Investor Presentation Fourth Quarter and Full Year 2023 Results February 13, 2024 2/13/20 1 24 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) 1.1 MM core net acres 6.1…
Record Breaking Year at EQT Achieved all-time high operational efficiencies, integrated Tug Hill and XcL at record pace, and generated 880 million of FCF(1) KEY RESULTS 4Q23 2023 4Q23, 2023 AND RECENT HIGHLIGHTS Q4 production of 564…
EQT Achieved Peak Operational Performance in 2023 Set multiple world records and achieved significant y-o-y gains in drilling and completion efficiencies DRILLING TEAM PICKING UP THE PACE COMPLETION CREWS OPERATING AT RECORD EFFICIENCY…
EQT is the Most Efficient Natural Gas Producer in the United States Production per rig is more than 2.5x greater than the peer average PEER-LEADING EFFICIENCIES MAXIMIZE PRODUCTION PER RIG(1) Bcfe/d per rig (gross production) 2.0…
Tug Hill Cost Savings Exceeding Expectations Latest EQT-operated Marcellus drilling costs 50%+ lower than Tug Hill FASTER, MORE CONSISTENT DRILLING EXECUTION DRILLING COST SAVINGS SURPRISING TO THE UPSIDE 23 Marcellus drilling days…
World-Class Reserve Base Resilient in All Parts of Commodity Cycle EQT proved reserves steady at low point of the commodity cycle, highlighting quality and economic strength PROVED RESERVES STABILITY HIGHLIGHTS ASSET QUALITY FAVORABLE…
2024 Maintenance Program with Opportunistic Infrastructure, Land Investments Maintenance capital program of 1.95-2.05 billion and 0.20-0.30 billion of value-enhancing growth projects 2024 OUTLOOK 2024 TOTAL CAPITAL EXPENDITURES PLAN…
Strategic Infrastructure Projects Provide Robust Risk-Adjusted Returns Leveraging XcL platform to generate organic symbiotic midstream investment opportunities EQT WEST VIRGINIA GAS GATHERING SYSTEM STRATEGIC MIDSTREAM GROWTH PROJECTS…
Opportunistic Working Interest Acquisition in Operated Gathering Systems Near-zero execution risk investment into durable infrastructure assets at a double-digit free cash flow yield BOLT-ON ACQUISITION OF MINORITY EQUITY OWNERSHIP IN…
West Virginia Water System Paying Dividends Efficient water handling resulting in material LOE savings; 2024 investments to drive additional future cost savings EQT WEST VIRGINIA WATER NETWORK WATER SYSTEM INVESTMENT HIGHLIGHTS 2024…
Land Capital Extends Inventory and Generates Robust Economics Leasehold replenishment perpetuates free cash flow capacity LEASEHOLD REPLENISHMENT TANGIBLE VALUE CREATION FROM IN-FILL LEASING Organic leasehold acquisitions backfill core…
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 three 15-year non-binding HOAs for LNG tolling capacity covering 2.5 million tons per annum EQTS FIRM TRANSPORTATION CAPACITY CONNECTS OUR LOW-COST TOLLING STRATEGY CHECKS ALL THE BOXES SUPPLY…
Unrivaled Inventory Depth and Quality EQT leads peers in depth and quality of natural gas inventory in the United States EQT LEADS PEERS IN HIGH QUALITY INVENTORY DEPTH(1) Gross operated Appalachian locations HIGH-QUALITY INVENTORY…
Shareholder Return Strategy Designed to Maximize Long-Term Value Retired 2.3 B of debt, purchased 600+ million of shares generating 15% 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 AN IMPORTANT STRATEGIC…
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 40%+ of…
ESG & Macro Update 20 20
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…
Structural Changes in the U.S. Power Market are Tailwinds for Natural Gas Natural gas demand from power generation could increase 20% by 2030 FORECASTED REGIONAL 5-YEAR POWER LOAD CAGR(2) 2022 5-Year CAGR 2023 5-Year CAGR 2024 5-Year…
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 GLOBAL LNG SUPPLY AND DEMAND ESTIMATES Bcf/d RUSSIA EUROPE GLOBAL LNG DEMAND…
U.S. LNG Export Capacity Buildout Underway U.S. LNG exports are expected to continue growing, reaching 35% of supply by 2026, further supporting U.S. demand U.S. LNG EXPORT BUILD OUT Bcf/d Wave 2 LNG Buildout Underway 30 U.S. IS AN…
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EQT is Changing the World That We Touch Our operational presence within local communities makes a tremendous impact VALUES IN ACTION OIL & GAS DRILLING RECLAMATION AWARD TRUST TEAMWORK HEART EVOLUTION From the West Virginia Department…
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 2024E 2025E Diversity of delivery sales…
Hedging Strategy Provides Compelling Risk-Adjusted Upside NYMEX hedge position as of February 9, 2024 2024 (1) Q2 Q3 Q4 EQT NATURAL GAS PRICE UPSIDE Q1 Hedged Volume (MMDth) 283 260 237 127 Balance sheet improvements have allowed…
2024 Operational Guidance Production 1Q24E 2024E 1Q24E total sales volume guidance includes the impact of 10-15 Bcfe Total sales volumes (Bcfe) 525 - 575 2,200 - 2,300 of lower sales volume due to non-operated midstream constraints…
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 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 GAAP. PV-10 differs…
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