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2Q 2023 Earnings Presentation – EQT Corp

EQT Corp · Jul 25, 2023 · 38 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. 2Q 2023 Earnings Presentation – EQT Corp – slide 1
    Investor Presentation Second Quarter 2023 Results July 25, 2023 7/25/20 1 23 1
  2. 2Q 2023 Earnings Presentation – EQT Corp – slide 2
    EQT Presents a Differentiated Energy Investment Opportunity Expanding track record of peer-leading performance PEER-LEADING COST STRUCTURE DRIVES DURABLE FREE CASH FLOW Strong free cash flow outlook, expect to generate 50% of…
  3. 2Q 2023 Earnings Presentation – EQT Corp – slide 3
    The Premier North American 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 14.4 B Market Cap(1) 1 200k…
  4. 2Q 2023 Earnings Presentation – EQT Corp – slide 4
    Performing For All Stakeholders Record-breaking drilling and completion performance; 800 MM of debt retired; added to 2024 hedge book KEY RESULTS Q2 2023 1H 2023 RECENT HIGHLIGHTS Q2 production & capital in-line with midpoint of…
  5. 2Q 2023 Earnings Presentation – EQT Corp – slide 5
    EQT Efficiencies Pull Ahead, Setting New Drilling Records Performance drives peer-leading efficiencies capable of drilling 1 MM lateral feet per year…
  6. 2Q 2023 Earnings Presentation – EQT Corp – slide 6
    Completions Operating at Peak Levels New EQT record with nearly 4-mile lateral completed in Q2 AVERAGE FRAC CREW PUMPING HOURS PRODUCTION RATE ON THE UPSWING Hours Bcfe/d 5.4 5.2 Midpoint of Q2 guidance even with 12 Bcfe…
  7. 2Q 2023 Earnings Presentation – EQT Corp – slide 7
    West Virginia Water System Paying Dividends Efficient water handling drives peer-leading LOE EQT WEST VIRGINIA WATER NETWORK WATER GATHERING SYSTEM DRIVES PEER-LEADING LOE COSTS(1) /Mcfe EQT A B C D E F REDUCING FRESHWATER &…
  8. 2Q 2023 Earnings Presentation – EQT Corp – slide 8
    MVP Approval Highlights Bipartisan Infrastructure Support MVP and southern expansion projects suggest growing value to EQT over time MOUNTAIN VALLEY PIPELINE UPCOMING STATION 165 EXPANSIONS ANTICIPATED TO MAGNIFY MVP IMPACT EXPECTED…
  9. 2Q 2023 Earnings Presentation – EQT Corp – slide 9
    Progressing Risk-Adjusted LNG Strategy Signed HOA for 1 million tons per annum of tolling capacity GULF COAST FT PORTFOLIO PROVIDES LNG DEAL TOLLING STRATEGY CHECKS ALL THE BOXES OPTIONALITY, ACCESS TO INTERNATIONAL PRICING PRODUCT…
  10. 2Q 2023 Earnings Presentation – EQT Corp – slide 10
    EQT Provides Best Risk-Adjusted Exposure to Natural Gas Current share price provides a superior absolute and relative value opportunity 2023 2027E CUMULATIVE FCF(1,4) 2023 2027E CUMULATIVE FCF(1,2,4) % of enterprise value(3) % of…
  11. 2Q 2023 Earnings Presentation – EQT Corp – slide 11
    Executing on All of the Above Shareholder Return Framework Retired 800 MM of debt during Q2; 1.9 B total debt retired since December 2021 TARGETING 3.5 B ABSOLUTE DEBT, 2.0 B SHARE REPURCHASE 1.0-1.5x LONG-TERM LEVERAGE(1) AT 2.75 GAS…
  12. 2Q 2023 Earnings Presentation – EQT Corp – slide 12
    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) % 35% 50 Executed Share…
  13. 2Q 2023 Earnings Presentation – EQT Corp – slide 13
    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) Executed tender offer for 300 MM of 6.125% 2025…
  14. 2Q 2023 Earnings Presentation – EQT Corp – slide 14
    2022 ESG Report Highlights Continued progress towards 2025 emissions targets & strong community support PRODUCTION SEGMENT SCOPE 1 & 2 PRODUCTION SEGMENT SCOPE 1 PRODUCTION SEGMENT SCOPE 1 GHG EMISSIONS (NET)(1,2) GHG EMISSIONS…
  15. 2Q 2023 Earnings Presentation – EQT Corp – slide 15
    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 Taking on…
  16. 2Q 2023 Earnings Presentation – EQT Corp – slide 16
    High-Quality Inventory Underpins Durable Capital Returns Transparent look at core inventory shows every core location breaks even…
  17. 2Q 2023 Earnings Presentation – EQT Corp – slide 17
    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…
  18. 2Q 2023 Earnings Presentation – EQT Corp – slide 18
    Appendix 19 19
  19. 2Q 2023 Earnings Presentation – EQT Corp – slide 19
    EQT Delivers Production to Diversified Sales Points Access to diverse sales points provides flexibility and opportunity Provides Operational and Cash Flow Flexibility Regional Mix - Price Points(1) 2023E 2024E Diversity of delivery…
  20. 2Q 2023 Earnings Presentation – EQT Corp – slide 20
    Hedging Strategy Provides Compelling Risk-Adjusted Upside Hedge position as of July 21, 2023 2023 2023 2024 2024 2024 2024 Q3 (1) Q4 Q1 Q2 Q3 Q4 EQT NATURAL GAS PRICE UPSIDE Hedged Volume (MMDth) 299 313 210 175 177 77 Balance sheet…
  21. 2Q 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. 2Q 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. 2Q 2023 Earnings Presentation – EQT Corp – slide 23
    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…
  24. 2Q 2023 Earnings Presentation – EQT Corp – slide 24
    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…
  25. 2Q 2023 Earnings Presentation – EQT Corp – slide 25
    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 VENTURES…
  26. 2Q 2023 Earnings Presentation – EQT Corp – slide 26
    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…
  27. 2Q 2023 Earnings Presentation – EQT Corp – slide 27
    Unleashing U.S. LNG: The Largest Green Initiative on the Planet EQT stands ready to deliver supply to growing LNG markets, strengthening energy security while reducing global emissions The Demand The Result There is 175 Bcf/d of…
  28. 2Q 2023 Earnings Presentation – EQT Corp – slide 28
    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…
  29. 2Q 2023 Earnings Presentation – EQT Corp – slide 29
    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…
  30. 2Q 2023 Earnings Presentation – EQT Corp – slide 30
    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…
  31. 2Q 2023 Earnings Presentation – EQT Corp – slide 31
    2023 Operational Guidance Consistent spending, operational outlook Production(1) 3Q23E 2023E Total sales volumes (Bcfe) 475 - 525 1,900 - 2,000 Liquids sales volume, excluding ethane (MBbls) 2,000 - 2,200 8,900 - 9,300 Ethane sales…
  32. 2Q 2023 Earnings Presentation – EQT Corp – slide 32
    2023 Financial Guidance NYMEX natural gas price sensitivities ADJUSTED EBITDA(1) ADJUSTED OPERATING FREE CASH FLOW(1) B CASH FLOW(1) B B 2.8 - 3.1 2.6 - 2.9 2.7 - 3.0 2.5 - 2.8 2.5 - 2.8 2.3 - 2.6 0.9 - 1.2 0.7 - 1.0…
  33. 2Q 2023 Earnings Presentation – EQT Corp – slide 33
    Well Activity Details 2Q23 actuals, 3Q23 and 2023 estimates Wells Drilled (Spud) SWPA NEPA WV OH TOTAL 2Q23A 3Q23E 2023E 2Q23A 3Q23E 2023E 2Q23A 3Q23E 2023E 2Q23A 3Q23E 2023E 2Q23A 3Q23E 2023E Net wells - 6 - 8 14 - 20 4 2 - 4 12 -…
  34. 2Q 2023 Earnings Presentation – EQT Corp – slide 34
    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…
  35. 2Q 2023 Earnings Presentation – EQT Corp – slide 35
    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…
  36. 2Q 2023 Earnings Presentation – EQT Corp – slide 36
    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…
  37. 2Q 2023 Earnings Presentation – EQT Corp – slide 37
    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 EQM…
  38. 2Q 2023 Earnings Presentation – EQT Corp – slide 38
    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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