Slide 1: Investor Presentation First Quarter 2022
Investor Presentation First Quarter 2022 April 27, 2022 4/27/20 1 1 22
Slide 2: Cautionary Statements
Cautionary Statements EQT Corporation (NYSE: EQT) EQT Plaza 625 Liberty Avenue, Suite 1700 Pittsburgh, PA 15222 Cameron Horwitz – Managing Director, Investor Relations & Strategy – 412.395.2555 The Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC,
Slide 3: Performing for All Stakeholders
Performing for All Stakeholders Strong FCF Generation, Execution on Shareholder Returns in 1Q22 FIRST QUARTER 2022 RESULTS: Production 492 Bcfe Average Realized Price $3.19 Per Mcfe Performing for All Stakeholders Adjusted EBITDA(1) $927 Million CAPEX $310 Million √ Executing on Financial Guidance F
Slide 4: The Premier Appalachian Natural Gas Producer
The Premier Appalachian Natural Gas Producer A compelling opportunity to invest in America’s largest natural gas producer FINANCIAL PROFILE NYSE Ticker: EQT CORPORATE PROFILE Market capitalization(2) $14.7B ~115% IG Credit, Net debt(1,2) $5.0 B ‘22-’27 FCF(1) as % of current market cap(2) 1.0 – 1.5x
Slide 5: 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 6: Robust and Sustainable FCF Generation
Robust and Sustainable FCF Generation Differentiated growth in free cash flow generation and free cash flow yield while in maintenance mode FCF GENERATION(1) & FCF YIELD(1,3) ~$17 Billion $4,000 30% of free cash flow(1,2) generation Rapid FCF ~25% 2022 through 2027 generation growth $3,500 as hedges
Slide 7: Achieved Investment Grade Credit Ratings
Achieved Investment Grade Credit Ratings Returned to investment grade rating in ~2 years; paid off all 2022 senior note maturities EQT SENIOR NOTES MATURITIES(3) ~$17 B > ~$3.4 B of cumulative of maturities through $115 MM free cash flow(1,2) 2027 7.75% 7/26 2022 through 2027 $500 MM $1.25 B ~$570 M
Slide 8: Capital Allocation Framework Drives Value for Shareholders
Capital Allocation Framework Drives Value for Shareholders Operational improvements, financial strength have positioned EQT to return significant capital to shareholders CAPITAL ALLOCATION FRAMEWORK NEAR-TERM LONG-TERM PRIORITIES & PRINCIPLES ACTION TARGETS (2022-2023) (2023+) $1.5 B IN ABSOLUTE DEB
Slide 9: Executing Shareholder Return Program Is Another Completed Milestone
Executing 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 Reducti
Slide 10: Unleashing U.S. LNG: The Largest Green Initiative on the Planet
Unleashing U.S. LNG: The Largest Green Initiative on the Planet EQT stands ready to deliver supply to growing LNG markets and play a significant role in lowering global emissions The Demand The Result • There is ~175 Bcf/d of coal-to-gas switching demand in the • By 2030, unleashed U.S. LNG scenario
Slide 11: New Pipeline Capacity Needed for Appalachia to Respond to High Prices
New Pipeline Capacity Needed for Appalachia to Respond to High Prices World’s largest gas field pipeline constrained; EQT’s plan would unleash 35+ Bcf/d of incremental Appalachian supply Pre-2008 2008-2020 2021+ Pre-Shale Marcellus/Utica Discovery + Growth Pipeline Opposition Shuts Appalachia Off Fr
Slide 12: 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 • Capital discipline, limited infrastructure flattening supply growth • Hedging program designed to protect • Growing appreci
Slide 13: 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 14: 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 Disciplined approach to allocating PROVEN → Reduc
Slide 15: 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 16: Appendix
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Slide 17: 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 18: 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 practices and process & Improvement in + Lower Well Costs sta
Slide 19: 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 THE MARCELLUS ADVANTAGE EQT BASE DECLINE RATE EXIT-TO-EXIT RATE DECLINE • Low capital intensity on maintenance production profile
Slide 20: Perspective: Appalachian Basin Prices Continue to Trade Higher
Perspective: Appalachian Basin Prices Continue to Trade Higher Local pricing is highly correlated to Henry Hub • Average forward M2 curve is 75-80% of NYMEX(1) • Local pricing has increased from ~$3/MMBtu to ~$6/MMBtu despite widening basis • In-basin production growth has meaningfully slowed while
Slide 21: Ample Liquidity Results in Strong Capital Allocation Ability
Ample Liquidity Results in Strong Capital Allocation Ability Return to investment grade will further improve liquidity position LIQUIDITY(1) $2.5 B ~$2.1 B Unsecured Revolver Liquidity(1) $2.5 • Revolver expiration July 31st, • Fitch and S&P Credit Rating $0.4 $2.1 2023 upgrades set the stage for im
Slide 22: Hedging Strategy Provides Risk-Adjusted Upside
Hedging Strategy Provides Risk-Adjusted Upside Hedge position as of April 22, 2022 UPDATED HEDGING STRATEGY 2022 2022 2022 2023(2) 2023 2023 2023 2024 2Q 3Q 4Q 1Q 2Q 3Q 4Q • Implementing a hedge strategy that Hedged Volume (MMDth) 329 286 287 185 233 236 204 17 provides the best risk-adjusted Hedged
Slide 23: 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% 39% We hedge Flexibility Covered(3) 85% local basis • Diversity of delivery markets provides sign
Slide 24: Ability to Drive Meaningful ESG Rate of Change
Ability to Drive Meaningful ESG Rate of Change Proven leadership: 2021 ESG accomplishments ENVIRONMENTAL NET ZERO TARGETS (1) • Publicly supported reinstating the Federal Methane Rule EQT vs. Peers(2) • Partnered with Cheniere and others to advance GHG emissions monitoring technologies • Joined OGMP
Slide 25: 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) • EQT: Full-scale replacement of >8,000 natural gas driven pneumatic devic
Slide 26: 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 456,000 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 27: 2022 Guidance
2022 Guidance Production Q2 2022 Full-Year 2022 Total sales volume (Bcfe) 480 – 530 1,950 – 2,050 Liquids sales volume, excluding ethane (Mbbls) 2,500 – 2,600 10,250 – 10,750 Ethane sales volume (Mbbls) 1,350 - 1,450 6,700 – 6,800 Total liquids sales volume (Mbbls) 3,850 - 4,050 16,950 – 17,550 Btu
Slide 28: Well Activity Details
Well Activity Details 1Q22 actuals, 2Q22 and FY22 estimates Wells Drilled (Spud) SWPA Marcellus NEPA Marcellus WV Marcellus OH Utica 1Q22A 2Q22E FY22E 1Q22A 2Q22E FY22E 1Q22A 2Q22E FY22E 1Q22A 2Q22E FY22E Net Wells 13 7-9 39-47 5 3-4 19-23 - - - 0.1 - 0-1 Net Avg. Lateral (1k ft.) 13 12-14 13-14 11
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, (gain) loss on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fair value of derivative instruments pri
Slide 30: Reconciliation of Adjusted EBITDA
Non-GAAP Financial Measure Reconciliation of Adjusted EBITDA The table below reconciles adjusted EBITDA with net loss, the most comparable financial measure as calculated in accordance with GAAP, as reported in the Statements of Condensed Consolidated Operations to be included in the Company's Quart
Slide 31: Reconciliation of LTM Adjusted EBITDA
Non-GAAP Financial Measure Reconciliation of LTM Adjusted EBITDA The table below reconciles adjusted EBITDA with net (loss) income, the most comparable financial measure as calculated in accordance with GAAP, as reported in the Statements of Condensed Consolidated Operations included in the Company’
Slide 32: Adjusted Operating Cash Flow and Free Cash Flow
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 33: Net Debt and Leverage
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