Analyst Presentation
Analyst Presentation
January 2015
Marcellus Play Near term development focused in four areas
Central PA
580,000 EQT acres 86% NRI / 80% HBP 33% “wet”
18.5 Tcfe 3P Southwestern PA
23.9 Tcfe total resource potential 181 wells in 2015
Northern WV (Dry)
Northern WV (Wet) EQT acreage
9
Marcellus Play Southwestern PA Prolific dry gas region
Oliver West Pad 3 wells 3,919’ Avg Lateral Length per well 9,291 Mcfe Avg 30-day IP per well
115,000 EQT acres 1,460 locations
Kevech Pad 6 wells 2,970’ Avg Lateral Length per well 8,873 Mcfe Avg 30-day IP per well
220 wells online* 84 wells in 2015 4,800 foot laterals 79 acre spacing
10.0 Bcfe EUR / well 2,088 Mcfe EUR / ft. of lateral
Gallagher Pad 5 wells 4,436’ Avg Lateral Length per well 9,788 Mcfe Avg 30-day IP per well
$6.4 MM / well > 90% of locations utilize RCS Scotts Run Pad 8 wells 5,814’ Avg Lateral Length per well 15,407 Mcfe Avg 30-day IP per well
* As of 9/30/2014
Pierce Pad 9 wells 7,855’ Avg Lateral Length per well 17,025 Mcfe Avg 30-day IP per well
EQT acreage Producing wells
10
Marcellus Play Northern West Virginia – Wet Gas Area Enhanced economics from liquids uplift Big 190 Pad 5 wells 6,308’ Avg Lateral Length per well 12,511 Mcfe Avg 30-day IP per well
90,000 EQT acres 1,060 locations 156 wells online** 54 wells in 2015 4,800 foot laterals 83 acre spacing
PEN 16 Pad 5 wells 3,562’ Avg Lateral Length per well 8,883 Mcfe Avg 30-day IP per well
9.8 Bcfe EUR / well* 2,043 Mcfe EUR / ft. of lateral*
$6.4 MM / well 100% of locations utilize RCS OXF160 Pad 3 wells 5,286’ Avg Lateral Length per well 9,317 Mcfe Avg 30-day IP per well
EQT acreage Producing Pads Producing wells
* Liquids converted at 6:1 Mcfe per barrel (1.8 Bcfe per well from liquids). EUR assumes ethane rejection. Ethane recovery would result in EUR of 12.0 Bcfe per well. ** As of 9/30/2014
11
Marcellus Play Central Pennsylvania Early stages of acreage delineation
80,000 EQT acres 720 locations
Frano Pad 3 wells 4,409’ Avg Lateral Length per well 7,532 Mcfe Avg 30-day IP per well
55 wells online* 19 wells in 2015 4,800 foot laterals 110 acre spacing
6.6 Bcfe EUR / well 1,375 Mcfe EUR / ft. of lateral
$6.4 MM / well 100% of locations utilize RCS
* As of 9/30/2014
Gibson Pad 2 wells 6,381’ Lateral Length 8,592 Mcfe 30-day IP
EQT acreage Producing wells
12
Marcellus Play Northern West Virginia – Dry Gas Area EQT’s newest development area
30,000 EQT acres
GRT26 Pad 2 wells 3,270’ Avg Lateral Length per well 6,547 Mcfe Avg 30-day IP per well
300 locations 49 wells online* 24 wells in 2015 4,800 ft laterals 97 acre spacing
8.4 Bcfe EUR / well 1,741 Mcfe EUR / ft. of lateral
$6.3 MM / well 80% of locations utilize RCS Flanigan Pad 2 wells 6,889’ Avg Lateral Length per well 9,417 Mcfe Avg 30-day IP per well
* As of 9/30/2014
RSM119 Pad 6 wells 3,537’ Avg Lateral Length per well 3,529 Mcfe Avg 30-day IP per well
EQT acreage Producing wells
13
Marcellus Economics IRR - Blended Marcellus Development Areas 350% Wellhead
After OpEx
After Tax
300%
250%
200%
150%
100% PRICE $3.00 $3.50 $4.00 $4.50
50%
ATAX IRR 17% 30% 46% 66%
0% $3.00
$3.50
$4.00
$4.50
$5.00
Realized Price See appendix for IRR by development area
14
Upper Devonian Play Developed in conjunction with Marcellus
170,000 near-term testing & development EQT acres 2,000 locations 26 wells online* 58 wells in 2015 4,800 foot laterals 83 acre spacing
6.1 Bcfe EUR / well* 1,274 Mcfe EUR / ft. of lateral
Greene County 7 wells 5,964’ Avg Lateral Length per well 8,191 Mcfe Avg 30-day IP per well
$5.6 MM / well Near-term Upper Devonian testing & development area Wetzel County 11 wells 4,396’ Avg Lateral Length per well 5,663 Mcfe Avg 30-day IP per well
*As of 9/30/2014
EQT acreage
15
Dry Utica / Point Pleasant Potential Targeting deep, high pressure rock beneath existing development areas
400,000 EQT acres 3,000 locations 5 wells in 2015 6,400 foot lateral 13,500 feet deep
$12 - $17 MM / well
EQT acreage
16
EQT Corporation Midstream Marcellus Midstream Assets 2015 Gathering CAPEX $235 MM EQT $135 - $145 MM EQM Allegheny Valley Connector
Tioga 65 MMcf/d Longhorn 130 MMcf/d Terra 80 MMcf/d
Mercury 250 MMcf/d
Applegate 150 MMcf/d Jupiter*
Saturn 225 MMcf/d
Pluto 60 MMcf/d
NOTE: Capacity for each system represents estimated year-end 2014 capacity Capacity for year-end 2015 is expected to be 2 Bcfe/d
20
Marcellus Play Acres Within Each Core Development Area EQT has 580,000 total Marcellus acres Expect to develop in four areas for several years Active areas represent 315,000 acres and 3,540 locations EQT has 130,000 additional acres in PA & 135,000 additional acres in WV Estimated 1,200 Mcfe EUR per lateral foot for wells drilled on additional acres
Southwestern PA 1 Northern WV - Wet Northern WV - Dry² Central PA3
EUR (Mcfe) / Lateral Foot 2,088 2,043 1,741 1,375
Total Net Acres 115,000 90,000 30,000 80,000 315,000
Total Net Locations Undeveloped Utilizing Reduced Acres Cluster Spacing Locations¹ 93,000 90% 1,460 75,000 100% 1,060 27,000 80% 300 72,000 100% 720 267,000 94% 3,540
1Based
on 4,800 laterals with lateral spacing estimates ranging from 500’ to 1,000’ holds approximately 45,000 acres in the northern WV dry area – near-term development focused on 30,000 acres 3EQT holds approximately 160,000 acres in central PA – near-term development is focused on 80,000 acres 2EQT
Type curve and well cost data posted on www.eqt.com under investor relations
30
Marcellus Play Type Curves by Area - 4,800’ lateral
Type curve and well cost data posted on www.eqt.com under investor relations
31
Marcellus Economics IRR - Southwestern PA 600% Wellhead
After OpEx
After Tax
500%
400%
300%
200%
PRICE $3.00 $3.50 $4.00 $4.50
100%
0% $3.00
$3.50
$4.00
$4.50
ATAX IRR 28% 49% 79% 119%
$5.00
Realized Price 32
Marcellus Economics IRR - Northern WV – Wet Gas Area 400% Wellhead
After OpEx
After Tax
350% 300% 250% 200% 150% 100% PRICE $3.00 $3.50 $4.00 $4.50
50% 0% $3.00
$3.50
$4.00
$4.50
ATAX IRR 27% 41% 58% 78%
$5.00
Realized Price 33
Marcellus Economics IRR - Central PA 80%
Wellhead
After OpEx
After Tax
70% 60% 50% 40% 30% 20% PRICE $3.00 $3.50 $4.00 $4.50
10% 0% $3.00
$3.50
$4.00
$4.50
ATAX IRR 7% 12% 19% 28%
$5.00
Realized Price 34
Marcellus Economics IRR - Northern WV – Dry Gas Area 160% Wellhead
After OpEx
After Tax
140% 120% 100% 80% 60% 40% PRICE $3.00 $3.50 $4.00 $4.50
20% 0% $3.00
$3.50
$4.00
$4.50
ATAX IRR 9% 16% 26% 37%
$5.00
Realized Price 35
Upper Devonian Play Blended Type Curve - 4,800’ lateral
Type curve and well cost data posted on www.eqt.com under investor relations
36
Upper Devonian IRR 160%
Wellhead
After OpEx
After Tax
140% 120% 100% 80% 60% 40% PRICE $3.00 $3.50 $4.00 $4.50
20%
ATAX IRR 9% 16% 26% 37%
0% $3.00
$3.50
$4.00
$4.50
$5.00
Realized Price 37
Huron Play IRR 120%
Wellhead
Wellhead After OpEx
ATAX
100%
80%
60%
40%
PRICE $4.00 $4.50 $5.00
20%
ATAX IRR 35% 42% 50%
0% $3.00
$3.50
$4.00
$4.50
$5.00
Realized Price 38
January 2015
Marcellus Play Near term development focused in four areas
Central PA
580,000 EQT acres 86% NRI / 80% HBP 33% “wet”
18.5 Tcfe 3P Southwestern PA
23.9 Tcfe total resource potential 181 wells in 2015
Northern WV (Dry)
Northern WV (Wet) EQT acreage
9
Marcellus Play Southwestern PA Prolific dry gas region
Oliver West Pad 3 wells 3,919’ Avg Lateral Length per well 9,291 Mcfe Avg 30-day IP per well
115,000 EQT acres 1,460 locations
Kevech Pad 6 wells 2,970’ Avg Lateral Length per well 8,873 Mcfe Avg 30-day IP per well
220 wells online* 84 wells in 2015 4,800 foot laterals 79 acre spacing
10.0 Bcfe EUR / well 2,088 Mcfe EUR / ft. of lateral
Gallagher Pad 5 wells 4,436’ Avg Lateral Length per well 9,788 Mcfe Avg 30-day IP per well
$6.4 MM / well > 90% of locations utilize RCS Scotts Run Pad 8 wells 5,814’ Avg Lateral Length per well 15,407 Mcfe Avg 30-day IP per well
* As of 9/30/2014
Pierce Pad 9 wells 7,855’ Avg Lateral Length per well 17,025 Mcfe Avg 30-day IP per well
EQT acreage Producing wells
10
Marcellus Play Northern West Virginia – Wet Gas Area Enhanced economics from liquids uplift Big 190 Pad 5 wells 6,308’ Avg Lateral Length per well 12,511 Mcfe Avg 30-day IP per well
90,000 EQT acres 1,060 locations 156 wells online** 54 wells in 2015 4,800 foot laterals 83 acre spacing
PEN 16 Pad 5 wells 3,562’ Avg Lateral Length per well 8,883 Mcfe Avg 30-day IP per well
9.8 Bcfe EUR / well* 2,043 Mcfe EUR / ft. of lateral*
$6.4 MM / well 100% of locations utilize RCS OXF160 Pad 3 wells 5,286’ Avg Lateral Length per well 9,317 Mcfe Avg 30-day IP per well
EQT acreage Producing Pads Producing wells
* Liquids converted at 6:1 Mcfe per barrel (1.8 Bcfe per well from liquids). EUR assumes ethane rejection. Ethane recovery would result in EUR of 12.0 Bcfe per well. ** As of 9/30/2014
11
Marcellus Play Central Pennsylvania Early stages of acreage delineation
80,000 EQT acres 720 locations
Frano Pad 3 wells 4,409’ Avg Lateral Length per well 7,532 Mcfe Avg 30-day IP per well
55 wells online* 19 wells in 2015 4,800 foot laterals 110 acre spacing
6.6 Bcfe EUR / well 1,375 Mcfe EUR / ft. of lateral
$6.4 MM / well 100% of locations utilize RCS
* As of 9/30/2014
Gibson Pad 2 wells 6,381’ Lateral Length 8,592 Mcfe 30-day IP
EQT acreage Producing wells
12
Marcellus Play Northern West Virginia – Dry Gas Area EQT’s newest development area
30,000 EQT acres
GRT26 Pad 2 wells 3,270’ Avg Lateral Length per well 6,547 Mcfe Avg 30-day IP per well
300 locations 49 wells online* 24 wells in 2015 4,800 ft laterals 97 acre spacing
8.4 Bcfe EUR / well 1,741 Mcfe EUR / ft. of lateral
$6.3 MM / well 80% of locations utilize RCS Flanigan Pad 2 wells 6,889’ Avg Lateral Length per well 9,417 Mcfe Avg 30-day IP per well
* As of 9/30/2014
RSM119 Pad 6 wells 3,537’ Avg Lateral Length per well 3,529 Mcfe Avg 30-day IP per well
EQT acreage Producing wells
13
Marcellus Economics IRR - Blended Marcellus Development Areas 350% Wellhead
After OpEx
After Tax
300%
250%
200%
150%
100% PRICE $3.00 $3.50 $4.00 $4.50
50%
ATAX IRR 17% 30% 46% 66%
0% $3.00
$3.50
$4.00
$4.50
$5.00
Realized Price See appendix for IRR by development area
14
Upper Devonian Play Developed in conjunction with Marcellus
170,000 near-term testing & development EQT acres 2,000 locations 26 wells online* 58 wells in 2015 4,800 foot laterals 83 acre spacing
6.1 Bcfe EUR / well* 1,274 Mcfe EUR / ft. of lateral
Greene County 7 wells 5,964’ Avg Lateral Length per well 8,191 Mcfe Avg 30-day IP per well
$5.6 MM / well Near-term Upper Devonian testing & development area Wetzel County 11 wells 4,396’ Avg Lateral Length per well 5,663 Mcfe Avg 30-day IP per well
*As of 9/30/2014
EQT acreage
15
Dry Utica / Point Pleasant Potential Targeting deep, high pressure rock beneath existing development areas
400,000 EQT acres 3,000 locations 5 wells in 2015 6,400 foot lateral 13,500 feet deep
$12 - $17 MM / well
EQT acreage
16
EQT Corporation Midstream Marcellus Midstream Assets 2015 Gathering CAPEX $235 MM EQT $135 - $145 MM EQM Allegheny Valley Connector
Tioga 65 MMcf/d Longhorn 130 MMcf/d Terra 80 MMcf/d
Mercury 250 MMcf/d
Applegate 150 MMcf/d Jupiter*
Saturn 225 MMcf/d
Pluto 60 MMcf/d
NOTE: Capacity for each system represents estimated year-end 2014 capacity Capacity for year-end 2015 is expected to be 2 Bcfe/d
20
Marcellus Play Acres Within Each Core Development Area EQT has 580,000 total Marcellus acres Expect to develop in four areas for several years Active areas represent 315,000 acres and 3,540 locations EQT has 130,000 additional acres in PA & 135,000 additional acres in WV Estimated 1,200 Mcfe EUR per lateral foot for wells drilled on additional acres
Southwestern PA 1 Northern WV - Wet Northern WV - Dry² Central PA3
EUR (Mcfe) / Lateral Foot 2,088 2,043 1,741 1,375
Total Net Acres 115,000 90,000 30,000 80,000 315,000
Total Net Locations Undeveloped Utilizing Reduced Acres Cluster Spacing Locations¹ 93,000 90% 1,460 75,000 100% 1,060 27,000 80% 300 72,000 100% 720 267,000 94% 3,540
1Based
on 4,800 laterals with lateral spacing estimates ranging from 500’ to 1,000’ holds approximately 45,000 acres in the northern WV dry area – near-term development focused on 30,000 acres 3EQT holds approximately 160,000 acres in central PA – near-term development is focused on 80,000 acres 2EQT
Type curve and well cost data posted on www.eqt.com under investor relations
30
Marcellus Play Type Curves by Area - 4,800’ lateral
Type curve and well cost data posted on www.eqt.com under investor relations
31
Marcellus Economics IRR - Southwestern PA 600% Wellhead
After OpEx
After Tax
500%
400%
300%
200%
PRICE $3.00 $3.50 $4.00 $4.50
100%
0% $3.00
$3.50
$4.00
$4.50
ATAX IRR 28% 49% 79% 119%
$5.00
Realized Price 32
Marcellus Economics IRR - Northern WV – Wet Gas Area 400% Wellhead
After OpEx
After Tax
350% 300% 250% 200% 150% 100% PRICE $3.00 $3.50 $4.00 $4.50
50% 0% $3.00
$3.50
$4.00
$4.50
ATAX IRR 27% 41% 58% 78%
$5.00
Realized Price 33
Marcellus Economics IRR - Central PA 80%
Wellhead
After OpEx
After Tax
70% 60% 50% 40% 30% 20% PRICE $3.00 $3.50 $4.00 $4.50
10% 0% $3.00
$3.50
$4.00
$4.50
ATAX IRR 7% 12% 19% 28%
$5.00
Realized Price 34
Marcellus Economics IRR - Northern WV – Dry Gas Area 160% Wellhead
After OpEx
After Tax
140% 120% 100% 80% 60% 40% PRICE $3.00 $3.50 $4.00 $4.50
20% 0% $3.00
$3.50
$4.00
$4.50
ATAX IRR 9% 16% 26% 37%
$5.00
Realized Price 35
Upper Devonian Play Blended Type Curve - 4,800’ lateral
Type curve and well cost data posted on www.eqt.com under investor relations
36
Upper Devonian IRR 160%
Wellhead
After OpEx
After Tax
140% 120% 100% 80% 60% 40% PRICE $3.00 $3.50 $4.00 $4.50
20%
ATAX IRR 9% 16% 26% 37%
0% $3.00
$3.50
$4.00
$4.50
$5.00
Realized Price 37
Huron Play IRR 120%
Wellhead
Wellhead After OpEx
ATAX
100%
80%
60%
40%
PRICE $4.00 $4.50 $5.00
20%
ATAX IRR 35% 42% 50%
0% $3.00
$3.50
$4.00
$4.50
$5.00
Realized Price 38
