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September 2018 Analyst Presentation – EQT Corp

EQT Corp · Sep 4, 2018 · 28 slides

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Slides

  1. September 2018 Analyst Presentation – EQT Corp – slide 1
    Analyst Presentation September 4, 2018
  2. September 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 cash flow per share Industry-leading cost structure…
  3. September 2018 Analyst Presentation – EQT Corp – slide 3
    EQT Profile Well-positioned to improve overall well economics and deliver stronger returns Market Cap(1) 14.6 B Enterprise Value(2) 19.4 B Net Marcellus Acres(3) 1,000,000 Core Net Marcellus Acres(3) 675,000 Core Marcellus…
  4. September 2018 Analyst Presentation – EQT Corp – slide 4
    2018 Capital and Development Plan 2018 capital investments of 2.4 B* 2.2 B for well development 2018F Average Spuds Length (ft) PA Marcellus 109 14,200 WV Marcellus 10 7,600 Total Marcellus 119 13,600 Ohio Utica 41**…
  5. September 2018 Analyst Presentation – EQT Corp – slide 5
    Marcellus Play Development strategically focused on core 1,000,000 total net acres 675,000 core acres 2,500 core undeveloped locations* 119 wells in 2018 109 PA, 10 WV 13,600 ft. average lateral length 12.1 MM / well…
  6. September 2018 Analyst Presentation – EQT Corp – slide 6
    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 7 Includes Upper Devonian
  7. September 2018 Analyst Presentation – EQT Corp – slide 7
    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 /…
  8. September 2018 Analyst Presentation – EQT Corp – slide 8
    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…
  9. September 2018 Analyst Presentation – EQT Corp – slide 9
    Improving Economics Marcellus SW PA laterals extend from 8,000 to 14,200 dramatically increasing returns 160% 140% 120% 100% 80% 60% 40% 20% 0% 6 Well Pad 8 Well Pad 12 Well Pad 12 Well Pad 6,000 6,000' Lateral…
  10. September 2018 Analyst Presentation – EQT Corp – slide 10
    EQT Plans to Separate Upstream and Midstream Business Creating Two Premier, Independent Energy Companies EQT Corporation (Upstream) Benefits Leading natural gas producer in the United States 2018E sales volume of 1,490 1,510 Bcfe…
  11. September 2018 Analyst Presentation – EQT Corp – slide 11
    EQT Plans to Separate Upstream and Midstream Business Separation and Midstream Streamlining Timelines Separation Timeline Key Milestones Start Date Anticipated Completion Date Establish Management, BOD, and Separation Plan Underway By…
  12. September 2018 Analyst Presentation – EQT Corp – slide 12
    Cash Flows to EQT and Equitrans Midstream Corporation Cash flows from EQGP / EQM Ownership 700 Value of EQGP EQGP price units held by Value per Distributions Earned (MM) 618 per unit EQT (B) EQT share 600 18 5.0 19 20 5.5…
  13. September 2018 Analyst Presentation – EQT Corp – slide 13
    EQT Midstream Partners (NYSE: EQM) Strategically located assets connecting supply to demand markets 2.4 Bcf per day firm gathering commitments, including 600 MMcf per day high pressure header pipeline for Range Resources 4.4 Bcf…
  14. September 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 Q4 2019 targeted…
  15. September 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 cash flow per share Industry-leading cost structure…
  16. September 2018 Analyst Presentation – EQT Corp – slide 16
    Appendix
  17. September 2018 Analyst Presentation – EQT Corp – slide 17
    Non-GAAP Financial Measure Free Cash Flow As used in this presentation, free cash flow is defined as EQTs net cash provided by operating activities plus changes in other assets and liabilities less capital expenditures pro forma for the…
  18. September 2018 Analyst Presentation – EQT Corp – slide 18
    Non-GAAP Financial Measure Equitrans Midstream Corporation (SpinCo) EBITDA As used in this presentation, earnings before interest, taxes, depreciation and amortization (EBITDA) means the earnings before interest, taxes and depreciation…
  19. September 2018 Analyst Presentation – EQT Corp – slide 19
    Upper Devonian Play Developed in conjunction with Core Marcellus 149,000 total net acres 500 undeveloped locations* 5 wells in 2018 14,400 ft. average laterals 10.1 MM / well 1.5 Bcfe EUR / 1,000 100% working interest 84%…
  20. September 2018 Analyst Presentation – EQT Corp – slide 20
    Ohio Utica Play 65,000 total net acres 170 undeveloped locations* 41 gross (25 net) wells in 2018 11,700 ft. average lateral length 13.5 MM / well 2.1 Bcfe EUR / 1,000 66% working interest 80% NRI 60% IRR Development…
  21. September 2018 Analyst Presentation – EQT Corp – slide 21
    2018 Guidance PRODUCTION Q3 2018 2nd half 2018 Total production sales volume (Bcfe) 370 380 770 790 Liquids sales volume, excluding ethane (Mbbls) 2,580 2,700 5,125 5,275 Ethane sales volume (Mbbls) 1,220 1,320 2,500 2,650 Total…
  22. September 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. September 2018 Analyst Presentation – EQT Corp – slide 23
    Equitrans Midstream Corporation (Midstream) Announced Plan to Separate Upstream and Midstream Business on February 21, 2018 Pro Forma Midstream Structure NYSE: ETRN 91.3% LP interest and non-economic Public GP interest 12.7%…
  24. September 2018 Analyst Presentation – EQT Corp – slide 24
    Risk Management Hedge Position as of August 20, 2018 600 3.30 3.20 2018 2019 2020 500 3.11 NYMEX Price (/Mcf) as of 8/20/2018 3.09 2.96 2.79 3.10 NYMEX Swaps 400 3.09 3.00 2.99 Total Volume (Bcf) 303 487 365 3.00 Average Price…
  25. September 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. September 2018 Analyst Presentation – EQT Corp – slide 26
    Liquids Volume growth and Marcellus impact Liquids Volume Growth Marcellus Liquids Price Impact 20,000 (1200 Btu Gas) NGLs (1.6 Gal/Mcf) 6.00 Btu Premium 16,000 NYMEX 5.00 12,000 4.12 4.00 3.49 /Mcf 1.08 Mbbls 0.58…
  27. September 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. September 2018 Analyst Presentation – EQT Corp – slide 28

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