Click to edit Master title style EQT Midstream Partners, LP Investor Presentation August 2014
EQT Midstream Partners, LPtoNon-GAAP Click Measures edit Master title style The Partnership defines adjusted EBITDA as net income plus net interest expense, depreciation and amortization expense, income tax expense (if applicable),…
EQT Corporation Non-GAAP Click toMeasures edit Master title style The Partnership uses EQT Corporation Adjusted Midstream EBITDA as a financial measure in this presentation. EQT Corporation Adjusted Midstream EBITDA is defined as…
Introduction Click to edit Master title style Premier Assets in the Marcellus & Utica Visible Long- Drop-down Inventory term held by Distribution Sponsor (EQT) Growth EQT Midstream Partners (NYSE: EQM) 49% Per Unit…
Asset Overview Click to edit Master title style Transmission and Storage Assets Overlay Prolific Marcellus Play Equitrans Transmission & Storage 2.25 TBtu/d current capacity 1,146 BBtu/d throughput in 2013 700 mile FERC-regulated…
Asset Overview Click to edit Master title style Strategically Located Pipeline Network Operational Flexibility System Optionality Moves gas from Marcellus gathering to 5 interstate pipelines Serves wet & dry Marcellus development…
Asset Overview Click to edit Master title style Marcellus Gathering Jupiter gathering system Jupiter Gathering System Acquired May 2014 Supports EQT growing production 35 miles of pipe Two compressor stations 21,300 horsepower…
Changing Market Dynamics Click to edit Master title style Infrastructure Opportunity Driving Strategic Growth Initiatives Production Growth Since Inception Marcellus Pushing Back 12.0 Marcellus 10.0 Oversupplied 8.0 Bcf/d…
Growth Strategies Click to edit Master title style Organic Growth Asset Acquisitions Expand existing assets Drop-downs from EQT Year-end 2014E transmission Corporation, our sponsor capacity of 3.0 Bcf/d is a 5-fold Acquired Sunrise…
Growth Strategy Expand ClickExisting Assets to edit Master title style Organic Growth - Antero Resources Highlights Asset Map West Side Expansion 100 BBtu/d incremental capacity Total cost 26 million Expected in-service by…
Growth Strategy Expand ClickExisting Assets to edit Master title style Organic Growth - Range Resources Highlights Asset Map Gathering, compression, and transmission services Washington County, PA Transmission Expansion 100…
Growth Strategy Expand ClickExisting Assets to edit Master title style Organic Growth EQT & Peoples Natural Gas Highlights Asset Map Jefferson compressor expansion Sunrise expansion 550 BBtu/day incremental capacity fully…
Growth Strategy Extend ClickPipeline Network to edit Master title style Ohio Valley Connector Overview Project Map Connects transmission in West Virginia to Clarington, OH Accesses Texas Eastern and Rockies Express pipelines…
Growth Strategy Extend ClickPipeline Network to edit Master title style Mountain Valley Pipeline Overview Project Map Pipeline to growing natural gas demand market in southeast US EQT recently completed non- binding open season…
Growth Strategy - Drop-downs from Click to edit EQT Master title style EQT is Strong Corporate Sponsor EQT Core Marcellus Areas EQT interest aligned with EQM 2% General Partner Interest 34% Limited Partner Interest EQT a…
Growth Strategy - Drop-downs from Click to edit EQT Master title style EQT Production Growth Requires Significant Infrastructure Marcellus Driving Growth MMcfe/d 1,600 Marcellus 2014E Annual Production 1,400 Huron horizontal…
Growth Strategy - Drop-downs from Click to edit EQT Master title style Inventory of Midstream Assets at Sponsor Midstream infrastructure growing to support production 22% 3-year EQT Corp. Adjusted Midstream EBITDA growth EQT…
Growth Strategy - Drop-downs from Click to edit EQT Master title style Gathering Assets EQT Marcellus Gathering Systems* Tioga 65 MMcf/d Longhorn 130 MMcf/d Terra 80 MMcf/d Mercury 250 MMcf/d Applegate 150 MMcf/d…
Growth Strategy - Drop-downs from Click to edit EQT Master title style Transmission Asset Allegheny Valley Connector Asset Location EQT acquired December 2013 200 mile FERC-regulated transmission pipeline 450 BBtu/d throughput…
Distribution Growth Click to edit Master title style Visible long-term distribution growth Forecasting 29% per unit distribution growth in 2014* 1.4x coverage ratio over trailing 12-months 0.94 Per Unit Distribution Forecast 0.88…
Stable Cash Flow Profile Click to edit Master title style Revenues driven by fixed fee, long-term contracts Minimal direct commodity exposure 15-year weighted average transmission contract life** Transmission & Storage Total…
Capitalized for Growth Click to edit Master title style Recently completed inaugural bond offering 500MM Senior notes 10-year tenure 4.0% coupon Closed August 1, 2014 BBB- (stable) / BBB- (stable) / Ba1 (stable) Targeting 3.5x…
Investment Highlights Click to edit Master title style Strategically located Marcellus assets Executing on growth strategy Expand existing assets Extend pipeline network Drop-downs from sponsor Significant cash distribution…
2014 Guidance Click to edit Master title style Adjusted EBITDA: 254 - 264 million Distributable cash flow: 221 - 231 million Expansion CAPEX: 200 - 220 million Ongoing maintenance CAPEX*: 17 - 18 million * Net of expected…
Click to edit Master title style Appendix
Appendix Click to edit Master title style Ownership Structure EQT Corporation NYSE: EQT Common Units Subordinated Units 100% indirect ownership interest EQT Midstream Services, LLC 34% indirect limited (Our General Partner)…
Appendix Click to edit Master title style Non-GAAP Reconciliation Non-GAAP Reconciliation ( thousands) 2013 Net income 171,107 Add: Interest expense, net 1,672 Depreciation and amortization expense 25,924 2013 Income tax expense…
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