Key Investment Highlights We have extensive reserves of natural gas* 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 reserves Superior and…
2nd Quarter 2011 Highlights 43% organic production sales growth Announced the sale of the Big Sandy Pipeline for 390 million; closed on July 1, 2011 25% increase in EQT Midstream operating income www.eqt.com 4
Leading Appalachian E&P Company 2010 operating income 470.5 million 5.2 Tcfe proved res. 12,000 pipeline miles 275,000 customers 3.5 MM acres www.eqt.com 5
Reserves By Play As of December 31, 2010 5.2 Tcfe proved reserves 21.2 Tcfe 3P reserves Other 0.8 Marcellus 2.9 Huron 1.5 Marcellus 12.2 Huron 7.4 32 Tcfe Total Resource Potential www.eqt.com 6
Marcellus Play 520,000 EQT acres 10 wells 12.2 Tcfe 3P OH 20 Tcfe resource potential 6.0 MM / well* 57 wells PA 7.3 Bcfe EUR / well* MD 5,300 ft average length 33 wells 100 wells in 2011 WV EQT Acreage Extended laterals…
Marcellus Economics 72% ATAX Return at 5.00 NYMEX www.eqt.com 8
Marcellus New Frac Design 9
Marcellus New Frac Design Illustrative Preliminary Results, 900 of horizontal wellbore Standard Design New Design 3 Stages 6 Stages Total number 677 1843 of events Average New Design events per 226 307 stage Area of…
Huron Play 2.7 MM EQT acres 7.4 Tcfe 3P WV 10 Tcfe resource potential 1.4 Bcfe EUR / well KY 1.4 MM / well 120 wells 5,200 ft. average length VA 120 wells in 2011 EQT Acreage High liquids content adds to return Focus…
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 20112011E…
EQTs Performance Horizontal Shale Drilling Driving Growth Horizontal Marcellus Total Sales Volumes 200 600,000 120 500,000 100 Number of wells 150 400,000 80 Feet of pay 300,000 60 Bcfe 200,000 40 100 100,000…
Industry Leading Cost Structure 6.00 3-year F&D (all sources) Mean = 2.78 0.93 /Mcfe 3.00 0.00 APA PVA APC WLL SWN DVN WMB VQ UPL NBL BEXP QEP EP NFX GDP RRC…
EQT Midstream Gather and transport EQT Productions gas 11,000 miles of gathering pipe 256,000 HP compression 700 miles of FERC regulated pipelines Equitrans interconnects 5 interstate pipelines 63 Bcfe of underground storage 2011…
Equitrans Expansion Existing capacity 700 MMcfd Current expansion opportunities: 2011 2012 Capacity Addition 130 430 (MMcfd) Capital 110 120 (MM) Future expansion opportunities: 470 MMcfd for 50 MM Legend Existing…
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 Expected completion YE…
Regional Distributor . PA, WV, KY 275,000 customers Natural Gas Vehicles (NGV) Built 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…
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 23
Capital Investment Summary *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 Manageable debt…
Risk Management Hedging 2011** 2012 2013 Swaps Total Volume (Bcf) 45 80 29 Average Price per Mcf (NYMEX)* 4.88 5.31 5.64 Puts Total Volume (Bcf) 1 Average Floor Price per Mcf (NYMEX)* 7.35 Collars Total Volume (Bcf) 11 21…
Price Reconciliation Three Months Ended Six Months Ended June 30, June 30, 2011 2010 2011 2010 Revenues ( / Mcfe) Average NYMEX price 4.31 4.09 4.21 4.70 Hedge impact 0.38 0.55 0.42 0.39 Average basis 0.18 0.13 0.19 0.18 Average…
Per Unit Operating Expenses www.eqt.com 29
2010 Operational Review Top Marcellus Wells Flow (MMcfd) Operator Well County, State 23.0* EQT Corp 590036 Phillips Greene, PA 22.2* EQT Corp. 590384 Cooper Greene, PA 21.0 Atlas Energy Resources Unknown Westmoreland, PA 20.0 Cabot…
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
Marcellus Play Acres Within Each Type Curve Area Curve Total acres, PA Total acres, WV Total acres of locations 9.0 Bcf 109,000 36,000 145,000 1,190 7.4 Bcf 83,500 31,500 115,000 940 6.4 Bcf 45,000 215,000 260,000 2,130 Total 237,000…
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