Slide 1: Investor Presentation
Investor Presentation TRUST • TEAMWORK • HEART • EVOLUTION October 29, 2024
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 applic
Slide 3: Third Quarter 2024 and Recent Highlights
Third Quarter 2024 and Recent Highlights EQT PRO 3Q24 AND RECENT HIGHLIGHTS 3Q24 KEY RESULTS(1) REPORTED FORMA ETRN INTEGRATION: Integration 60%+ complete only three months post-close; actions taken to date estimated to result in $145 MM of annualized base synergies, 581 581 de-risking more than 50%
Slide 4: The Premier American Natural Gas Company: EQT at a Glance
The Premier American Natural Gas Company EQT AT A GLANCE (NYSE: EQT) NEPA ~200k core net acres ~$36 B ~$22 B $0.63/sh $5 - $7 B Enterprise Equity Annualized Long-Term Value Value(1) Dividend Debt Target OH ~70k core net acres SWPA ~$2/MMBtu ~1.1 MM ~30 Years ~455k core net acres 2025E Unlevered EQT
Slide 5: Equitrans Integration Progressing Rapidly
Equitrans Integration Progressing Rapidly EQUITRANS INTEGRATION PROGRESS % and # of integration action items complete 70% % Pre-Close Post-Close 900 RAPID # INTEGRATION 60% › More than 60% of total % of integration action items complete # of integration action items complete 50% planned integration
Slide 6: Synergy Capture Outpacing Expectations
Synergy Capture Outpacing Expectations 50%+ OF EQUITRANS BASE SYNERGIES DE-RISKED THREE MONTHS POST-CLOSE LASER-FOCUSED ON $ MM SYNERGY CAPTURE Base Plan Synergy Underwriting Financial & Corporate Costs Operational Synergies Assumptions $250 › Efficient integration pace is supporting accelerated syn
Slide 7: Water System Integration Driving Further Efficiency Gains
Water System Integration Driving Further Efficiency Gains INTEGRATING EQT AND EQUITRANS WATER EXPANSIVE WATER INFRASTRUCTURE NETWORK SYSTEM HELPS FACILITATE NEW EQT COMPLETION RECORD ONLY POSSIBLE VIA INTEGRATION ~133,800 barrels 622 pumping hours of water delivered to in the month of August Trust N
Slide 8: Operational Outperformance Continuing
Operational Outperformance Continuing 3Q24 COMPLETED FEET PER DAY REACHES ALL-TIME HIGH RECORD SETTING COMPLETION EFFICIENCY YEAR Completed feet per day Completed feet per day 2024 development 35% completion efficiency Taco Cat South improvement compared to 2023 average Three Musketeers South Trust
Slide 9: Successful Monetization of Non-Operated NEPA Assets
Successful Monetization of Non-Operated NEPA Assets ATTRACTIVE VALUE REALIZED FROM NON-OP NEPA ASSETS $B ~$1.3 B ~$3.6 B SELLING REMAINING NON-OP NEPA ASSETS FOR $1.25 B CASH › EQT entered into an agreement to sell its ~$1.1 B remaining interest in non-operated NEPA assets for $1.25 B in cash ~$1.3
Slide 10: De-Leveraging Plan Is Well Underway
De-Leveraging Plan Is Well Underway DEBT PROFILE(2) $B UNWAVERING COMMITMENT TO INVESTMENT GRADE CREDIT Achieved In Process › De-leveraging plan fully vetted with S&P, Moody’s, and Fitch $14 › Proactive balance sheet and liquidity management: upsized EQT’s credit facility from $2.5 to $3.5 B $12 › P
Slide 11: First Traditional Energy Company of Scale to Reach Net Zero
First Traditional Energy Company of Scale to Reach Net Zero 2025 NET ZERO TARGET ACHIEVED AHEAD OF SCHEDULE AND MAGNITUDE Scope 1 and 2 GHG Emissions - MT CO2e ROAD TO NET ZERO AND THE FUTURE EMISSIONS ABATEMENT: 865,313 TOTAL NET ZERO › Pneumatic Device Replacement: EMISSIONS ACHIEVED estimated ann
Slide 12: Durable Free Cash Flow and Peer-Leading Inventory Depth
Durable Free Cash Flow and Peer-Leading Inventory Depth 2025E – 2029E PRO FORMA CUMULATIVE FCF(1) INVENTORY DEPTH(2) $B Net Appalachian locations 6,000 EXCLUDES $175 MM PER ANNUM $25 A SUPERIOR NATURAL OF UPSIDE SYNERGY POTENTIAL FROM EQUITRANS ACQUISITION GAS BUSINESS MODEL 5,000 DURABLE FREE CASH
Slide 13: EQT is the Must-Own Energy Company
EQT is the Must-Own Energy Company THE MUST-OWN ENERGY COMPANY › Top U.S. natural gas producer with projected long-term $2.00/MMBtu FCF breakeven(1) drives durable free cash flow › Low-cost profile mitigates downside pricing exposure while allowing upside opportunity capture VERTICAL INTEGRATION UNL
Slide 14: Macro & ESG Updates
Macro & ESG Updates
Slide 15: EQT Most Exposed to Premium SE Region With MVP In-Service
EQT Most Exposed to Premium SE Region With MVP In-Service MVP PROVIDES DIFFERENTIATED SE EXPOSURE MVP PROVIDES UNIQUE ACCESS TO PREMIUM SOUTHEAST REGION WITH BURGEONING DATA CENTER DEMAND › DIRECT DATA CENTER EXPOSURE: MVP capacity and long-term sales to the region’s largest utilities mean EQT’s nat
Slide 16: Data Center Demand Becoming the Cornerstone to Natural Gas Bull Case
Data Center Demand Becoming the Cornerstone to Natural Gas Bull Case MATERIAL U.S. GAS-POWER DEMAND AND LOAD GROWTH(1) Data Center Coal Retirement EV/Crypto Industrial Load 55 550 Data centers/AI, continued coal-to-gas PROLIFERATION OF DATA switching and electric vehicles driving CENTER AND ARTIFICI
Slide 17: U.S. LNG Export Capacity Buildout Underway
U.S. LNG Export Capacity Buildout Underway U.S. LNG EXPORT BUILD OUT Bcf/d Wave 2 LNG Buildout Underway U.S. IS AN LNG 30 EXPORT LEADER Texas LNG Lake Charles 25 Commonwealth › In less than a decade, the U.S. has Port Arthur transformed itself into the largest Rio Grande exporter of LNG in the world
Slide 18: Global LNG Supply and Demand Forecast
Global LNG Supply and Demand Forecast GLOBAL LNG SUPPLY AND DEMAND ESTIMATES Bcf/d RUSSIA EUROPE GLOBAL LNG DEMAND NORTH AMERICA 13 EXPECTED TO RISE 17 18 17 15 4 0 6 0 7 0 0 1 1 1 1 2024 2030 2040 2050 31 34 27 › North America leads the world on 13 2024 2030 2040 2050 0 0 1 1 ASIA LNG supply growth
Slide 19: Executing on EQT's LNG Strategy Momentum
Executing on EQT’s LNG Strategy Momentum EQT’S FIRM TRANSPORTATION CAPACITY CONNECTS OUR LOW-COST TOLLING STRATEGY CHECKS ALL THE BOXES SUPPLY TO THE HIGHEST PRICED INTERNATIONAL MARKETS PRODUCT DELIVERY LNG STRATEGY Ability to deliver EQT’s low-emissions › DIRECT ACCESS: Contractual pipeline capaci
Slide 20: Inadequate Natural Gas Storage Will Amplify Price Volatility
Inadequate Natural Gas Storage Will Amplify Price Volatility U.S. GAS STORAGE: DAYS OF LTM DEMAND COVER(1) STORAGE EXPRESSED IN DAYS’ DEMAND COVER(1) Storage / Daily Demand Storage / Daily Demand 50 120 2008-2022 Low-High Range 2023 2024 45 100 40 80 35 60 30 40 25 Gas storage capacity 20 …despite a
Slide 21: Natural Gas Market Characteristics Have Changed
Natural Gas Market Characteristics Have Changed DISTRIBUTION OF HENRY HUB DAILY SETTLES 2014 – 2019 ERA OF STABILITY 2014 – 2019 ERA OF STABILITY › Underpinned by plentiful capital, ability to build Median Average infrastructure with ease and rapid production $2.79/MMBtu $2.81/MMBtu growth › Natural
Slide 22: High Impact, Low-Cost Initiative Drives Down Methane Emissions
High Impact, Low-Cost Initiative Drives Down Methane Emissions GAS POWERED PNEUMATIC DEVICE ELIMINATION IMPACTFUL 9,000 18 months >300,000 MT CO2e START GHG Emissions Reductions Attributable to Pneumatic Devices ~41% Reduction of GHG Emissions(1) Device Count FAST 9,000 18 months Devices Replaced St
Slide 23: EQT is Changing the World That We Touch
EQT is Changing the World That We Touch VALUES IN ACTION OIL & GAS DRILLING RECLAMATION AWARD TRUST | TEAMWORK | HEART | EVOLUTION From the West Virginia Department of Environmental Protection › Site reclamations restore former development sites in line with their original ecosystem and appearance ›
Slide 24: Other Information for Investors
Other Information for Investors
Slide 25: Achievable Synergies Informed By Direct Knowledge of Equitrans Assets
Achievable Synergies Informed By Direct Knowledge of Equitrans Assets ENHANCED STRATEGIC ALIGNMENT DRIVING STRONG SYNERGY POTENTIAL $ MM per annum $175 “ Agathering significant portion of Equitrans’ systems are legacy Rice Midstream assets, which were built $55 $250 and operated under a leadership $
Slide 26: Compression Investments Across Equitrans System Can Drive Upside
Compression Investments Across Equitrans System Can Drive Upside SYSTEM PRESSURE OPTIMIZATION RESULTS PROVEN: Recently executed projects Site A: 1Q24 Project demonstrate material volume uplift, showcasing Actuals High Pressure Forecast Optimized Pressure Forecast System Pressure benefits of pressure
Slide 27: Strategic Infrastructure Projects Provide Robust Risk-Adjusted Returns
Strategic Infrastructure Projects Provide Robust Risk-Adjusted Returns EQT WEST VIRGINIA GAS GATHERING SYSTEM STRATEGIC MIDSTREAM GROWTH PROJECTS 1 CLARINGTON CONNECTOR › 300 MMcf/d capacity pipe to move volumes from M2 to Rex pricing point › ~$80 MM total anticipated spend (~$25 MM in 2024) › ~20%
Slide 28: EQT Delivers Production to Diversified Sales Points
EQT Delivers Production to Diversified Sales Points Provides Operational and Cash Flow Flexibility Regional Mix - Price Points 2024E(1) 2025E › Diversity of delivery sales points provides significant We hedge commercial optionality Local 37% 39% › Firm transportation portfolio acts as a long-term ba
Slide 29: Hedging Strategy Provides Compelling Risk-Adjusted Upside
Hedging Strategy Provides Compelling Risk-Adjusted Upside 2024E 2025E 4Q (1) 1Q 2Q 3Q 4Q EQT NATURAL GAS PRICE UPSIDE Hedged Volume (MMDth) 377 332 336 281 281 › Balance sheet improvements have allowed EQT to shift from defensively hedging to a more tactical and opportunistic Hedged Volume (MMDth/d)
Slide 30: Q4 2024 Operational Guidance
Q4 2024 Operational Guidance Production 1 4Q24E GUIDANCE DETAILS Total sales volumes (Bcfe) 555 - 605 Liquids sales volume, excluding ethane (MBbls) 4,100 - 4,400 1› Total sales volume guidance assumes 10-15 Ethane sales volume (MBbls) 1,350 - 1,500 Bcfe of net operated production curtailments Total
Slide 31: Well Activity Details
Well Activity Details Wells Drilled (Spud) SWPA NEPA WV OH TOTAL 3Q24A 4Q24E 2024E 3Q24A 4Q24E 2024E 3Q24A 4Q24E 2024E 3Q24A 4Q24E 2024E 3Q24A 4Q24E 2024E Net wells - 20 - 28 30 - 36 2 0 - 2 15 - 20 18 2 - 4 30 - 38 0.1 0 - 1 0 - 1 20 22 - 35 75 - 95 Net avg. lateral (1k ft.) - 13 - 14 13 - 14 15 14
Slide 32: Appendix
Appendix
Slide 33: Non-GAAP Financial Measure
Non-GAAP Financial Measure Production adjusted operating revenues (also referred to as total natural gas and liquids sales, including cash settled derivatives; and, prior to the Equitrans Midstream Merger, was referred to as adjusted operating revenues) is defined as total operating revenues, less t
Slide 34: Non-GAAP Financial Measure
Non-GAAP Financial Measure Adjusted EBITDA is defined as net income excluding interest expense, income tax (benefit) expense, depreciation, depletion and amortization, loss (gain) on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fair value of derivative instru
Slide 35: Non-GAAP Financial Measure
Non-GAAP Financial Measure The Equitrans Midstream Merger closed on July 22, 2024, and, as such, the Company’s results of operations for the three months ended September 30, 2024 include the results of operations of the assets acquired for the period subsequent to the closing date. Pro forma net inc
Slide 36: Non-GAAP Financial Measure
Non-GAAP Financial Measure 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 operating cash flow less accrual-based capital expenditures excluding capital expenditures attributable
Slide 37: Non-GAAP Financial Measure
Non-GAAP Financial Measure The table below reconciles adjusted EBITDA to free cash flow. Three Months Ended Nine Months Ended September 30, September 30, 2024 2023 2024 2023 (Thousands) Adjusted EBITDA $ 831,943 $ 521,103 $ 2,316,772 $ 2,176,039 (Deduct) add: Interest expense, net (158,299) (60,427)