Investor Presentation Fourth Quarter & Full Year 2022 Results February 15, 2023 2/15/20 1 23 1
Performing For All Stakeholders Consistency in proved reserves, significant increase in future net cash flows, additional shareholder returns KEY RESULTS Q4 2022 2022 RECENT HIGHLIGHTS Total proved reserves of 25 Tcfe, up slightly y/y,…
The Premier Appalachian Natural Gas Producer Combination of scale, premier assets, and responsible development PURE-PLAY APPALACHIAN PRODUCER EQT AT A GLANCE (NYSE: EQT) NEPA MARCELLUS 0.9 Bcf/d 11.4 B Market Cap(1) 1 200k core…
Creating Long-Term, Sustainable Value for All Stakeholders 2022 highlights & accomplishments Unveiled Unleash U.S. LNG Advocacy Campaign CORPORATE Obtained Equitable Origin & MiQ RSG certifications covering 3.3 Bcf/d Announced…
Robust Long-Term Free Cash Flow Generation Attractive long-term free cash flow outlook supports shareholder returns 2022 2027 CUMULATIVE FCF OUTLOOK(1,2) 110% B 12 B of current market cap(3) generated in free cash flow(1,2) in…
Executing on All of the Above Shareholder Return Framework Balanced framework focused on optimizing long-term risk-adjusted value creation CAPITAL ALLOCATION FRAMEWORK 2022 CAPITAL RETURNED TO SHAREHOLDERS(5) 4.0 B IN ABSOLUTE DEBT…
Operations Entering 2023 on a High Note Encouraging gains in frac crew efficiency throughout 2022 AVERAGE FRAC CREW PUMPING HOURS DRILLOUT COMPLETIONS Hours PERFORMANCE EHS INTENSITY(1) of plugs per run % 260 135 Q1 2021 Q2…
Peer-Leading Free Cash Flow in All Reasonable Gas Price Scenarios Low cost structure and balanced hedge strategy drive differentiated free cash flow durability 2023 FREE CASH FLOW SENSITIVITY(1,3) 2023 FREE CASH FLOW BREAKEVENS(2,3) MM…
Structural Improvement in Corporate Returns Cost structure declines, accretive M&A transactions drive step-change in corporate returns RETURN ON CAPITAL EMPLOYED(1,2) % and /Mcf 20% 4.00 17% Realized Natural Gas Price 15%…
2023 Program Maintains Operational Consistency Capital efficiency set to improve in 2024+ as TIL count normalizes 2023 OUTLOOK 2023 CAPITAL EXPENDITURES(1) PLAN HIGHLIGHTS Land & Lease CAPEX embeds 10-15% OFS cost Total Sales Volumes…
High Impact, Low-Cost Initiative Drives Down Methane Emissions Successful elimination of natural gas-powered pneumatic devices reduces largest methane emission source ELIMINATION OF NATURAL GAS-POWERED 2021 PRODUCTION SEGMENT SCOPE 1…
Progressing a Low-Carbon, Reliable Energy Future Differentiated natural gas supply and new venture efforts support long-term goals and demand EQT AWARDED OGMP 2.0 GOLD STANDARD RATING, FURTHER DIFFERENTIATING SUPPLY NEW VENTURES…
Investment Grade Ratings Reduce Cost of Capital and Maximize Flexibility Continued progress towards long-term leverage(1) target of 1.01.5x at 2.75 gas EQT SENIOR NOTES MATURITIES(2) Retired 1,112 MM of senior note principal in 500…
High-Quality Inventory Underpins Sustainable Capital Returns Transparent look at core inventory shows every core location breaks even…
Strategic Bolt-On Acquisition Expected to Strengthen EQTs Business Adding low-risk, high-quality assets offsetting existing acreage with improved free cash flow durability SW APPALACHIA ACREAGE POSITION PENDING ACQUISITION EXPECTED TO…
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 Hedging…
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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 458,000 video views TRUST TEAMWORK HEART EVOLUTION Digital Wildcatters…
Leveraging Large-Scale Operations on a Large-Scale Asset Base Highly predictable & repeatable operations through combo-development EQT COMBO-DEVELOPMENT EXAMPLE REQUIREMENTS Contiguous asset base REAL RESULTS 8,300 acres 75% 15 2.0…
The Marcellus Is the Most Capital Efficient Gas Play EQT's capital efficiency expected to improve over time THE MARCELLUS ADVANTAGE EQT CAPEX EFFICIENCY OVER TIME Capital expenditures/total sales volumes (/Mcfe) Lowest…
Hedging Strategy Provides Compelling Risk-Adjusted Upside Hedge position as of February 10, 2023 2023 2023 2023 2023 2024 Q1 (1) Q2 Q3 Q4 FY EQT NATURAL GAS PRICE UPSIDE Hedged Volume (MMDth) 300 305 309 296 206 Hedged Volume…
Advantaged Market Intelligence & Diversified End Markets Access to diverse markets provides flexibility and opportunity Market Mix - Price Points(1) 2023E 2024E Provides Operational and Cash Flow Flexibility Diversity of delivery…
The Call for Clean, Reliable Energy Is a Call on EQT The call on reliable, low-emissions natural gas provides exciting opportunity RELIABLE SUPPLY OF SCALE IS LIMITED NET ZERO TARGETS(1) 2/3rds of the worlds economically-recoverable…
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 STRENGTHENING 350 INTERNATIONAL MARKET…
2023 Operational Guidance Consistent spending, operational outlook Production(1) 1Q23E 2023E Capital Expenditures(1) ( Millions) 2023E (2) Total sale volumes (Bcfe) 425 - 475 1,900 - 2,000 Res erve development 1,400 - 1,535 Liquids…
2023 Financial Guidance NYMEX natural gas price sensitivities ADJUSTED EBITDA(1) ADJUSTED OPERATING FREE CASH FLOW(1) B CASH FLOW(1) B B 3.7 4.0 3.5 3.8 3.2 3.5 3.0 3.3 2.7 3.0 2.5 2.8 1.8 2.1 1.2 1.5 0.7…
Non-GAAP Financial Measure Reconciliation of 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…
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 Return on Capital Employed (ROCE), Net Debt and Leverage ROCE is defined as earnings before interest and income tax expense (benefit) (EBIT, a non-GAAP supplemental financial measure), divided by average…
Non-GAAP Financial Measure Reconciliations of ROCE and Net Debt The tables below reconcile the components of ROCE to their most comparable financial measure calculated in accordance with GAAP. Specifically, (i) Table I reconciles average…
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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