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Credit Suisse 21st Annual Energy Summit – EQT Corp

EQT Corp · Feb 23, 2016 · 29 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. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 1
    Analyst Presentation February 2016
  2. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 2
    Key Investment Highlights Extensive reserves of natural gas 10.0 Tcfe proved; 16 years R/P 6.3 Tcfe proved developed 78 Tcfe total resource potential Proven ability to profitably develop our reserves Six consecutive years of 25%…
  3. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 3
    Leading Appalachian E&P Company 2015 Operating Income of 563.1 million 3.4 MM acres As of 12/31/2015 5
  4. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 4
    Production By Play Marcellus Shale drilling driving growth 2,200 Marcellus 2,000 Other 1,800 1,600 1,400 Production MMcf/d 1,200 1,000 800 600 400 200 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015…
  5. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 5
    Proved Reserves 12.0 10.0 8.0 3.7 5.9 Tcfe 6.0 4.4 2.4 3.2 4.0 6.3 4.8 2.0 4.0 3.0 2.8 0.0 2011 2012 2013 2014 2015 Proved Developed Proved Undeveloped 78 Tcfe Total Resource Potential As of 12/31/2015 7
  6. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 6
    Marcellus Play 600,000 EQT acres 86% NRI / 80% HBP 7.8 Tcfe proved reserves 31 Tcfe total resource potential 72 wells in 2016 Core Development Area 8
  7. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 7
    Marcellus Core Development Area Near term development strategically focused on core 260,000 EQT acres 2,840 locations 573 wells online* 72 wells in 2016: 51 PA wells 21 WV wells 7,000 laterals 6.3 MM / well Core 14.5 Bcfe EUR…
  8. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 8
    Core Marcellus IRR Wellhead After OpEx After Tax 350% PRICE ATAX IRR 2.00 11% 300% 2.50 33% 3.00 67% 250% 200% 150% 100% 50% 0% 2.00 2.50 3.00 Realized Price 10
  9. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 9
    Utica Play 400,000 EQT acres 3,000 locations 2 wells online* 2 wells in progress 5-10 wells in 2016 Scotts Run 591340 Greene County, PA 13,000 to 13,500 deep 3,221 treated interval 24 hr. IP: 72.9 MMcf 5,200 laterals 22.6 MMcf…
  10. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 10
    Scotts Run Utica Well Update Cumulative Production, Pressure and Rate vs. Time 4,000 EUR: 5.9 Bcf / 1,000 3,500 Cumulative Production 3,000 EUR: 5.1 Bcf / 1,000 (MMcf / 1,000 Lateral) 2,500 2.6 Bcf / 1,000 recovered 2,000…
  11. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 11
    Scotts Run Utica Type Curves - 5,400 lateral 35,000 30,000 Utica 5.9 MMcf/ft Utica 5.1 MMcf/ft 25,000 Daily Production (Mcf/d) 20,000 15,000 10,000 5,000 0 0 10 20 30 40 50 60 70 80 90 100 Time in Months…
  12. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 12
    EQT Corporation Midstream Overview Consolidated Transmission & Storage* 3.6 Bcf/d current capacity 47 Bcf gas storage capacity Gathering* 2 Bcf/d capacity Formed MLP in 2012 (NYSE: EQM) EQT Corporation Adjusted EQT Midstream…
  13. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 13
    EQT Corporation Midstream 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 EBITDA…
  14. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 14
    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…
  15. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 15
    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 Marcellus Gathering System Jupiter Gathering System PA dry…
  16. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 16
    EQT Midstream Partners, LP Growth Projects Ohio Valley Connector 37-mile FERC regulated pipeline to connect transmission in West Virginia to Clarington, OH Year-end 2016 in-service 1 Bcf/d capacity 650 BBtu/d contracted under…
  17. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 17
    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…
  18. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 18
    Investment Summary Extensive reserves of natural gas Proven ability to profitably develop our reserves Six consecutive years of 25% production growth 18% production sales volume growth in 2016 Strong liquidity position Committed…
  19. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 19
    Appendix 21
  20. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 20
    Liquids Volume Growth and Marcellus Impact Liquids Volume Growth Marcellus Liquids Price Impact (1200 Btu Gas) NGLs (1.6 Gal/Mcf) 12,000 Btu Premium NYMEX 4.00 10,000 8,000 3.00 2.85 2.70 /Mcf 0.48 0.22 0.10 6,000…
  21. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 21
    Capital Investment Summary Excludes acquisitions and EQT Midstream Partners, LP 23
  22. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 22
    Type Curves - 5,400 lateral Core Marcellus vs Scotts Run Utica 24
  23. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 23
    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…
  24. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 24
    Marcellus Capacity EQT Capacity & Firm Sales Market Mix 2016E 2017E TETCO M2 2022% 1214% TETCO M3 3537% 3133% TCO 810% 68% Midwest 1921% 3032% NYMEX 1315% 1517% 26
  25. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 25
    Risk Management Hedge Position as of December 31, 2015 350 4.00 3.59 3.41 300 3.50 3.16 3.00 250 2.91 2.79 2.50 / Mcf 200 2.49 Bcf 2.00 150 1.50 100 1.00 50 0.50 324 172 71 - 0.00 2016 2017 2018 Hedged…
  26. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 26
    Ample Financial Flexibility to Execute Business Plan EQT Debt ratings Moodys Standard & Poors Fitch Long-term debt Baa3 BBB BBB- Outlook Under review Stable Stable Strong balance sheet ( MM, except net debt / capital) Dec. 31,…
  27. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 27
    Price Reconciliation Three Months Ended Year Ended December 31, December 31, in thousands (unless noted) 2015 2014 2015 2014 LIQUIDS NGLs: Sales volume (MMcfe) (a) 11,978 12,819 51,530 40,587 Sales volume (Mbbls) 1,996 2,135 8,588…
  28. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 28
    Price Reconciliation (continued) Three Months Ended Year Ended December 31, December 31, in thousands (unless noted) 2015 2014 2015 2014 TOTAL PRODUCTION Total net natural gas & liquids sales, including cash settled derivatives 480,330…
  29. Credit Suisse 21st Annual Energy Summit – EQT Corp – slide 29
    Non-GAAP Reconciliation EQT Corporation Adjusted EQT Midstream EBITDA (millions) 2011 2012 2013 2014 2015 Midstream operating income 417 237 329 384 473 Add: depreciation and amortization 57 65 75 87 95 Less: gains on dispositions 203…

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