Investor Presentation Second Quarter 2022 July 27, 2022 7/27/20 1 1 22
Performing for All Stakeholders Strong FCF generation, accelerating debt paydown and recently increased base dividend SECOND QUARTER 2022 RESULTS: Production 502 Bcfe Average Realized Price 3.21 Per Mcfe Performing for All Stakeholders…
The Premier Appalachian Natural Gas Producer A compelling opportunity to invest in Americas largest natural gas producer FINANCIAL PROFILE NYSE Ticker: EQT CORPORATE PROFILE Market capitalization(2) 15.6 B 140% IG Credit, Net…
Multi-Decade Inventory of High-Quality Natural Gas Assets Combination of scale, premier assets, and responsible development PURE-PLAY APPALACHIAN PRODUCER MEASURING OUR IMPACT 1 NE PA If EQT were a country, MARCELLUS it would be…
Near-Term Acceleration of Free Cash Flow Differentiated growth in free cash flow generation and free cash flow yield FCF GENERATION(1,2) & FCF YIELD(1,3) 45% 32% 5,000 Coming Into Focus 40% 35% Projected rapid FCF 4,000…
Robust and Sustainable Long-Term FCF Generation Set up to generate strong free cash flow in all pricing scenarios 2022 2027 CUMULATIVE FCF OUTLOOK(1,2) 22 Billion 37 B of free cash flow(1,2) generation 2022 through 2027 30 B…
Investment Grade Ratings Reduce Cost of Capital and Maximize Flexibility Leverage(2) trending towards 1.0x by year-end at strip, long-term leverage(2) target of 1.01.5x at 2.75 gas FCF EXCEEDS MATURITIES ACROSS PRICE CYCLES EQT SENIOR…
Updated Capital Allocation Framework Drives Value for Shareholders Operational improvements, financial strength have positioned EQT to return significant capital to shareholders CAPITAL ALLOCATION FRAMEWORK DECEMBER UPDATED LONG-TERM…
Delivering On Capital Return Strategy Fast pace toward debt reduction, plenty of remaining firepower for additional share repurchases INCREASING DEBT REDUCTION TARGET RUNWAY FOR OPPORTUNISTIC SHARE REPURCHASES MM MM Debt Reduction…
Capital Returns Keeping Pace with Free Cash Flow Approximately 1.3 B returned to shareholders year-to-date RETURNING CAPITAL TO SHAREHOLDERS(1) MM STRONG FREE CASH FLOW Senior Note Repurchases Convertible Note Principal Retired…
Unrivaled Inventory Quality Underpins Sustainable Capital Returns Transparent look at core inventory shows every core location breaks even…
Frac Efficiency Back on the Upswing in Q2 Efficiencies from combo development and long-term contracts help mitigate further inflationary pressure CONTROLLING OUR DESTINY EQT MITIGATING OVERALL INFLATIONARY Long-term, efficiency-based…
2021 ESG Report Highlights Meaningful Rate of Change Story Significant declines across absolute emissions, GHG emissions intensity and methane emissions intensity PRODUCTION SEGMENT SCOPE 1 & 2 PRODUCTION SEGMENT SCOPE 1 ENVIRONMENTAL…
Clear Visibility Towards Achieving Net Zero Goal by 2025 Proven path to reach emissions targets, not relying on future technological advancements SETTING THE STAGE KEY INITIATIVES WHERE EQT IS HEADED Baseline Emissions and Taking on…
American Public Voicing Clear Support for U.S. Natural Gas Prioritizing affordable energy while helping the world address climate goals Bipartisan Support to Increase U.S. Natural Gas Production Support Increased Production Oppose…
Strategically Restructured Hedge Book Provides Incremental Upside Repositioning from swaps to collars protects the floor with asymmetric exposure to the upside Cap Makeup Shifts Average Ceiling Prices Asymmetric Skew to Towards Calls…
Gas Gathering Rates Contractually Declining Over Time De-risked near-term fee-relief with exercise of cash option; long-term gathering rate declines intact CORPORATE GATHERING RATES(1) POSITIVE GAS GATHERING /Mcfe RATE OUTLOOK 0.75…
EQT Presents a Differentiated Energy Investment Opportunity Expanding track record of performance and continuing our rate of change story DO IT RIGHT THEN DO IT BETTER EQT Strength Detail Stat Upside and Benefits Modern operating…
Creating Long-Term, Sustainable Value Simple value proposition 1 Maintenance capital program to produce 2 Tcfe Our story is simple: we have evolved our business to align with the core tenants of a sustainable shale era. That…
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Leveraging Large-Scale Operations on a Large-Scale Asset Base Highly predictable & repeatable operations through combo-development EQT COMBO-DEVELOPMENT EXAMPLE REQUIREMENTS REAL RESULTS 80% 15 2.0 Tcfe Combo-development planned…
Our Modern Operating Model Has Driven a Step-Change in Asset Performance We are now realizing the full impact of productivity improvements from our operational overhaul Operational Overhaul: Implementation of best 98% 40% Increased…
The Marcellus Is the Most Capital Efficient Gas Play EQT's capital efficiency expected to continue to improve over time, with only 5 rigs needed to hold production flat in 2022 THE MARCELLUS ADVANTAGE EQT BASE DECLINE RATE EXIT-TO-EXIT…
Appalachian Basin Prices Continue to Trade Higher Local pricing is highly correlated to Henry Hub NYMEX v M2 PRICING /MMBtu 10.00 NYMEX M2 9.00 Average forward M2 curve is 75-80% of 8.00 NYMEX(1) 7.00 Local pricing has…
Ample Liquidity Drives Capital Allocation Flexibility Return to investment grade offers improved liquidity LIQUIDITY(1) 2.5 B 2.2 B Unsecured Revolver Liquidity(1) 0.2 Revolver maturity extended Fitch and S&P Credit Rating to June…
Hedging Strategy Provides Compelling Risk-Adjusted Upside Hedge position as of July 22, 2022 2022 2022 2023 2023 2023 2023 2024 UPDATED HEDGING STRATEGY 3Q 4Q 1Q 2Q 3Q 4Q FY Hedged Volume (MMDth) 272 284 216 258 261 225 17…
Advantaged Market Intelligence & Diversified End Markets Access to diverse markets provides flexibility and opportunity Market Mix - Price Points 2022E 2023E Provides Operational and Cash Flow Local 42% 39% We hedge Flexibility…
New Pipeline Capacity Needed for Appalachia to Respond to High Prices Worlds largest gas field pipeline constrained; EQTs plan would unleash 35+ Bcf/d of incremental Appalachian supply Pre-2008 2008-2020 2021+ Pre-Shale Marcellus/Utica…
The Call for Clean Energy Is a Call on EQT The call on low-emissions natural gas provides exciting upside opportunity EQT NATURAL GAS NATURAL GAS MACRO TAILWINDS PRICE UPSIDE Capital discipline, limited infrastructure flattening…
Unleashing U.S. LNG: The Largest Green Initiative on the Planet EQT stands ready to deliver supply to growing LNG markets and play a significant role in lowering global emissions The Demand The Result There is 175 Bcf/d of coal-to-gas…
LNG Macro: Material Global Natural Gas Demand Growth Non-North American demand set to increase by 90 Bcf/d in less than 30 years NON-NORTH AMERICAN NATURAL GAS DEMAND FORECAST Bcf/d 400 STRENGHTENING 350 INTERNATIONAL MARKET…
Natural Gas Is the Fastest, Most Effective Way to Lower Emissions Since 2005, EQT has facilitated emissions reductions roughly equal to that of the entire solar industry 1 EQT represented approximately 10% of natural gas production…
Demonstrating Environmental Commitment and Leadership Our initiatives are impactful, recognized by key environmental stakeholders, and available for industry adoption INITIATIVE: PNEUMATIC VALVE REPLACEMENT EQT PUBLICATION(1) EQT:…
EQT Is Changing the World That We Touch Our operational presence within local communities makes a tremendous impact AMERICAN SHALE: A NEW HOPE 456,000 video views Digital Wildcatters 40,000 hours of watch time 1 Billion…
Non-GAAP Financial Measure Adjusted EBITDA Adjusted EBITDA is defined as net income (loss), excluding interest expense, income tax expense (benefit), depreciation and depletion, gain on sale/exchange of long-lived assets, impairments,…
Non-GAAP Financial Measure Reconciliation of Adjusted EBITDA The table below reconciles adjusted EBITDA with net income (loss), 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 income (loss), the most comparable financial measure as calculated in accordance with GAAP, as reported in the…
Non-GAAP Financial Measure Adjusted Operating Cash Flow, Free Cash Flow, Free Cash Flow Yield and Free Cash Flow Per Share Adjusted operating cash flow is defined as net cash provided by operating activities less changes in other assets…
Non-GAAP Financial Measure Net Debt and Leverage 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, senior notes and note payable to…
Non-GAAP Financial Measure PV10 PV-10 is derived from the standardized measure of discounted future net cash flows (the Standardized Measure), which is the most directly comparable financial measure computed using U.S. GAAP. PV-10…
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