Slide 1: Investor Presentation
Investor Presentation February 17, 2021 2/22/20 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: Unique Combination of Scale, Sustainability, and Vision
Unique Combination of Scale, Sustainability, and Vision Mission: Become the Operator of Choice for all stakeholders • EQT is the largest producer of U.S. natural gas Large scale, • Natural gas is an economic and abundant domestic resource, integral to lowering big potential CO2 emissions globally •
Slide 4: Turning Vision into Reality
Turning Vision into Reality Fourth Quarter and Full Year 2020 Highlights Fourth Quarter 2020: • Sales volumes of 401 Bcf • Total per unit operating costs of $1.30/Mcfe, $0.14 lower than 3Q20 and below guidance • Net cash provided by operating activities of $406 MM; free cash flow(1) of $109 MM • Cap
Slide 5: 2021 Plan Highlights
2021 Plan Highlights Continuing our evolution Executing maintenance program Sales volumes of 1,620 – 1,700 Bcfe, roughly flat to pro-forma 2020 level Double digit free cash flow yield(1) Free cash flow(1) of $500 - $600 MM Combo-development on 75% of new 2021 wells Provides high confidence in well p
Slide 6: Why Invest in EQT?
Why Invest in EQT? Uniquely positioned to sustainably deliver shareholder value Long Runway with • Deep inventory of Tier I core Marcellus locations in the lowest cost natural gas basin in the U.S. (15+ years) Attractive Development • Low risk, multi-year core inventory to drive superior results: se
Slide 7: Dominant Position in the Core of the Appalachian Basin
Dominant Position in the Core of the Appalachian Basin EQT Corporate Overview UTICA ASSET PROFILE MARCELLUS Total Net Marcellus Acres(1) 1,300,000 Acres (1) Core Net Marcellus Acres 710,000 Acres (1,2) Core Net Undeveloped Marcellus Locations 1,660 Locations 4Q20 Sales Volumes 4.4 Bcfe/d 2020 Sales
Slide 8: Base Plan Projected to Generate $3.5 B in FCF Through 2026
Base Plan Projected to Generate $3.5 B in FCF(1) Through 2026 Ongoing initiatives and commodity price improvements provide meaningful upside UNHEDGED NYMEX BREAKEVEN(2) ($/MMBTU) vs. FCF(1,3) ($MM) Base Plan • Renegotiated gathering rates providing glide path for margin $3.00 $1,000 improvements Ups
Slide 9: Carrying Positive Momentum into 2021
Carrying Positive Momentum into 2021 2021 Business Outlook 2021 GOALS FREE CASH FLOW(1) ($MM) ADJUSTED EBITDA(1) ($MM) • Execute base plan ~70% ~20% • Continue to reduce emissions and enhance ESG metrics $1,547 $325 • Translate PA Marcellus well cost reductions to WV development • Accelerate path to
Slide 10: 2021 Capital Program
2021 Capital Program Reserve Development Capital Efficiency Set to Improve by ~10% Reserve Development Capital Expenditures Capital Expenditures ($MM) ($MM / %) 2020 2021E 2021E PA 81% ~65% WV 7% ~30% Reserve Development $800 - $850 OH 12% ~5% Reserve Development $839 $800 - $850 Land $125 - $140 Pr
Slide 11: Targeting Sub-$730 per Foot Across Entire Inventory
Targeting Sub-$730 per Foot Across Entire Inventory 2021E NET WELL COUNTS 2021 Reserve Development Spud HZ Drilled Frac TIL 98 98 Shifting more activity to West 76 84 Virginia 70 61 • Application of PA Marcellus 54 well cost successes 33 • Water infrastructure to 21 23 23 5 17 5 improve capital effi
Slide 12: Investing in West Virginia Water Infrastructure
Investing in West Virginia Water Infrastructure Modern infrastructure will support modern completions and drive holistic efficiencies • Water Infrastructure Highlights: • 45-mile mixed use water system Up to 250,000 barrels of storage • Access to multiple reliable water sources • Expected to begin p
Slide 13: Commitment to ESG Transparency
Commitment to ESG Transparency EQT leads in environmental, social & governance (ESG) disclosure Bloomberg ESG Disclosure: scores above 40 demonstrate good And we are improving… transparency; scores 50-70 demonstrate excellent transparency OVERALL ESG DISCLOSURE SCORES* OVERALL ESG DISCLOSURE SCORES*
Slide 14: Appalachian Natural Gas Producers Have the Lowest Emissions
Appalachian Natural Gas Producers Have the Lowest Emissions Doing our part to lower GHG emissions while delivering sustainable and reliable energy EQT WHY LOW EMISSIONS MATTER 2019 CO2 EMISSIONS INTENSITY (kg/BOE)(1,2) Appalachian Peer Anonymized O&G Peer Access to Capital Country • Capital provider
Slide 15: Chevron Integration Ahead of Schedule
Chevron Integration Ahead of Schedule Leveraging our Modern Operating Model to streamline asset integration seamlessly Deal Announced Operational Transition EQT Takes Over… • Accounting • Finance • Land • Marketing October 23, 2020 November 30, 2020 March 31, 2021 October 27, 2020 December 31, 2020
Slide 16: 2021E Detailed Guidance
2021E Detailed Guidance PRODUCTION 2021E FINANCIAL GUIDANCE(1) Total Sales Volumes (Bcfe) 1,620 - 1,700 Btu uplift (MMbtu/Mcf) 1.050 - 1.060 Gas 94% Average Differential ($/Mcf) $(0.60) - $(0.40) Liquids 6% Adjusted EBITDA(2) ($MM) 1,850 - 1,950 Adjusted Operating Cash Flow(2) ($MM) 1,650 - 1,750 PA
Slide 17: Corporate Gathering Rates Decline Over Time
Corporate Gathering Rates Decline Over Time Impact of gas gathering agreement with ETRN CORPORATE GATHERING RATES ($/MCFE)(1,2,3)* MINIMUM VOLUME COMMITMENT FOR ETRN GGA (*On February 23, 2021, EQT replaced the underlying chart with the version below to provide additional clarity as to the scale of
Slide 18: Firm Transportation Portfolio
Firm Transportation Portfolio Access to diverse markets provides flexibility and opportunity • Rationalizing our firm transportation portfolio to improve net-back pricing • Multiple counterparties have expressed interest in Midwest our MVP capacity which could result in further Local East rationaliz
Slide 19: Pipeline Outages Stressed Regional Gas Balances
Pipeline Outages Stressed Regional Gas Balances Impacts to Appalachian Basin 4/1/2020 to 12/31/2020 1 2 3 4 5 4.5 $- 4.0 $(0.50) 3.5 3.0 Total Impacted Flows $(1.00) Local Pricing Dom South MMDth/D 2.5 M2 $(1.50) 2.0 1.5 $(2.00) 1.0 2018/2019 Average $(2.50) 0.5 0.0 $(3.00) 4/1/2020 5/1/2020 6/1/202
Slide 20: Hedge Position
Hedge Position As of February 12, 2021 Philosophy: 2021(1) 2022 2023 2024 • Risk mitigation tool to de-risk cash flow Swaps and manage leverage Volume (MMDth) 1,082 455 69 2 • Large scale combo-development strategy Average Price ($/dth) $2.71 $2.66 $2.48 $2.67 allows us to plan several years into th
Slide 21: Actively Managing Liquidity
Actively Managing Liquidity Ample liquidity to cover midstream letters of credit (“LC”) LIQUIDITY(1) • Liquidity is $1.4 B(1) • $2.5 B unsecured revolver: $2.5 • Not subject to semi-annual borrowing base $0.8 redeterminations • ~$0.8 B of letters of credit posted • ~$0.3 B drawn $0.3 $1.4 • Recent S
Slide 22: Debt and Capitalization Summary
Debt and Capitalization Summary As of December 31, 2020 • $4.9 B in total debt(1) $B 12/31/20 12/31/19 Cash & Cash Equivalents $0.0 $0.0 • Equity settlement of the convertible senior notes could reduce long-term debt by ~$0.36 B Current Portion of Debt $0.1 $0.0 Note Payable to EQM Midstream Partner
Slide 23: Appendix
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Slide 24: 2019 ESG Report: Future Focused
2019 ESG Report: Future Focused • ESG Report, published October 21, 2020, provides a detailed framework on how we think about our business, and how all of the pieces – from how we manage human capital to how we empower our employees with technological capital – are aligned to execute a cohesive oper
Slide 25: Future Focused Highlights
Future Focused Highlights For calendar year 2019 Environmental Economic Stewardship Community Impact Safety Investment EQT’s methane intensity is ~78% EQT’s 2019 activities generated lower than the 2025 target set Zero Tier 1 Process Safety events EQT and EQT Foundation nearly $375 million in state
Slide 26: Corporate Decline Rate
Corporate Decline Rate Shallowing declines to improve maintenance capital 2020 BASE EXIT-TO-EXIT DECLINE(1) 30% 28% 25% 22% 20% 16% Under maintenance scenario, Year 1 decline 15% rate is expected to shallow over the next five 13% years 11% 10% 5% Year 1 Year 2 Year 3 Year 4 Year 5 1. Reflects all pr
Slide 27: Year-over-year Reserve Report Changes
Year-over-year Reserve Report Changes • Year-end 2020 total proved reserves increased by 2.3 Tcfe, or 13%, compared to year-end Proved Reserves by Play (Bcfe)(1) Year Ended December 31, 2019 2020 2019 • Driven by efficiencies realized from the execution of Proved developed reserves Marcellus 11,943
Slide 28: Non-GAAP Financial Measure
Non-GAAP Financial Measure Adjusted EBITDA Adjusted EBITDA is defined as net income (loss), excluding interest expense, income tax benefit, depreciation and depletion, amortization of intangible assets, impairments, the revenue impact of changes in the fair value of derivative instruments prior to s
Slide 29: 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 Consolidated Operations to be included in the Company's Annual
Slide 30: Non-GAAP Financial Measure
Non-GAAP Financial Measure Adjusted Operating Cash Flow, Free Cash Flow, and Free Cash Flow Yield 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-
Slide 31: Non-GAAP Financial Measure
Non-GAAP Financial Measure Reconciliation of 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, term loan borrowings, senior notes and note payable to EQM Midstream Partners, LP. Net debt i
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