EQT Corporation Analyst Presentation July 25, 2019
World-Class Asset Base Large-scale position in the core of the Appalachian Basin EQT Acreage Overlays the SW Marcellus Core Market Cap(1) 4.0 B Utica Cumulative SW Marcellus (2) Production Heat Map Enterprise Value 9.0 B Cumulative…
Reconstituted Board and Management Team to Lead EQTs Transformation One team united and marching towards shareholder value creation July 10, 2019: EQTs 12-person Board of Directors was reconstituted with 8 new directors The Board…
The End State: Combo Pad Development Track Record of Execution at Rice Energy Combo Development consists of multiple wells drilled from multiple pads simultaneously This is the key to lowering EQTs well costs to 735/ft End State…
Proper Development Planning Leads to Success: 2019 Drilling Example EQTs properly planned pads are within reach of our 735/ft Goal Poorly Planned Development Properly Planned Development Drilled 1st half 2019 Planned by Rice Energy…
100-Day Plan Will Reposition EQT to Execute Combo Development A sprint to combo development 100-Day Goals: Build the foundation of our modern operating model, complete basic optimization and become Combo Ready FOCUS AREA…
Evolution Leaders Will Execute the 100-Day Plan Initiatives All 8 leaders have been hired and will be added to the organization by the end of July OPERATIONS: Planning / Execution / Scale Accomplished leaders in large scale…
Tangible Action Items Ready for Execution Clear targets and accountability Focus Area Initiative Action Item Target Lead Party Proven Leadership Ensure we have leadership that is capable of generating results. Evolution Committee…
We Have a Schedule to Keep Execution on Track We have a holistic schedule with clear milestones to coordinate the execution across the entire organization Focus Area Initiative Action Item Communicate Foundation Optimize COMBO READY…
A Methodical Approach to Create a Sustainable EQT Value generating in 2019 with full benefit realized by 2021+ Enhanced front line leaders pushing field Large scale projects hit schedule Bring in Rice Team performance Entire…
Second Quarter Highlights
Second Quarter 2019 Highlights Operational and Financial Highlights Capital Expenditures Q2 2019 Q2 2018 millions Q2 2019 Q2 2018 Marcellus Bcfe 319 294 Reserve development 374 603 Ohio Utica Bcfe 50 48 Other Bcfe 1 21 Land and lease…
Financial Strength Flexibility to further reduce leverage and return capital to shareholders Leverage EQT vs. Marcellus Peers(1,3) Monetization of ETRN stake 3.3x Can reduce leverage(1,2) from 2.1x to 1.7x 2.3x 2.1x 2.2x 1.7x…
Risk Management NYMEX Hedge position as of July 22, 2019 2019* 2020 2021 2022 2023 Swaps Volume (MMDth) 441 580 314 138 70 Average Price (/Dth) 2.85 2.81 2.78 2.75 2.73 Calls - Net Short Volume (MMDth) 197 248 58 22 7 Average…
Experienced, Diverse Board To Oversee EQTs Transformation DIRECTOR PRINCIPAL EXPERIENCE UNIQUE CONTRIBUTIONS Expertise in public company governance in the context of the energy industry LYDIA BEEBE Former Corp Secretary, Chevron…
Environmental, Health and Safety The right thing to do Environmental Stewardship Safety In the Community Founding partner of the Center for Employees participated in 13,000 hours of EQT and the EQT Foundation a Responsible Shale…
EQT as a Leading Environmental Steward Long-term, sustainable environmental practices aligned with investors and stakeholders Board and Environmental Methane Water Management Oversight Collaborations Emissions Initiatives…
Non-GAAP Financial Measure Reconciliation of Adjusted Net Income from Continuing Operations The table below reconciles adjusted net income from continuing operations with income (loss) from continuing operations, the most comparable…
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 Reconciliation of Adjusted Operating Cash Flow and Adjusted Free Cash Flow The table below reconciles adjusted operating cash flow and adjusted free cash flow with net cash provided by operating activities,…
Non-GAAP Financial Measure EBITDA 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 EQTs management to evaluate period-to-period comparisons…
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