Slide 1: Investor Presentation Second Quarter 2021
Investor Presentation Second Quarter 2021 July 29, 2021 7/29/20 1 1 21
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: Operational Execution Drives Strong Second Quarter
Operational Execution Drives Strong Second Quarter Positive momentum continues into third quarter SECOND QUARTER 2021 RESULTS: Production 421 Bcfe Average Realized Price $2.37 Per Mcfe Performing for All Stakeholders Adjusted EBITDA(1) $445 Million Delivering High Performance & Beating Guidance CAPE
Slide 4: EQT: America's Natural Gas Leader
EQT: America’s Natural Gas Leader Largest natural gas producer in North America, leveraging technology to create the modern E&P company FREE CASH FLOW FOCUSED STRATEGY Northeast Marcellus • ~170,000 core net Marcellus acres • ~1.0 Bcf/d ~5.6 Bcfe/d ~880,000 Net Daily Production Core Net Marcellus Ac
Slide 5: A Differentiated Energy Investment Opportunity
A Differentiated Energy Investment Opportunity Returns focused and opportunistically positioned for the future of low-carbon energy production 1 2 3 4 5 6 7 Largest Scale Robust Free Peer-Leading Modern Dominant Demonstrated ESG Leader Natural Gas Cash Flow Balance Sheet Operating Position of Capita
Slide 6: Leveraging Scale to Enhance Value Creation
Leveraging Scale to Enhance Value Creation EQT’s technology-driven culture drives transparency and accountability, making EQT better with scale, not just bigger Superior Access to Capital TOP 10 U.S. NATURAL GAS PRODUCERS(1) Net Production as of 1Q21 • Unsecured revolver, not subject to borrowing ba
Slide 7: Differentiated Free Cash Flow Profile
Differentiated Free Cash Flow Profile Ongoing initiatives and commodity price improvements provide meaningful upside to free cash flow FCF(1) vs. UNHEDGED NYMEX BREAKEVEN(3) >$7 Billion $1,500 Upside $2.50 of free cash flow(1,2) generation through 2026 Factors Driving Improved Free Cash Flow Generat
Slide 8: Peer-Leading Balance Sheet Strength
Peer-Leading Balance Sheet Strength Structural operational improvements are driving robust free cash flow, a strong credit profile, and access to low-cost capital -1.8x expected reduction in Strategic transactions and prudent leverage between balance sheet management 2020 and 2022 LEVERAGE (NET DEBT
Slide 9: Significant FCF Generation Strengthens the Balance Sheet and Provides Flexibility
Significant FCF Generation Strengthens the Balance Sheet and Provides Flexibility Clear line of sight towards investment grade rating EQT SENIOR NOTES MATURITIES(1) $1,500 Option to equity-settle Near term maturities to $370 MM of be fully retired with convertible notes $7.0+ B > $2.7 B free cash fl
Slide 10: Modern Operating Model Has Driven a Step-Change in Asset Performance
Modern Operating Model Has Driven a Step-Change in Asset Performance Full impact of productivity improvements from modern well design now being realized Implementation of best practices and process >98% & ~40% Increased EURs + Lower Well Costs standardization has driven: Production uptime Improvemen
Slide 11: Modern Technology-Driven Acquisition Model
Modern Technology-Driven Acquisition Model Leveraging our modern integration framework to effectuate rapid, transparent and effective integration Digital Integration Model • Repeatable template, constantly evolving to benefit from prior learnings • Focuses team on highest priority work Steering Comm
Slide 12: Dominant Position of Core Natural Gas Drilling Inventory
Dominant Position of Core Natural Gas Drilling Inventory 25+ years of core long lateral combo development across > 900,000 core net Marcellus and Utica acres in Appalachia Repeatable Results Industry Leading at <$2.50 per • >80% combo development Core Inventory MMBtu • Application of evolved well de
Slide 13: Sustainable Shareholder Value Creation Drives our Multi-Level Strategy
Sustainable Shareholder Value Creation Drives our Multi-Level Strategy The Sustainable Shale Era values FCF generation, balance sheet strength, emissions targets, and returning capital to shareholders The Sustainable Shale Era Initiated $75 MM funding for ESG and New Ventures NEW VENTURES CONSOLIDAT
Slide 14: Demonstrated Capital Discipline and Focus on Returns
Demonstrated Capital Discipline and Focus on Returns Committed to adopting formal shareholder return policy in 2022 SUSTAINABLE SHALE ERA FCF/Share Growth Leverage Management Net Zero Emissions • Committed to maintenance • Target net debt-to-adjusted • Net zero targets support a production program E
Slide 15: Natural Gas Provides the Lowest Cost Form of Reliable Energy
Natural Gas Provides the Lowest Cost Form of Reliable Energy Gas fired electricity generation is cost-competitive with non- RENEWABLES AND GAS/COAL MIX SPP ISO – JANUARY 2021(2) dispatchable generation 35,000 REGIONAL VARIATION IN LCOE FOR NEW RESOURCES ENTERING SERVICE IN 2026 - WITH SUBSIDIES(1) S
Slide 16: Increased Natural Gas Consumption has Decreased Domestic Emissions
Increased Natural Gas Consumption has Decreased Domestic Emissions Prioritization of natural gas as the baseload energy source reduces emissions and supports renewables The U.S. shale revolution has resulted in the growth of natural gas as a major energy source… U.S. ELECTRICITY GENERATION BY MAJOR
Slide 17: Compelling Opportunity for Domestic Natural Gas to Replace Carbon-Intensive Energy Sources
Compelling Opportunity for Domestic Natural Gas to Replace Carbon- Intensive Energy Sources FUTURE GLOBAL COAL POWER(3) ~3 Billion >36% People in the world Of global power is who rely on coal as generated by coal in their primary power 2019 source(1) The opportunity for natural gas 2019 NET GHG EMIS
Slide 18: Domestic Natural Gas Sourced from Appalachia is the Best Option
Domestic Natural Gas Sourced from Appalachia is the Best Option to Lower Global Reliance on Carbon Intensive Energy Sources 2019 EMISSIONS INTENSITY(1) 40 Intensity - GHG Emissions (Kg CO2e) / Production of 35 30 ▪ The Appalachian Basin, where EQT operates, is one of the lowest- emitting basins dome
Slide 19: EQT's Engaged, Values-Driven Workforce is Driving ESG Excellence
EQT’s Engaged, Values-Driven Workforce is Driving ESG Excellence CULTURE EMISSIONS GHG EMISSIONS INTENSITY(2) 80 ▪ Between 2018 and 2020, we reduced our ▪ Our unique digital work environment has Production segment combustion emissions by enhanced the way we work and communicate over 50% 70 with each
Slide 20: Our Emissions Reduction Targets Demonstrate Our Commitment to a Low Carbon Future
Our Emissions Reduction Targets(1) Demonstrate Our Commitment to a Low Carbon Future 3 | Methane Intensity 1 | Net Zero 2 | GHG Intensity Reduction Reduction Achieve net zero Scope 1 and Scope 2 GHG Reduce our Scope 1 GHG emissions intensity Reduce our Scope 1 methane emissions emissions by or befor
Slide 21: Appendix
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Slide 22: 2021E Detailed Guidance
2021E Detailed Guidance PRODUCTION FINANCIAL GUIDANCE(1) Total Sales Volumes (Bcfe) 1,800 - 1,875 Btu uplift (MMbtu/Mcf) 1.045 - 1.055 Gas 94% Average Differential ($/Mcf) $(0.75) - $(0.55) Liquids 6% Adjusted EBITDA(2) ($MM) 2,100 - 2,175 Adjusted Operating Cash Flow(2) ($MM) 1,850 - 1,925 PA Marce
Slide 23: Contracted Declining Corporate Gathering Rates Improve Long-Term Free Cash Flow Generation
Contracted Declining Corporate Gathering Rates Improve Long-Term Free Cash Flow Generation Short-term impact of ETRN Renegotiation: FORECASTED CORPORATE GATHERING RATES 1 Assumes a maintenance production profile ▪ Assumes 7/1/22 MVP in-service date ▪ $535 MM in fee relief(1) $0.75 ▪ Includes $235 MM
Slide 24: Advantaged Market Intelligence & Diversified End Markets
Advantaged Market Intelligence & Diversified End Markets Access to diverse markets provides flexibility and opportunity FIRM TRANSPORTATION Provides Operational and Cash Flow Flexibility Local • Diversity of delivered markets provides significant commercial optionality • Firm transportation portfoli
Slide 25: Macro Trend: Accelerating Coal Retirements Support Appalachian Demand
Macro Trend: Accelerating Coal Retirements Support Appalachian Demand Appalachian & East region gas fired power demand could surprise to upside if coal accelerates retirement Coal that has been recently retired earlier than expected due >5 GW to weak economics PJM COAL GENERATION OPERATING MARGINS 2
Slide 26: Hedge Position as of July 23, 2021
Hedge Position as of July 23, 2021 Protecting the balance sheet 2021(1) 2022 2023 2024 Philosophy: Swaps: • Risk mitigation tool to de-risk cash flow and manage leverage Volume (MMDth) 741 1,277 166 2 • Large scale combo-development strategy allows us to plan several years into the future Average Pr
Slide 27: Ample Liquidity Provides Financial Flexibility
Ample Liquidity Provides Financial Flexibility Return to investment grade would further improve liquidity position LIQUIDITY(1) $2.5 B $1.8 B Unsecured Liquidity(1) $2.5 $0.7 Revolver • April 23, 2021: Entered into a • Recent S&P and Moody’s Credit $1.8 one-year extension agreement Rating upgrades s
Slide 28: 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 29: Non-GAAP Financial Measure
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 30: 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 31: Non-GAAP Financial Measure
Non-GAAP Financial Measure Net Debt 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. Net debt is a non-GAAP supplemental financial meas
Slide 32: Non-GAAP Financial Measure
Non-GAAP Financial Measure Adjusted Interest Expense Per Unit Adjusted interest expense per unit is defined as interest expense less non-cash interest expense (amortization) of debt discounts and issuance costs divided by total sales volume. Adjusted interest expense per unit is a non-GAAP supplemen