Slide 1: Investor Presentation Second Quarter 2024 Results
Investor Presentation Second Quarter 2024 Results July 23, 2024 7/23/20 1 24 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 applic
Slide 3: Second Quarter 2024 and Recent Highlights
Second Quarter 2024 and Recent Highlights Closed transformative ETRN acquisition ahead of schedule, strong execution driving reduction to EQT capex guidance KEY RESULTS 2Q24 1H24 2Q24 AND RECENT HIGHLIGHTS › ETRN ACQUISITION: Completed acquisition a full quarter ahead of plan, resulting 508 1,042 in
Slide 4: The Premier American Natural Gas Company
The Premier American Natural Gas Company Equitrans acquisition solidifies EQT as the lowest cost and only domestic, large-scale integrated natural gas producer + ~$35 B ~$21 B $5 - $7 B Enterprise Equity Long-Term Value Value(1) Debt Target ~$2/MMBtu ~1.1 MM ~30 Years 2025E Unlevered EQT Core De-Ris
Slide 5: Operations Team Finding Novel Ways to Drive Incremental Efficiency Gains
Operations Team Finding Novel Ways to Drive Incremental Efficiency Gains Set new drill to kick-off record; supply chain logistic improvements driving inflection in recent completion pace SETTING TOPHOLE DRILLING RECORDS COMPLETION EFFICIENCIES INFLECTING TO THE UPSIDE Days to kick off point Feet com
Slide 6: Continuing Track Record of Well Productivity Improvement
Continuing Track Record of Well Productivity Improvement EQT has the most productive wells in Appalachia EQT EURS ON STEADY UPWARD TRAJECTORY SINCE MANAGEMENT TAKEOVER(1) EQT v Peers: Bcfe per 1,000 feet 3.2 3.0 2.8 EQT EURS UP 40% SINCE MANAGEMENT TAKEOVER 2.6 2.4 EQT NOW HAS THE HIGHEST EQT RECOVE
Slide 7: Compression Investments Across Equitrans System Can Drive Meaningful Upside
Compression Investments Across Equitrans System Can Drive Meaningful Upside Recent in-field examples materially outperforming ETRN upside synergy assumptions SYSTEM PRESSURE OPTIMIZATION RESULTS PROVEN: Recently executed projects Site A: 1Q24 Project demonstrate material volume uplift, Actuals High
Slide 8: Transformational Transaction Highlighted in Preliminary 2025 Outlook
Transformational Transaction Highlighted in Preliminary 2025 Outlook Material cost structure improvement drives free cash flow strength throughout the cycle EQUITRANS ACQUISITION IMMEDIATE COST STRUCTURE BENEFITS(1) Operating Costs - $ / Mcfe TRANSFORMS EARNINGS POWER EQT Only EQT + ETRN EQT + ETRN
Slide 9: Peer-Leading Pro-Forma Free Cash Flow Durability
Peer-Leading Pro-Forma Free Cash Flow Durability ETRN acquisition de-risks free cash flow generation, while unlocking unhedged upside 2025E – 2029E PRO FORMA CUMULATIVE FCF(1) 2025E – 2029E CUMULATIVE FCF SENSITIVITY(1,2) $B $B $30 $30 $5.00/ $5.00/ MMBTU MMBTU EXCLUDES $175 MM PER ANNUM OF EQT PROV
Slide 10: Peer Comps Highlight Differentiated Business Profile
Peer Comps Highlight Differentiated Business Profile EQT + ETRN leads against natural gas peers Pure-Play Appalachian Producer Haynesville Producer + 2025E UNLEVERED FCF BREAKEVEN(1) $/MMBtu $3.50 2025E UNLEVERED FCF(2) CONVERSION(3) % 60% A SUPERIOR NATURAL $3.00 GAS BUSINESS MODEL $2.50 50% LOWEST
Slide 11: High Confidence De-Leveraging Pathway
High Confidence De-Leveraging Pathway Asset sales, free cash flow provide low-risk path to $5+ billion of debt repayment PRO FORMA DEBT PROFILE AND TARGETS(3) $B UNWAVERING COMMITMENT TO INVESTMENT GRADE CREDIT $14 › EQT fully vetted pro forma balance sheet with S&P, Moody’s, and Fitch › EQT’s revol
Slide 12: EQT Most Exposed to Premium Southeast Region With MVP In-Service
EQT Most Exposed to Premium Southeast Region With MVP In-Service Integrated business model provides “well-to-watt” solution to meet power demand from data center and AI growth MVP PROVIDES DIFFERENTIATED SE EXPOSURE MVP PROVIDES UNIQUE ACCESS TO PREMIUM SOUTHEAST REGION WITH BURGEONING DATA CENTER D
Slide 13: EQT + Equitrans is the Must-Own Energy Company
EQT + Equitrans is the Must-Own Energy Company World class, vertically integrated natural gas company creates unparalleled investment opportunity EQT + ETRN COMBINATION CREATES THE MUST-OWN ENERGY COMPANY › Top U.S. natural gas producer with long-term $2.00/MMBtu FCF breakeven(1) drives durable free
Slide 14: Macro & ESG Updates
Macro & ESG Updates 14
Slide 15: Data Center Demand Becoming the Cornerstone to Natural Gas Bull Case
Data Center Demand Becoming the Cornerstone to Natural Gas Bull Case Structural, baseload power demand growth occurring at the doorstep of EQT’s assets MATERIAL U.S. GAS-POWER DEMAND AND LOAD GROWTH(1) Data Center Coal Retirement EV/Crypto Industrial Load 55 550 PROLIFERATION OF DATA Data centers/AI
Slide 16: U.S. LNG Export Capacity Buildout Underway
U.S. LNG Export Capacity Buildout Underway U.S. LNG exports are expected to continue growing, reaching 35% of supply by 2026, further supporting U.S. demand U.S. LNG EXPORT BUILD OUT Bcf/d Wave 2 LNG Buildout Underway 30 U.S. IS AN LNG Texas LNG EXPORT LEADER Lake Charles Commonwealth 25 Port Arthur
Slide 17: Global LNG Supply and Demand Forecast
Global LNG Supply and Demand Forecast The LNG market is expected to double by the late 2030s, with the U.S. expected to be one of the largest suppliers 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 1 202
Slide 18: Executing on EQT's LNG Strategy Momentum
Executing on EQT’s LNG Strategy Momentum Converted non-binding HOAs for 2 million tonnes per annum with Texas LNG into binding LTSA 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 S
Slide 19: Inadequate Natural Gas Storage Will Amplify Price Volatility
Inadequate Natural Gas Storage Will Amplify Price Volatility Lack of storage capacity relative to demand, limited coal switching ability and renewable intermittency will amplify price volatility U.S. GAS STORAGE: DAYS OF LTM DEMAND COVER(1) STORAGE EXPRESSED IN DAYS’ DEMAND COVER(1) Storage / Daily
Slide 20: 2023 Highlights Demonstrate ESG Leadership
2023 Highlights Demonstrate ESG Leadership Continued commitment to ESG objectives underpinned by EQT’s journey to be the “Operator of Choice” ENVIRONMENTAL SOCIAL › In-scope net zero target emissions › Invested more than $56 MM in local communities down 35% compared to 2022 through philanthropic inv
Slide 21: Executing On Aggressive Emissions Reduction Targets Ahead of Schedule
Executing On Aggressive Emissions Reduction Targets Ahead of Schedule Implementing operational best practices and today’s available technologies to reach emissions targets GHG EMISSIONS INTENSITY(1) METHANE EMISSIONS INTENSITY(1) PATH TO NET ZERO PRODUCTION SEGMENT SCOPE 1 PRODUCTION SEGMENT SCOPE 1
Slide 22: 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 EQT’s largest methane emission source GAS POWERED PNEUMATIC DEVICE ELIMINATION IMPACTFUL >300,000 MT CO2e 9,000 START 18 months GHG Emissions Reductions Attributable
Slide 23: 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 OIL & GAS DRILLING RECLAMATION AWARD TRUST | TEAMWORK | HEART | EVOLUTION From the West Virginia Department of Environmental Protection › Site reclamations restore for
Slide 24: Other Information for Investors
Other Information for Investors 24
Slide 25: Achievable Synergies Informed By Direct Knowledge of Equitrans Assets
Achievable Synergies Informed By Direct Knowledge of Equitrans Assets High confidence base synergy capture with material upside potential ENHANCED STRATEGIC ALIGNMENT DRIVING STRONG SYNERGY POTENTIAL $ MM per annum $175 “ Agathering significant portion of Equitrans’ systems are legacy Rice Midstream
Slide 26: Strategic Infrastructure Projects Provide Robust Risk-Adjusted Returns
Strategic Infrastructure Projects Provide Robust Risk-Adjusted Returns XcL platform generates organic symbiotic midstream investment opportunities EQT WEST VIRGINIA GAS GATHERING SYSTEM STRATEGIC MIDSTREAM GROWTH PROJECTS 1 CLARINGTON CONNECTOR › 300 MMcf/d capacity pipe to move volumes from M2 to R
Slide 27: EQT Delivers Production to Diversified Sales Points
EQT Delivers Production to Diversified Sales Points Access to diverse sales points provides flexibility and opportunity Provides Operational and Cash Flow Flexibility Regional Mix - Price Points 2024E(1) 2025E › Diversity of delivery sales points provides significant We hedge commercial optionality
Slide 28: Hedging Strategy Provides Compelling Risk-Adjusted Upside
Hedging Strategy Provides Compelling Risk-Adjusted Upside NYMEX hedge position as of July 19, 2024 2024E 2025E 3Q(1) 3Q 4Q 1Q 2Q 3Q 4Q EQT NATURAL GAS PRICE UPSIDE Hedged Volume (MMDth) 291 362 332 336 71 33 Hedged Volume (MMDth/d) 3.2 3.9 3.7 3.7 0.8 0.4 › Balance sheet improvements have allowed EQ
Slide 29: 2024 Operational Guidance
2024 Operational Guidance Production 3Q24E 4Q24E Total sales volumes (Bcfe) 510 - 560 515 - 565 GUIDANCE DETAILS 1 Liquids sales volume, excluding ethane (MBbls) 3,600 - 3,900 4,000 - 4,300 1› Total sales volume guidance assumes Ethane sales volume (MBbls) 1,350 - 1,500 1,350 - 1,500 90 Bcfe of net
Slide 30: Well Activity Details
Well Activity Details 2Q24 actuals, 3Q24 and 2024 estimates Wells Drilled (Spud) SWPA NEPA WV OH TOTAL 2Q24A 3Q24E 2024E 2Q24A 3Q24E 2024E 2Q24A 3Q24E 2024E 2Q24A 3Q24E 2024E 2Q24A 3Q24E 2024E Net wells 6 3 - 5 30 - 36 3 2 - 3 15 - 20 5 10 - 12 30 - 38 - - 0 - 1 14 15 - 20 75 - 95 Net avg. lateral (
Slide 31: Appendix
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Slide 32: Non-GAAP Financial Measure
Non-GAAP Financial Measure Adjusted Operating Revenues Adjusted operating revenues (also referred to as total natural gas and liquids sales, including cash settled derivatives) is defined as total operating revenues, less the revenue impact of changes in the fair value of derivative instruments prio
Slide 33: Non-GAAP Financial Measure: Adjusted EBITDA
Non-GAAP Financial Measure Adjusted EBITDA Adjusted EBITDA is defined as net income, excluding interest expense, income tax expense, depreciation and depletion, loss on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fair value of derivative instruments prior to
Slide 34: Reconciliation of LTM Adjusted EBITDA
Non-GAAP Financial Measure Reconciliation of Last Twelve Month (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 to b
Slide 35: Adjusted Operating Cash Flow, Free Cash Flow and Unlevered Free Cash Flow
Non-GAAP Financial Measure Adjusted Operating Cash Flow, Free Cash Flow, Free Cash Flow Yield and Unlevered Free Cash Flow 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 36: Adjusted EBITDA to Free Cash Flow
Non-GAAP Financial Measure Adjusted EBITDA to Free Cash Flow The table below reconciles adjusted EBITDA to free cash flow. Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (Thousands) Adjusted EBITDA $ 464,147 $ 360,113 $ 1,475,854 $ 1,638,320 (Deduct) add: Interest expense,
Slide 37: Net Debt and Leverage
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