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December 2015 Investor Presentation – EQT Corp

EQT Corp · Dec 7, 2015 · 32 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. December 2015 Investor Presentation – EQT Corp – slide 1
    Analyst Presentation December 2015
  2. December 2015 Investor Presentation – EQT Corp – slide 2
    Key Investment Highlights Extensive reserves of natural gas* 10.7 Tcfe Proved; 22 years R/P 42.8 Tcfe 3P; 87 years R/P 53 Tcfe Total Resource Potential; 108 years R/P Proven ability to profitably develop our reserves 25%…
  3. December 2015 Investor Presentation – EQT Corp – slide 3
    Leading Appalachian E&P Company 2014 Operating Income of 853.4 million 9,100 pipeline miles 10.7 Tcfe proved reserves 3.4 MM acres As of 12/31/2014 6
  4. December 2015 Investor Presentation – EQT Corp – slide 4
    Production By Play Marcellus Shale drilling driving growth 2,200 Marcellus / Deep Utica 2,000 Huron Other 1,800 1,600 1,400 Production MMcf/d 1,200 1,000 800 600 Began horizontal drilling 400 200 0 2006 2007…
  5. December 2015 Investor Presentation – EQT Corp – slide 5
    Reserves By Play Proved Reserve Growth 42.8 Tcfe 3P reserves (as of December 31, 2014) 12,000 Upper Devonian Other 10,739 455 10,000 Huron 760 Marcellus 8,348 1,240 215 8,000 861 Huron 11.9 Bcfe 1,316 6,004 6,000…
  6. December 2015 Investor Presentation – EQT Corp – slide 6
    Marcellus Play 600,000 EQT acres 86% NRI / 80% HBP 23.3 Tcfe 3P 31 Tcfe total resource potential Core 72 wells in 2016 Development Area 9
  7. December 2015 Investor Presentation – EQT Corp – slide 7
    Marcellus Core Development Area Near term development strategically focused on core 260,000 EQT acres 2,840 locations 526 wells online* 72 wells in 2016: 51 PA wells 21 WV wells 7,000 laterals 6.6 MM / well Core 14.5 Bcfe EUR…
  8. December 2015 Investor Presentation – EQT Corp – slide 8
    Core Marcellus IRR Wellhead After OpEx After Tax 450% 400% PRICE ATAX IRR 2.50 26% 3.00 54% 350% 3.50 95% 300% 250% 200% 150% 100% 50% 0% 2.50 3.00 3.50 Realized Price 11
  9. December 2015 Investor Presentation – EQT Corp – slide 9
    Utica Play 400,000 EQT acres 3,000 locations 1 well online* 2 wells in progress 5-10 wells in 2016 13,000 deep 5,200 laterals 12.5 14.0 MM / well** Scotts Run 591340 Pettit 593066 (2015) Greene County, PA Greene County, PA…
  10. December 2015 Investor Presentation – EQT Corp – slide 10
    Utica Play Type Curves - 5,400 lateral 35,000 Utica 5.9 MMcf/ft Utica 4.3 MMcf/ft 30,000 ATAX IRR (2.00 Realized Price) Well Cost 4.3 MMcf/ft 5.9 MMcf/ft 12.5 MM 34% 53% 25,000 14.0 MM 21% 37% Daily Production (Mcf/d)…
  11. December 2015 Investor Presentation – EQT Corp – slide 11
    Scotts Run Utica Well Update Cumulative Production, Pressure and Rate vs. Time 3,500 3,000 EUR: 5.9 Bcf / 1,000 2.3 Bcf / 1,000 recovered by day 254 Cumulative Production 2,500 (MMcf / 1,000 Lateral) EUR: 4.3 Bcf /…
  12. December 2015 Investor Presentation – EQT Corp – slide 12
    Industry Leading Cost Structure 7 3-year F&D (all sources) 6 5 Mean = 2.66 4 0.73 /Mcfe 3 2 1 0 RICE SWN MDU WLL COG CNX QEP AR RRC XCO EOG NBL SM CXO CHK EGN…
  13. December 2015 Investor Presentation – EQT Corp – slide 13
    EQT Corporation Midstream Overview Consolidated Transmission & Storage* 3.5 Bcf/d current capacity 47 Bcf gas storage capacity Gathering* 2 Bcf/d capacity Formed MLP in 2012 (NYSE: EQM) 600 700 EQT Corporation Adjusted EQT…
  14. December 2015 Investor Presentation – EQT Corp – slide 14
    EQT Corporation Midstream Marcellus Midstream Assets Allegheny Valley Allegheny Tioga Valley 65 MMcf/d Connector Connector 200-mile FERC pipeline Longhorn 130 MMcf/d 450 MMcf/d capacity 40 MM projected annual Terra 80 MMcf/d…
  15. December 2015 Investor Presentation – EQT Corp – slide 15
    EQT GP Holdings, LP (NYSE: EQGP) EQT owns 90% LP interest of EQGP EQGP owns in EQM* 28% limited partner interest 1.8% general partner interest incentive distribution rights EQGP Price Value of EQGP Units Value per per Unit…
  16. December 2015 Investor Presentation – EQT Corp – slide 16
    EQT Midstream Partners, LP (NYSE: EQM) Transmission & Storage 3.1 Bcf/d current capacity 700 mile FERC-regulated interstate pipeline 32 Bcf of gas storage capacity Gathering System Jupiter Gathering System Supports EQT PA dry…
  17. December 2015 Investor Presentation – EQT Corp – slide 17
    EQT Midstream Partners, LP Growth Projects Ohio Valley Connector 36-mile FERC regulated pipeline to connect transmission in West Virginia to Clarington, OH Year-end 2016 in-service 1 Bcf/d capacity 650 MMcf/d contracted under…
  18. December 2015 Investor Presentation – EQT Corp – slide 18
    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…
  19. December 2015 Investor Presentation – EQT Corp – slide 19
    Drilling and Hydraulic Fracturing Committed to operate in accordance with federal, state and local regulations Industry leading spill prevention plans and results Supports the disclosure of frac fluid additives Utilize multiple…
  20. December 2015 Investor Presentation – EQT Corp – slide 20
    Investment Summary Extensive reserves of natural gas Proven ability to profitably develop our reserves 25% production sales volume growth in 2015 18% production sales volume growth in 2016 Strong liquidity position Committed to…
  21. December 2015 Investor Presentation – EQT Corp – slide 21
    Appendix 24
  22. December 2015 Investor Presentation – EQT Corp – slide 22
    Liquids Volume Growth and Marcellus Impact Liquids Volume Growth Marcellus Liquids Price Impact 5.00 (1200 Btu Gas) NGLs (1.6 Gal/Mcf) 12,000 Btu Premium NYMEX 4.00 10,000 3.27 3.23 3.00 0.54 0.39 8,000 /Mcf 0.12…
  23. December 2015 Investor Presentation – EQT Corp – slide 23
    Capital Investment Summary 1.9 1.8 1.6 1.3 1.0 Midstream Production Distribution Excludes acquisitions and EQT Midstream Partners, LP 26
  24. December 2015 Investor Presentation – EQT Corp – slide 24
    Marcellus Play Development Areas Undeveloped Acres Undeveveloped Total Locations Locations PA Core 145,000 116,000 1,610 1,300 WV Core 115,000 92,000 1,230 980 PA Tier 2 200,000 189,000 1,600 1,520 WV Tier 2 140,000 136,000…
  25. December 2015 Investor Presentation – EQT Corp – slide 25
    Type Curves - 5,400 lateral Core Marcellus vs Utica 35,000 Utica 5.9 MMcf/ft Utica 4.3 MMcf/ft Core Marcellus 2.1 MMcf/ft 30,000 25,000 Daily Production (Mcf/d) 20,000 15,000 10,000 5,000 0 0 10 20 30 40…
  26. December 2015 Investor Presentation – EQT Corp – slide 26
    Marcellus Play Core Type Curve - 5,400 lateral 15,000 14,000 13,000 12,000 11,000 Daily Production (Mcf/d) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 0 10 20 30 40 50 60 70 80 90…
  27. December 2015 Investor Presentation – EQT Corp – slide 27
    Marcellus Capacity EQT Capacity & Firm Sales Market Mix Q4 2015 2016E 2017E TETCO M2 2931% 1921% 1416% TETCO M3 3436% 3133% 2830% TCO 1011% 910% 68% Midwest 1011% 2325% 3234% NYMEX 1416% 1214% 1517% 30
  28. December 2015 Investor Presentation – EQT Corp – slide 28
    Risk Management Hedge Position as of October 21, 2015 300 4.50 4.14 3.85 3.64 4.00 250 3.50 200 3.16 3.00 2.94 / Mcf 2.50 Bcf 2.70 150 2.00 100 1.50 1.00 50 0.50 84 248 110 - 0.00 2015 2016 2017 (3)…
  29. December 2015 Investor Presentation – EQT Corp – slide 29
    Ample Financial Flexibility to Execute Business Plan EQT Debt ratings Moodys Standard & Poors Fitch Long-term debt Baa3 BBB BBB- Outlook Stable Stable Stable Strong balance sheet ( MM, except net debt / capital) Sept. 30,…
  30. December 2015 Investor Presentation – EQT Corp – slide 30
    Price Reconciliation Three Months Ended Nine Months Ended September 30, September 30, in thousands (unless noted) 2015 2014 2015 2014 LIQUIDS NGLs: Sales volume (MMcfe) (a) 13,827 12,047 39,552 27,768 Sales volume (Mbbls) 2,304…
  31. December 2015 Investor Presentation – EQT Corp – slide 31
    Price Reconciliation (continued) Three Months Ended Nine Months Ended September 30, September 30, in thousands (unless noted) 2015 2014 2015 2014 Midstream Deductions (/Mcfe) Gathering to EQT Midstream (0.72) (0.74) (0.74) (0.74)…
  32. December 2015 Investor Presentation – EQT Corp – slide 32
    Non-GAAP Reconciliation EQT Corporation Adjusted EQT Midstream EBITDA (millions) 2010 2011 2012 2013 2014 Midstream operating income 179 417 237 329 384 Add: depreciation and amortization 62 57 65 75 87 Less: gains on dispositions 203…

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