Skip to main content April 2018 Analyst Presentation – EQT Corp | Shale Experts
Loading...
Pm

April 2018 Analyst Presentation – EQT Corp

EQT Corp · Apr 26, 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. April 2018 Analyst Presentation – EQT Corp – slide 1
    Analyst Presentation April 26, 2018
  2. April 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. April 2018 Analyst Presentation – EQT Corp – slide 3
    EQT Profile Well-positioned to improve overall well economics and deliver stronger returns Market Cap(1) 12.6 B Enterprise Value(2) 18.4 B Net Marcellus Acres(3) 1,000,000 Core Net Marcellus Acres(3) 680,000 Core Marcellus…
  4. April 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. April 2018 Analyst Presentation – EQT Corp – slide 5
    Rice Acquisition Implementation Strategy Significant progress in synergies this year 2018 17% production growth with cash flow breakeven Approved plan to address the sum-of-the-parts discount Begin to realize capital, operational and…
  6. April 2018 Analyst Presentation – EQT Corp – slide 6
    EQT Plans to Separate Midstream Business Creating Two Premier, Independent Energy Companies EQT Production (Upstream) Benefits Leading natural gas producer in the United States 2018E sales volumes of 1,520 1,550 Bcfe Distinct…
  7. April 2018 Analyst Presentation – EQT Corp – slide 7
    EQT Plans to Separate Midstream Business Separation and Midstream Streamlining Timelines Separation Timeline Key Milestones Start Date Anticipated Completion Date Establish Management, BOD, and Separation Plan Underway By End of Q3…
  8. April 2018 Analyst Presentation – EQT Corp – slide 8
    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…
  9. April 2018 Analyst Presentation – EQT Corp – slide 9
    Improving Economics Marcellus Longer laterals 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 11 Includes Upper Devonian
  10. April 2018 Analyst Presentation – EQT Corp – slide 10
    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 /…
  11. April 2018 Analyst Presentation – EQT Corp – slide 11
    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…
  12. April 2018 Analyst Presentation – EQT Corp – slide 12
    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%…
  13. April 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. April 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. April 2018 Analyst Presentation – EQT Corp – slide 15
    NewCo (Midstream Corp) Announced Plan to Separate Midstream Business on February 21, 2018 Pro Forma Midstream Structure NewCo Profile 900 Cash Flows from EQGP/EQM Ownership 800 NewCo Corp. 700 670 600 540 Millions 276 mm…
  16. April 2018 Analyst Presentation – EQT Corp – slide 16
    Cash Flows to EQT from Midstream Accelerating 350 million in 2018 Value of 800 EQGP units EQGP price held by EQT Value per 700 Distributions Earned (MM) per unit (B) EQT share 22 6.1 23 600 24 6.6 25 25 6.9 26 500 26 7.2…
  17. April 2018 Analyst Presentation – EQT Corp – slide 17
    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…
  18. April 2018 Analyst Presentation – EQT Corp – slide 18
    Appendix
  19. April 2018 Analyst Presentation – EQT Corp – slide 19
    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%…
  20. April 2018 Analyst Presentation – EQT Corp – slide 20
    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…
  21. April 2018 Analyst Presentation – EQT Corp – slide 21
    2018 Guidance PRODUCTION Q2 2018 2018 Total production sales volume (Bcfe) 360 370 1,520 1,550 Liquids sales volume, excluding ethane (Mbbls) 3,275 3,295 12,300 12,600 Ethane sales volume (Mbbls) 1,200 1,300 4,900 5,200 Total…
  22. April 2018 Analyst Presentation – EQT Corp – slide 22
    Rice Acquisition Synergy Summary Base Synergy Metric Up to PV (B)* Capital efficiencies Laterals extended to 12,000 feet 1.9 G&A savings 100 million per year 0.6 Upside Synergy Metric Up to PV (B)* Drilling and completion best…
  23. April 2018 Analyst Presentation – EQT Corp – slide 23
    Corporate Structure Announced separation of midstream business Current Structure and Post-Separation and Midstream Streamlining Transactions Midstream Streamlining EQT EQT NewCo Corp. EQT Production LP Units Public Retained…
  24. April 2018 Analyst Presentation – EQT Corp – slide 24
    Risk Management Hedge Position as of April 24, 2018 700 3.30 600 3.20 3.11 2018 2019 2020 3.10 NYMEX Price (/Mcf) as of 4/24/18 2.98 2.89 2.85 500 3.01 3.01 NYMEX Swaps 3.00 400 Total Volume (Bcf) 496 445 313 / Mcf 2.98…
  25. April 2018 Analyst Presentation – EQT Corp – slide 25
    Marcellus Capacity Diversified portfolio targeting premium markets Significant exposure Ohio/Midwest Pipe Project ISD DTH/D to growing Gulf REX REX E2W Z3 En. Current Current 350,000 200,000 490,000 markets TETCO U2GC…
  26. April 2018 Analyst Presentation – EQT Corp – slide 26
    Marcellus Capacity Pricing details Bal Bal Market Mix 2018E 2019E 2020E Basis 2018E 2019E 2020E TETCO M2 34% 16% 27% TETCO M2 (0.69) (0.59) (0.61) TETCO M3 11% 10% 8% TCO 4% 4% 3% TETCO M3 (0.44) 0.04 (0.02) Midwest 21% 18% 16%…
  27. April 2018 Analyst Presentation – EQT Corp – slide 27
    Liquids Volume growth and Marcellus impact Liquids Volume Growth Marcellus Liquids Price Impact (1200 Btu Gas) 24,000 NGLs (1.6 Gal/Mcf) 20,000 Btu Premium 5.00 NYMEX 16,000 3.95 4.00 3.44 0.96 12,000 0.57 /Mcf…
  28. April 2018 Analyst Presentation – EQT Corp – slide 28
    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…

From the store

Browse maps, data & reports in the Shale Experts store