Slide 1: Investor Presentation Second Quarter 2023 Results
Investor Presentation Second Quarter 2023 Results July 25, 2023 7/25/20 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: EQT Presents a Differentiated Energy Investment Opportunity
EQT Presents a Differentiated Energy Investment Opportunity Expanding track record of peer-leading performance PEER-LEADING COST STRUCTURE DRIVES DURABLE FREE CASH FLOW Strong free cash flow outlook, expect to generate >50% of enterprise value(1) through 2027 Attractive risk / return profile, differ
Slide 4: The Premier North American Natural Gas Producer
The Premier North American 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 $14.4 B Market Cap(1) #1 ~200k core net acres Producer of natural gas in the United States(5) OH UTIC
Slide 5: Performing For All Stakeholders
Performing For All Stakeholders Record-breaking drilling and completion performance; $800 MM of debt retired; added to 2024 hedge book KEY RESULTS Q2 2023 1H 2023 RECENT HIGHLIGHTS › Q2 production & capital in-line with midpoint of guidance; operating 471 930 Total Sales Volumes Bcfe Bcfe expenses n
Slide 6: EQT Efficiencies Pull Ahead, Setting New Drilling Records
EQT Efficiencies Pull Ahead, Setting New Drilling Records Performance drives peer-leading efficiencies capable of drilling 1 MM lateral feet per year with <2 rigs SWPA & WV MARCELLUS(1) NEW WORLD DRILLING RECORD SET Drilling Faster & Further Than Peers EQT PEERS FOOTAGE DRILLED IN 48-HOURS(2) Avg. S
Slide 7: Completions Operating at Peak Levels
Completions Operating at Peak Levels New EQT record with nearly 4-mile lateral completed in Q2 AVERAGE FRAC CREW PUMPING HOURS PRODUCTION RATE ON THE UPSWING Hours Bcfe/d 5.4 5.2 Midpoint of Q2 guidance even with ~12 Bcfe third-party 5.0 impact; on track to return to ~500 Bcfe quarterly rate in Q3 4
Slide 8: West Virginia Water System Paying Dividends
West Virginia Water System Paying Dividends Efficient water handling drives peer-leading LOE EQT WEST VIRGINIA WATER NETWORK WATER GATHERING SYSTEM DRIVES PEER-LEADING LOE COSTS(1) $/Mcfe EQT A B C D E F REDUCING FRESHWATER & DISPOSAL NEEDS % of produced water recycled(2) 2023 ~$20 MM Target 90% exp
Slide 9: MVP Approval Highlights Bipartisan Infrastructure Support
MVP Approval Highlights Bipartisan Infrastructure Support MVP and southern expansion projects suggest growing value to EQT over time MOUNTAIN VALLEY PIPELINE UPCOMING STATION 165 EXPANSIONS ANTICIPATED TO MAGNIFY MVP IMPACT EXPECTED PROJECT MMBTU/D IN-SERVICE A 160,000 Winter 2024 Winter 2024 B 78,0
Slide 10: Progressing Risk-Adjusted LNG Strategy
Progressing Risk-Adjusted LNG Strategy Signed HOA for 1 million tons per annum of tolling capacity GULF COAST FT PORTFOLIO PROVIDES LNG DEAL TOLLING STRATEGY CHECKS ALL THE BOXES OPTIONALITY, ACCESS TO INTERNATIONAL PRICING PRODUCT DELIVERY › FT portfolio delivers 1.2 Bcf/d, or ~25% of EQT’s product
Slide 11: EQT Provides Best Risk-Adjusted Exposure to Natural Gas
EQT Provides Best Risk-Adjusted Exposure to Natural Gas Current share price provides a superior absolute and relative value opportunity 2023 – 2027E CUMULATIVE FCF(1,4) 2023 – 2027E CUMULATIVE FCF(1,2,4) % of enterprise value(3) % of enterprise value(3) Appalachian Pure Play Multi Basin Haynesville
Slide 12: Executing on "All of the Above" Shareholder Return Framework
Executing on “All of the Above” Shareholder Return Framework Retired $800 MM of debt during Q2; $1.9 B total debt retired since December 2021 TARGETING $3.5 B ABSOLUTE DEBT, $2.0 B SHARE REPURCHASE 1.0-1.5x LONG-TERM LEVERAGE(1) AT $2.75 GAS AUTHORIZATION, $1.4 B REMAINING $B $2,000 MM Authorization
Slide 13: Accelerating Value Through Opportunistic Share Buyback Program
Accelerating Value Through Opportunistic Share Buyback Program Counter-cyclical execution has maximized returns compared to peers SHARE REPURCHASE EXECUTION(1) SUPERIOR RETURN ON OPPORTUNISTIC BUYBACKS(3) % 35% $50 Executed Share Repurchases EQT Share Price $250 25% OPPORTUNISTIC BUYBACKS ALLOW FOR
Slide 14: 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) › Executed tender offer for $300 MM of 6.125% 2025 senior notes & redeemed $500 MM of 5.678% 2025 senior notes in J
Slide 15: 2022 ESG Report Highlights
2022 ESG Report Highlights Continued progress towards 2025 emissions targets & strong community support PRODUCTION SEGMENT SCOPE 1 & 2 PRODUCTION SEGMENT SCOPE 1 PRODUCTION SEGMENT SCOPE 1 GHG EMISSIONS (NET)(1,2) GHG EMISSIONS INTENSITY(1) METHANE EMISSIONS INTENSITY(1) MT CO2e MT CO2e / Gross Annu
Slide 16: 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 Taking on Combustion Emissions, Net Zero by 2025(2) and Progress to Date Pneumati
Slide 17: High-Quality Inventory Underpins Durable Capital Returns
High-Quality Inventory Underpins Durable Capital Returns Transparent look at core inventory shows every core location breaks even at <$3 gas HIGH-QUALITY INVENTORY: ~1,800 CORE NET LOCATIONS PV-10(1) breakeven price by well $/MMBtu INVENTORY DEPTH: A CLOSER LOOK $3.50 High-grade core inventory featu
Slide 18: Strategic Bolt-On Acquisition Expected to Strengthen EQT's Business
Strategic Bolt-On Acquisition Expected to Strengthen EQT’s Business Adding low-risk, high-quality assets offsetting existing acreage with improved free cash flow durability SW APPALACHIA ACREAGE POSITION PENDING ACQUISITION EXPECTED TO MAKE EQT’S FREE CASH FLOW EVEN MORE RESILIENT › Acquisition of T
Slide 19: Appendix
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Slide 20: EQT Delivers Production to Diversified Sales Points
EQT Delivers Production to Diversified Sales Points Access to diverse sales points provides flexibility and opportunity Provides Operational and Cash Flow Flexibility Regional Mix - Price Points(1) 2023E 2024E › Diversity of delivery sales points provides significant We hedge local Local 37% 27% › c
Slide 21: Hedging Strategy Provides Compelling Risk-Adjusted Upside
Hedging Strategy Provides Compelling Risk-Adjusted Upside Hedge position as of July 21, 2023 2023 2023 2024 2024 2024 2024 Q3 (1) Q4 Q1 Q2 Q3 Q4 EQT NATURAL GAS PRICE UPSIDE Hedged Volume (MMDth) 299 313 210 175 177 77 › Balance sheet improvements have allowed EQT to shift from Hedged Volume (MMDth/
Slide 22: The Marcellus Is the Most Capital Efficient Gas Play
The Marcellus Is the Most Capital Efficient Gas Play EQT's capital efficiency expected to improve over time THE MARCELLUS ADVANTAGE EQT CAPEX EFFICIENCY OVER TIME Capital expenditures/total sales volumes ($/Mcfe) › Lowest capital-intensive natural gas asset in the U.S. › We expect our capital effici
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: 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 PROVED RESERVES INCLUD
Slide 25: 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 26: EQT Is Progressing a Low-Carbon, Reliable Energy Future
EQT Is 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 Go
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, strengthening energy security while reducing global emissions The Demand The Result › There is ~175 Bcf/d of coal-to-gas switching demand › By 2030, unleashed U.S. LNG scenario
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: Inadequate Natural Gas Storage Is Amplifying Price Volatility
Inadequate Natural Gas Storage Is Amplifying Price Volatility Lack of storage capacity relative to demand and linkage to international markets should result in persistent volatility U.S. GAS STORAGE: DAYS OF LTM DEMAND COVER(1) STORAGE EXPRESSED IN DAYS’ DEMAND COVER(1) Storage / Daily Demand Storag
Slide 31: Global LNG Supply and Demand Forecast
Global LNG Supply and Demand Forecast The LNG market is expected to double by the late 2030s; U.S. expected to be one of the largest suppliers LNG SUPPLY U.S. LNG CAPACITY BUILDOUT Bcf/d Bcf/d North America Middle East Australia Africa 30 Sabine Pass Cove Point Corpus Christi Cameron Elba Island 100
Slide 32: 2023 Operational Guidance
2023 Operational Guidance Consistent spending, operational outlook Production(1) 3Q23E 2023E Total sales volumes (Bcfe) 475 - 525 1,900 - 2,000 Liquids sales volume, excluding ethane (MBbls) 2,000 - 2,200 8,900 - 9,300 Ethane sales volume (MBbls) 1,500 - 1,600 6,000 - 6,200 Total liquids sales volum
Slide 33: 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 $2.8 - $3.1 $2.6 - $2.9 $2.7 - $3.0 $2.5 - $2.8 $2.5 - $2.8 $2.3 - $2.6 $0.9 - $1.2 $0.7 - $1.0 $0.6 - $0.9 $2.50 $3.00 $3.50 $2.50 $3.00 $3.50 $2.50 $3.00 $3.5
Slide 34: Well Activity Details
Well Activity Details 2Q23 actuals, 3Q23 and 2023 estimates Wells Drilled (Spud) SWPA NEPA WV OH TOTAL 2Q23A 3Q23E 2023E 2Q23A 3Q23E 2023E 2Q23A 3Q23E 2023E 2Q23A 3Q23E 2023E 2Q23A 3Q23E 2023E Net wells - 6 - 8 14 - 20 4 2 - 4 12 - 16 - 2 - 3 18 - 26 - 0 - 1 0 - 2 4 10 - 16 44 - 64 Net avg. lateral
Slide 35: 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, loss (gain) on sale/exchange of long-lived assets, impairments, the revenue impact of changes in the fai
Slide 36: Non-GAAP Financial Measure: 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 37: Non-GAAP Financial Measure: 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 38: Non-GAAP Financial Measure: 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
Slide 39: 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