Slide 1: Investor Presentation: 2022 Guidance and Company Outlook
Investor Presentation 2022 Guidance and Company Outlook February 9, 2022 2/17/20 1 1 22
Slide 2: Cautionary Statements
Cautionary Statements EQT Corporation (NYSE: EQT) EQT Plaza 625 Liberty Avenue, Suite 1700 Pittsburgh, PA 15222 Andrew Breese – Director, Investor Relations – 412.395.2555 The Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only prov
Slide 3: The Premier Appalachian Natural Gas Producer
The Premier Appalachian Natural Gas Producer A compelling opportunity to invest in America’s premier natural gas assets FINANCIAL PROFILE NYSE: EQT CORPORATE PROFILE Market capitalization(2) $8.0 B ~125% 1.0 – 1.5x Net debt(1,2) $5.4 B FCF(1) through 2026 of Leverage(1) target current before 2023 En
Slide 4: Multi-Decade Inventory of High-Quality Natural Gas Assets
Multi-Decade Inventory of High-Quality Natural Gas Assets Combination of scale, premier assets, and responsible development PURE-PLAY APPALACHIAN PRODUCER MEASURING OUR IMPACT #1 NE PA If EQT were a country, MARCELLUS it would be the ~1.0 Bcf/d 12th ~180k core net acres Producer of natural gas in th
Slide 5: Robust Free Cash Flow Generation
Robust Free Cash Flow Generation Compelling growth in free cash flow generation and free cash flow yield while in maintenance mode FCF GENERATION(1) & FCF YIELD(1,3) $10+ Billion $3,000 Rapid FCF 35% of free cash flow(1,2) generation generation growth 2021 through 2026 as hedges roll off ~30% 30% $2
Slide 6: Capital Allocation Framework Drives Value for our Shareholders
Capital Allocation Framework Drives Value for our Shareholders Operational improvements and financial strength have positioned EQT to begin returning capital CAPITAL ALLOCATION FRAMEWORK NEAR-TERM LONG-TERM PRIORITIES & PRINCIPLES ACTION TARGETS (2022-2023) (2023+) $1.5 B IN ABSOLUTE DEBT REDUCTION
Slide 7: Foundational Shareholder Return Program Is Another Completed Milestone
Foundational Shareholder Return Program Is Another Completed Milestone After being voted in by shareholders in 2019, management has been delivering on promises Premier Asset Base and Efficient Operations Free Cash Flow Generation CHECKED ALL Balance Sheet Strength BOXES IN SUSTAINABLE Emissions Redu
Slide 8: The Call for Clean Energy Is a Call on EQT
The Call for Clean Energy Is a Call on EQT The call on low-emissions natural gas provides exciting upside opportunity NATURAL GAS MACRO TAILWINDS EQT NATURAL GAS PRICE UPSIDE • Peers are demonstrating disciplined capital allocation, flattening supply growth • Hedging program designed to protect • Gr
Slide 9: Natural Gas Is the Fastest, Most Effective Way to Lower Emissions
Natural Gas Is the Fastest, Most Effective Way to Lower Emissions Since 2005, EQT has facilitated emissions reductions roughly equal to that of the entire solar industry 1 EQT represented approximately 10% of natural gas production growth from 2005 to 2019 2 Incremental natural gas production relati
Slide 10: EQT Presents a Differentiated Energy Investment Opportunity
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 model, data-driven PROVEN → Reduced corporate breakeven(1) from $2.9
Slide 11: Creating Long-Term, Sustainable Value
Creating Long-Term, Sustainable Value Simple value proposition 1 Maintenance capital program to produce ~2 Tcfe “ Our story is simple: we have evolved our business to align with the core tenants of a sustainable shale era. That means running a maintenance Hedging strategy that provides downside prod
Slide 12: Appendix
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Slide 13: Maintaining Momentum into 2022 and Beyond
Maintaining Momentum into 2022 and Beyond Demonstrating consistent improvement under maintenance production profile 2020 2021 2022E ’23+ TREND Net Sales Volumes Bcfe/d 4.1 5.1 5.4 - 5.6 Maintenance Alta acquisition July 2021 OPEX(1) $/Mcfe $1.36 $1.27 $1.25 - $1.37 Improving Adj. EBITDA(2) $B $1.5 $
Slide 14: 2022 Capital Program Details
2022 Capital Program Details Reflects full-year impact of Alta acquisition, phase-in of next generation well design and expected ~10% cost inflation Capital Expenditures – ($MM) 2021A 2022E Res Dev CAPEX (%) 2022E SWPA ~55% Reserve Development(1) $828 $1,010 - $1,110 NEPA ~15% Land and lease(2) $144
Slide 15: Leveraging Large-Scale Operations on a Large-Scale Asset Base
Leveraging Large-Scale Operations on a Large-Scale Asset Base Highly predictable & repeatable operations through combo-development EQT COMBO-DEVELOPMENT EXAMPLE REQUIREMENTS REAL RESULTS >80% >15 2.0 Tcfe Combo-development planned Years of core net Held flat with 4-5 rigs and • Contiguous asset base
Slide 16: Our Modern Operating Model Has Driven a Step-Change in Asset Performance
Our Modern Operating Model Has Driven a Step-Change in Asset Performance We are now realizing the full impact of productivity improvements from our operational overhaul Operational Overhaul: Implementation of best ~98% & ~40% Increased EURs + Lower Well Costs practices and process Production uptime
Slide 17: Continuing the Rate of Change on Operational and Cost Improvements
Continuing the Rate of Change on Operational and Cost Improvements Strong track record and methodical science program gives us confidence to begin phasing in next generation well design DECREASED COSTS IMPROVED PRODUCTIVITY Operational Improvements + Standardized Well Design EQT COST PER FOOT THIRD-
Slide 18: The Marcellus Is the Most Capital Efficient Gas Play
The Marcellus Is the Most Capital Efficient Gas Play EQT's capital efficiency will continue to improve over time, with only 5 rigs needed to hold production flat in 2022 EQT BASE DECLINE RATE THE MARCELLUS ADVANTAGE EXIT-TO-EXIT RATE DECLINE • Less capital intensity on maintenance production profile
Slide 19: We Have Line of Sight to an Investment Grade Rating
We Have Line of Sight to an Investment Grade Rating Near-term FCF exceeds debt maturities, providing ample financial flexibility EQT SENIOR NOTES MATURITIES(3) $10+ B > ~$2.5 B $2,000 of cumulative of maturities through free cash flow(1,2) 2026 $1,500 $115 MM 2021 through 2026 7.750% 7/26 $1.25 B 3.
Slide 20: Ample Liquidity Results in Strong Capital Allocation Ability
Ample Liquidity Results in Strong Capital Allocation Ability Return to investment grade would further improve liquidity position LIQUIDITY(1) $2.5 B ~$2.2 B $2.5 $- Unsecured Liquidity(1) $0.1 Revolver $2.2 $0.4 • April 23, 2021: Entered into a • Fitch, S&P and Moody’s Credit one-year extension agre
Slide 21: Hedging Strategy Provides Risk-Adjusted Upside
Hedging Strategy Provides Risk-Adjusted Upside Hedge position as of February 4, 2022 2022 2022 2022 2022 2023 2024 UPDATED HEDGING STRATEGY 1Q 2Q 3Q 4Q • Implementing a hedge strategy that Hedged Volume (MMDth) 355 329 287 287 858 16 provides the best risk-adjusted upside Hedged Volume (MMDth/d) 3.9
Slide 22: Advantaged Market Intelligence & Diversified End Markets
Advantaged Market Intelligence & Diversified End Markets Access to diverse markets provides flexibility and opportunity Market Mix - Price Points 2022E 2023E Provides Operational and Cash Flow Local 42% 35% We hedge Flexibility • Diversity of delivery markets provides significant Covered(3) 63% loca
Slide 23: Ability to Drive Meaningful ESG Rate of Change
Ability to Drive Meaningful ESG Rate of Change Proven leadership: 2021 ESG accomplishments ENVIRONMENTAL • Publicly supported reinstating the Federal Methane Rule NET ZERO TARGETS (1) • Partnered with Cheniere and others to advance GHG emissions EQT vs. Peers(2) monitoring technologies • Joined OGMP
Slide 24: Demonstrating Environmental Commitment and Leadership
Demonstrating Environmental Commitment and Leadership Our initiatives our impactful, recognized by key environmental stakeholders, and available for industry adoption INITIATIVE: PNEUMATIC VALVE REPLACEMENT EQT PUBLICATION(1) Published in January 2022 – available to industry • EQT: Full-scale replac
Slide 25: EQT Is Changing the World That We Touch
EQT Is Changing the World That We Touch Our operational presence within local communities makes a tremendous impact AMERICAN SHALE: A NEW HOPE 455,313 video views Digital Wildcatters 40,000 hours of watch time >$1 Billion Royalties paid to landowners during the pandemic years of 2020 & 2021 >$53 MM
Slide 26: Pricing, Acquisitions & Strong Operations Increased Total Proved Reserves
Pricing, Acquisitions & Strong Operations Increased Total Proved Reserves Year-end 2021 reserve highlights Proved Reserves by Play (Bcfe) +26% INCREASE IN TOTAL PROVED RESERVES Year Ended 12/31 2021 2020 Proved developed reserves Marcellus 15,528 11,943 +440% INCREASE IN PROVED RESERVE PV10(1,2) Upp
Slide 27: 2022 Guidance
2022 Guidance Production Q1 2022 Full-Year 2022 Total sales volume (Bcfe) 475 – 525 1,950 – 2,050 Liquids sales volume, excluding ethane (Mbbls) 2,835 – 2,935 10,820 – 11,320 Ethane sales volume (Mbbls) 1,475 - 1,575 6,600 – 6,700 Total liquids sales volume (Mbbls) 4,310 - 4,510 17,420 – 18,020 Btu
Slide 28: Well Activity Details
Well Activity Details 4Q21 actuals, 1Q22 and FY22 estimates Wells Drilled (SPUD) SWPA Marcellus NEPA Marcellus WV Marcellus OH Utica 4Q21A 1Q22E FY22E 4Q21A 1Q22E FY22E 4Q21A 1Q22E FY22E 4Q21A 1Q22E FY22E Net Wells - 11-15 39-47 11 4-6 19-23 9 - 5-6 - - - Net Avg. Lateral (1k ft.) - 12.8-14.2 12.3-1
Slide 29: Non-GAAP Financial Measure
Non-GAAP Financial Measure Adjusted EBITDA Adjusted EBITDA is defined as net loss, excluding interest expense, income tax benefit, depreciation and depletion, amortization of intangible assets, (gain) loss on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fair
Slide 30: Non-GAAP Financial Measure
Non-GAAP Financial Measure Reconciliation of Adjusted EBITDA The table below reconciles adjusted EBITDA with net income (loss), the most comparable financial measure as calculated in accordance with GAAP, as reported in the Statements of Consolidated Operations to be included in the Company's Annual
Slide 31: Non-GAAP Financial Measure
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 and liabilities. Free cash flow is defined as adjusted operatin
Slide 32: Non-GAAP Financial Measure
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 Midstream Partners, LP. Leverage is defined as net debt divid
Slide 33: Non-GAAP Financial Measure
Non-GAAP Financial Measure PV10 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 differs from Standardized Measure because it does not include the eff