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February 2018 Analyst Presentation – EQT Corp

EQT Corp · Feb 15, 2018 · 28 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. February 2018 Analyst Presentation – EQT Corp – slide 1
    Analyst Presentation February 15, 2018
  2. February 2018 Analyst Presentation – EQT Corp – slide 2
    Key Investment Highlights Unmatched combination of scale, growth, inventory, financial quality and cost structure Leading natural gas producer in the United States Focused on development of the Marcellus Shale Industry-leading cost…
  3. February 2018 Analyst Presentation – EQT Corp – slide 3
    EQT Profile Well-positioned to improve overall well economics and deliver stronger returns Market Cap(1) 15.1 B Enterprise Value(2) 20.9 B Net Marcellus Acres(3) 1,000,000 Core Net Marcellus Acres(3) 680,000 Core Marcellus…
  4. February 2018 Analyst Presentation – EQT Corp – slide 4
    2018 Capital and Development Plan Volume growth of 17% forecast within cash flow 2018 capital investments of 2.4 B* 2.2 B for well development 2018F Average Spuds Length (ft) PA Marcellus 106 13,600 WV Marcellus 28 8,600…
  5. February 2018 Analyst Presentation – EQT Corp – slide 5
    Rice Acquisition Implementation Strategy Significant progress in synergies next year 2018 17% production growth with cash flow breakeven Approve plan to address the sum-of-the-parts discount by end of February Begin to realize…
  6. February 2018 Analyst Presentation – EQT Corp – slide 6
    Marcellus Play Development strategically focused on core 1,000,000 total net acres 680,000 core acres 2,500 core undeveloped locations* 134 wells in 2018 106 PA, 28 WV 12,600 ft. average lateral length 11.3 MM / well…
  7. February 2018 Analyst Presentation – EQT Corp – slide 7
    Improving Economics Marcellus Longer laterals and more wells per pad reduce cost per foot 14,000 12,000 10,000 Lateral length (ft.) 8,000 6,000 4,000 2,000 - 2013 2014 2015 2016 2017 2018E 8 Includes Upper…
  8. February 2018 Analyst Presentation – EQT Corp – slide 8
    Improving Economics Marcellus Larger frac jobs increase recoveries per foot 2013 2015 2018E Stage length ft 190 170 200 Proppant (lb / ft) 1,350 1,550 2,250 Water (bbl / ft) 35 39 40 3.0 EUR / 1000 1.9 2.1 2.4 2.5 EUR (Bcfe /…
  9. February 2018 Analyst Presentation – EQT Corp – slide 9
    Improving Economics Marcellus 0.37 per Mcfe in 2018 0.80 Drilling & Completions Cost 0.60 ( / Mcfe) 0.40 0.20 - 2013 2014 2015 2016 2017 2018E Lower drilling and completion cost per foot + higher productivity, drive…
  10. February 2018 Analyst Presentation – EQT Corp – slide 10
    Improving Economics Marcellus SW PA laterals extend from 8,000 to 13,600 dramatically increasing returns 160% 6,000 8,000 12,000 14,000 2.00 14% 19% 25% 29% 140% 2.50 38% 49% 62% 71% 3.00 74% 96% 120% 140% 120% 100% 80%…
  11. February 2018 Analyst Presentation – EQT Corp – slide 11
    Valuable Midstream Business Significant cash flow growth from EQT GP Holdings (NYSE: EQGP) ownership Midstream cash flows to double over next three years 2018 EQT distribution equates to 0.23 / Mcfe Publicly traded securities…
  12. February 2018 Analyst Presentation – EQT Corp – slide 12
    Cash Flows to EQT from Midstream Accelerating 350 million in 2018 700 Value of 600 EQGP units Distributions Earned (MM) EQGP price held by EQT Value per 500 per unit (B) EQT share 24 5.8 22 25 6.0 23 400 26 6.2 23 27 6.5…
  13. February 2018 Analyst Presentation – EQT Corp – slide 13
    MLPs EQM and RMP Strategically located assets connecting supply to demand markets EQT Midstream Partners (NYSE: EQM) 2.3 Bcf per day firm gathering capacity, including 600 MMcf per day high pressure header pipeline for Range…
  14. February 2018 Analyst Presentation – EQT Corp – slide 14
    EQT Midstream Partners Mountain Valley Pipeline connects supply hub to southeast power generation markets JV with NextEra, ConEd, WGL, RGC Resources 45.5% EQM ownership interest EQM to construct and operate pipeline 3.5 B total…
  15. February 2018 Analyst Presentation – EQT Corp – slide 15
    Key Investment Highlights Unmatched combination of scale, growth, inventory, financial quality and cost structure Leading natural gas producer in the United States Focused on development of the Marcellus Shale Industry-leading cost…
  16. February 2018 Analyst Presentation – EQT Corp – slide 16
    Appendix
  17. February 2018 Analyst Presentation – EQT Corp – slide 17
    Ohio Utica Play 65,000 total net acres 190 undeveloped locations* 45 gross (25 net) wells in 2018 11,000 ft. average lateral length 13.6 MM / well 2.1 Bcfe EUR / 1,000 66% working interest 80% NRI Development area Ohio…
  18. February 2018 Analyst Presentation – EQT Corp – slide 18
    Upper Devonian Play Developed in conjunction with Core Marcellus 149,000 total net acres 500 undeveloped locations* 16 wells in 2018 15,800 ft. average laterals 10.9 MM / well 1.5 Bcfe EUR / 1,000 100% working interest 84%…
  19. February 2018 Analyst Presentation – EQT Corp – slide 19
    2018 Guidance Q1 2018 2018 Total production sales volume (Bcfe) 350 360 1,520 1,560 Liquids sales volume, excluding ethane (Mbbls) 3,230 3,250 12,300 12,600 Ethane sales volume (Mbbls) 1,540 1,560 4,900 5,200 Marcellus / Upper…
  20. February 2018 Analyst Presentation – EQT Corp – slide 20
    Corporate Structure Legacy Rice Shareholders EQT Non- Public economic GP Unitholders Rice 90% LP Retained Interest 10% LP 100% Midstream Interest interest EQGP Public Rice GP Public Unitholders 2% GP Interest…
  21. February 2018 Analyst Presentation – EQT Corp – slide 21
    Synergy Potential Present value of economic savings for Rice acquisition (B) Capital Efficiencies* G&A* Base Synergies Contiguous acreage leads to: Reduction of G&A for 10 years Longer laterals (12,000 ft) Fewer wells Lower…
  22. February 2018 Analyst Presentation – EQT Corp – slide 22
    Rice Acquisition Upside Synergy Potential Up to PV Synergy Metric (B)* Drilling and completion best practices EUR improvements of 0 5% 2.5 Buying power 0 5% reduction in capital 1.4 Marketing optimization 0.00 - 0.05 / Mcfe…
  23. February 2018 Analyst Presentation – EQT Corp – slide 23
    Risk Management Hedge Position 800 3.30 2018 2019 2020 700 3.17 3.20 NYMEX Price (/Mcf) as of 1/31/18 3.12 2.97 2.94 NYMEX Swaps 600 3.06 3.05 3.10 Total Volume (Bcf) 541 234 234 3.12 Average Price per Mcf (NYMEX) 3.14 3.03…
  24. February 2018 Analyst Presentation – EQT Corp – slide 24
    Marcellus Capacity Diversified portfolio targeting premium markets Ohio/Midwest Significant exposure Pipe Project ISD DTH/D REX E2W Current 350,000 to growing Gulf REX Z3 En. Current 200,000 490,000 TETCO U2GC Current 101,500…
  25. February 2018 Analyst Presentation – EQT Corp – slide 25
    Marcellus Capacity Pricing details Bal Bal Market Mix 2018E 2019E 2020E Basis 2018E 2019E 2020E TETCO M2 34% 16% 27% TETCO M2 (0.67) (0.60) (0.60) TETCO M3 11% 10% 8% TCO 4% 4% 3% TETCO M3 (0.39) 0.00 (0.07) Midwest 21% 18% 16%…
  26. February 2018 Analyst Presentation – EQT Corp – slide 26
    Liquids Volume growth and Marcellus impact Liquids Volume Growth Marcellus Liquids Price Impact (1200 Btu Gas) 24,000 NGLs (1.6 Gal/Mcf) Btu Premium 20,000 5.00 NYMEX 16,000 4.00 3.71 3.34 0.81 12,000 3.00 0.56 Mbbls…
  27. February 2018 Analyst Presentation – EQT Corp – slide 27
    Balance Sheet Strength Strength in the numbers Benefits of investment grade Strong liquidity Supports consolidation strategy 2.5 billion revolver at EQT Assures operational flexibility through cycles 1.0 billion revolver at EQM…
  28. February 2018 Analyst Presentation – EQT Corp – slide 28
    Building Long Laterals in Appalachia The process Base EQT Acreage + Acquisitions + Trades/Leasing = Full Development 12 new wells with 4,000 ft 8 new wells with 4,900 ft 5 new wells with 14,500 ft 8 new wells with 16,200 ft average…

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