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October 2016 Analyst Presentation – EQT Corp

EQT Corp · Oct 10, 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. October 2016 Analyst Presentation – EQT Corp – slide 1
    Analyst Presentation October 2016
  2. October 2016 Analyst Presentation – 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. October 2016 Analyst Presentation – EQT Corp – slide 3
    Leading Appalachian E&P Company 2015 Operating Income of 563.1 million 10.0 Tcfe proved reserves 9,100 pipeline miles 3.4 MM acres 5 As of 12/31/2015
  4. October 2016 Analyst Presentation – EQT Corp – slide 4
    Production By Play Marcellus Shale drilling driving growth 2,200 Marcellus 2,000 Other 1,800 1,600 Production MMcf/d 1,400 1,200 1,000 800 600 400 200 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015…
  5. October 2016 Analyst Presentation – 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 7 As of 12/31/2015
  6. October 2016 Analyst Presentation – EQT Corp – slide 6
    Marcellus Play 660,000 EQT acres 86% NRI / 80% HBP 7.8 Tcfe proved reserves 31 Tcfe total resource potential 105 wells in 2016 Core Development Area 8
  7. October 2016 Analyst Presentation – EQT Corp – slide 7
    Marcellus Core Development Area Development strategically focused on core 320,000 EQT acres* 3,370 locations* 668 wells online* 105 wells in 2016: 84 PA wells 21 WV wells 6,500 laterals 5.7 MM / well 13.6 Bcfe EUR / well 2.1…
  8. October 2016 Analyst Presentation – EQT Corp – slide 8
    Core Marcellus Economics Assumptions Economics Lateral Length 6,500' 140% 120% EUR / Well (Bcfe) 13.6 100% EUR / 1,000' (Bcfe) 2.1 80% 60% Avg. Heat Content (MMBtu / Mcf) 1.07 40% 9,000' 6,500' 20% Well Cost (MM) 5.7 5,500' 0%…
  9. October 2016 Analyst Presentation – EQT Corp – slide 9
    Utica Play 450,000 EQT acres* Pettit 593066 Greene County, PA 5,200 lateral Shipman 593894 3,400 locations* Greene County, PA 7,000 lateral 4 wells online 5 wells in 2016 13,000 to 13,500 deep Scotts Run 591340 30 Tcfe total…
  10. October 2016 Analyst Presentation – EQT Corp – slide 10
    Upper Devonian Play Developed in conjunction with Core Marcellus 70,000 core near-term development acres 600 core locations* 74 wells online* 30 wells in 2016: 7,500 laterals 5.7 MM / well 10.9 Bcfe EUR / well 1.5 Bcfe / 1,000…
  11. October 2016 Analyst Presentation – EQT Corp – slide 11
    Upper Devonian Economics Assumptions Economics Lateral Length 7,500' 140% 120% EUR / Well (Bcfe) 10.9 100% 80% EUR / 1,000' (Bcfe) 1.5 60% Avg. Heat Content (MMBtu / Mcf) 1.042 40% 10,000' 7,500' 20% Well Cost (MM) 5.7 6,500' 0%…
  12. October 2016 Analyst Presentation – EQT Corp – slide 12
    Upper Devonian Play Benefits of Codevelopment Upper Devonian: Use it or lose it investment Shared infrastructure improves IRR per well Codevelopment increases value per acre by 50% Fracs Grow Toward Low Pressure Codevelopment…
  13. October 2016 Analyst Presentation – EQT Corp – slide 13
    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…
  14. October 2016 Analyst Presentation – EQT Corp – slide 14
    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…
  15. October 2016 Analyst Presentation – EQT Corp – slide 15
    EQT GP Holdings, LP (NYSE: EQGP) EQT owns 90% LP interest of EQGP EQGP owns in EQM* 26.6% limited partner interest 1.8% general partner interest incentive distribution rights EQGP Price Value of EQGP Units Value per per Unit…
  16. October 2016 Analyst 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 Marcellus Gathering System Jupiter Gathering System PA dry…
  17. October 2016 Analyst Presentation – EQT Corp – slide 17
    EQT Midstream Partners, LP Growth Projects Ohio Valley Connector 37-mile FERC regulated pipeline to connect transmission in West Virginia to Clarington, OH Placed in-service Q4 2016 1 Bcf/d capacity 650 BBtu/d contracted by EQT…
  18. October 2016 Analyst 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. October 2016 Analyst Presentation – EQT Corp – slide 19
    Investment Summary Extensive reserves of natural gas Proven ability to profitably develop our reserves Six consecutive years of 25% production growth 22% production sales volume growth in 2016 Extensive and growing midstream…
  20. October 2016 Analyst Presentation – EQT Corp – slide 20
    Appendix 22
  21. October 2016 Analyst Presentation – EQT Corp – slide 21
    Statoil Acreage Acquisition Closed transaction on July 8, 2016 62.5k Marcellus / 53k Utica net acres 500 new Marcellus locations of 5,600 Stacked pay Existing Production 24 producing Marcellus wells 3 complete, not online 4…
  22. October 2016 Analyst Presentation – EQT Corp – slide 22
    Acreage Acquisition Summary Acquisition Metrics Net Marcellus Acres 62,500 Net Utica Acres 53,000 Working Interest 100% Net Revenue Interest 84% Held by Production or Term 2018+ 87% Current Production* 40 MMcfe/d Incremental…
  23. October 2016 Analyst Presentation – EQT Corp – slide 23
    Liquids Volume Growth and Marcellus Impact Liquids Volume Growth Marcellus Liquids Price Impact (1200 Btu Gas) 12,000 10,000 8,000 Mbbls 6,000 4,000 2,000 - 2011 2012 2013 2014 2015 2016F Includes natural…
  24. October 2016 Analyst Presentation – EQT Corp – slide 24
    Capital Investment Summary 1.9 2.0 1.8 1.6 1.5 1.3 1.0 B 1.0 0.5 0.0 2012 2013 2014 2015 2016F Midstream Production 26 Excludes acquisitions and EQT Midstream Partners, LP
  25. October 2016 Analyst Presentation – EQT Corp – slide 25
    Scotts Run Utica Well Update Cumulative Production, Pressure and Rate vs. Time 4,500 4,000 EUR: 6.0 Bcf / 1,000 Cumulative Production 3,500 (MMcf / 1,000 Lateral) 3,000 2,500 3.0 Bcf / 1,000 recovered by producing day…
  26. October 2016 Analyst Presentation – EQT Corp – slide 26
    Marcellus Capacity EQT Capacity & Firm Sales Market Mix 2016E 2017E TETCO M2 20-22% 12-14% TETCO M3 35-37% 31-33% TCO 8-10% 6-8% Midwest 19-21% 30-32% NYMEX 13-15% 15-17% 28
  27. October 2016 Analyst Presentation – EQT Corp – slide 27
    Risk Management Hedge Position as of July 27, 2016 300 4.00 3.61 3.31 3.50 250 3.13 3.26 3.00 3.16 200 2.98 2.50 / Mcf Bcf 150 2.00 1.50 100 1.00 50 0.50 156 246 103 - 0.00 2016 2017 2018 Hedged Volume…
  28. October 2016 Analyst Presentation – EQT Corp – slide 28
    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) June 30, 2016…
  29. October 2016 Analyst Presentation – 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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