EQT Releases 2020 Environmental, Social and Governance Report and Announces Net Zero Emissions Targets

Rhea-AI Summary

EQT Corporation released its 2020 Environmental, Social, and Governance (ESG) Report, highlighting its commitment to net-zero Scope 1 and 2 greenhouse gas emissions in production operations by 2025. The report outlines emissions reduction targets, including a 70% decrease in GHG emissions intensity from 2018 levels and a significant reduction in methane emissions. EQT also noted a 21% decrease in GHG emissions from the previous year and efforts to transition to electric frac fleets. The company emphasizes its role as a leader in natural gas production and sustainable practices.

Positive

• Achieved a 21% reduction in Scope 1 GHG emissions compared to 2019.
• Set ambitious targets for net-zero Scope 1 and 2 GHG emissions by 2025.
• Transitioned to electric frac fleets, eliminating over 23 million gallons of diesel fuel usage annually.
• Generated approximately $1.9 billion in value-added contributions to U.S. GDP.

Negative

• None.

PITTSBURGH, June 29, 2021 /PRNewswire/ -- EQT Corporation (NYSE: EQT) today announced the release of its Environmental, Social and Governance (ESG) Report, which outlines the Company's 2020 operational data and initiatives implemented to continuously improve the way it produces environmentally responsible, reliable, and low-cost energy. Additionally, the Company announced targets to achieve net zero Scope 1 and 2 greenhouse gas (GHG) emissions in its Production segment operations by or before 2025.

"Natural gas is the proven abundant, reliable, affordable, and environmentally-responsible energy source. EQT is uniquely positioned as the largest pure-play natural gas producer to build upon its already industry-leading performance and demonstrate the true benefits of natural gas. Our 2020 ESG Report outlines our strategy for reducing our emissions and how we view our role in accelerating a transition to a low carbon future," said Toby Z. Rice, President and Chief Executive Officer of EQT Corporation.  

Rice continued, "The actions that we have taken in the last year have set EQT on the path to be net zero by 2025, if not sooner. Bolstering this ambition is our ability to leverage technology and innovation that not only improves our operational efficiencies but lessens our environmental impact. More recently, our efforts to certify our gas as well as our announced participation in the OGMP 2.0 Initiative to monitor methane emissions demonstrate our commitment to transparency to our stakeholders. Through this, we aim to satiate both the domestic and international demand for clean energy."

Highlights of EQT's 2020 ESG Report Include:

Establishment of Emissions Reduction Targets

• EQT is committed to achieving the following emissions reduction targets with respect to its Production segment operations by or before 2025:
• Net zero Scope 1 and Scope 2 GHG emissions
• Scope 1 GHG emissions intensity of below 160 MT CO2e/Bcfe (representing an approximately 70% reduction compared to 2018 levels)
• Scope 1 methane emissions intensity of below 0.02% (representing an approximately 65% reduction compared to 2018 levels)

Environmental Stewardship

• EQT's methane intensity for 2020 is approximately 81% lower than the 2025 target set by the ONE Future Coalition for the Production segment
• Reduced Scope 1 Production segment GHG emissions by 21% compared to 2019, and achieved a 19% decrease in Scope 1 Production segment GHG emissions intensity compared to 2019*
• Fully transitioned to electric frac fleets in 2020, eliminating over 23 million gallons of diesel fuel from EQT's operations annually
• Entered into projects with Project Canary and Equitable Origin/MiQ to obtain ESG-related certification of natural gas produced from over 200 of EQT's well pads (approximately 4.0 Bcf/day)
• Began a process to replace its natural gas-powered pneumatic devices by 2023, which were responsible for approximately 53% of EQT's Production segment Scope 1 GHG emissions in 2020
• Built a proprietary emissions model to forecast future emissions and layer-in different cost of carbon scenarios when making capital allocation decisions

*not including 2020 annualized emissions from the acquired Chevron Appalachian assets       

Safety

• Formed a COVID-19 Response Task Force comprised of members of EQT's executive team and other key members of management and developed a tracing system to enforce accountability for any onsite incidents 
• On average, full-time EQT employees received approximately 30 hours of environmental, health and safety training, while field-based EQT employees received approximately 237 hours, during 2020

Community Investment and Economic Impact

• The EQT Foundation gave more than $3.6 million in 2020 to support local communities
• EQT invested $27.6 million in road and infrastructure improvements in 2020
• EQT paid approximately $355 million in royalty payments to landowners in 2020
• EQT's 2020 activities generated over $252 million in state and local tax revenues, supporting state and local governments
• Through direct, indirect, and induced activities, EQT produced approximately $1.9 billion in value-added contributions to the U.S. Gross Domestic Product

Human Capital and Diversity

• Named a 2021 National Top Workplace by Energage
• Adopted an "Equity for All" program, giving all permanent employees a stock grant and ownership in EQT
• Increased percentage of female hires by 15% and diverse hires by 5% compared to 2019
• Over $75 million spent with minority-owned suppliers in 2020

Governance

• 50% of EQT's Board of Directors is comprised of women as of year-end 2020
• Added ESG-related metrics to EQT's long-term incentive compensation program
• Enhanced governance structure for ESG-related matters, including oversight of ESG-related risks, embedded ESG oversight into Board committee charters, and established a management-level ESG Committee

As the largest producer of natural gas in the United States, EQT will have an influential impact on the continued trajectory of natural gas as a vital energy source. By promoting and investing in sustainable practices, EQT seeks to create sustainable value for its stakeholders and lessen the impact on the environment and communities, all while creating process efficiencies. EQT is one of the lowest-cost producers of natural gas in the United States, and firmly believes its ESG strategy is an integral part of success for the Company and for all stakeholders.

ESG Webcast Information 

EQT will host a conference call on Wednesday, June 30, 2021, beginning at 10:00 a.m. ET. Topics of the conference call will include data disclosed in EQT's 2020 ESG Report, including a discussion of EQT's ESG strategy and emissions reduction targets. A brief Q&A session for analysts will immediately follow the discussion. The call will be broadcast live via EQT's website at www.eqt.com and on the investor information page of EQT's website at ir.eqt.com, with a replay available following the live call.

Investor Contact:
Andrew Breese
Director, Investor Relations
412.395.2555
ABreese@eqt.com

About the EQT Corporation
EQT Corporation is a leading independent natural gas production company with operations focused in the cores of the Marcellus and Utica Shales in the Appalachian Basin. We are dedicated to responsibly developing our world-class asset base and being the operator of choice for our stakeholders. By leveraging a culture that prioritizes operational efficiency, technology and sustainability, we seek to continuously improve the way we produce environmentally responsible, reliable and low-cost energy. We have a longstanding commitment to the safety of our employees, contractors, and communities, and to the reduction of our overall environmental footprint. Our values are evident in the way we operate and in how we interact each day – trust, teamwork, heart, and evolution are at the center of all we do. To learn more, visit 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 and objectives of EQT Corporation and its subsidiaries (collectively, the Company), including the projected ESG initiatives, results and performance, including whether the Company will be able to achieve its emissions reduction goals in the anticipated timeframe or at all. 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. These risks and uncertainties  include, but are not limited to, volatility of commodity prices; the costs and results of drilling and operations; access to and cost of capital; uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future; the assumptions underlying production forecasts; the quality of technical data; the Company's ability to appropriately allocate capital and resources among its strategic opportunities; inherent hazards and risks normally incidental to drilling for, producing, transporting and storing natural gas, NGLs and oil; cyber security risks; availability and cost of drilling rigs, completion services, equipment, supplies, personnel, oilfield services and water required to execute the Company's exploration and development plans; the ability to obtain environmental and other permits and the timing thereof; government regulation or action; environmental and weather risks, including the possible impacts of climate change; uncertainties related to the severity; and disruptions to the Company's business due to acquisitions and other significant transactions. These and other risks are described under Item 1A, "Risk Factors," and elsewhere in the Company's Annual Report on Form 10-K for the year ended December 31, 2020, as updated by Part II, Item 1A, "Risk Factors" in the Company's subsequently filed Quarterly Reports on Form 10-Q and other documents the Company files from time to time with the Securities and Exchange Commission. In addition, the Company may be subject to currently unforeseen risks that may have a materially adverse impact on it. 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.

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SOURCE EQT Corporation

FAQ

What are EQT's emissions reduction targets detailed in the 2020 ESG Report?

EQT aims for net-zero Scope 1 and 2 greenhouse gas emissions by 2025, along with reducing Scope 1 GHG emissions intensity by about 70% from 2018 levels.

How did EQT perform in terms of GHG emissions in 2020?

EQT reduced its Scope 1 Production segment GHG emissions by 21% compared to 2019, achieving a 19% decrease in emissions intensity.

When will EQT discuss its ESG Report and targets?

EQT will host a conference call on June 30, 2021, at 10:00 a.m. ET to discuss the ESG Report and its emissions reduction strategy.

What initiatives has EQT taken to improve environmental impacts?

EQT has fully transitioned to electric frac fleets and entered projects for ESG-related certification of natural gas produced from over 200 well pads.