Analyst Presentation January PRINT - Amazon S3...Analyst Presentation January 2015. 9 ... 33%...
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Analyst Presentation January 2015
Transcript of Analyst Presentation January PRINT - Amazon S3...Analyst Presentation January 2015. 9 ... 33%...
Analyst Presentation
January 2015
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Near term development focused in four areas
Marcellus Play
580,000 EQT acres86% NRI / 80% HBP33% “wet”
18.5 Tcfe 3P
23.9 Tcfe total resource potential
181 wells in 2015
Central PA
Southwestern PA
Northern WV (Wet)
EQT acreage
Northern WV (Dry)
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Prolific dry gas region
Marcellus PlaySouthwestern PA
115,000 EQT acres
1,460 locations220 wells online*84 wells in 20154,800 foot laterals79 acre spacing
10.0 Bcfe EUR / well2,088 Mcfe EUR / ft. of lateral
$6.4 MM / well
> 90% of locations utilize RCS
Scotts Run Pad8 wells5,814’ Avg Lateral Length per well15,407 Mcfe Avg 30-day IP per well
Pierce Pad9 wells7,855’ Avg Lateral Length per well17,025 Mcfe Avg 30-day IP per well
Kevech Pad6 wells2,970’ Avg Lateral Length per well8,873 Mcfe Avg 30-day IP per well
* As of 9/30/2014
Oliver West Pad3 wells3,919’ Avg Lateral Length per well9,291 Mcfe Avg 30-day IP per well
Gallagher Pad5 wells4,436’ Avg Lateral Length per well9,788 Mcfe Avg 30-day IP per well
EQT acreageProducing wells
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Enhanced economics from liquids uplift
Marcellus PlayNorthern West Virginia – Wet Gas Area
90,000 EQT acres
1,060 locations156 wells online**54 wells in 20154,800 foot laterals83 acre spacing
9.8 Bcfe EUR / well*2,043 Mcfe EUR / ft. of lateral*
$6.4 MM / well
100% of locations utilize RCSProducing Pads
Big 190 Pad5 wells6,308’ Avg Lateral Length per well12,511 Mcfe Avg 30-day IP per well
PEN 16 Pad5 wells3,562’ Avg Lateral Length per well8,883 Mcfe Avg 30-day IP per well
* 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
OXF160 Pad3 wells5,286’ Avg Lateral Length per well9,317 Mcfe Avg 30-day IP per well
EQT acreageProducing wells
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Early stages of acreage delineation
Marcellus PlayCentral Pennsylvania
80,000 EQT acres
720 locations55 wells online*19 wells in 20154,800 foot laterals110 acre spacing
6.6 Bcfe EUR / well1,375 Mcfe EUR / ft. of lateral
$6.4 MM / well
100% of locations utilize RCS
Frano Pad3 wells4,409’ Avg Lateral Length per well7,532 Mcfe Avg 30-day IP per well
Gibson Pad2 wells6,381’ Lateral Length8,592 Mcfe 30-day IP
* As of 9/30/2014
EQT acreageProducing wells
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EQT’s newest development area
Marcellus PlayNorthern West Virginia – Dry Gas Area
30,000 EQT acres
300 locations49 wells online*24 wells in 20154,800 ft laterals97 acre spacing
8.4 Bcfe EUR / well1,741 Mcfe EUR / ft. of lateral
$6.3 MM / well
80% of locations utilize RCS
GRT26 Pad2 wells3,270’ Avg Lateral Length per well6,547 Mcfe Avg 30-day IP per well
RSM119 Pad6 wells3,537’ Avg Lateral Length per well3,529 Mcfe Avg 30-day IP per well
* As of 9/30/2014
Flanigan Pad2 wells6,889’ Avg Lateral Length per well9,417 Mcfe Avg 30-day IP per well EQT acreage
Producing wells
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350%
$3.00 $3.50 $4.00 $4.50 $5.00
Wellhead After OpEx After Tax
Marcellus EconomicsIRR - Blended Marcellus Development Areas
Realized Price
See appendix for IRR by development area
PRICE ATAX IRR$3.00 17%$3.50 30%$4.00 46%$4.50 66%
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Developed in conjunction with Marcellus
Upper Devonian Play
*As of 9/30/2014
Near-term Upper Devonian testing & development area
170,000 near-term testing & development EQT acres
2,000 locations26 wells online*58 wells in 20154,800 foot laterals83 acre spacing
6.1 Bcfe EUR / well*1,274 Mcfe EUR / ft. of lateral
$5.6 MM / well
Wetzel County11 wells4,396’ Avg Lateral Length per well5,663 Mcfe Avg 30-day IP per well
Greene County7 wells5,964’ Avg Lateral Length per well8,191 Mcfe Avg 30-day IP per well
EQT acreage
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Targeting deep, high pressure rock beneath existing development areas
Dry Utica / Point Pleasant Potential
400,000 EQT acres
3,000 locations5 wells in 20156,400 foot lateral13,500 feet deep
$12 - $17 MM / well
EQT acreage
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EQT Corporation MidstreamMarcellus Midstream Assets
NOTE: Capacity for each system represents estimated year-end 2014 capacityCapacity for year-end 2015 is expected to be 2 Bcfe/d
Tioga65 MMcf/d
Pluto60 MMcf/d
Mercury250 MMcf/d
Saturn225 MMcf/d
Longhorn130 MMcf/d
Terra80 MMcf/d
Applegate150 MMcf/d
Jupiter*
Allegheny Valley
Connector
2015 Gathering CAPEX $235 MM EQT $135 - $145 MM EQM
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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
Marcellus PlayAcres Within Each Core Development Area
Type curve and well cost data posted on www.eqt.com under investor relations
1Based on 4,800 laterals with lateral spacing estimates ranging from 500’ to 1,000’2EQT holds approximately 45,000 acres in the northern WV dry area – near-term development focused on 30,000 acres3EQT holds approximately 160,000 acres in central PA – near-term development is focused on 80,000 acres
EUR (Mcfe) / Lateral Foot
Total Net Acres
Total Net Undeveloped
Acres
Locations Utilizing Reduced Cluster Spacing
Locations¹
Southwestern PA 2,088 115,000 93,000 90% 1,460Northern WV - Wet1 2,043 90,000 75,000 100% 1,060Northern WV - Dry² 1,741 30,000 27,000 80% 300Central PA3 1,375 80,000 72,000 100% 720
315,000 267,000 94% 3,540
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Marcellus PlayType Curves by Area - 4,800’ lateral
Type curve and well cost data posted on www.eqt.com under investor relations
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Marcellus EconomicsIRR - Southwestern PA
Realized Price
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$3.00 $3.50 $4.00 $4.50 $5.00
Wellhead After OpEx After Tax
PRICE ATAX IRR$3.00 28%$3.50 49%$4.00 79%$4.50 119%
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$3.00 $3.50 $4.00 $4.50 $5.00
Wellhead After OpEx After Tax
Marcellus EconomicsIRR - Northern WV – Wet Gas Area
Realized Price
PRICE ATAX IRR$3.00 27%$3.50 41%$4.00 58%$4.50 78%
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Marcellus EconomicsIRR - Central PA
Realized Price
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$3.00 $3.50 $4.00 $4.50 $5.00
Wellhead After OpEx After Tax
PRICE ATAX IRR$3.00 7%$3.50 12%$4.00 19%$4.50 28%
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Marcellus EconomicsIRR - Northern WV – Dry Gas Area
Realized Price
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$3.00 $3.50 $4.00 $4.50 $5.00
Wellhead After OpEx After Tax
PRICE ATAX IRR$3.00 9%$3.50 16%$4.00 26%$4.50 37%
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Upper Devonian PlayBlended Type Curve - 4,800’ lateral
Type curve and well cost data posted on www.eqt.com under investor relations
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Upper DevonianIRR
Realized Price
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$3.00 $3.50 $4.00 $4.50 $5.00
Wellhead After OpEx After Tax
PRICE ATAX IRR$3.00 9%$3.50 16%$4.00 26%$4.50 37%
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$3.00 $3.50 $4.00 $4.50 $5.00
Wellhead Wellhead After OpEx ATAX
Huron PlayIRR
Realized Price
PRICE ATAX IRR$4.00 35%$4.50 42%$5.00 50%
