New Company, New Leadership, New Focus Delivering Bold Change to Maximize Shareholder Value Investor Presentation June 2019
Executive Summary 1 Rapidly transformed into a more efficient, pure-play Appalachian Basin producer, generating meaningful free cash flow with a leading We Have cost structure Transformed the Company into Unlocked significant value…
1 We Have Transformed the Company into the New EQT 3
1 EQT Is a New Company with New Leadership and a New Focus 1 3 5 6 8 10 12 Completed spin-off of Q418 Q119 Announced plan to Announced After an intensive Equitrans Midstream results announced, results announced with Announced…
1 We Have Transformed EQT into a Focused, Pure-Play Upstream Industry Leader Strong fundamentals and leadership are delivering exceptional value to shareholders Strong Fundamentals New Leadership Compelling Core of the Appalachian…
1 EQT Has Significantly Outperformed Peers Despite a Difficult Market Decisive actions by new leadership and strong results under EQTs new plan are being rewarded Relative TSR Outperformance vs Peer Median(1) through 05/31/2019 EQT…
2 EQT Is Delivering Significant Value through a Compelling New, Bottom-up Strategic Plan 7
2 We Are Leveraging a Top-Tier Asset Base to Generate Significant Free Cash Flow Rank vs. EQT Acreage Overlays the SW Marcellus Core Appalachian Peers(1) 2 Market Cap(2) 4.7 B Utica Cumulative SW Marcellus Current Production Heat…
2 We Are Making Measurable and Transparent Progress Toward Even More Value Creation Action Item Measure Timeline Achieved 100 MM of annual cost reductions as part of the base plan Restructurings restructuring and Cost Reductions…
2 Strong Q418 and Q119 Operational Performance Underscores the EQT Teams Ability to Achieve Demanding Targets Operational Highlights Financial Highlights 25% reduction in drilling days / 1,000 (Q119 vs. Generated adjusted free cash…
2 Second Quarter Highlights through May 2019 Continued strong financial and operational performance EQTs positive operational momentum and capital efficiencies have progressed into Q2 2019 Second Quarter 2019 Financial Expectations…
2 EQT Is the Appalachian Basins Low Cost Leader EQTs unit costs & drilling efficiencies lead peers and enable significant free cash flow generation Lease Operating Expense (/Mcfe) TTM Selling, General & Administrative Expense (/Mcfe)…
2 Independent Analysis by Industry Specialist Wood Mackenzie Undercuts the Toby Rice Groups Assertions EQTs well productivity, costs and planning efficiency were historically as competitive as, or better than, Rice Energy's Toby…
2 EQT Outperforms 25 of 27 Comparable US E&P Companies We expect to deliver 300-400 MM of adjusted free cash flow(1) in 2019E, 3.0 B or more through 2023 EQTs Q418 and Q119 cumulative adjusted free cash flow(1) and EQTs 2019E adjusted…
2 EQT Is on Track to Deliver 400 MM of Adjusted Free Cash Flow(1) Upside Through the Target 10% Initiative Cost Reduction Initiatives Base Plan Jan 2019: 100 MM achieved in base plan restructuring Including the fast start on Q1…
2 New COO, Gary Gould (Effective Q219), Accelerating EQTs Progress Gary Gould A Proven Leader Operating Philosophy 1 Be the natural gas industrys leading operator with Former Sr. Vice President of Production and Resource proven…
2 Toby Rice Groups Misleading Claims Do Not Deliver Any Incremental Free Cash Flow vs. EQTs Plan Toby Rice Group Claims The Facts Can deliver uniform well costs of 750 / foot Ignores their own historical results and todays oilfield…
3 EQT Actively Engages with Shareholders and Added Rices Perspective to the Boardroom Two Years Ago 19
3 EQT Has Created an Independent, Diverse Director Slate Possessing the right combination of experience, skills and perspectives Board Built on the Right Combination of Skills for EQT 10 of 12 Critical skills for overseeing and driving…
3 EQT Regularly and Extensively Engages with Shareholders We implemented new policies and took other actions in response to shareholder feedback EQT Believes in What We Heard and What We Did Shareholder Engagement Personnel 750…
3 EQTs Board Is Purpose-Built for Our New Returns-Focused Strategy As the largest operator in the Appalachian basin, Board refreshment focused on broad E&P experience with records of driving value for all shareholders Significant…
3 EQTs Board Is Purpose-Built for Our New Returns-Focused Strategy Our scale and complexity require deep board-level understanding of safety, environmental and other ESG issues Valuable ESG and Safety Focus and Expertise High Level of…
4 If Elected, the Rice Slate Would Result in a Weaker Board and Managerial Chaos 24
4 Toby Rice Groups Claims and Demands Are Not Based in Reality EQT has been significantly transformed over the past 6 months Rice Ask Reality Rice Risk Replace the Majority of the 9 of 12 EQT Director Nominees Significant…
4 Toby Rice Is Not Fit to Lead a Public Company Tobys conflicts of interest and prior removal as CEO of Rice Energy demonstrate Toby is not qualified to be CEO EQT is not a family business. It is the largest natural gas producing…
Vote FOR the Highly Qualified Board Nominees Who Are Best Suited to Continue EQTs Momentum. Vote FOR all EQT Nominees on the GOLD Universal Proxy Card 1 Rapidly transformed into a more efficient, pure-play Appalachian Basin producer,…
Appendix 28
Third Party Validation For the Right Direction and Success of Our Plan Our investor meetings with EQTs management team on the West Coast earlier this week left us more positively inclined on the ability of this team to deliver on and…
Non-GAAP Financial Measure Adjusted EBITDA As used in this presentation, adjusted EBITDA is defined as net income from continuing operations, plus interest expense, income tax expense (benefit), depreciation and depletion, amortization…
Non-GAAP Financial Measure Reconciliation of Adjusted EBITDA The table below reconciles adjusted EBITDA with income (loss) from continuing operations, the most comparable financial measure as calculated in accordance with GAAP, as…
Non-GAAP Financial Measure Adjusted Free Cash Flow As used in this presentation, adjusted free cash flow is defined as the Companys net cash provided by operating activities less changes in other assets and liabilities, less EBITDA…
Non-GAAP Financial Measure Reconciliation of Adjusted Free Cash Flow The table below reconciles adjusted free cash flow with net cash provided by operating activities, the most comparable financial measure calculated in accordance with…
Non-GAAP Financial Measure EBTIDA Attributable to Discontinued Operations EBITDA attributable to discontinued operations is a non-GAAP supplemental financial measure defined as income from discontinued operations, net of tax plus…
Non-GAAP Financial Measure Adjusted SG&A per unit Adjusted SG&A per unit is a non-GAAP supplemental financial measure that is presented because it is an important measure used by the Companys management to evaluate period-to-period…
Important Information EQT Corporation (the Company) filed a definitive proxy statement and associated GOLD universal proxy card with the Securities and Exchange Commission (the SEC) on May 22, 2019 in connection with the solicitation…
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