EQT Non-GAAP Measures The Company uses adjusted EQT Midstream EBITDA as a financial measure in this presentation. Adjusted EQT Midstream EBITDA is defined as EQT Midstream operating income (loss) plus depreciation and amortization…
Key Investment Highlights Extensive reserves of natural gas* 6.0 Tcfe Proved; 23 years R/P 25.9 Tcfe 3P; 100 years R/P 35.4 Tcfe Total Resource Potential; 135 years R/P Proven ability to profitably develop our reserves 30%…
Leading Appalachian E&P Company 2012 operating income 470.5 million 6.0 Tcfe proved res. 11,000 pipeline miles 275,000 customers 3.5 MM acres www.eqt.com 6
Production By Play Marcellus Shale drilling driving growth 1,400 Marcellus 1,200 Huron horizontal CBM 1,000 Vertical Production MMcf/d 800 600 Began horizontal drilling 400 200 0 2006 2007 2008 2009 2010 2011…
Reserves By Play Proved Reserve Growth 25.9 Tcfe 3P reserves 7,000 (as of December 31, 2012) CBM/Other 6,004 6,000 Huron 5,365 761 Marcellus 5,220 5,000 889 866 965 4,068 Huron 7.4 4,000 1,062 Bcfe 991 1,475 3,110 Other…
Marcellus Play Central PA 560,000 EQT acres 87% NRI / 85% HBP 15.7 Tcfe 3P 21.0 Tcfe resource potential Southwestern PA 146 wells in 2013 70% YOY production growth 50% of acreage will utilize RCS Northern WV Near term…
Marcellus Play Southwestern PA Prolific dry gas region 95,000 EQT acres 1,080 locations 135 wells online* 62 wells in 2013 Kevech Pad 4,800 foot laterals 2 wells 2,762 Avg Lateral Length per well 87 acre spacing 10,112 Mcfe Avg…
Marcellus Play Northern West Virginia Wet Gas Area Enhanced economics from liquids uplift Big 176 Pad 6 wells 3,688 Avg Lateral Length per well 90,000 EQT acres 8,103 Mcfe Avg 30-day IP per well 1,065 locations 95 wells…
Marcellus Play Central Pennsylvania Early stages of acreage delineation 80,000 EQT acres Frano Pad 2 wells 3,614 Avg Lateral Length per well 727 locations 7,970 Mcfe Avg 30-day IP per well 37 wells online* 10 wells in 2013…
Marcellus Economics IRR - Blended Marcellus Development Areas 250% Wellhead After OpEx After Tax 200% 150% 100% 50% NYMEX ATAX IRR 4.00 58% 4.50 76% 5.00 96% 0% 3.00 3.50 4.00 4.50 5.00 See appendix for IRR by…
Upper Devonian Play 170,000 EQT acres 5 - 6 MM / well 22 wells in 2013 6.0 Bcfe EUR / well 4,800 ft avg lateral length 2013 drilling program to delineate acreage position www.eqt.com 14
Utica Play 13,600 EQT acres Guernsey County, Ohio 9.4 MM / well 8 wells in 2013 6,000 ft avg lateral length in 2013 EQT CNX Chesapeake Range Enervest Eclipse Anadarko XTO Gulfport HG Energy www.eqt.com 15
Industry Leading Cost Structure 7.50 3-year F&D (all sources) 1.30 Mean = 2.99 5.00 /Mcfe 2.50 0.00 PQ SD SM RRC SWN CHK EQT NBL QEP EOG COG NFX CLR PXD WLL PETD DVN…
Midstream Overview Transmission & Storage Gathering Marketing EQT Midstream Total Transmission capacity (BBtu/d) 2,100 Miles of transmission pipeline 700 Marcellus gathering capacity (BBtu/d) 1,115 Miles of Marcellus gathering…
Midstream Overview EQT Production sales drives EQT Midstream EBITDA growth 70% of Midstream revenues from EQT Corporation Fixed fee contracts Transmission contracts with 10-year weighted average life* Minimal direct commodity…
EQT Midstream Partners, LP (NYSE: EQM) Equitrans transmission and storage 2.1 Tbtu/d current capacity 700 mile FERC-regulated interstate pipeline 32 Bcf of working gas storage Highlights market valuation of midstream assets EQT…
EQT Midstream Marcellus Gathering Total 2012 2013 capacity year-end capacity after (MMcf/d) capacity additions additions Pennsylvania 765 400 1,165 West Virginia 350 0 350 Total 1,115 400 1,515 2013 CAPEX 190 MM 2013…
Distribution Pending Transaction Sale of Equitable Gas to Peoples Natural Gas Expected approval by year-end 2013 720MM cash + midstream assets Marcellus midstream assets 40 MM annual EBITDA* 200 miles of transmission pipe 15…
Pittsburghs Strip District NGV Station 1.6 million investment Sales Volumes Expect cashflow break-even volumes (200,000 gal) in 2013 12% return = 450,000 gal/yr. 31% 25% Vehicles have the potential to use 20 25 Tcf / year in the…
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 Hydraulic Fracturing 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…
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 27
Capital Investment Summary 1,800 1,515* 1,217 1,222* 1,120 1,200 MM 933 600 0 2009 2010 2011 2012 2013F Midstream Production Distribution *Excludes acquisitions and EQT Midstream Partners, LP www.eqt.com 28
Marcellus Acreage Acquisition Chesapeake Marcellus Southwestern PA June 3, 2013 Overview Asset Map 99,000 acres / 67,000 net Marcellus acres 25,000 core acres: Washington, Greene and Allegheny counties 97.5% average WI 81.5%…
Marcellus Play Type Curves by Area - 4,800 lateral Type curve and well cost data posted on www.eqt.com under investor relations www.eqt.com 30
Marcellus Play Acres Within Each Core Development Area EQT has 560,000 total Marcellus acres Expect to develop in three areas for several years Active areas represent 265,000 acres and 2,875 locations EQT has 115,000 additional…
Marcellus Economics IRR - Southwestern PA 300% Wellhead After OpEx After Tax 250% 200% 150% 100% NYMEX ATAX IRR 50% 4.00 63% 4.50 88% 5.00 119% 0% 3.00 3.50 4.00 4.50 5.00 Oil price held constant at 92.50 /bbl…
Marcellus Economics IRR - Northern WV Wet Gas Area 300% Wellhead After OpEx After Tax 250% 200% 150% 100% NYMEX ATAX IRR 50% 4.00 82% 4.50 99% 5.00 118% 0% 3.00 3.50 4.00 4.50 5.00 Oil price held constant at 92.50…
Marcellus Economics IRR - Central PA 80% Wellhead After OpEx After Tax 70% 60% 50% 40% 30% 20% NYMEX ATAX IRR 4.00 20% 10% 4.50 28% 5.00 37% 0% 3.00 3.50 4.00 4.50 5.00 Oil price held constant at 92.50 /bbl…
EQT Midstream Partners, LP (NYSE: EQM) Sunrise Pipeline Sale July 22, 2013 EQT Midstream Partners acquired 507.5 MM cash 110 million additional consideration pending third- party transportation agreement 32.5 MM of common and…
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 200 MDth/d TETCO:…
Ample Financial Flexibility to Execute Business Plan Debt ratings Moodys Standard & Poors Fitch Long-term debt Baa3 BBB BBB- Outlook Stable Stable Stable Commercial paper P-3 A-2 F3 Strong balance sheet ( thousands, except…
Risk Management Hedging 2013** 2014 2015 Fixed Price Total Volume (Bcf) 102 138 69 Average Price per Mcf (NYMEX)* 4.55 4.47 4.59 Collars Total Volume (Bcf) 13 24 23 Average Floor Price per Mcf (NYMEX)* 4.95 5.05 5.03 Average…
Price Reconciliation Three Months Ended Six Months Ended June 30, June 30, in thousands (unless noted) 2013 2012 2013 2012 LIQUIDS Natural Gas Liquids (NGLs): Gross NGL Revenue 49,260 35,323 100,683 79,263 BTU Premium (Ethane sold…
Per Unit Operating Expenses Three Months Ended Six Months Ended June 30, June 30, 2013 2012 2013 2012 Production segment costs: ( / Mcfe) LOE 0.16 0.20 0.16 0.20 Production taxes* 0.14 0.17 0.15 0.18 SG&A 0.25 0.37 0.27 0.38…
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