Click to edit Master title style EQT Midstream Partners, LP Investor Presentation March 2015
EQT Midstream Partners, LPtoNon-GAAP Click Measures edit Master title style The Partnership defines adjusted EBITDA means net income plus interest expense, depreciation and amortization expense, income tax expense (if applicable) and…
EQT Corporation Non-GAAP Click toMeasures edit Master title style The Partnership uses EQT Corporation Adjusted Midstream EBITDA as a financial measure in this presentation. EQT Corporation Adjusted Midstream EBITDA is defined as…
Introduction Click to edit Master title style Premier Assets in the Marcellus & Utica Visible Long- Drop-down Inventory term held by Distribution Sponsor (EQT) Growth EQT Midstream Partners (NYSE: EQM) 66% Per Unit…
Asset Overview Click to edit Master title style Transmission and Storage Assets Overlay Prolific Marcellus Play Equitrans Transmission & Storage 3.0 Bcf/d current capacity 700 mile FERC-regulated interstate pipeline 32 Bcf of gas…
Asset Overview Click to edit Master title style Strategically Located Pipeline Network Operational Flexibility System Optionality Moves gas from Marcellus gathering to 5 interstate pipelines Serves wet & dry Marcellus development…
Asset Overview Click to edit Master title style Marcellus Gathering Southwestern Pennsylvania Jupiter gathering system Jupiter Gathering System Acquired May 2014 Supports EQT growing production 45 miles of pipe Three compressor…
Asset Overview Click to edit Master title style Marcellus Gathering Northern West Virginia Northern WV Assets Northern WV Gathering System 70 miles of gathering pipe Nine compressor units 25,000 horsepower of compression Wet Gas…
Growth Strategies Click to edit Master title style Organic Growth Asset Acquisitions Expand existing assets Drop-downs from EQT Year-end 2014 transmission Corporation, our sponsor capacity of 3.0 Bcf/d is a 5-fold Acquired Sunrise…
Growth Strategy Expand ClickExisting Assets to edit Master title style Organic Growth - Antero Resources Highlights Asset Map West Side Expansion 100 MMcf/d incremental capacity In-service Q4 2014 East Side Expansion 100 MMcf/d…
Growth Strategy Expand ClickExisting Assets to edit Master title style Organic Growth - Range Resources Highlights Asset Map Gathering, compression, and transmission services Washington County, PA Transmission Expansion 100…
Growth Strategy Expand ClickExisting Assets to edit Master title style Organic Growth EQT & Peoples Natural Gas Highlights Asset Map 2015 - 2017 Expansions 400MM across several projects Pipeline looping Compression expansions…
Growth Strategy Extend ClickPipeline Network to edit Master title style Ohio Valley Connector Overview Project Map Connects transmission in West Virginia to Clarington, OH Accesses Texas Eastern and Rockies Express pipelines…
Growth Strategy Extend ClickPipeline Network to edit Master title style Mountain Valley Pipeline Overview Project Map Pipeline to growing natural gas demand market in southeast US 300-mile FERC-regulated pipeline 42 pipe…
Growth Strategy - Drop-downs from Click to edit EQT Master title style EQT is Strong Corporate Sponsor EQT Core Marcellus Areas EQT interest aligned with EQM 2% General Partner Interest 30% Limited Partner Interest EQT a…
Growth Strategy - Drop-downs from Click to edit EQT Master title style EQT Production Growth Requires Significant Infrastructure Marcellus Driving Growth MMcfe/d 1,800 Marcellus 2015E Annual Production 1,600 Huron horizontal…
Growth Strategy - Drop-downs from Click to edit EQT Master title style Inventory of Midstream Assets at Sponsor Midstream infrastructure growing to support production 21% 3-year EQT Corp. Adjusted Midstream EBITDA growth EQT…
Growth Strategy - Drop-downs from Click to edit EQT Master title style Gathering Assets EQT Marcellus Gathering Systems* Tioga 65 MMcf/d Longhorn 130 MMcf/d Terra Mercury 80 MMcf/d Applegate 150 MMcf/d Pandora Jupiter…
Growth Strategy - Drop-downs from Click to edit EQT Master title style Transmission Asset Allegheny Valley Connector Asset Location EQT acquired December 2013 200 mile FERC-regulated transmission pipeline 450 MMcf/d throughput…
Distribution Growth Click to edit Master title style Visible long-term distribution growth Forecasting 22% per unit distribution growth in 2015* 1.67x coverage ratio over trailing 12-months 0.94 Per Unit Distribution Forecast 0.88…
Stable Cash Flow Profile Click to edit Master title style Revenues driven by fixed fee, long-term contracts Minimal direct commodity exposure 16-year weighted average transmission contract life** Transmission & Storage Total…
Capitalized for Growth Click to edit Master title style Completed inaugural bond offering in 2014 500MM Senior notes 10-year tenure 4.0% coupon Closed August 1, 2014 BBB- (stable) / BBB- (stable) / Ba1 (stable) Targeting 3.5x…
Investment Highlights Click to edit Master title style Strategically located Marcellus assets Executing on growth strategy Expand existing assets Extend pipeline network Drop-downs from sponsor Significant cash distribution…
Click to edit Master title style Appendix
Appendix Click to edit Master title style Ownership Structure EQT Corporation NYSE: EQT Common Units Subordinated Units 100% indirect ownership interest EQT Midstream Services, LLC 30% indirect limited (Our General Partner)…
Appendix Click to edit Master title style Non-GAAP Reconciliation Non-GAAP Reconciliation ( thousands) 2014 Net income 232,773 Add: Interest expense, net 30,856 Depreciation and amortization expense 36,599 2014 Income tax expense…
Appendix Click to edit Master title style EQT Corporation Non-GAAP Reconciliation Non-GAAP Reconciliation ( million) EQT Corporation Adjusted Midstream EBITDA (millions) 2010 2011 2012 2013 2014 Midstream operating income 179…
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