EQT Files Investor Presentation and Reiterates Commitment to Generate Sustainable Free Cash Flow

Operational Update Demonstrates Continued Successful Execution of New Management Team’s Strategic Plan

Implemented Cost Saving Actions that Reduced Annual Cash Costs by Approximately $150 Million

PITTSBURGH–(BUSINESS WIRE)–EQT Corporation (NYSE: EQT) today announced that it has released an investor presentation outlining its ongoing strategic plan to drive cost reductions across the business and generate sustainable free cash flow growth.

Highlights of the presentation, which is available at ir.eqt.com, include:

• EQT has substantially reconstituted its Board of Directors and management team
  • Refreshed Board: EQT appointed four new independent directors in November of 2018. The Board established an Operating and Capital Efficiency Committee in December; Committee members have strong reputations as efficient operators and substantial financial expertise.
  • New Team: EQT’s management team includes a new Chief Executive Officer, Chief Financial Officer, General Counsel and Head of IR. Chief Operating Officer Gary Gould will assume his role in April.
• EQT is committed to realizing efficiencies and driving down costs
  • Operational Achievements: EQT is achieving the operational targets set out for the first quarter of 2019. The Company has made significant progress across drilling and completion operations. Highlights include approximately 90% of wells drilled over 12,000 feet on-time and on-budget and a 35% improvement in stages per crew per month. Stabilized operations and sustained focus on operational efficiencies are expected to continue driving improvements throughout 2019.
  • Cost reductions: EQT has already implemented cost saving actions that reduced annual cash costs by approximately $150 million. This includes approximately $50 million of annual cost savings under EQT’s “Target 10% Initiative,” which aims to reduce cash costs by 10%. Continued successful execution of this initiative is expected to yield cost savings of $800 million over the next five years, $250 million of which has already been identified.
• EQT’s team is demonstrating its ability to achieve and exceed financial objectives
  • Fourth Quarter 2018: EQT delivered approximately $134 million of adjusted free cash flow (a non-GAAP measure) in the fourth quarter of 2018, above prior guidance. These strong results underscore EQT’s focus on enhancing operational efficiency to drive accelerated cash flow growth and shareholder value creation.
  • Building on Strong Performance: EQT’s strong operational performance underpins the Company’s confidence in its financial forecast. EQT anticipates generating adjusted free cash flow (a non-GAAP measure) of approximately $300 to $400 million in 2019 and $2.9 billion over the next five years, up from the $2.7 billion announced in January – with the Company’s ongoing Target 10% Initiative providing incremental upside.
  • First Quarter 2019 In-Line with Expectations: EQT expects first quarter 2019 sales volumes to come in at the high-end of the guidance range of 360 to 380 Bcfe while anticipating first quarter 2019 capital expenditures in-line with expectations. This supports the ongoing operational and capital efficiency efforts implemented by senior management.

“The new team at EQT is energized by our significant progress and the opportunities ahead of us, and we are working with urgency to unlock the enormous potential of the new EQT,” said Rob McNally, EQT’s president and chief executive officer. “We are turning EQT into a free cash flow machine and remain on track to deliver another quarter of strong financial and operational performance. The operating efficiencies we have implemented across EQT are allowing us to do more with less, including increasing lateral lengths across our program and increasing production. We are confident we will achieve our targets for 2019 and beyond. With world-class assets, a sound plan and a strong team committed to operational excellence, we look forward to building on our progress and delivering significant value to shareholders.”

NON-GAAP DISCLOSURES

Adjusted Free Cash Flow

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

EQT has not provided projected net cash provided by operating activities or reconciliations of projected adjusted operating cash flow and adjusted free cash flow to projected net cash provided by operating activities, the most comparable financial measure calculated in accordance with GAAP. EQT 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. EQT 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, EQT 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 EQT’s control, and the timing of transactions and the income tax effects of future transactions and other items are difficult to accurately predict. Therefore, EQT is unable to provide projected net cash provided by operating activities, or the related reconciliations of projected adjusted operating cash flow and adjusted free cash flow to projected net cash provided by operating activities, without unreasonable effort.

The table below reconciles adjusted operating cash flow and 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 Consolidated Cash Flows to included in EQT’s report on Form 10-K for the year ended December 31, 2018.

EBITDA Attributable to Discontinued Operations

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

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

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 csr.eqt.com.