 42 Average Price per Mcf (NYMEX)* 5.20 5.15 4.82 Collars Total Volume (Bcfe) 21 15 14 Average Floor Price per Mcf (NYMEX)* 6.51 6.12 6.37 Average Cap…
  23. February 2012 Analyst Presentation – EQT Corp – slide 23
    Non-GAAP Reconciliation Adjusted operating income Year Ended (millions) December 31, 2011 Adjusted operating income 658.40 Add back: gain on dispositions 202.90 Operating income 861.30 www.eqt.com 25
  24. February 2012 Analyst Presentation – EQT Corp – slide 24
    Price Reconciliation Three Months Ended Year Ended December 31, December 31, 2011 2010 2011 2010 Revenues ( / Mcfe) Average NYMEX price 3.55 3.80 4.04 4.39 Hedge impact 0.77 0.65 0.52 0.50 Average basis 0.06 0.12 0.13 0.13…
  25. February 2012 Analyst Presentation – EQT Corp – slide 25
    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…
  26. February 2012 Analyst Presentation – EQT Corp – slide 26
    Appendix Adjusted EBITDA Reconciliation (MM) 2008 2009 2010 2011 Midstream operating income 120 154 179 417 Add: depreciation and amortization 35 53 62 57 Less: gains on dispositions 203 Midstream EBITDA 155 207 241 271…
  27. February 2012 Analyst Presentation – EQT Corp – slide 27
    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…
  28. February 2012 Analyst Presentation – EQT Corp – slide 28
    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
  29. February 2012 Analyst Presentation – EQT Corp – slide 29
    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…

From the store

Browse maps, data & reports in the Shale Experts store