Slide 1: Investor Presentation Second Quarter 2022
Investor Presentation Second Quarter 2022 July 27, 2022 7/27/20 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, accelerating debt paydown and recently increased base dividend SECOND QUARTER 2022 RESULTS: Production 502 Bcfe Average Realized Price $3.21 Per Mcfe Performing for All Stakeholders Adjusted EBITDA(1) $943 Million CAPEX $376 Million ✓ Executing
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) $15.6 B ~140% IG Credit, Net debt(1,2) $5.0 B ‘22-’27 FCF(1) as % of current market cap(2) 1.0 – 1.5
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: Near-Term Acceleration of Free Cash Flow
Near-Term Acceleration of Free Cash Flow Differentiated growth in free cash flow generation and free cash flow yield FCF GENERATION(1,2) & FCF YIELD(1,3) 45% ~32% $5,000 Coming Into Focus 40% 35% Projected rapid FCF $4,000 generation growth 2022E 2023E 30% FCF ($MM) FCF Yield ~15% ~32% $3,000 25% FC
Slide 7: Robust and Sustainable Long-Term FCF Generation
Robust and Sustainable Long-Term FCF Generation Set up to generate strong free cash flow in all pricing scenarios 2022 – 2027 CUMULATIVE FCF OUTLOOK(1,2) ~$22 Billion $37 B of free cash flow(1,2) generation 2022 through 2027 $30 B Factors Driving Improved Free Cash Flow Generation: $24 B Base Plan U
Slide 8: Investment Grade Ratings Reduce Cost of Capital and Maximize Flexibility
Investment Grade Ratings Reduce Cost of Capital and Maximize Flexibility Leverage(2) trending towards ~1.0x by year-end at strip, long-term leverage(2) target of 1.0–1.5x at $2.75 gas FCF EXCEEDS MATURITIES ACROSS PRICE CYCLES EQT SENIOR NOTES MATURITIES(4) 2022 – 2027 CUMULATIVE FCF(1,2) $115 MM $3
Slide 9: Updated Capital Allocation Framework Drives Value for Shareholders
Updated Capital Allocation Framework Drives Value for Shareholders Operational improvements, financial strength have positioned EQT to return significant capital to shareholders CAPITAL ALLOCATION FRAMEWORK DECEMBER UPDATED LONG-TERM PRIORITIES & PRINCIPLES FRAMEWORK FRAMEWORK TARGETS (2022-2023) (2
Slide 10: Delivering On Capital Return Strategy
Delivering On Capital Return Strategy Fast pace toward debt reduction, plenty of remaining firepower for additional share repurchases INCREASING DEBT REDUCTION TARGET RUNWAY FOR OPPORTUNISTIC SHARE REPURCHASES $ MM $ MM Debt Reduction Previous Target: New Target: Share Repurchase Authorization: Targ
Slide 11: Capital Returns Keeping Pace with Free Cash Flow
Capital Returns Keeping Pace with Free Cash Flow Approximately $1.3 B returned to shareholders year-to-date RETURNING CAPITAL TO SHAREHOLDERS(1) $ MM STRONG FREE CASH FLOW Senior Note Repurchases Convertible Note Principal Retired Convertible Note Premium Share Repurchases GENERATION AND CASH INFLOW
Slide 12: Unrivaled Inventory Quality Underpins Sustainable Capital Returns
Unrivaled Inventory Quality Underpins Sustainable Capital Returns Transparent look at core inventory shows every core location breaks even at <$3 gas HIGH-QUALITY INVENTORY: ~1,800 CORE NET LOCATIONS PV10(1) breakeven prices by well Inventory Depth: $/MMBtu A Closer Look $3.50 $3.00 Differentiated I
Slide 13: Frac Efficiency Back on the Upswing in Q2
Frac Efficiency Back on the Upswing in Q2 Efficiencies from combo development and long-term contracts help mitigate further inflationary pressure CONTROLLING OUR DESTINY EQT MITIGATING OVERALL INFLATIONARY Long-term, efficiency-based pricing structure for IMPACT RELATIVE TO BASIN AVERAGES(1) complet
Slide 14: 2021 ESG Report Highlights Meaningful Rate of Change Story
2021 ESG Report Highlights Meaningful Rate of Change Story Significant declines across absolute emissions, GHG emissions intensity and methane emissions intensity PRODUCTION SEGMENT SCOPE 1 & 2 PRODUCTION SEGMENT SCOPE 1 ENVIRONMENTAL GHG EMISSIONS (NET)(1) GHG EMISSIONS INTENSITY(1) › Announced net
Slide 15: Clear Visibility Towards Achieving Net Zero Goal by 2025
Clear Visibility Towards Achieving Net Zero Goal by 2025 Proven path to reach emissions targets, not relying on future technological advancements SETTING THE STAGE KEY INITIATIVES WHERE EQT IS HEADED Baseline Emissions and Taking on Combustion Emissions, Net Zero by 2025(2) Progress to Date Pneumati
Slide 16: American Public Voicing Clear Support for U.S. Natural Gas
American Public Voicing Clear Support for U.S. Natural Gas Prioritizing affordable energy while helping the world address climate goals Bipartisan Support to Increase U.S. Natural Gas Production Support Increased Production Oppose Increased Production 70%+ of Voters Support Additional Gas Production
Slide 17: Strategically Restructured Hedge Book Provides Incremental Upside
Strategically Restructured Hedge Book Provides Incremental Upside Repositioning from swaps to collars protects the floor with asymmetric exposure to the upside Cap Makeup Shifts Average Ceiling Prices Asymmetric Skew to Towards Calls Positively Impacted the Upside 100% Swaps Calls $10.00 Average Cap
Slide 18: Gas Gathering Rates Contractually Declining Over Time
Gas Gathering Rates Contractually Declining Over Time De-risked near-term fee-relief with exercise of cash option; long-term gathering rate declines intact CORPORATE GATHERING RATES(1) POSITIVE GAS GATHERING $/Mcfe RATE OUTLOOK $0.75 Drives differentiated free cash flow growth, without production gr
Slide 19: 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 20: 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 Hedging strategy that provides downside protection maint
Slide 21: Appendix
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Slide 22: 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 23: 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 24: The Marcellus Is the Most Capital Efficient Gas Play
The Marcellus Is the Most Capital Efficient Gas Play EQT's capital efficiency expected to 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 p
Slide 25: Appalachian Basin Prices Continue to Trade Higher
Appalachian Basin Prices Continue to Trade Higher Local pricing is highly correlated to Henry Hub NYMEX v M2 PRICING $/MMBtu $10.00 NYMEX M2 $9.00 › Average forward M2 curve is 75-80% of $8.00 NYMEX(1) $7.00 › Local pricing has increased from ~$3/MMBtu to ~$7/MMBtu despite widening basis $6.00 › In-
Slide 26: Ample Liquidity Drives Capital Allocation Flexibility
Ample Liquidity Drives Capital Allocation Flexibility Return to investment grade offers improved liquidity LIQUIDITY(1) $2.5 B ~$2.2 B Unsecured Revolver Liquidity(1) $0.2 › Revolver maturity extended › Fitch and S&P Credit Rating to June 28, 2027, with ability upgrades set the stage for to request
Slide 27: Hedging Strategy Provides Compelling Risk-Adjusted Upside
Hedging Strategy Provides Compelling Risk-Adjusted Upside Hedge position as of July 22, 2022 2022 2022 2023 2023 2023 2023 2024 UPDATED HEDGING STRATEGY 3Q 4Q 1Q 2Q 3Q 4Q FY Hedged Volume (MMDth) 272 284 216 258 261 225 17 • Implementing a hedge strategy that Hedged Volume (MMDth/d) 3.0 3.1 2.4 2.8
Slide 28: 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) 91% local basis › Diversity of delivery markets provides sign
Slide 29: 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 30: 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 EQT NATURAL GAS NATURAL GAS MACRO TAILWINDS PRICE UPSIDE • Capital discipline, limited infrastructure flattening supply growth › Hedging program designed to • Growing appreciation of
Slide 31: 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 • By 2030, unleashed U.S. LNG scenario estima
Slide 32: LNG Macro: Material Global Natural Gas Demand Growth
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 400 STRENGHTENING 350 INTERNATIONAL MARKET OUTLOOK 300 250 ~4 - 5 Bcf/d › 1.5 - 2.5% average annual growth 200 to gas
Slide 33: 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 34: Demonstrating Environmental Commitment and Leadership
Demonstrating Environmental Commitment and Leadership Our initiatives are 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 35: 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 36: 2022 Guidance
2022 Guidance Production 3Q22E FY22E Total sale volumes (Bcfe) 475 - 525 1,950 - 2,050 Liquids sales volume, excluding ethane (Mbbls) 2,625 - 2,725 10,250 - 10,750 Ethane sales volume (Mbbls) 1,475 - 1,575 6,700 - 6,800 Total liquids sales volume (Mbbls) 4,100 - 4,300 16,950 - 17,550 Btu uplift (MMB
Slide 37: Well Activity Details
Well Activity Details 2Q22 actuals, 3Q22 and FY22 estimates Wells Drilled (Spud) SWPA Marcellus NEPA Marcellus WV Marcellus OH Utica 2Q22A 3Q22E FY22E 2Q22A 3Q22E FY22E 2Q22A 3Q22E FY22E 2Q22A 3Q22E FY22E Net wells 14 10 - 14 39 - 47 3 9 - 12 23 - 26 0.3 1-2 9 - 11 2 - 2-3 Net avg. lateral (1k ft.)
Slide 38: Non-GAAP Financial Measure
Non-GAAP Financial Measure Adjusted EBITDA Adjusted EBITDA is defined as net income (loss), excluding interest expense, income tax expense (benefit), depreciation and depletion, gain on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fair value of derivative ins
Slide 39: 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 Condensed Consolidated Operations to be included in the Compan
Slide 40: Non-GAAP Financial Measure
Non-GAAP Financial Measure Reconciliation of 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 reported in the Statements of Condensed Consolidated Operations included in the Company’
Slide 41: 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 42: 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 43: 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