Ownership Structure EQT 239.7 million EQGP Common Units EQGP Non-economic GP EQT Retained Midstream EQT Non-economic General 90% Limited Operations Production Partner Interest Partner Interest Drop inventory 40mm EBITDA…
Investment Highlights Premier Strong Assets in the Balance Sheet Marcellus & Targeting Less than 1.5x Deep Utica 20% Annual Debt/EBITDA Distribution Growth at 83% of EQM Revenue from Capacity Reservation 1.67x EQM Charges…
Asset Overview Transmission and Storage Assets Overlay Prolific Nat Gas Plays 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 and Utica gathering to 5 interstate pipelines Serves wet & dry Marcellus development areas Connects to 4…
Asset Overview Marcellus Gathering Jupiter SW Pennsylvania Northern West Virginia Acquired from EQT May 2014 Acquired from EQT March 10-year demand based fixed- 2015 fee contract 10-year demand based fixed- Supports EQT growing dry…
Asset Overview Deep Utica Potential Deep Utica Growth Opportunity EQT Deep Utica Position 400,000 EQT acres 3,000 locations Shipman 593894 Pettit 593066 Greene County, PA Greene County, PA 7,000 lateral Demand for incremental…
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 Asset Location in Heart of Marcellus Play Supply source creates expand and extend opportunities 11 Map depicts gas in place estimates
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 Provides Marcellus producers access to Midwest markets Provides Utica producers access to Equitrans transmission system Began construction in…
Growth Strategy Extend Pipeline Network Mountain Valley Pipeline Overview Project Map Pipeline to growing natural gas demand market in southeast US 301-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 and Dry Utica producer 27% sales volume growth…
Distribution Growth EQM EQGP 1.67x coverage trailing 12- 1.0x target coverage 1.06 0.30 months 55% distribution growth in 2016 1.00 20% annual distribution 40%+ distribution growth in 2017 0.27 growth through 2017 0.94 0.24…
Stable Cash Flow Profile Revenues driven by capacity reservation charges under long-term firm contracts Stable cash flow supports visible distribution growth 16-year weighted average transmission contract life** Revenue Mix…
EQM Capitalized for Growth Targeting 3.5x Debt to EBITDA Current ratings BBB- (S&P) BBB- (Fitch) Ba1 (Moodys) Strong liquidity position 741MM revolver availability* 500MM long-term debt outstanding 18 *As of March 31,…
Investment Highlights EQM EQGP Strategically located assets Expected to be one of the in the rapidly growing fastest growing MLPs Marcellus & Deep Utica 55% distribution growth in Executing on growth 2016 strategy 40%…
EQM 2016 Guidance Adjusted EBITDA: 540 - 560 million Distributable cash flow: 470 - 490 million Expansion capital*: 695 - 725 million Ongoing maintenance CAPEX**: 25 million 20 *Includes growth CAPEX and capital contributions…
Appendix
Growth Strategy - Drop-down from EQT Gathering and Transmission Assets Asset Overview Asset Location Marcellus gathering Tioga Allegheny Valley Connector 65 MMcf/d 200 mile FERC-regulated Longhorn transmission pipeline 130…
Growth Strategy EQT Production Growth Requires Significant Infrastructure Marcellus Production Driving Growth 2,200 Marcellus 2,000 2016E Annual Production Other Growth of 19% 1,800 1,600 1,400 MMcfe/d 1,200 1,000…
Appendix EQM Non-GAAP Reconciliation Non-GAAP Reconciliation ( thousands) Year-ended December 31, (Thousands) 2015 Year-ended Net income 393,450 December 31, 2015 Add: Interest expense 45,661 Net cash provided by operating…
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