Slide 1: Investor Presentation: Fourth Quarter & Full Year 2022 Results
Investor Presentation Fourth Quarter & Full Year 2022 Results February 15, 2023 2/15/20 1 23 1
Slide 2: Cautionary Statements
Cautionary Statements The Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that a company anticipates as of a given date to be economically and legally producible and deliverable by applicat
Slide 3: Performing For All Stakeholders
Performing For All Stakeholders Consistency in proved reserves, significant increase in future net cash flows, additional shareholder returns KEY RESULTS Q4 2022 2022 RECENT HIGHLIGHTS › Total proved reserves of >25 Tcfe, up slightly y/y, with over 350 Bcfe 459 1,940 Total Sales Volumes Bcfe Bcfe of
Slide 4: The Premier Appalachian Natural Gas Producer
The Premier Appalachian Natural Gas Producer Combination of scale, premier assets, and responsible development PURE-PLAY APPALACHIAN PRODUCER EQT AT A GLANCE (NYSE: EQT) NEPA MARCELLUS ~0.9 Bcf/d $11.4 B Market Cap(1) #1 ~200k core net acres Producer of natural gas in the United States(5) OH UTICA $
Slide 5: Creating Long-Term, Sustainable Value for All Stakeholders
Creating Long-Term, Sustainable Value for All Stakeholders 2022 highlights & accomplishments › Unveiled Unleash U.S. LNG Advocacy Campaign CORPORATE › › Obtained Equitable Origin & MiQ RSG certifications covering 3.3 Bcf/d Announced accretive bolt-on acquisition of Tug Hill & XcL Midstream STRATEGY
Slide 6: Consistent Proved Reserves Underpinned by Combo-Development
Consistent Proved Reserves Underpinned by Combo-Development Proved reserves slightly higher year-over-year with positive performance revisions 2022 PROVED RESERVES DEMONSTRATE RESILIENCY FAVORABLE RISK/REWARD PROFILE Proved reserves (Tcfe) ATAX PV-10(1), net of debt, per share INCLUDES ONLY ~300 OF
Slide 7: Robust Long-Term Free Cash Flow Generation
Robust Long-Term Free Cash Flow Generation Attractive long-term free cash flow outlook supports shareholder returns 2022 – 2027 CUMULATIVE FCF OUTLOOK(1,2) ~110% $B >$12 B of current market cap(3) generated in free cash flow(1,2) in 2022-2027 Factors Driving Improved Free Cash Flow Generation: Base
Slide 8: Executing on "All of the Above" Shareholder Return Framework
Executing on “All of the Above” Shareholder Return Framework Balanced framework focused on optimizing long-term risk-adjusted value creation CAPITAL ALLOCATION FRAMEWORK 2022 CAPITAL RETURNED TO SHAREHOLDERS(5) $4.0 B IN ABSOLUTE DEBT RETIREMENT $ MM $4,000 MM Target Senior Note Repurchases Converti
Slide 9: Operations Entering 2023 on a High Note
Operations Entering 2023 on a High Note Encouraging gains in frac crew efficiency throughout 2022 AVERAGE FRAC CREW PUMPING HOURS DRILLOUT COMPLETIONS Hours PERFORMANCE EHS INTENSITY(1) # of plugs per run % 260 135 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Previous EQT 2021 202
Slide 10: Peer-Leading Free Cash Flow in All Reasonable Gas Price Scenarios
Peer-Leading Free Cash Flow in All Reasonable Gas Price Scenarios Low cost structure and balanced hedge strategy drive differentiated free cash flow durability 2023 FREE CASH FLOW SENSITIVITY(1,3) 2023 FREE CASH FLOW BREAKEVENS(2,3) $ MM $/MMBtu $3.00 $4.00 $5.00 $3,000 8% - 26% FCF Yield(3,4) in 20
Slide 11: Structural Improvement in Corporate Returns
Structural Improvement in Corporate Returns Cost structure declines, accretive M&A transactions drive step-change in corporate returns RETURN ON CAPITAL EMPLOYED(1,2) % and $/Mcf 20% $4.00 17% Realized Natural Gas Price 15% $3.00 ($/Mcf) 10% $2.00 ROCE (%) 5% $1.00 0% $- -5% (7%) $(1.00) (9%) (9%) -
Slide 12: 2023 Program Maintains Operational Consistency
2023 Program Maintains Operational Consistency Capital efficiency set to improve in 2024+ as TIL count normalizes 2023 OUTLOOK 2023 CAPITAL EXPENDITURES(1) PLAN HIGHLIGHTS Land & Lease › CAPEX embeds 10-15% OFS cost Total Sales Volumes 1,900 – 2,000 7% Other inflation assumption; likelihood of gas-
Slide 13: High Impact, Low-Cost Initiative Drives Down Methane Emissions
High Impact, Low-Cost Initiative Drives Down Methane Emissions Successful elimination of natural gas-powered pneumatic devices reduces largest methane emission source ELIMINATION OF NATURAL GAS-POWERED 2021 PRODUCTION SEGMENT SCOPE 1 EMISSIONS PNEUMATIC DEVICES COMPLETE Includes all assets owned at
Slide 14: Progressing a Low-Carbon, Reliable Energy Future
Progressing a Low-Carbon, Reliable Energy Future Differentiated natural gas supply and new venture efforts support long-term goals and demand EQT AWARDED OGMP 2.0 GOLD STANDARD RATING, FURTHER DIFFERENTIATING SUPPLY NEW VENTURES STRATEGY › Among 14 eligible upstream companies to qualify as Gold Stan
Slide 15: Investment Grade Ratings Reduce Cost of Capital and Maximize Flexibility
Investment Grade Ratings Reduce Cost of Capital and Maximize Flexibility Continued progress towards long-term leverage(1) target of 1.0–1.5x at $2.75 gas EQT SENIOR NOTES MATURITIES(2) › Retired $1,112 MM of senior note principal in $500 MM 2022 and 2023 YTD(4), excluding $128 MM of 5.678% $115 MM p
Slide 16: High-Quality Inventory Underpins Sustainable Capital Returns
High-Quality Inventory 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 INVENTORY DEPTH: PV-10(1) breakeven price by well $/MMBtu A CLOSER LOOK $3.50 DIFFERENTIATED INVENTORY BA
Slide 17: Strategic Bolt-On Acquisition Expected to Strengthen EQT's Business
Strategic Bolt-On Acquisition Expected to Strengthen EQT’s Business Adding low-risk, high-quality assets offsetting existing acreage with improved free cash flow durability SW APPALACHIA ACREAGE POSITION PENDING ACQUISITION EXPECTED TO MAKE EQT’S FREE CASH FLOW EVEN MORE RESILIENT › Acquisition of T
Slide 18: 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 Diligent approach to allocating capital, PROVEN M
Slide 19: Creating Long-Term, Sustainable Value
Creating Long-Term, Sustainable Value Simple value proposition 1 Efficient 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 Hedging strategy that provides downside protection era. That means running an effici
Slide 20: Appendix
Appendix Ps | — foam aN
Slide 21: 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 22: 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 VALUES IN ACTION AMERICAN SHALE: A NEW HOPE 458,000 video views TRUST | TEAMWORK | HEART | EVOLUTION Digital Wildcatters 40,500 hours of watch time › 1% Pledge: Employees encouraged to
Slide 23: 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 • Contiguous asset base REAL RESULTS • ~8,300 acres >75% >15 ~2.0 Tcfe Combo-development Years of core net Consistent 3-4 rig
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 improve over time THE MARCELLUS ADVANTAGE EQT CAPEX EFFICIENCY OVER TIME Capital expenditures/total sales volumes ($/Mcfe) › Lowest capital-intensive natural gas asset in the U.S. $2.00 › We expect our capital
Slide 25: Hedging Strategy Provides Compelling Risk-Adjusted Upside
Hedging Strategy Provides Compelling Risk-Adjusted Upside Hedge position as of February 10, 2023 2023 2023 2023 2023 2024 Q1 (1) Q2 Q3 Q4 FY EQT NATURAL GAS PRICE UPSIDE Hedged Volume (MMDth) 300 305 309 296 206 Hedged Volume (MMDth/d) 3.3 3.4 3.4 3.2 0.6 › Implemented hedge strategy provides the be
Slide 26: Advantaged Market Intelligence & Diversified End Markets
Advantaged Market Intelligence & Diversified End Markets Access to diverse markets provides flexibility and opportunity Market Mix - Price Points(1) 2023E 2024E Provides Operational and Cash Flow Flexibility › Diversity of delivery markets provides significant commercial Local 37% 28% We hedge local
Slide 27: The Call for Clean, Reliable Energy Is a Call on EQT
The Call for Clean, Reliable Energy Is a Call on EQT The call on reliable, low-emissions natural gas provides exciting opportunity RELIABLE SUPPLY OF SCALE IS LIMITED NET ZERO TARGETS(1) › ~2/3rds of the world’s economically-recoverable natural gas EQT vs. Peers(2) resources are concentrated in four
Slide 28: 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 29: 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 STRENGTHENING 350 INTERNATIONAL MARKET OUTLOOK 300 250 ~4 - 5 Bcf/d › 1.5 - 2.5% average annual growth of gas 200
Slide 30: 2023 Operational Guidance
2023 Operational Guidance Consistent spending, operational outlook Production(1) 1Q23E 2023E Capital Expenditures(1) ($ Millions) 2023E (2) Total sale volumes (Bcfe) 425 - 475 1,900 - 2,000 Res erve development $1,400 - $1,535 Liquids sales volume, excluding ethane (MBbls) 2,300 - 2,500 8,900 - 9,30
Slide 31: 2023 Financial Guidance
2023 Financial Guidance NYMEX natural gas price sensitivities ADJUSTED EBITDA(1) ADJUSTED OPERATING FREE CASH FLOW(1) $B CASH FLOW(1) $B $B $3.7 – $4.0 $3.5 – $3.8 $3.2 – $3.5 $3.0 – $3.3 $2.7 – $3.0 $2.5 – $2.8 $1.8 – $2.1 $1.2 – $1.5 $0.7 – $1.0 $3.00 $3.50 $4.00 $3.00 $3.50 $4.00 $3.00 $3.50 $4.0
Slide 32: Well Activity Details
Well Activity Details 4Q22 actuals, 1Q23 and 2023 estimates Wells Drilled (Spud) SWPA NEPA WV OH 4Q22A 1Q23E 2023E 4Q22A 1Q23E 2023E 4Q22A 1Q23E 2023E 4Q22A 1Q23E 2023E Net wells 9 3-5 20 - 28 7 5-7 16 - 20 6 10 - 14 12 - 18 - - - Net avg. lateral (1k ft.) 17 10 - 11 12 - 14 11 11 - 12 10 - 11 15 13
Slide 33: Non-GAAP Financial Measure: Reconciliation of Adjusted EBITDA
Non-GAAP Financial Measure Reconciliation of 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
Slide 34: Non-GAAP Financial Measure: Adjusted Operating Cash Flow, 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 35: Non-GAAP Financial Measure: ROCE, Net Debt and Leverage
Non-GAAP Financial Measure Return on Capital Employed (ROCE), Net Debt and Leverage ROCE is defined as earnings before interest and income tax expense (benefit) (EBIT, a non-GAAP supplemental financial measure), divided by average capital employed (a non-GAAP supplemental financial measure defined b
Slide 36: Non-GAAP Financial Measure: Reconciliations of ROCE and Net Debt
Non-GAAP Financial Measure Reconciliations of ROCE and Net Debt The tables below reconcile the components of ROCE to their most comparable financial measure calculated in accordance with GAAP. Specifically, (i) Table I reconciles average capital employed and net debt with total debt, the most compar
Slide 37: Non-GAAP Financial Measure: PV-10
Non-GAAP Financial Measure PV-10 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 ef