EQT Files Investor Presentation Detailing Strong Operational and Financial Performance Delivered by New Board and Management Team

Preliminary Second Quarter Results Demonstrate Continued Business
Momentum

EQT’s Purpose-Built Board Is Best Positioned to Oversee the Company’s
Continued Success and Further Value Creation

Independent Analysis Affirms that EQT Is a Low-Cost Leader, and
Refutes Unsubstantiated and Unrealistic Claims of the Toby Rice Group

EQT Urges Shareholders to Vote TODAY “FOR” All 12 of the Company’s
Highly Experienced Nominees on the GOLD Universal Proxy Card

PITTSBURGH–(BUSINESS WIRE)–EQT Corporation (NYSE:EQT) today filed a new investor presentation with
the U.S. Securities and Exchange Commission in connection with its 2019
Annual Meeting of Shareholders (the “Annual Meeting”) to be held on July
10, 2019.

Highlights of the presentation include EQT’s:

  • Transformation. Under the Company’s refreshed Board of
    Directors (the “Board”) and management team, the new EQT is a more
    efficient, premier pure-play upstream company.

    • EQT generated more than $300 million in cumulative adjusted free
      cash flow1 in Q4 2018 and Q1 2019.
  • Tremendous progress. EQT is delivering significant value
    through a compelling new, bottom-up strategic plan, capitalizing on
    the Company’s top-tier asset base to generate significant free cash
    flow.

    • EQT is on track to deliver $300 to $400 million of adjusted free
      cash flow1 in 2019, and over $3.0 billion through 2023
      with meaningful upside.
  • Outstanding recent performance. Earlier this week EQT
    released strong preliminary second quarter 2019 results, which
    demonstrate the Company’s momentum, including:

    • Sales volumes at the high end of the Company’s guidance of 355 to
      375 Bcfe;
    • Approximately $25 million of incremental annual capital
      expenditure savings under EQT’s Target 10% Initiative;
    • Adjusted free cash flow1 improvement of $25 million
      over the previously provided guidance2;
    • 8% reduction in drilling days / 1,000 feet quarter-over-quarter3;
    • 20% improvement in frac stages / crew quarter-over-quarter3;
      and
    • 14% increase in frac plugs drilled per day quarter-over-quarter3.
  • Industry-leading cost structure. EQT has superior unit costs
    and drilling efficiencies as compared to peers.

    • EQT’s well productivity, costs and planning efficiency were
      historically as competitive as, or better than, Rice Energy’s,
      according to independent analysis conducted by industry research
      specialist Wood Mackenzie, and EQT’s new management team has
      already identified $175 million in annual cost savings since
      November 2018.
  • Significant stock price outperformance. EQT stock has outpaced
    peers as new leadership has successfully executed its strategic plan.

    • EQT has outperformed its Appalachian Peers by 49%4
      since the spin-off of Equitrans Midstream Corporation.
  • Commitment to Board refreshment. EQT has actively engaged with
    shareholders and added highly qualified new independent directors.

    • EQT added four highly qualified independent directors to the Board
      at the end of 2018 and nominated three additional highly qualified
      independent director candidates for the Annual Meeting. If
      elected, 67% of the Board will be new in the last year and the
      average tenure will be 2.3 years.
  • Concerns that the election of the Toby Rice slate would result in a
    weaker Board, managerial chaos and value destruction.

    • The replacement of EQT’s recently refreshed management team and
      Board would decrease Board independence, disrupt the Company’s
      progress, adversely impact financial and operational results and
      jeopardize EQT’s strong outperformance.

The investor presentation and other materials regarding the Board of
Directors’ recommendations for the Annual Meeting are available at VoteGoldForEQT.com/Presentations.
EQT also today posted additional videos highlighting the strengths of
the Company’s directors to VoteGoldForEQT.com/our-nominees/.

To ensure EQT can continue its successful transformation and build on
its momentum, the Board recommends that shareholders vote “FOR” all 12
of EQT’s highly qualified director nominees by phone, on the internet or
by signing and returning the GOLD universal proxy card in the
postage-paid envelope provided. EQT reminds shareholders that their vote
is extremely important no matter how many shares they own. Every vote
counts and will impact the future of EQT as a focused E&P business.

 

If you have any questions, or need assistance in voting

your shares on the GOLD universal proxy card,

please call EQT’s proxy solicitor:

 

INNISFREE M&A INCORPORATED

TOLL-FREE at 1-877-687-1866 (from the U.S. or Canada)

Or at (412) 232-3651 (From Other Locations)

 
Please discard and do NOT vote using any white proxy cards you may
receive from the Toby Rice Group
 

About EQT Corporation:

EQT Corporation is a natural gas production company with emphasis in the
Appalachian Basin and operations throughout Pennsylvania, West Virginia
and Ohio. With 130 years of experience and a long-standing history of
good corporate citizenship, EQT is the largest producer of natural gas
in the United States. As a leader in the use of advanced horizontal
drilling technology, EQT is committed to minimizing the impact of
drilling-related activities and reducing its overall environmental
footprint. Through safe and responsible operations, EQT is helping to
meet our nation’s demand for clean-burning energy, while continuing to
provide a rewarding workplace and support for activities that enrich the
communities where its employees live and work. Visit EQT Corporation at www.EQT.com;
and to learn more about EQT’s sustainability efforts, please visit https://csr.eqt.com.

EQT Management speaks to investors from time to time and the analyst
presentation for these discussions, which is updated periodically, is
available via the Company’s investor relationship website at ir.eqt.com.

Cautionary Statements

This news release contains certain forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, and Section 27A of the Securities Act of 1933, as amended.
Statements that do not relate strictly to historical or current facts
are forward-looking. Without limiting the generality of the foregoing,
forward-looking statements contained in this news release specifically
include the expectations of plans, strategies, objectives and growth and
anticipated financial and operational performance of the Company and its
subsidiaries, including guidance regarding projected adjusted free cash
flow, sales volumes and capital expenditures; and anticipated cost
savings. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from
projected results. Accordingly, investors should not place undue
reliance on forward-looking statements as a prediction of actual
results. The Company has based these forward-looking statements on
current expectations and assumptions about future events, taking into
account all information currently available to the Company. While the
Company considers these expectations and assumptions to be reasonable,
they are inherently subject to significant business, economic,
competitive, regulatory and other risks and uncertainties, many of which
are difficult to predict and beyond the Company’s control. The risks and
uncertainties that may affect the operations, performance and results of
the Company’s business and forward-looking statements include, but are
not limited to, those set forth under Item 1A, “Risk Factors,” of the
Company’s Form 10-K for the year ended December 31, 2018, as filed with
the SEC and as updated by subsequent Form 10-Qs filed by the Company,
and those set forth in the other documents the Company files from time
to time with the SEC.

Any forward-looking statement speaks only as of the date on which such
statement is made, and the Company does not intend to correct or update
any forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by law.

NON-GAAP DISCLOSURES

Adjusted Free Cash Flow

Adjusted free cash flow is defined as the Company’s net cash provided by
operating activities less changes in other assets and liabilities, less
EBITDA attributable to discontinued operations (a non-GAAP supplemental
financial measure defined below), plus interest expense attributable to
discontinued operations and cash distributions from discontinued
operations, less accrual-based capital expenditures attributable to
continuing operations. Adjusted free cash flow is a non-GAAP
supplemental financial measure that the Company’s management and
external users of its consolidated financial statements, such as
industry analysts, lenders and ratings agencies use to assess the
Company’s liquidity. The Company believes that adjusted free cash flow
provides useful information to management and investors in assessing the
impact of the Company’s ability to generate cash flow in excess of
capital requirements and return cash to shareholders. Adjusted free cash
flow should not be considered as an alternative to net cash provided by
operating activities or any other measure of liquidity presented in
accordance with GAAP.

The table below reconciles adjusted free cash flow with net cash
provided by operating activities, the most comparable financial measure
calculated in accordance with GAAP, as derived from the Statements of
Condensed Consolidated Cash Flows included in the Company’s report on
Form 10-Q for the quarter ended March 31, 2019 and in the Company’s
report on Form 10-K for the year ended December 31, 2018.

         
Three Months Ended
March 31, 2019
Three Months Ended

December 31, 2018

Total
(Thousands)
Net cash provided by operating activities $ 871,287 $ 530,866 $ 1,402,153
(Deduct) / add back changes in other assets and liabilities (223,934 ) 261,216   37,282  
Operating cash flow $ 647,353 $ 792,082 $ 1,439,435
(Deduct) / add back:
EBITDA attributable to discontinued operations(a) (118,934 ) (118,934 )
Interest expense attributable to discontinued operations   19,452   19,452  
Adjusted operating cash flow $ 647,353 $ 692,600 $ 1,339,953
(Deduct):
Capital expenditures attributable to continuing operations (476,022 ) (558,351 ) (1,034,373 )
Adjusted free cash flow $ 171,331   $ 134,249   $ 305,580  
 
    (a)   As a result of the separation of the Company’s midstream business
from its upstream business and subsequent spin-off of Equitrans
Midstream Corporation in November 2018, the results of operations of
Equitrans Midstream Corporation are presented as discontinued
operations in the Company’s Statements of Condensed Consolidated
Operations. EBITDA attributable to discontinued operations is a
non-GAAP supplemental financial measure reconciled in the section
below.
 

The Company has not provided projected net cash provided by operating
activities or a reconciliation of projected adjusted free cash flow to
projected net cash provided by operating activities, the most comparable
financial measure calculated in accordance with GAAP. The Company is
unable to project net cash provided by operating activities for any
future period because this metric includes the impact of changes in
operating assets and liabilities related to the timing of cash receipts
and disbursements that may not relate to the period in which the
operating activities occurred. The Company is unable to project these
timing differences with any reasonable degree of accuracy without
unreasonable efforts such as predicting the timing of its and customers’
payments, with accuracy to a specific day, months in advance.
Furthermore, the Company does not provide guidance with respect to its
average realized price, among other items, that impact reconciling items
between net cash provided by operating activities and adjusted operating
cash flow and adjusted free cash flow, as applicable. Natural gas prices
are volatile and out of the Company’s control, and the timing of
transactions and the income tax effects of future transactions and other
items are difficult to accurately predict. Therefore, the Company is
unable to provide projected net cash provided by operating activities,
or the related reconciliation of projected adjusted free cash flow to
projected net cash provided by operating activities, without
unreasonable effort. Projected 2019 adjusted free cash flow is based on
average NYMEX natural gas price (April to December) of $2.79 per MMbtu
as of March 31, 2019. For the period 2020 through 2023, projected
adjusted free cash flow is based on average NYMEX natural gas price of
$2.85 per MMbtu for Henry Hub and ($0.45) local basis.

EBITDA Attributable to Discontinued Operations

EBITDA attributable to discontinued operations is a non-GAAP
supplemental financial measure defined as income from discontinued
operations, net of tax plus interest expense, income tax expense,
depreciation and amortization of intangible assets attributable to
discontinued operations for the three months ended December 31, 2018.

The table below reconciles EBITDA attributable to discontinued
operations with income from discontinued operations, net of tax, the
most comparable financial measure calculated in accordance with GAAP, as
reported in the Statements of Condensed Consolidated Operations included
in the Company’s report on Form 10-K for the year ended December 31,
2018.

     
Three Months Ended
December 31, 2018
(Thousands)
Income (loss) from discontinued operations, net of tax $ (163,911)
Add back / (deduct):
Interest expense 19,452
Income tax benefit (31,575)
Depreciation 22,243
Amortization of intangible assets 4,847
Impairment of goodwill 267,878
EBITDA attributable to discontinued operations $ 118,934
 

Important Information

EQT Corporation (the “Company”) filed a definitive proxy statement and
associated GOLD universal proxy card with the Securities and Exchange
Commission (the “SEC”) on May 22, 2019 in connection with the
solicitation of proxies for the Company’s 2019 Annual Meeting of
Shareholders (the “2019 Annual Meeting”). Details concerning the
nominees for election to the Company’s Board of Directors at the 2019
Annual Meeting are included in the definitive proxy statement. BEFORE
MAKING ANY VOTING DECISION, INVESTORS AND SHAREHOLDERS OF THE COMPANY
ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH OR FURNISHED TO THE
SEC, INCLUDING THE COMPANY’S DEFINITIVE PROXY STATEMENT AND ANY
SUPPLEMENTS THERETO, IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION. Investors and shareholders can obtain a
copy of the relevant documents filed by the Company with the SEC,
including the definitive proxy statement, free of charge by visiting the
SEC’s website, www.sec.gov.
Investors and shareholders can also obtain, without charge, a copy of
the definitive proxy statement, when available, and other relevant filed
documents by directing a request to Blake McLean, Senior Vice
President, Investor Relations and Strategy of EQT Corporation, at [email protected],
by calling the Company’s proxy solicitor, Innisfree M&A Incorporated,
toll-free, at 877-687-1866, or from the Company’s website at https://ir.eqt.com/sec-filings.

 

________________________________

1  

Non-GAAP financial measure, see non-GAAP disclosures for
definition and pricing assumptions.

2 Excludes the impact of litigation reserves and proxy-related costs.
3 Second quarter through May 31, 2019 compared to first quarter 2019.
4 Based on total shareholder return from 11/13/18 through 5/31/19.
Appalachian Peers represents the median total shareholder return of
AR, CNX, COG, RRC and SWN from 11/13/18 through 5/31/19.

Contacts

Analyst inquiries:
Blake McLean – Senior Vice President,
Investor Relations and Strategy
412.395.3561
[email protected]

Media inquiries:
Michael Laffin – Vice President,
Communications
412.395.2069
[email protected]

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