Investor Presentation October 22, 2020 10/21/2 1 1 020
Company Highlights Third Quarter 2020 Highlights: Sales volumes of 366 Bcfe, in-line with guidance, despite 15 Bcf of volume curtailments Received an average realized price of 2.33/Mcfe, a 0.25 premium to NYMEX pricing Net cash…
EQT Corporate Overview Dominant position in the core of the Appalachian Basin UTICA ASSET PROFILE MARCELLUS Core Net Marcellus Acres(1) 630,000 Acres (1) Core Net OH Utica Acres 60,000 Acres (1,2) Core Net Undeveloped Marcellus…
Why Invest in EQT Uniquely positioned to deliver shareholder value Deep inventory of Tier I drilling locations in the lowest cost natural gas basin in the World Class Asset Base U.S. (15+ years) Multi-year core combo inventory to…
Corporate Strategy Building a durable and sustainable business for long term value creation Maximize value from existing assets Become the operator of choice Responsible capital allocation Be the low cost operator Building a…
Promises Made Promises Delivered We have successfully transformed into a modern, technology-enabled energy producer Promise Milestone Delivery Achieve 730 per foot well costs by mid-year 2020 660 per foot in 3Q; Two consecutive…
Going Beyond our Promises A New Paradigm for the Shale Business EQTs success plays an integral role in providing the U.S. with a clean, reliable, domestic energy source Success starts and continues with a strong balance sheet and…
Meaningful Reduction in Well Costs Being Realized Meeting and exceeding 2020 well cost expectations PA MARCELLUS WELL COSTS(1) Target(2): 730 /ft. 970 850 800 745 680 660 Legacy 3Q19 4Q19 1Q20 2Q20 3Q20 (FY…
EQT Continues to Push the Operational and Technical Boundaries Setting records and driving value through improved drilling operations HORIZONTAL DRILLING SPEED (FT/HR) HORIZONTAL DAYS PER 1,000 FT. 250 1.00 200 0.80 150…
Frac Technology Enhancing Operational and Environmental Performance PUMPING HOURS PER MONTH PER CREW STAGES PER MONTH PER CREW 450 240 220 400 200 350 180 160 300 140 250 120 200 100 3Q19 4Q19 1Q20 2Q20 3Q20…
New Technology Is Driving Efficiency Gains Complementing our ESG Focus Evolving our operations to drive down costs and lessen environmental impact Electric Frac Fleet Hybrid Drilling Rigs High automation capacity, improving cycle…
2020E Capital Expenditures Budget Have reduced full-year CAPEX guidance four times while maintaining full-year production guidance 2020E CAPITAL EXPENDITURES & PRODUCTION 1.6 1,500 1.4 1.2 1,400 1.0 Bcfe B…
2020E Detailed Guidance PRODUCTION 2020E FINANCIAL GUIDANCE(1) Total Sales Volumes (Bcfe) 1,480 - 1,500 Btu uplift (MMbtu/Mcf) 1.045 - 1.055 Gas 95% Average Differential (/Mcf) (0.45) - (0.35) Liquids 5% Adjusted EBITDA(2,3) (MM)…
Market Update: Natural Gas Fundamentals Natural gas supply indicators suggest an undersupplied market in 2021 RIG COUNTS(1) Jan-20 Oct-20 450 900 Rapid decline in oil-directed activity materially reduces 400 800 associated gas…
Debt and Capitalization Summary As of September 30, 2020 4.7 B in total debt(1) B 9/30/20 6/30/20 Equity settlement of the convertible senior notes could reduce Cash & Cash Equivalents 0.0 0.0 long-term debt by 0.35 B 2.5 B…
Effectively Managing Maturity Schedule Multiple levers can be pulled to manage upcoming maturities CLEAR LINE OF SIGHT AMPLE COVERAGE AND OPTIONALITY Does not include 2021+ FCF Next substantial debt maturity not until…
Meaningful Progress Made Towards Net Debt Target Path to less than 2.0x net debt to adjusted EBITDA(1) NET DEBT(1,2) (B) 5.3 4.5 2021+ FCF 1.5 B reduction target 12/31/2019 1Q20 Net Debt 2Q20 Net Debt 3Q20 Net Debt…
Debt Trades In-Line with Investment Grade Peers Strong Investor Sentiment EQT bond performance better than HY peers; recently on par with low investment grade peers CREDIT SPREADS FROM JAN 2020 TO PRESENT LOW IG OVV 5.375% 01/01/26…
Actively Managing Liquidity Ample liquidity to cover midstream letters of credit (LC) Current liquidity is 1.46 B(1) LIQUIDITY(1) 2.5 B unsecured revolver: Not subject to semi-annual borrowing base 2.50 0.79…
Firm Transportation Portfolio Access to diverse markets provides flexibility and opportunity Rationalizing our firm transportation portfolio to improve net-back pricing Multiple counterparties have expressed interest in Market Mix…
2019 ESG Report: Future Focused ESG Report, published October 21, 2020, provides a detailed framework on how we think about our business, and how all of the pieces from how we manage human capital to how we empower our employees…
Future Focused Highlights For calendar year 2019 Environmental Economic Stewardship Community Impact Safety Investment EQTs methane intensity is 78% EQTs 2019 activities generated lower than the 2025 target set Zero Tier 1…
The Marcellus Shale Heavy on Production, Low on Emissions 2018 UPSTREAM EMISSIONS INTENSITY BY ANONYMIZED OIL AND GAS TOP 10 PRODUCTION & EMISSION BREAKDOWN BY PLAY IN 2018(1) PRODUCER (kg CO2e/boe)(1,2) Global 2 100% EQT 3…
Focus on Gas Appalachian Top 10 Producers Have Lowest Emissions Intensity PRODUCTION(1) VS. EMISSIONS INTENSITY(2)- BY PEER(3) PRODUCTION(1) VS. EMISSIONS INTENSITY(2)- APPALACHIAN TOP 10 VS. NON- APPALACHIAN TOP 10 App Top 10 App…
Commitment to ESG Transparency EQT leads in environmental, social & governance (ESG) disclosure Bloomberg ESG Disclosure: scores above 40 demonstrate good In peer set EQT is: transparency; scores 50-70 demonstrate excellent…
Set up for EQT is Compelling Promise big, deliver big Improving the balance sheet & de-risking near-term debt maturities 2021 natural gas commodity set up compelling for EQT Ability to generate significant free cash flow…
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Third Quarter 2020 Results OPERATIONAL AND FINANCIAL RESULTS 3Q 2020 CAPITAL EXPENDITURES (mm) 3Q 2020 Marcellus Bcfe 319 Reserve development 176 Ohio Utica Bcfe 46 Land and lease 38 Other Bcfe 1 Capitalized overhead 15 Total Sales…
Risk Management As of October 16, 2020 Philosophy: 2020(1) 2021 2022 2023 2024 Swaps Volume (MMDth) 288 817 240 61 2 Risk mitigation tool to de-risk cash flow and manage leverage Average Price (/dth) 2.75 2.66 2.62 2.48 2.67…
Experienced, Diverse Board to Oversee EQTs Initiatives DIRECTOR PRINCIPAL EXPERIENCE UNIQUE CONTRIBUTIONS Expertise in public company governance in the context of the energy industry LYDIA BEEBE* Former Corp Secretary, Chevron…
Non-GAAP Financial Measure Adjusted Net (Loss) Income Adjusted net (loss) income is defined as net (loss) income, excluding impairments, transaction, proxy and reorganization costs, the revenue impact of changes in the fair value of…
Non-GAAP Financial Measure Reconciliation of Adjusted Net (Loss) Income The table below reconciles adjusted net (loss) income with net (loss) income, the most comparable financial measure calculated in accordance with GAAP, as derived…
Non-GAAP Financial Measure Adjusted EBITDA Adjusted EBITDA is defined as net (loss) income, excluding interest expense, income tax (benefit) expense, depreciation and depletion, amortization of intangible assets, impairments,…
Non-GAAP Financial Measure Reconciliation of Adjusted EBITDA The table below reconciles adjusted EBITDA with net (loss) income, the most comparable financial measure as calculated in accordance with GAAP, as reported in the Statements of…
Non-GAAP Financial Measure Reconciliation of LTM Adjusted EBITDA The table below reconciles adjusted EBITDA with net (loss) income, the most comparable financial measure as calculated in accordance with GAAP, as reported in the…
Non-GAAP Financial Measure Adjusted Operating Cash Flow and Free Cash Flow Adjusted operating cash flow is defined as net cash provided by operating activities less changes in other assets and liabilities. Free cash flow is defined as…
Non-GAAP Financial Measure Reconciliation of Net Debt Net debt is defined as total debt less cash and cash equivalents. Total debt includes the Company's current portion of debt, credit facility borrowings, term loan borrowings, senior…
Non-GAAP Financial Measure Adjusted Interest Expense Per Unit Adjusted interest expense per unit is defined as interest expense less non-cash interest expense (amortization) of debt discounts and issuance costs divided by total sales…
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