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…
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 7
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 50 wells 132 wells in 2012 WV EQT Acreage Extended…
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…
Industry Leading Cost Structure 7.50 3-year F&D (all sources) 5.00 Mean = 2.07 1.13 /Mcfe 2.50 0.00 PETD PXD NFX PVA HK CLR SWN EP SM PQ VQ SD WLL COG GDP EOG QEP…
Liquids Marcellus Wet Gas Economics 35% of EQTs Marcellus acreage is wet 120 MMcfe / day incremental processing capacity by YE 2012 Liquids Fractionation NGLs 1.79 / Mcf(1) (C3+) Wellhead Gas Cryogenic 1 Mcf Processing Btu =…
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…
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…
EQT Midstream Partners, LP EQT Alignment EQT received 231 MM cash from IPO Maintain control of important complementary asset Aligns sponsor with EQT Midstream Partners Establish a source of ongoing low-cost capital Ample drop-down…
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 TETCO: 200,000 Dth/d to…
Regional Distributor . PA, WV, KY 275,000 customers Natural Gas Vehicles (NGV) Built refueling station in Pittsburgh in 2011 Targeting return-to-base fleets www.eqt.com 20
Pittsburghs Strip District NGV Station 1.6 million Equitable Gas Company investment 0.7 million Pennsylvania state grant Break even = 200,000 gal/yr 12% return = 450,000 gal/yr Vehicles have the potential to use 20 25 Bcf /…
Marcellus Rig Conversion EQT is first Marcellus operator to use Marcellus natural gas to power drilling rigs Two rigs converted in 2012 additional conversions planned Provides cleaner burning alternative fuel 20-30% less carbon…
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 1,258 1,300 1,400 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 As of September…
Risk Management Hedging 2012** 2013 2014 2015 Swaps Total Volume (Bcf) 32 108 62 51 Average Price per Mcf (NYMEX)* 4.71 4.75 4.61 4.70 Collars Total Volume (Bcf) 5 25 24 23 Average Floor Price per Mcf (NYMEX)* 6.51 4.95 5.05…
Price Reconciliation Three Months Ended Nine Months Ended September 30, September 30, 2012 2011 2012 2011 Revenues ( / Mcfe) Average NYMEX price 2.81 4.19 2.59 4.21 Hedge impact 1.10 0.44 1.30 0.42 Average basis (0.03) 0.08 (0.01)…
Per Unit Operating Expenses Three Months Nine Months Ended Ended September 30, September 30, 2012 2011 2012 2011 Production segment costs: ( / Mcfe) LOE 0.18 0.22 0.19 0.21 Production taxes 0.16 0.25 0.17* 0.21 SG&A 0.35 0.30…
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 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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