Investor Presentation Third Quarter 2022 October 26, 2022 10/26/2 1 1 022
Performing for All Stakeholders Strong FCF generation, announced accretive acquisition & accelerated shareholder returns Q3 2022 RESULTS RECENT HIGHLIGHTS Production 488 Bcfe Announced 5.2 B bolt-on acquisition of Tug Hill and Average…
The Premier Appalachian Natural Gas Producer Combination of scale, premier assets, and responsible development PURE-PLAY APPALACHIAN PRODUCER EQT AT A GLANCE (NYSE: EQT) 14.5 B 1 NE PA MARCELLUS 1.0 Bcf/d Market Cap(1) 180k core…
Strategic Bolt-On Acquisition Strengthens EQTs Business Adding low-risk, high-quality assets offsetting existing acreage with improved free cash flow durability SW APPALACHIA ACREAGE POSITION ACQUISITION MAKES EQTS FREE CASH FLOW…
Strong Execution, Accretive Acquisitions and Shareholder Returns EQTs addition to S&P 500 reflects culmination of multi-year plan execution EQT S&P 500 S&P 500 - Energy A STRONGER, MORE SUSTAINABLE EQT 350% September 2022 EQT…
Abundant Appalachian Natural Gas Sets Foundation for Zero-Carbon Energy EQT collaborating with leading companies to establish clean hydrogen hub in Appalachia ARCH2 expected to be a foundational component of Americas transition…
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(1,2) 4,000 30% 25% Coming Into Focus 25% Projected rapid FCF 3,000 generation…
Delivering On Capital Return Strategy Fast pace toward debt reduction, plenty of remaining firepower for additional share repurchases INCREASED 22-23 DEBT REDUCTION TARGET DOUBLED SHARE REPURCHASE AUTHORIZATION MM MM Debt Reduction…
Capital Returns Keeping Pace with Free Cash Flow Approximately 1.5 B returned to shareholders year-to-date RETURNING CAPITAL TO SHAREHOLDERS(1) MM STRONG FREE CASH FLOW Senior Note Repurchases Convertible Note Principal Retired…
Consistent Productivity Improvements Driven by Combo Development Strong well performance helps counterbalance third-party impacts TRACK RECORD OF CONTINUED PRODUCTIVITY IMPROVEMENTS(1) IMPROVING WELL MMcf/ft PRODUCTIVITY EQT 2019 EQT…
High-Quality Inventory Underpins Sustainable Capital Returns Transparent look at core inventory shows every core location breaks even…
Investment Grade Ratings Reduce Cost of Capital and Maximize Flexibility Leverage(1) trending towards 1.0x by year-end at strip, long-term leverage(1) target of 1.01.5x at 2.75 gas 1.0 B OF NEW SENIOR NOTES ISSUED EQT SENIOR NOTES…
Balance Sheet Improvement Driving Down Cost of Capital Swift return to Investment Grade ratings leads to tighter credit spreads EQT CREDIT SPREADS(1) Basis Points 1,600 Downgraded 1,400 to High Yield by All 3 Agencies 1,200 1,000…
All of the Above Shareholder Return Framework Balanced framework focused on optimizing long-term risk-adjusted value creation CAPITAL ALLOCATION FRAMEWORK DECEMBER JULY SEPTEMBER PRIORITIES & PRINCIPLES FRAMEWORK FRAMEWORK FRAMEWORK…
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 Efficient 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 means…
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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…
EQT Is Changing the World That We Touch Our operational presence within local communities makes a tremendous impact VALUES IN ACTION AMERICAN SHALE: A NEW HOPE 456,000 video views TRUST TEAMWORK HEART EVOLUTION Digital Wildcatters…
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…
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) /Mcfe POSITIVE GAS GATHERING 0.75 Drives…
Continuing the Evolution After being voted in by shareholders in 2019, management has been delivering on promises Premier Asset Base and Efficient Operations Free Cash Flow Generation CHECKED ALL Balance Sheet Strength BOXES IN…
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 Years of…
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: 98% 40% Increased EURs Implementation of…
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…
Ample Liquidity Drives Capital Allocation Flexibility Return to investment grade offers improved liquidity LIQUIDITY(1) 2.5 B 2.6 B Unsecured Revolver Liquidity(1) Recently renewed revolving Fitch and S&P Credit Rating credit…
Hedging Strategy Provides Compelling Risk-Adjusted Upside Hedge position as of October 21, 2022 2022 2023 2023 2023 2023 2024 UPDATED HEDGING STRATEGY 4Q(1) 1Q 2Q 3Q 4Q FY Hedged Volume (MMDth) 290 300 353 356 283 17 Implementing a…
Hedge Book Offers Risk Adjusted 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 Positively Impacted the…
Advantaged Market Intelligence & Diversified End Markets Access to diverse markets provides flexibility and opportunity Market Mix - Price Points(1) 2022E(2) 2023E Provides Operational and Cash Flow Local 38% 36% We hedge Flexibility…
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 increased…
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…
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…
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:…
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 PV-10 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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