Investor Presentation Third Quarter 2023 Results October 25, 2023 10/25/2 1 023 1
The Premier North American Natural Gas Producer Combination of the greatest scale, premier assets, low-cost structure and responsible development PURE-PLAY APPALACHIAN PRODUCER EQT AT A GLANCE (NYSE: EQT) NEPA 1.0 Bcf/d 200k core…
Breaking Records Across the Company Integrating Tug Hill and XcL Midstream at record pace, setting new operational records, and signed record size long-term firm sales deals KEY RESULTS(1) Q3 2023 YTD 2023 Q3 AND RECENT HIGHLIGHTS…
Integrating Tug Hill and XcL Midstream at Record Pace Proprietary deal integration application illuminates sophistication of digital platform and drives highly efficient integration ACQUISITION INTEGRATION PROGRESS of integration…
Realizing Massive Efficiency Gains on Tug Hill Assets In Just 60 Days Implementing EQT best practices drives value creation through synergies OPERATING FASTER & CHEAPER SINCE ACQUIRING ASSETS(1) Implementation of EQT best practices…
Another Quarter of Record-Breaking Operational Efficiency EQT broke its previous drilling world record and reached all-time high completion efficiencies in Q3 AVERAGE FRAC CREW PUMPING HOURS DRILLING BROKE THE WORLD RECORD, AGAIN Hours…
EQT Signed Two of the Largest, Long-Term Physical Supply Deals Ever Executed EQTs combination of scale, credit ratings and inventory quality allows us to create differentiated value out of each molecule MOUNTAIN VALLEY PIPELINE (MVP)…
Continuing LNG Strategy Momentum Signed two 15-year HOAs for LNG tolling capacity covering 2 million tons per annum EQTS FIRM TRANSPORTATION CAPACITY CONNECTS OUR LOW-COST TOLLING STRATEGY CHECKS ALL THE BOXES SUPPLY TO THE HIGHEST…
Long-Term Free Cash Flow Generation Highlights Intrinsic Value Proposition Pro-forma free cash flow(1) generation of 14 billion at recent strip PRELIMINARY PRO-FORMA OUTLOOK 2024E 2028E CUMULATIVE FREE CASH FLOW(1) OUTLOOK HIGHLIGHTS…
EQT Provides Best Risk-Adjusted Exposure to Natural Gas At current pricing, EQT shares provide investors the least downside risk, and 2nd most upside exposure to rising prices 2024E 2028E CUMULATIVE FCF(1,4) 2024E 2028E CUMULATIVE…
EQT is at the Low End of Both the Cost of Supply and Return Curves Structurally positioned to provide investors the optimal combination of downside protection and upside price exposure NYMEX GAS PRICE NEEDED TO GENERATE CORPORATE…
Unrivaled Inventory Depth and Quality EQT has by far the largest and highest quality natural gas inventory in the United States EQT LEADS PEERS IN HIGH QUALITY INVENTORY DEPTH(1) Gross operated Appalachian locations HIGH-QUALITY…
Shareholder Return Strategy Designed to Maximize Long-Term Value Retired 1.9 B of debt, purchased 600+ million of shares generating 40% return, and increased base dividend 25%+ since late 2021 TARGETING 3.5 B ABSOLUTE DEBT, 2.0 B…
Investment Grade Ratings Reduce Cost of Capital and Maximize Flexibility Continued progress towards long-term debt target of 3.5 billion EQT SENIOR NOTES MATURITIES(2) INVESTMENT GRADE CREDIT RATINGS PROVIDE 1,250 MM AN IMPORTANT…
First-of-its-Kind Forestry Management Partnership with the State of West Virginia Transparent, verifiable emissions reductions paving the way for EQT to achieve 2025 net zero(1) goal CONSERVATION PRACTICES Fields overrun with invasive…
ARCH2 Hub Selected for DOEs Regional Clean Hydrogen Funding American natural gas driving the transition to zero-carbon energy, led by ARCH2 and Appalachian natural gas Appalachian region provides significant existing resources…
EQT Provides a Differentiated Investment Opportunity Track record of peer-leading operating performance, low-cost structure and scale PEER-LEADING LOW-COST STRUCTURE DRIVES DURABLE FREE CASH FLOW(1) Expect to generate 60% of…
ESG & Macro Update 19 19
Clear Visibility Towards Achieving Net Zero(2) Goal by 2025 Proven path to reach emissions targets, not relying on future technological advancements SET AGGRESSIVE GOALS TAKE AGGRESSIVE ACTION GET TO THE FINISH LINE Peer-Leading…
Increased Transparency on EQT Progressing a Low-Carbon, Reliable Energy Future Differentiated natural gas supply and new venture efforts support long-term goals and demand WORLD CLASS REPORTING, CERTIFIED PERFORMANCE EQT 2022 ESG…
High Impact, Low-Cost Initiative Drives Down Methane Emissions Successful elimination of natural gas-powered pneumatic devices reduces largest methane emission source GAS POWERED PNEUMATIC DEVICE ELIMINATION IMPACTFUL 300,000 MT CO2e…
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…
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 STRENGTHENING INTERNATIONAL 400 MARKET OUTLOOK…
Inadequate Natural Gas Storage Will Amplify Price Volatility Lack of storage capacity relative to demand, limited coal switching ability and renewable intermittency will amplify price volatility U.S. GAS STORAGE: DAYS OF LTM DEMAND…
Global LNG Supply and Demand Forecast The LNG market is expected to double by the late 2030s, with the U.S. expected to be one of the largest suppliers LNG SUPPLY U.S. LNG CAPACITY BUILDOUT Bcf/d Bcf/d 30 Sabine Pass Cove Point Corpus…
Investor Appendix 27 27
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 and repeatable operations through combo-development EQT COMBO-DEVELOPMENT EXAMPLE REQUIREMENTS Contiguous asset base REAL RESULTS 8,300 acres 75% 15…
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 2023E(1) 2024E Diversity of delivery…
Hedging Strategy Provides Compelling Risk-Adjusted Upside Hedge position as of October 20, 2023 2023 2024 2024 2024 2024 Q4 (1) Q1 Q2 Q3 Q4 EQT NATURAL GAS PRICE UPSIDE Hedged Volume (MMDth) 377 263 239 237 98 Balance sheet…
Well Activity Details 3Q23 actuals and 4Q23 estimates Wells Drilled (Spud) SWPA NEPA WV OH TOTAL 3Q23A 4Q23E 3Q23A 4Q23E 3Q23A 4Q23E 3Q23A 4Q23E 3Q23A 4Q23E Net wells 12 9 - 12 5 4 - 6 - 7 - 10 0.2 1 - 2 18 21 - 30 Net avg.…
Disclosures 35 35
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…
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…
Non-GAAP Financial Measure Adjusted Operating Cash Flow, Free Cash Flow and Free Cash Flow Yield Adjusted operating cash flow is defined as net cash provided by operating activities less changes in other assets and liabilities. Free cash…
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…
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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