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1Q 2023 Earnings Presentation – EQT Corp

EQT Corp · Apr 26, 2023 · 37 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 1Q 2023 Earnings Presentation – EQT Corp – slide 1
    Investor Presentation First Quarter 2023 Results April 26, 2023 4/26/20 1 23 1
  2. 1Q 2023 Earnings Presentation – EQT Corp – slide 2
    Performing For All Stakeholders Solid execution leads to robust free cash flow KEY RESULTS Q1 2023 RECENT HIGHLIGHTS Generated 774 MM of free cash flow(1) in Q1 459 Total Sales Volumes Bcfe Production 2% above mid-point of guidance…
  3. 1Q 2023 Earnings Presentation – EQT Corp – slide 3
    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 11.8 B Market Cap(1) 1 200k core…
  4. 1Q 2023 Earnings Presentation – EQT Corp – slide 4
    Robust Long-Term Free Cash Flow Generation Free cash flow outlook highlights attractive value proposition 2023 2027E CUMULATIVE FCF OUTLOOK(1,2) 105% 80% B of market cap(3) of enterprise value(3) 12 B generated in free cash…
  5. 1Q 2023 Earnings Presentation – EQT Corp – slide 5
    Executing on All of the Above Shareholder Return Framework Balanced framework focused on optimizing long-term risk-adjusted value creation CAPITAL ALLOCATION FRAMEWORK 2023 YTD CAPITAL RETURNED TO SHAREHOLDERS 4.0 B IN ABSOLUTE DEBT…
  6. 1Q 2023 Earnings Presentation – EQT Corp – slide 6
    Operational Execution Returning to Peak Levels Drilling setting new efficiency records, while completions are returning to peak efficiency levels AVERAGE FRAC CREW PUMPING HOURS DRILLOUT COMPLETIONS Hours PERFORMANCE EHS INTENSITY(1)…
  7. 1Q 2023 Earnings Presentation – EQT Corp – slide 7
    Contractual Cost Structure Declines Drive Durable FCF Growth Gathering rates contractually decline, driving margins and FCF higher, while MVP outcome is immaterial to outlook CORPORATE GATHERING RATES(1) 2023 2027E FREE CASH FLOW(2)…
  8. 1Q 2023 Earnings Presentation – EQT Corp – slide 8
    Value-Focused Actions Driving Structural Improvement in Corporate Returns Cost structure reductions and accretive M&A transactions drive step-change in value creation RETURN ON CAPITAL EMPLOYED(1,2) % and /Mcf 25% 5.00 Realized…
  9. 1Q 2023 Earnings Presentation – EQT Corp – slide 9
    Track Record of Asset Base Growth While Improving Balance Sheet Well-structured, accretive M&A has increased asset base 30-40% larger with net debt down nearly 40% NET DEBT(1) FREE CASH FLOW GENERATION(1) B MM 5.3 774 MM 800 3.3…
  10. 1Q 2023 Earnings Presentation – EQT Corp – slide 10
    Accelerating Value Through Opportunistic Share Buyback Program Counter-cyclical execution has maximized returns compared to peers SHARE REPURCHASE EXECUTION(1) SUPERIOR RETURN ON OPPORTUNISTIC BUYBACKS(3) % Executed Share Repurchases…
  11. 1Q 2023 Earnings Presentation – EQT Corp – slide 11
    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 1,122 MM of senior note principal in 2022…
  12. 1Q 2023 Earnings Presentation – EQT Corp – slide 12
    Consistent Proved Reserves Underpinned by Combo-Development Proved reserves slightly higher year-over-year with positive performance revisions 2022 PROVED RESERVES DEMONSTRATE RESILIENCY FAVORABLE RISK/REWARD PROFILE Proved reserves…
  13. 1Q 2023 Earnings Presentation – EQT Corp – slide 13
    High-Quality Inventory Underpins Sustainable Capital Returns Transparent look at core inventory shows every core location breaks even…
  14. 1Q 2023 Earnings Presentation – EQT Corp – slide 14
    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…
  15. 1Q 2023 Earnings Presentation – EQT Corp – slide 15
    Tangible Steps Toward Net Zero GHG Emissions Advancing development of low carbon intensity natural gas products and verifiable carbon offsets ANNOUNCED FIRST NATURE-BASED CARBON OFFSET INITIATIVE STRATEGIC PARTNERSHIP WITH CONTEXT…
  16. 1Q 2023 Earnings Presentation – EQT Corp – slide 16
    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…
  17. 1Q 2023 Earnings Presentation – EQT Corp – slide 17
    Creating Long-Term Value in the Sustainable Shale Era Robust FCF generation, strong balance sheet, large scale, low carbon & meaningful return of capital to shareholders 1 Efficient capital program to produce 2 Tcfe Our story is…
  18. 1Q 2023 Earnings Presentation – EQT Corp – slide 18
    Appendix 19 19
  19. 1Q 2023 Earnings Presentation – EQT Corp – slide 19
    EQT Sells Production to 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 markets…
  20. 1Q 2023 Earnings Presentation – EQT Corp – slide 20
    Hedging Strategy Provides Compelling Risk-Adjusted Upside Hedge position as of April 21, 2023 2023 2023 2023 2024 Q2 (1) Q3 Q4 FY EQT NATURAL GAS PRICE UPSIDE Hedged Volume (MMDth) 306 299 293 206 Hedged Volume (MMDth/d) 3.3 3.3 3.2…
  21. 1Q 2023 Earnings Presentation – EQT Corp – slide 21
    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…
  22. 1Q 2023 Earnings Presentation – EQT Corp – slide 22
    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…
  23. 1Q 2023 Earnings Presentation – EQT Corp – slide 23
    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…
  24. 1Q 2023 Earnings Presentation – EQT Corp – slide 24
    EQT Is 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…
  25. 1Q 2023 Earnings Presentation – EQT Corp – slide 25
    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…
  26. 1Q 2023 Earnings Presentation – EQT Corp – slide 26
    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…
  27. 1Q 2023 Earnings Presentation – EQT Corp – slide 27
    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…
  28. 1Q 2023 Earnings Presentation – EQT Corp – slide 28
    Inadequate Natural Gas Storage Is Amplifying Price Volatility Lack of storage capacity relative to demand and linkage to international markets should result in persistent volatility U.S. GAS STORAGE: DAYS OF LTM DEMAND COVER(1) STORAGE…
  29. 1Q 2023 Earnings Presentation – EQT Corp – slide 29
    Global LNG Supply and Demand Forecast The LNG market is expected to double by the late 2030s; U.S. expected to be one of the largest suppliers LNG SUPPLY U.S. LNG CAPACITY BUILDOUT Bcf/d Bcf/d North America Middle East Australia…
  30. 1Q 2023 Earnings Presentation – EQT Corp – slide 30
    2023 Operational Guidance Consistent spending, operational outlook (1) Production 2Q23E 2023E Total sales volumes (Bcfe) 450 - 500 1,900 - 2,000 Liquids sales volume, excluding ethane (MBbls) 2,200 - 2,400 8,900 - 9,300 Ethane sales…
  31. 1Q 2023 Earnings Presentation – EQT Corp – slide 31
    2023 Financial Guidance NYMEX natural gas price sensitivities ADJUSTED EBITDA(1) ADJUSTED OPERATING FREE CASH FLOW(1) B CASH FLOW(1) B B 3.3 - 3.6 3.2 - 3.5 2.9 - 3.2 2.8 - 3.1 2.6 - 2.9 2.4 - 2.7 1.4 - 1.7 1.0 -…
  32. 1Q 2023 Earnings Presentation – EQT Corp – slide 32
    Well Activity Details 1Q23 actuals, 2Q23 and 2023 estimates Wells Drilled (Spud) SWPA NEPA WV OH 1Q23A 2Q23E 2023E 1Q23A 2Q23E 2023E 1Q23A 2Q23E 2023E 1Q23A 2Q23E 2023E Net wells 4 - 14 - 20 5 3-4 14 - 18 11 1-3 18 - 26 1 0-1 0-2…
  33. 1Q 2023 Earnings Presentation – EQT Corp – slide 33
    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, loss (gain) on sale/exchange of…
  34. 1Q 2023 Earnings Presentation – EQT Corp – slide 34
    Non-GAAP Financial Measure Reconciliation of Last Twelve Month (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…
  35. 1Q 2023 Earnings Presentation – EQT Corp – slide 35
    Non-GAAP Financial Measure Return on Capital Employed (ROCE), Net Debt, Leverage and Last Twelve Months (LTM) Leverage ROCE is defined as earnings before interest and income tax expense (benefit) (EBIT, a non-GAAP supplemental financial…
  36. 1Q 2023 Earnings Presentation – EQT Corp – slide 36
    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…
  37. 1Q 2023 Earnings Presentation – EQT Corp – slide 37
    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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