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2017 Investor Presentation Acquisition of Rice Energy – EQT Corp

EQT Corp · Jun 19, 2017 · 17 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. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 1
    EQT Corporation Announces Acquisition of Rice Energy Investor Presentation June 19, 2017
  2. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 2
    Transaction Details The combination creates the largest natural gas producer in the U.S. EQT acquiring Rice Energy for 6.7 B 0.37x shares of EQT stock per Rice share Consideration 5.30 in cash per Rice share Reflects an implied…
  3. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 3
    Transaction Details Rice Energy Overview Upstream Assets Retained Midstream Assets General Partner EIG Managed Funds 91.75% 8.25% GP Holdings 28% LP Units 100% IDRs 187,000 core PA Marcellus net acres Attractive…
  4. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 4
    Transaction Rationale Significant contiguous acreage and resulting synergies Sizable Transaction of High-Quality Core Acreage EQT becomes the largest U.S. Natural Gas producer Pro forma combined full-year 2017E production of 1.3…
  5. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 5
    Consolidation Benefits Rices PA Marcellus position is contiguous with EQTs SW PA acreage Upstream Benefits Significantly improved well returns in Greene & Washington Counties Before transaction: 775 undeveloped locations with an…
  6. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 6
    Synergy Potential Present value of economic savings pro forma for Rice acquisition Expected Synergies 2.5 2.5 0.6 0.6 Economic Savings (B) 2.0 1.5 1.0 1.9 1.9 0.5 - Capital Efficiencies G&A Total Synergies 8
  7. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 7
    Improving Economics - Marcellus SW PA laterals extend from 8,000 to 12,000 dramatically increasing returns 160% 3.00 137% 140% 2.50 120% 2.00 101% 100% ATAX IRR 75% 80% 68% 70% 60% 52% 39% 35% 40% 28% 21% 13% 15%…
  8. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 8
    Leading U.S. and Appalachian Natural Gas Producer U.S. Top Natural Gas Production(1) 3,036 2,997 2,565 Gas Volume (MMcf / d) 1,989 1,905 1,881 1,724 1,675 1,469 1,244 1,131 PF EQT XOM CHK SWN EQT APC COG BP AR RRC…
  9. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 9
    Creation of a New Large Cap Independent Unmatched combination of scale, growth and financial quality 3,500 PF EQT 3,000 CHK U.S. Gas Production (Mmcf/d) 2,500 APC SWN EQT 2,000 COG AR COP 1,500 DVN RRC RICE CNX…
  10. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 10
    Inventory (Pro Forma for Rice Acquisition) Extensive undeveloped inventory 1,000,000 total net Marcellus acres 670,000 core net Marcellus acres 81% of core net Marcellus acres are undeveloped 3,700 undeveloped locations* 70% dry;…
  11. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 11
    EQT Implementation Strategy 2017 Expected activity levels and production guidance unchanged Pro forma sales volume guidance unchanged estimated at 1.3 Tcfe Optimize long-term development plans focused on realizing higher returns by…
  12. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 12
    Marcellus Capacity Rice acquisition triples capacity to Gulf Increased exposure Ohio/Midwest Pipe Project ISD DTH/D to growing Gulf REX E2W Current 300,000 485,000 TETCO U2GC Current 47,000 markets ETP REX Rover Z3 En. Q4 17…
  13. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 13
    Why EQT Unmatched combination of scale, growth, inventory, financial quality and cost structure Largest natural gas producer in the U.S. focused in Marcellus / Utica Basin consolidation drives best-in-class economics World-class…
  14. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 14
    Appendix 16
  15. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 15
    Pro Forma Risk Management Hedge Position May 31, 2017 600 3.40 3.35 500 3.30 2017 2018 2019 NYMEX Price (/Mcf) as of 6/1/2017 3.27 3.16 2.99 3.27 3.19 400 3.20 NYMEX Swaps Total Volume (Bcf) 411 416 137 / Mcf 3.11…
  16. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 16
    Corporate Structure Following Merger Legacy Rice Legacy EQT Shareholders Shareholders 35% 65% EQT Non- Public economic GP Unitholders EIG Rice 90% LP Retained Interest 10% LP 91.75% Midstream interest Interest 8.25%…
  17. 2017 Investor Presentation Acquisition of Rice Energy – EQT Corp – slide 17

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