EQT Midstream Partners, LP Non-GAAP Measures EQM and EQGP use EQM adjusted EBITDA and EQM distributable cash flow as financial measures in this presentation. EQM adjusted EBITDA is defined in this presentation as EQM net income plus…
EQT Corporation Non-GAAP Measures EQM and EQGP use EQT Corporation Adjusted Midstream EBITDA as a financial measure in this presentation. EQT Corporation Adjusted Midstream EBITDA is defined as EQT Corporations midstream business…
Ownership Structure Recently completed Initial Public Offering of EQGP EQT Corporation NYSE: EQT 239.7 million EQGP Common Units EQGP Non-economic GP EQT Retained Midstream EQT Non-economic General 90.1% Limited Operations…
Introduction Premier Assets in the Marcellus & Utica Targeting Drop-down 20% Annual Inventory Distribution held by Growth at Sponsor (EQT) EQM 83% Per EQM Unit Growing Distribution Third-party 3.3 Billion Increase since…
Asset Overview Transmission and Storage Assets Overlay Prolific Marcellus Play Equitrans Transmission & Storage 3.1 Bcf/d current capacity 700 mile FERC-regulated interstate pipeline 32 Bcf of gas storage capacity Sunrise…
Asset Overview Strategically Located Pipeline Network Operational Flexibility System Optionality Moves gas from Marcellus gathering to 5 interstate pipelines Serves wet & dry Marcellus development areas Connects to 4 LDCs 14…
Asset Overview Marcellus Gathering Gathering Systems Jupiter gathering system Acquired from EQT May 2014 10-year demand based fixed-fee contract Supports EQT growing dry gas production in Southwestern PA Cash flows forecast to…
Growth Strategies Organic Growth Asset Acquisitions Expand existing assets Drop-downs from EQT Transmission capacity of 3.1 Corporation, our sponsor Bcf/d is a 5-fold increase from Acquired Sunrise Pipeline from 2009 EQT in 2013…
Growth Strategy Expand Existing Assets Organic Growth Highlights Third-party Projects Expanded Equitrans Range transmission capacity from Gathering 600 MMcf/d to 3.1 Bcf/d and Header Expansion projects for EQT Project production,…
Growth Strategy Extend Pipeline Network Ohio Valley Connector Overview Asset Map Connects transmission in West Virginia to Clarington, OH Access to Texas Eastern and Rockies Express pipelines Provides Utica producers access to…
Growth Strategy Extend Pipeline Network Mountain Valley Pipeline Overview Project Map Pipeline to growing natural gas demand market in southeast US 300-mile FERC-regulated pipeline 42 pipe diameter 3.0B-3.5B total project cost…
Growth Strategy - Drop-downs from EQT EQT is Strong Corporate Sponsor EQT Core Marcellus Areas EQT interest aligned with EQM / EQGP 90% ownership of EQGP EQT a prominent Marcellus producer 26% sales volume growth in 2014 10.7…
Growth Strategy - Drop-downs from EQT EQT Production Growth Requires Significant Infrastructure Marcellus Driving Growth MMcfe/d 1,800 Marcellus 2015E Annual Production 1,600 Huron Growth of 25% Other 1,400 1,200 1,000…
Growth Strategy Drop-downs from EQT Inventory of Midstream Assets at Sponsor Midstream infrastructure growing to support production 21% 3-year EQT Corp. Adjusted Midstream EBITDA growth EQT Corporation Adjusted Midstream EBITDA*…
Growth Strategy - Drop-downs from EQT Gathering and Transmission Assets Asset Overview Asset Location Marcellus gathering EQT investing 75MM - 100MM Tioga in 2015 65 MMcf/d Allegheny Valley Connector Longhorn 130 MMcf/d 200 mile…
EQM Distribution Growth EQM targeting 20% annual distribution growth through 2017 Translates to 40% annual distribution growth for EQGP Strong coverage ratio & stable cash flow support forecast 1.00 0.94 0.94 0.91 0.88 0.88…
Stable Cash Flow Profile Revenues driven by fixed fee, long-term contracts Minimal direct commodity exposure 16-year weighted average transmission contract life** Revenue Mix Transmission & Storage by Fee Structure* Revenue Mix by…
EQM Capitalized for Growth Targeting 3.5x Debt to EBITDA Current ratings BBB- (Stable) BBB- (Stable) Ba1 (Stable) Strong liquidity position 440MM available on 750MM revolving credit facility* 500MM long-term debt…
Investment Highlights EQM EQGP Strategically located assets Expected to be one of the in the rapidly growing fastest growing MLPs Marcellus & Utica play Strong sponsor in EQT Executing on growth Growth driven by EQM strategy…
Appendix
EQM 2015 Guidance Adjusted EBITDA: 435 - 445 million Distributable cash flow: 390 - 400 million Expansion capital*: 470 - 500 million Ongoing maintenance CAPEX**: 20 - 25 million 23 *Includes growth CAPEX and capital…
Appendix EQM Non-GAAP Reconciliation Non-GAAP Reconciliation ( thousands) 2014 2014 Net income 266,500 Add: Net cash provided by operating activities 300,546 Interest expense 30,856 Adjustments: Depreciation and amortization…
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