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Q3 2016 Analyst Presentation – EQT Corp

EQT Corp · Oct 27, 2016 · 30 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. Q3 2016 Analyst Presentation – EQT Corp – slide 1
    Analyst Presentation October 27, 2016
  2. Q3 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. Q3 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 6 As of 12/31/2015
  4. Q3 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. Q3 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 8 As of 12/31/2015
  6. Q3 2016 Analyst Presentation – EQT Corp – slide 6
    Marcellus Play 720,000 EQT acres* 86% NRI / 80% HBP 7.8 Tcfe proved reserves 36 Tcfe total resource potential* 105 wells in 2016 9 *Pro forma for Trans Energy / Republic Energy and Third-party acquisitions; acquisitions…
  7. Q3 2016 Analyst Presentation – EQT Corp – slide 7
    Marcellus Core Development Area Development strategically focused on core 400,000 EQT acres* 4,200 locations* 719 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. Q3 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. Q3 2016 Analyst Presentation – EQT Corp – slide 9
    Utica Play 490,000 EQT acres* Pettit 593066 Greene County, PA 5,200 lateral Shipman 593894 3,700 locations* Greene County, PA 7,000 lateral 5 wells online 5 wells in 2016 Scotts Run 591340 13,000 to 13,500 deep Greene County,…
  10. Q3 2016 Analyst Presentation – EQT Corp – slide 10
    Upper Devonian Play Developed in conjunction with Core Marcellus 85,000 core near-term development acres 730 core locations* 83 wells online* 30 wells in 2016: 7,500 laterals 5.7 MM / well 10.9 Bcfe EUR / well 1.5 Bcfe / 1,000…
  11. Q3 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. Q3 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. Q3 2016 Analyst Presentation – EQT Corp – slide 13
    EQT Midstream Overview Consolidated Assets overlay Core Marcellus and Utica Transmission & Storage* 4.4 Bcf/d current capacity 45 Bcf gas storage capacity Gathering* 2 Bcf/d capacity EQT Production Sales Drive Midstream…
  14. Q3 2016 Analyst Presentation – EQT Corp – slide 14
    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 47% EQMs distributions flow to EQGP EQGP Price…
  15. Q3 2016 Analyst Presentation – EQT Corp – slide 15
    EQT Midstream Partners, LP (NYSE: EQM) Transmission & Storage Equitrans Transmission & Storage 4.4 Bcf/d current capacity 950 mile FERC-regulated interstate pipeline 45 Bcf of gas storage capacity Ohio Valley Connector Placed…
  16. Q3 2016 Analyst Presentation – EQT Corp – slide 16
    EQT Midstream Partners, LP Marcellus gathering Pennsylvania 875 MMcf per day firm capacity Terra 10-year demand based fixed-fee contracts West Virginia Supports wet & dry gas Applegate / development McIntosh 775 MMcf per day…
  17. Q3 2016 Analyst Presentation – EQT Corp – slide 17
    EQT Midstream Partners, LP Mountain Valley Pipeline Project 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 Q4 2018 expected in-service…
  18. Q3 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. Q3 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 25% production sales volume growth in 2016 Extensive and growing midstream…
  20. Q3 2016 Analyst Presentation – EQT Corp – slide 20
    Appendix 23
  21. Q3 2016 Analyst Presentation – EQT Corp – slide 21
    Core Marcellus Consolidation 2016 As of October 2016 of net 143,000 acres acres Undeveloped 136,000 net acres net acres Value (B) 1.16 Value allocated to 80% undeveloped 6,850 Undeveloped per acre Since 2013, EQT…
  22. Q3 2016 Analyst Presentation – EQT Corp – slide 22
    Acreage Acquisitions October, 2016 Trans Energy / Republic Energy and Third-Party 59,600 Marcellus net acres 347 new Marcellus locations of 5,200 average Deep Utica rights on 39,300 acres Upper Devonian rights on 17,000 acres…
  23. Q3 2016 Analyst Presentation – EQT Corp – slide 23
    Acreage Acquisition Summary Trans Energy / Republic Energy and a Third-Party Acquisition Metrics Net Marcellus acres 59,600 Net Utica acres 39,300 Working interest 100% Net revenue interest 85% Held by Production or Term 2018+…
  24. Q3 2016 Analyst Presentation – EQT Corp – slide 24
    Liquids Volume Growth and Marcellus Impact Liquids Volume Growth Marcellus Liquids Price Impact (1200 Btu Gas) NGLs (1.6 Gal/Mcf) Btu Premium 12,000 5.00 NYMEX 10,000 3.91 4.00 3.80 0.60 0.63 /Mcf 8,000 0.14 3.00…
  25. Q3 2016 Analyst Presentation – EQT Corp – slide 25
    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 28 Excludes acquisitions and EQT Midstream Partners, LP
  26. Q3 2016 Analyst Presentation – EQT Corp – slide 26
    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…
  27. Q3 2016 Analyst Presentation – EQT Corp – slide 27
    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% 30
  28. Q3 2016 Analyst Presentation – EQT Corp – slide 28
    Risk Management Hedge Position as of October 25, 2016 300 4.00 3.63 3.31 3.50 250 3.13 3.38 3.19 3.00 200 2.50 2.58 / Mcf Bcf 150 2.00 1.50 100 1.00 50 0.50 78 283 105 - 0.00 2016 2017 2018 Hedged Volume…
  29. Q3 2016 Analyst 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) September 30,…
  30. Q3 2016 Analyst Presentation – EQT Corp – slide 30
    Non-GAAP Reconciliation Adjusted 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 20 7 Less: Big…

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