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Item 1. Business

2021-02-17 compared with 2020-02-27 · 329 added, 229 removed, 185 unchanged (75% of the section changed)

EQT is a natural gas production company with operations focused in the Marcellus and Utica shales of the Appalachian Basin.

Based on average daily sales volumes, EQT is the largest producer of natural gas in the United States.

As of December 31, 2019 , EQT had 17.5 Tcfe of proved natural gas, NGLs and crude oil reserves across approximately 1.3 million gross acres, including approximately 1.1 million gross acres in the Marcellus play.

The Company is dedicated to responsibly developing its world-class asset base in the core of the Appalachian Basin.

The Company believes its asset scale and contiguity of its acreage position differentiates it from its Appalachian Basin peers and that its evolution into a modern, digitally-enabled exploration and production business will continue to enhance its strategic advantage.

The Company's unique asset base supports a multi-year inventory of combo-development projects in its core acreage position, which consist of developing multiple wells and pads simultaneously.

Following a change in leadership in July 2019, the Company implemented an operational strategy designed to leverage this differentiation to become the lowest cost operator in the Appalachian Basin, primarily by focusing on combo-development projects to maximize operational efficiencies.

The Company believes that combo-development projects are key to delivering sustainably low well costs and higher returns on invested capital.

Beyond cost benefits, combo-development projects maximize reservoir recoveries, mitigate future curtailments and maximize the capital efficiency of the Company's midstream service providers.

The Company expects to drill approximately 13 to 25 wells per combo-development project, with average lateral lengths from 12,000 feet to 14,000 feet.

The Company's target Pennsylvania Marcellus well cost is $730 per foot, which the Company expects to achieve in the second half of 2020.

In an effort to further the Company's operational strategy and improve the Company's leverage ratio, in the fourth quarter of 2019, the Company announced a plan to reduce its absolute debt using free cash flow and targeted proceeds from the monetization of select, non-strategic exploration and production assets, core mineral assets and the Company's remaining retained equity interest in Equitrans Midstream (the Deleveraging Plan).

We are a natural gas production company with operations focused in the Marcellus and Utica Shales of the Appalachian Basin.

Based on average daily sales volumes, we are the largest producer of natural gas in the United States.

As of December 31, 2020, we had 19.8 Tcfe of proved natural gas, NGLs and crude oil reserves across approximately 1.8 million gross acres, including approximately 1.5 million gross acres in the Marcellus play.

We are committed to responsibly developing our world-class asset base and being the operator of choice for all stakeholders.

By promoting a culture that prioritizes operational efficiency, technology and sustainability, we seek to continuously improve the way we produce environmentally responsible, reliable low-cost energy.

We believe that the scale and contiguity of our acreage position differentiates us from our Appalachian Basin peers and that our evolution into a modern, digitally-enabled exploration and production business enhances our strategic advantage.

Our operational strategy focuses on the successful execution of combo-development projects.

Combo-development refers to the development of several multi-well pads in tandem.

Combo-development generates value across all levels of the reserves development process by maximizing operational and capital efficiencies.

In the drilling stage, rigs spend more time drilling and less time transitioning to new sites.

Advanced planning, a prerequisite to pursuing combo-development, facilitates the delivery of bulk hydraulic fracturing sand and piped fresh water (as opposed to truck-transported water), the ability to continuously meet completions supply needs and the use of environmentally friendly technologies.

Operational efficiencies realized from combo-development are passed on to our service providers, which reduces overall contract rates.

The benefits of combo-development extend beyond financial gains to include environmental and social interests.

We have developed an integrated ESG program that interplays with our combo-development-driven operational strategy.

Core tenets of our ESG program include investing in technology and human capital;

improving data collection, analysis and reporting;

and engaging with stakeholders to understand, and align our actions with, their needs and expectations.

Combo-development, when compared to similar production from non-combo-development operations, translates into fewer trucks on the road, decreased fuel usage, shorter periods of noise pollution, fewer areas impacted by midstream pipeline construction and shortened duration of site operations, all of which fosters a greater focus on safety and environmental protection.

Combo-development projects require significant advanced planning, including the establishment of a large, contiguous leasehold position;

the advanced acquisition of regulatory permits and sourcing of fracturing sand and water;

the timely verification of midstream connectivity;

and the ability to quickly respond to internal and external stimuli.

Without a modern, digitally-connected operating model or an acreage position that enables operations of this scale, combo-development would not be possible.

We believe that our proprietary digital work environment in conjunction with the size and contiguity of our asset base uniquely position us to execute on a multi-year inventory of combo-development projects in our core acreage position.

Our operational strategy employs this differentiation to advance our mission of being the operator of choice for all stakeholders.

We believe that combo-development projects are key to delivering sustainably low well costs and higher returns on invested capital and that our long-term transformative plan has been designed to create value by leveraging our strategic advantage, both operational and environmental, over our peers.

2020 Highlights

Substantially reconstituted the Company's Board of Directors and senior leadership following the Company's July 2019 annual meeting of shareholders

Successfully implemented the 100-Day Transformation Plan, a management-led initiative designed to effect operational, organizational, cultural and other changes to the Company's business that will facilitate long-term planning and prioritize combo-development projects, which are expected to (i) lower well costs, selling, general and administrative costs, land and lease acquisitions capital expenditures and other production infrastructure capital expenditures;

(ii) increase drilling efficiencies (measured in horizontal feet drilled per hour);

and (iii) increase free cash flow generation

Reduced 2019 capital expenditures by $966 million , or 35.3% , compared to 2018

Achieved 2019 sales volumes of 1,508 Bcfe and average daily sales volumes of 4,131 MMcfe per day, a year-over-year increase of 1.4% , or 4.2% excluding sales volumes related to the 2018 Divestitures (defined herein)

In 2020 , the Company expects to spend $1.15 billion to $1.25 billion in total capital expenditures.

Planned capital expenditures will be funded by cash generated from operations and allocated as follows:

approximately $0.9 billion to reserve development, approximately $150 million to land and lease acquisitions, approximately $85 million to other production infrastructure and approximately $55 million to capitalized overhead.

Reserve development capital expenditures will be spent across the Company's three primary operating areas, with approximately 70% spent in Pennsylvania Marcellus, approximately 22% spent in Ohio Utica and approximately 8% spent in West Virginia Marcellus.

The Company's 2020 capital expenditure program is expected to deliver sales volumes of 1,450 Bcfe to 1,500 Bcfe, which is in line with 2019 sales volumes, using approximately $500 million less capital funding than the 2019 capital expenditure program.

The Company's revenues, earnings, liquidity and ability to grow are substantially dependent on the prices it receives for, and the Company's ability to develop its reserves of, natural gas, NGLs and oil.

Due to the volatility of commodity prices, the Company is unable to predict future potential movements in the market prices for natural gas, NGLs and oil at the Company's ultimate sales

points and, thus, cannot predict the ultimate impact of prices on its operations.

Changes in natural gas, NGLs and oil prices could affect, among other things, the Company's development plans, which would increase or decrease the pace of the development and the level of the Company's reserves, as well as the Company's revenues, earnings or liquidity.

Lower prices and changes in development plans could also result in non-cash impairments in the book value of the Company's oil and gas properties or other long-lived intangible assets or downward adjustments to the Company's estimated proved reserves.

Any such impairments or downward adjustments to the Company's estimated reserves could potentially be material to the Company.

See "Impairment of Oil and Gas Properties" and "Critical Accounting Policies and Estimates" included in Item 7., "Management's Discussion and Analysis of Financial Condition and Results of Operations" for a discussion of the Company's accounting policies and significant assumptions related to accounting for oil and gas producing activities and the Company's accounting policies and processes related to impairment reviews for proved and unproved property and goodwill.

• Achieved 2020 sales volumes of 1,498 Bcfe or average daily sales volumes of 4.1 Bcfe per day;

received an average realized price of $2.37 per Mcfe.

• Reduced 2020 capital expenditures by $694 million, or 39.1%, compared to 2019, while delivering flat sales volumes.

• Increased total proved reserves by 2.3 Tcfe or 13% in 2020 compared to 2019.

• Decreased total debt by $368 million and addressed near-term maturities, improving our financial position.

• Executed a new gas gathering agreement and exchanged half of our equity stake in Equitrans Midstream, substantially reducing our future gathering fee structure.

• Acquired strategic assets from Chevron U.S.A.

located in the Appalachian Basin for an aggregate purchase price of $735 million (Chevron Acquisition).

• Divested certain non-strategic assets for an aggregate purchase price of $125 million.

• Executed long-term contract to use electric hydraulic fracturing services in our completions operations, promoting our ESG initiatives.

• Received approximately $440 million in federal income tax refunds, including interest.

In 2021, we expect to spend approximately $1.1 to $1.2 billion in total capital expenditures, excluding amounts attributable to noncontrolling interests.

We expect to fund planned capital expenditures with cash generated from operations, allocated as follows:

approximately $800 to $850 million to fund reserve development, approximately $125 to $140 million to fund land and lease acquisitions, approximately $130 to $155 million to fund other production infrastructure and approximately $45 to $55 million applied towards capitalized overhead.

Reserve development capital expenditures will be spent across our three primary operating areas, with approximately 65% spent in Pennsylvania Marcellus, approximately 30% spent in West Virginia Marcellus, and approximately 5% spent in Ohio Utica.

Our 2021 capital expenditure program is expected to deliver sales volumes of 1,620 Bcfe to 1,700 Bcfe, an increase of 120-200 Bcfe when compared to 2020 sales volumes primarily driven by increased production from the Chevron Acquisition.

Our revenues, earnings, liquidity and ability to grow are substantially dependent on the prices we receive for, and our ability to develop our reserves of, natural gas, NGLs and oil.

Due to the volatility of commodity prices, we are unable to predict future potential movements in the market prices for natural gas, NGLs and oil at our ultimate sales points and, thus, cannot predict the ultimate impact of prices on our operations.

Changes in natural gas, NGLs and oil prices could affect, among other things, our development plans, which would increase or decrease the pace of the development and the level of our reserves, as well as our revenues, earnings or liquidity.

Lower prices and changes in our development plans could also result in non-cash impairments in the book value of our oil and gas properties or downward adjustments to our estimated proved reserves.

Any such impairments or downward adjustments to our estimated reserves could potentially be material to us.

See "Impairment of Oil and Gas Properties" and "Critical Accounting Policies and Estimates" included in Item 7., "Management's Discussion and Analysis of Financial Condition and Results of Operations" for a discussion of our accounting policies and significant assumptions related to accounting for gas, NGL and oil producing activities and our accounting policies and processes related to impairment reviews for proved and unproved property.

Segment and Geographical Information

The Company's operations consist of one reportable segment.

The Company has a single, company-wide management team that administers all properties as a whole rather than by discrete operating segments.

The Company measures financial performance as a single enterprise and not on an area-by-area basis.

Substantially all of the Company's assets and operations are located in the Appalachian Basin.

The following tables summarize the Company's proved natural gas, NGLs and crude oil reserves using average first-day-of-the-month closing prices for the prior twelve months and disaggregated by product and play.

Substantially all of the Company's reserves reside in continuous accumulations.

Our operations consist of one reportable segment.

We have a single, company-wide management team that administers all properties as a whole rather than by discrete operating segments.

We measure financial performance as a single enterprise and not on an area-by-area basis.

Substantially all of our assets and operations are located in the Appalachian Basin.

The following tables summarize our proved developed and undeveloped natural gas, NGLs and crude oil reserves using average first-day-of-the-month closing prices for the prior twelve months and disaggregated by product and play.

Substantially all of our reserves reside in continuous accumulations.

December 31, 2020

NGLs and Crude Oil

Natural Gas NGLs and Crude Oil Total

(Bcf) (MMbbl) (Bcfe)

Proved developed reserves 12,750 148 13,641

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December 31, 2020

Upper Devonian

Marcellus Upper Devonian Ohio Utica Other Total

Proved developed reserves 11,943 839 757 102 13,641

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Total proved reserves 18,004 839 857 102 19,802

The following table summarizes the Company's proved developed and undeveloped reserves using average first-day-of-the-month closing prices for the prior twelve months and disaggregated by state.

The following table summarizes our proved developed and undeveloped reserves using average first-day-of-the-month closing prices for the prior twelve months and disaggregated by state.

December 31, 2020

West Virginia

Pennsylvania West Virginia Ohio Total

Proved developed producing reserves 9,590 2,749 757 13,096

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Net proved undeveloped drilling locations 169 65 5 239

The Company's total proved reserves decreased by 4,348 Bcfe or 19.7% in 2019 from 2018 due to a downward revision of previously proved reserves of 4,907 Bcfe as a result of changes in the Company's development strategy and the production of 1,508 Bcfe, partly offset by extensions, discoveries and other additions of 2,068 Bcfe.

Following a change in leadership in July 2019, the Company implemented a combo-development strategy that refocused operations in the Company's core assets and is driving the execution of new development sequencing processes that emphasize efficiency and productivity.

While these efforts are expected to result in an approximate 25% decrease in well costs, they negatively impact proved undeveloped reserves as a result of (i) derecognizing previously-recorded proved undeveloped reserves that are now not included in the Company's substantially revised five-year capital allocation program for purposes of the Company's reserves calculations and (ii) executing a development sequencing strategy that will result in increased probable-to-proved developed conversion.

The following table provides a rollforward of proved undeveloped reserves.

Our 2020 total proved reserves increased by 2.3 Tcfe, or 13%, compared to 2019 due to extensions, discoveries and other additions of 3,446 Bcfe and the acquisition of 1,381 Bcfe from the Chevron Acquisition, partly offset by production of 1,498 Bcfe, revisions to previous estimates of 739 Bcfe and divestitures of 257 Bcfe.

We have an additional 13 Tcfe of reserves that meet the definition of proved reserves, except they are planned to be developed beyond five years and are therefore not included in the current estimate of proved reserves.

During 2020, we conducted a study of our reserves areas to determine the reliability of the technology used in calculating our reserves.

This study demonstrated that technologies used in the course of our reserves determination are reliable, provide reasonable certainty of future performance and economics of our wells, and conform to booking practices when using reliable technologies.

The technologies used in the estimation of our proved reserves include, but are not limited to, empirical evidence through drilling results and well performance, production data, decline curve analysis, well logs, geologic maps, core data, seismic data, demonstrated relationship between geologic parameters and performance, and the implementation and application of statistical analysis.

Proved undeveloped reserves increased by 1,136 Bcfe, or 23%, in 2020 from 2019.

The following table provides a rollforward of our proved undeveloped reserves.

Proved Undeveloped Reserves

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Conversions into proved developed reserves (2,102)

Revisions (a)

Acquisition of in-place reserves 171

Revision of previous estimates (a) (355)

Extensions, discoveries and other additions (b) 3,422

Balance at December 31, 2020 6,161

Related to proved undeveloped locations that are no longer expected to be developed within five years of initial booking as proved reserves as a result of implementation of the Company's combo-development strategy.

Composed of (i) 1,796 Bcfe from proved undeveloped additions associated with acreage that was previously unproved but became proved due to 2019 reserve development that expanded the number of the Company's technically proven locations, implementation of, and alignment with, the Company's combo-development strategy and revisions to the Company's five-year drilling plan;

and (ii) 116 Bcfe from extension of proved undeveloped reserves lateral lengths.

As of December 31, 2019, the Company had one well with proved undeveloped reserves of 9.1 Bcfe that had remained undeveloped for more than five years.

Completion activities for this well are planned for 2020.

See Note 20 to the Consolidated Financial Statements for further discussion of the preparation of, and year-over-year changes in, the Company's reserves estimate.

Based on the Company's mix of proved undeveloped and probable reserves, the Company estimates an undeveloped drilling inventory of approximately 1,565 net locations in Pennsylvania and West Virginia Marcellus.

At the Company's current drilling pace, these net locations provide more than 15 years of drilling inventory based on net undeveloped Marcellus acres, average expected lateral length of 12,000 feet and well spacing of 1,000 feet.

The Company believes that its change in development strategy, coupled with its undeveloped inventory located in a premier core asset base, will lead to sustainable free cash flow generation and higher returns on invested capital.

The following table summarizes the Company's capital expenditures for reserve development.

(a) Composed of (i) negative revisions of 510 Bcfe from proved undeveloped locations that are no longer expected to be developed within five years of initial booking as proved reserves as a result of changes to our development plan which inc luded 245 Bcfe from lower pricing that impacted well economics, shifting capital from the Ohio Utica, to Pennsylvania and West Virginia Marcellus and 265 Bcfe as a result of continued implementation of our combo-development strategy;

and (ii) positive revisions of 155 Bcfe due primarily to changes in working interests and net revenue interests as well as revisions to type curves.

(b) Composed of (i) 2,096 Bcfe of proved undeveloped additions associated with acreage that was previously unproved but became proved using reliable technologies which expanded the number of our technically proven locations;

(ii) 1,295 Bcfe due to additions

associated with directly offsetting development;

and (ii) 31 Bcfe from the extension of lateral lengths of proved undeveloped reserves.

As of December 31, 2020, we had zero wells with proved undeveloped reserves that had remained undeveloped for more than five years from their time of booking.

See Note 18 to the Consolidated Financial Statements for further discussion of the preparation of, and year-over-year changes in, our reserves estimate and calculation of our standardized measure of estimated future net cash flows from natural gas and crude oil reserves.

As of December 31, 2020, the standardized measure of our estimated future net cash flows from natural gas and crude oil reserves, which is calculated using average first-day-of-the-month closing prices for the prior twelve months (which is referred to as SEC pricing), was $3,366 million as described in Note 18 to the Consolidated Financial Statements.

If the prices used in the calculation of the standardized measure instead reflected five-year strip pricing as of December 31, 2020 and held constant thereafter using (i) the NYMEX five-year strip adjusted for regional differentials using Texas Eastern Transmission Corp.

M-2, for gas and (ii) the NYMEX WTI five-year strip for oil, adjusted for regional differentials consistent with those used in the standardized measure, and with all other assumptions held constant, our total proved reserves would be 20,296 Bcfe, the standardized measure of our discounted net future cash flows after taxes of our proved reserves would be $8,952 million, and the discounted future net cash flows before taxes would be $10,152 million.

The average realized product prices weighted by production over the remaining lives of the properties would be $27.18 per barrel of oil, $13.55 per barrel of NGL and $2.075 per Mcf of gas (as compared to $20.94 per barrel of oil, $11.97 per barrel of NGL and $1.38 per Mcf of gas using SEC pricing, as described in Note 18).

The NYMEX strip price proved reserves and related metrics are intended to illustrate reserve sensitivities to market expectations of commodity prices and should not be confused with “SEC pricing” proved reserves and do not comply with SEC pricing assumptions.

We believe that the presentation of reserve volumes and related metrics using NYMEX forward strip prices provides investors with additional useful information about our reserves because the forward prices are based on the market’s forward-looking expectations of oil and gas prices as of a certain date.

The price at which we can sell our production in the future is the major determinant of the likely economic producibility of our reserves.

We hedge substantial amounts of future production based upon futures prices.

In addition, we use such forward-looking market-based data in developing our drilling plans, assessing our capital expenditure needs and projecting future cash flows.

While NYMEX strip prices represent a consensus estimate of future pricing, such prices are only an estimate and not necessarily an accurate projection of future oil and gas prices.

Actual future prices may vary significantly from the NYMEX prices;

therefore, actual revenue and value generated may be more or less than the amounts disclosed.

Investors should be careful to consider forward prices in addition to, and not as a substitute for, SEC pricing, when considering our reserves.

Based on our mix of proved undeveloped and probable reserves, we estimate that we have an undeveloped drilling inventory of approximately 1,660 net locations in Pennsylvania and West Virginia Marcellus.

At our current drilling pace, these net locations provide more than 15 years of drilling inventory based on net undeveloped Marcellus acres, average expected lateral length of 12,000 feet and well spacing of 1,000 feet.

We believe that our combo-development strategy, coupled with our undeveloped inventory located in a premier core asset base, will lead to sustainable free cash flow generation and higher returns on invested capital.

The following table summarizes our capital expenditures for reserve development.

Years Ended December 31,

Marcellus (a)

Includes Upper Devonian formations.

2020 2019 2018

Marcellus (i ncludes Upper Devonian )

$ 737 $ 1,184 $ 1,889

Utica 102 193 360

Total $ 839 $ 1,377 $ 2,249

Lease operating costs, excluding production taxes, for the years ended December 31, 2020, 2019 and 2018 was $0.07, $0.06 and $0.07, respectively.

The majority of the Company's acreage is held by lease or occupied under perpetual easements or other rights acquired, for the most part, without warranty of underlying land titles.

Approximately 29% of the Company's total gross acres is developed.

The following table summarizes acreage disaggregated by state.

The majority of our acreage is held by lease or occupied under perpetual easements or other rights acquired, for the most part, without warranty of underlying land titles.

Approximately 24% of our total gross acres is developed.

We retain deep drilling rights on the majority of our acreage.

The following table summarizes our acreage disaggregated by state.

December 31, 2020

West Virginia (a)

Kentucky and Virginia (a)

Pennsylvania West Virginia Ohio Total

Total gross productive acreage 319,504 84,374 46,688 450,566

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Average net revenue interest of proved developed reserves 72.9 % 83.0 % 48.8 % 72.7 %

In 2018, the Company sold approximately 2.5 million non-core, net acres in the Huron play;

however, the Company retained deep drilling rights across 1.5 million, 0.2 million and 0.8 million of divested acreage in Kentucky, Virginia and West Virginia, respectively.

The retained deep drilling rights have been excluded from acreage totals.

The Company has an active lease renewal program in areas targeted for development.

In the event that production is not established or the Company takes no action to extend or renew the terms of its leases, 77,444 , 50,145 and 52,332 of the Company's net undeveloped acreage as of December 31, 2019 will expire in the years ended December 31, 2020 , 2021 and 2022 , respectively.

The following tables summarize the Company's productive and in-process natural gas wells.

The Company had no productive or in-process oil wells as of December 31, 2019 .

We have an active lease renewal program in areas targeted for development.

In the event that production is not established or we take no action to extend or renew the terms of our leases, 71,322, 69,813 and 40,958 of our net undeveloped acreage as of December 31, 2020 will expire in the years ending December 31, 2021, 2022 and 2023, respectively.

The following tables summarize our productive and in-process natural gas wells.

We had no productive or in-process oil wells as of December 31, 2020.

December 31, 2020

Productive wells:

Total gross 3,203

Total net 2,852

In-process wells:

Total gross 392

Total net 373

December 31, 2020

West Virginia

Pennsylvania West Virginia Ohio Total

Total gross productive wells (a) 2,252 685 266 3,203

Total net productive wells 2,059 659 134 2,852

Of the Company's total gross productive wells, there are 688 gross conventional wells in Pennsylvania and 623 gross conventional wells in West Virginia.

There are no gross conventional wells in Ohio.

The following table summarizes the net exploratory and development wells drilled.

There were no net productive exploratory wells drilled during the years ended December 31, 2019 , 2018 and 2017 .

(a) Of our total gross productive wells, there are 613 gross conventional wells in Pennsylvania and 4 gross conventional wells in West Virginia.

We have no gross conventional wells in Ohio.

The following table summarizes our net development wells drilled.

There were no net productive or net dry exploratory wells drilled during the years ended December 31, 2020, 2019 and 2018.

Years Ended December 31,

Net exploratory wells:

2020 2019 2018

Net development wells:

Dry development wells are related primarily to non-core wells that the Company no longer plans to drill to depth or complete, acquired wells with mechanical integrity issues and wells that have been plugged and abandoned due to future mining operations or mechanical integrity issues.

During 2019, the Company commenced drilling operations (spud) on 122 gross wells ( 114 net), including 89 Pennsylvania Marcellus gross wells ( 87 net), 6 West Virginia Marcellus gross wells ( 6 net) and 27 Ohio Utica gross wells ( 21 net).

The Company's Pennsylvania and West Virginia Marcellus wells have average depths of 5,000 feet to 8,500 feet.

The Company's Ohio Utica wells have average depths of 8,500 feet to 10,500 feet.

The Company retains deep drilling rights on the majority of its acreage.

Sales volumes in 2019 from the Marcellus play, including the Upper Devonian play, were 1,270 Bcfe.

The following table summarizes produced and sold volumes by state and reflects the effect of the Company's 2018 sale of approximately 2.5 million non-core, net acres in the Huron play and Permian Basin assets located in Texas (collectively, the 2018 Divestitures) and 2017 acquisition of Rice Energy Inc.

(the Rice Merger).

West Virginia

Productive 120 145 210

Dry (a) — — 5

(a) Dry development wells are related primarily to non-core wells that we no longer plan to drill to depth or complete, acquired wells with mechanical integrity issues and wells that have been plugged and abandoned due to future mining operations or mechanical integrity issues.

During 2020, we commenced drilling operations (spud) on 88 gross wells (84 net), including 66 Pennsylvania Marcellus gross wells (65 net), 17 West Virginia Marcellus gross wells (16 net) and 5 Ohio Utica gross wells (3 net).

Our sales volumes in 2020 from the Marcellus play, including the Upper Devonian play, were 1,315 Bcfe.

The following table summarizes our produced and sold volumes by state.

Pennsylvania West Virginia Ohio Other (a) Total

Produced and sold natural gas, NGLs and oil for the years ended December 31,

Primarily Kentucky and Virginia.

2020 1,051,869 267,708 178,215 — 1,497,792

2019 1,001,973 274,378 231,545 — 1,507,896

2018 922,033 323,976 209,428 32,252 1,487,689

(a) Primarily Kentucky and Virginia.

Markets and Customers

Natural Gas Sales.

Natural gas is a commodity and, therefore, the Company typically receives market-based pricing.

The market price for natural gas in the Appalachian Basin is typically lower relative to NYMEX Henry Hub, Louisiana (the location for pricing NYMEX natural gas futures) as a result of the significant increases in the supply of natural gas in the Northeast United States in recent years.

To protect cash flow from undue exposure to the risk of changing commodity prices, the Company hedges a portion of its forecasted natural gas production at, for the most part, NYMEX natural gas prices.

For information on the Company's hedging strategy and its derivative instruments, refer to "Commodity Risk Management" in Item 7., "Management's Discussion and Analysis of Financial Condition and Results of Operations," Item 7A., "Quantitative and Qualitative Disclosures About Market Risk" and Note 4 to the Consolidated Financial Statements.

The Company primarily sells NGLs recovered from its natural gas production.

The Company primarily contracts with MarkWest Energy Partners, L.P.

(MarkWest) to process its natural gas and extract from the produced natural gas heavier hydrocarbon streams (consisting predominately of ethane, propane, isobutane, normal butane and natural gasoline).

The Company also contracts with MarkWest to market a portion of the Company's NGLs.

In addition, the Company has contractual arrangements with Williams Ohio Valley Midstream LLC to process its natural gas and market a portion of its NGLs.

Natural gas is a commodity and, therefore, we typically receive market-based pricing.

The market price for natural gas in the Appalachian Basin is typically lower relative to NYMEX Henry Hub, Louisiana (the location for pricing NYMEX natural gas futures) as a result of increased supply of natural gas in the Northeast United States.

To protect cash flow from undue exposure to the risk of changing commodity prices, we hedge a portion of our forecasted natural gas production at, for the most part, NYMEX natural gas prices.

For information on our hedging strategy and our derivative instruments, refer to "Commodity Risk Management" in Item 7., "Management's Discussion and Analysis of Financial Condition and Results of Operations," Item 7A., "Quantitative and Qualitative Disclosures About Market Risk" and Note 3 to the Consolidated Financial Statements.

We primarily sell NGLs recovered from our natural gas production.

We primarily contract with MarkWest Energy Partners, L.P.

(MarkWest) to process our natural gas and extract from the produced natural gas heavier hydrocarbon streams (consisting predominately of ethane, propane, isobutane, normal butane and natural gasoline).

We also contract with MarkWest to market a portion of our NGLs.

In addition, we have contractual arrangements with Williams Ohio Valley Midstream LLC to process our natural gas and market a portion of our NGLs.

Average Sales Price.

The following table presents the Company's average sales price per unit of natural gas, NGLs and oil, with and without the effects of cash settled derivatives as applicable.

The following table presents our average sales price per unit of natural gas, NGLs and oil, with and without the effects of cash settled derivatives, as applicable.

Years Ended December 31,

2020 2019 2018

Natural gas ($/Mcf):

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Natural Gas Marketing.

EQT Energy, LLC, the Company's indirect, wholly-owned marketing subsidiary, provides marketing services and contractual pipeline capacity management services primarily for the benefit of the Company.

EQT Energy, LLC also engages in risk management and hedging activities on behalf of the Company to limit the Company's exposure to shifts in market prices.

The Company sells natural gas and NGLs to marketers, utilities and industrial customers located in the Appalachian Basin and in markets that are accessible through the Company's transportation portfolio, particularly where there is expected future demand growth, such as in the Gulf Coast, Midwest and Northeast United States and Canada.

As of December 31, 2019, approximately 60% of Company sales volumes reach markets outside of Appalachia.

Following the Mountain Valley Pipeline's in-service date, which is currently expected to be January 1, 2021 , approximately 80% of Company sales volumes are expected to reach markets outside of Appalachia.

The Company has access to approximately 2.9 Bcf per day of firm contractual pipeline takeaway capacity and 0.6 Bcf per day of firm processing capacity.

In addition, the Company is committed to an initial 1.29 Bcf per day of firm capacity on the Mountain Valley Pipeline upon its in-service date.

These firm transportation and processing agreements may require minimum volume delivery commitments, which the Company expects to principally fulfill with existing proved developed and proved undeveloped reserves.

The following table summarizes the Company's delivery commitments for the next five years as of December 31, 2019 .

Years ended December 31,

No single customer accounted for more than 10% of the Company's total operating revenues for 2019 , 2018 and 2017 .

EQT Energy, LLC, our indirect, wholly-owned marketing subsidiary, provides marketing services and contractual pipeline capacity management services primarily for our benefit.

EQT Energy, LLC also engages in risk management and hedging activities to limit our exposure to shifts in market prices.

We sell natural gas and NGLs to marketers, utilities and industrial customers located in the Appalachian Basin and in markets that are accessible through our transportation portfolio, particularly where there is expected future demand growth, such as in the Gulf Coast, Midwest and Northeast United States and Canada.

As of December 31, 2020, approximately 60% of our sales volumes reach markets outside of Appalachia.

We do not depend on any single customer and believe that the loss of any one customer would not have an adverse effect on our ability to sell our natural gas, NGLs and oil.

We have access to approximately 2.5 Bcf per day of firm pipeline takeaway capacity and 0.9 Bcf per day of firm processing capacity.

In addition, we are committed to an initial 1.29 Bcf per day of firm capacity on the Mountain Valley Pipeline upon its in-service date.

These firm transportation and processing agreements may require minimum volume delivery commitments, which we expect to principally fulfill with production from existing reserves.

We have contractually agreed to deliver firm quantities of gas and NGLs to various customers, which we expect to fulfill with production from existing reserves.

We regularly monitor our proved developed reserves to ensure sufficient availability to meet commitments for the next one to three years.

The following table summarizes our total gross commitments as of December 31, 2020.

Natural Gas NGLs

Years ending December 31, (Bcf) (Mbbl)

2021 1,390 7,814

2022 917 2,658

2023 780 1,825

2024 601 1,830

2025 388 1,825

Thereafter 2,587 600

Generally, but not always, the demand for natural gas decreases during the summer months and increases during the winter months.

Seasonal anomalies such as mild winters or hot summers may also impact demand.

Other natural gas producers compete with the Company in the acquisition of properties, the search for, and development of, reserves, the production and sale of natural gas and NGLs and the securing of services, labor, equipment and transportation required to conduct operations.

The Company's competitors include independent oil and gas companies, major oil and gas companies and individual producers, operators and marketing companies.

Regulation of the Company's Operations.

The Company's exploration and production operations are subject to various types of federal, state and local laws and regulations, including regulations related to the following:

Other natural gas producers compete with us in the acquisition of properties;

the search for, and development of, reserves;

the production and sale of natural gas and NGLs;

and the securing of services, labor, equipment and transportation required to conduct operations.

Our competitors include independent oil and gas companies, major oil and gas companies, individual producers, operators and marketing companies and other energy companies that produce substitutes for the commodities that we produce.

Regulation of our Operations.

Our exploration and production operations are subject to various types of federal, state and local laws and regulations, including regulations related to the following:

the location of wells;

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and the gathering of production in certain circumstances.

These regulations, and any delays in obtaining related authorizations, may affect the costs and timing of developing the Company's natural gas resources.

The Company's operations are also subject to conservation and correlative rights regulations, including the following:

These regulations, and any delays in obtaining related authorizations, may affect the costs and timing of developing our natural gas resources.

Our operations are also subject to conservation and correlative rights regulations, including the following:

regulation of the size of drilling and spacing units or field rule units;

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Ohio and, for Utica or other deep wells, West Virginia allow the statutory pooling or unitization of tracts to facilitate development and exploration.

In West Virginia, the Company must rely on voluntary pooling of lands and leases for Marcellus and Upper Devonian acreage.

In 2013, the Pennsylvania legislature enacted lease integration legislation, which authorizes joint development of existing contiguous leases.

In West Virginia, we must rely on voluntary pooling of lands and leases for Marcellus and Upper Devonian acreage.

In Pennsylvania, lease integration legislation authorizes joint development of existing contiguous leases.

In addition, state conservation and oil and gas laws generally limit the venting or flaring of natural gas.

Various states also impose certain regulatory requirements to transfer wells to third parties or discontinue operations in the event of divestitures by the Company.

The Company maintains limited gathering operations that are subject to various types of federal and state environmental laws and local zoning ordinances, including the following:

Various states also impose certain regulatory requirements to transfer wells to third parties or discontinue operations in the event of divestitures by us.

We maintain limited gathering operations that are subject to various types of federal and state environmental laws and local zoning ordinances, including the following:

air permitting requirements for compressor station and dehydration units and other permitting requirements;

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These regulations may increase the costs of operating existing pipelines and compressor stations and increase the costs of, and the time to develop, new or expanded pipelines and compressor stations.

In 2010, Congress adopted comprehensive financial reform legislation that established federal oversight and regulation of the OTC derivative market and entities, such as the Company, that participate in that market.

In 2010, Congress adopted comprehensive financial reform legislation that established federal oversight and regulation of the OTC derivative market and entities, such as us, that participate in that market.

The legislation, known as the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), required the CFTC, the SEC and other regulatory agencies to promulgate rules and regulations implementing this legislation.

As of the filing date of this Annual Report on Form 10-K, the CFTC had adopted and implemented many final rules that impose regulatory obligations on all market participants, including the Company, such as recordkeeping and certain reporting obligations.

Other CFTC rules that may be relevant to the Company have yet to be finalized.

Because significant CFTC rules relevant to natural gas hedging activities have not been adopted or implemented, it is not possible at this time to predict the full extent of the impact of the regulations on the Company's hedging program or regulatory compliance obligations.

The Company has experienced increased, and anticipates additional, compliance costs and changes to current market practices as participants continue to adapt to a changing regulatory environment.

Regulators periodically review or audit the Company's compliance with applicable regulatory requirements.

The Company anticipates that compliance with existing laws and regulations governing current operations will not have a material adverse effect upon its capital expenditures, earnings or competitive position.

Among other things, the Dodd-Frank Act established margin requirements and requires clearing and trade execution practices for certain categories of swaps and may result in certain market participants needing to curtail their derivative activities.

Although some of the rules necessary to implement the Dodd-Frank Act have yet to be adopted, regulators have issued numerous rules under the Dodd-Frank Act, including a rule establishing an “end-user” exception to mandatory clearing (End-User Exception), a rule regarding margin for certain uncleared swaps (Margin Rule) and a rule imposing federal position limits on certain futures contracts relating to energy products, including natural gas (Position Limits Rule).

We qualify as a “non-financial entity” for purposes of the End-User Exception and, as such, we are eligible for such exception.

As a result, our hedging activities are not subject to mandatory clearing or the margin requirements imposed in connection with mandatory clearing, although we are subject to certain recordkeeping and reporting obligations associated with such rule.

We also qualify as a “non-financial end user” for purposes of the Margin Rule;

therefore, our uncleared swaps are not subject to regulatory margin requirements.

Finally, although the Position Limits Rule does not go into effect with respect to energy products until January 1, 2022, we believe that the majority, if not all, of our hedging activities constitute bona fide hedging under the Position Limits Rule and will not be subject to the limitations under such rule.

However, many of our hedge counterparties and other market participants are not eligible for the End-User Exception, are subject to mandatory clearing and the Margin Rule for swaps with some or all of their other swap counterparties, and may be subject to the Position Limits Rule, which may affect the pricing and/or availability of derivatives for us.

In addition, the European Union and other non-U.S.

jurisdictions have enacted laws and regulations related to derivatives which apply to our transactions with counterparties subject to such foreign regulations.

Regulators periodically review or audit our compliance with applicable regulatory requirements.

We anticipate that compliance with existing laws and regulations governing current operations will not have a material adverse effect upon our capital expenditures, earnings or competitive position.

Additional proposals that affect the oil and gas industry are regularly considered by Congress, the states, regulatory agencies and the courts.

The Company cannot predict when or whether any such proposals may become effective or the effect that such proposals may have on the Company.

The following is a summary of some of the existing laws, rules and regulations to which the Company's business operations are subject.

We cannot predict when or whether any such proposals may become effective or the effect that such proposals may have on us.

The following is a summary of some of the existing laws, rules and regulations to which our business operations are subject.

Natural Gas Sales and Transportation.

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Federal and state regulations govern the price and terms for access to oil and natural gas pipeline transportation.

The FERC's regulations for interstate oil and natural gas transmission in some circumstances may also affect the intrastate transportation of oil and natural gas.

Historically, federal legislation and regulatory controls have affected the price of the natural gas the Company produces and the manner in which the Company markets its production.

The FERC's regulations for interstate oil and natural gas transportation in some circumstances may also affect the intrastate transportation of oil and natural gas.

Historically, federal legislation and regulatory controls have affected the price of the natural gas we produce and the manner in which we market our production.

The FERC has jurisdiction over the transportation and sale for resale of natural gas in interstate commerce by natural gas companies under the Natural Gas Act of 1938 (NGA) and the Natural Gas Policy Act of 1978.

Various federal laws enacted since 1978 have resulted in the removal of all price and non-price controls for sales of domestic natural gas sold in first sales, which include all of the Company's sales of its own production.

Under the Energy Policy Act of 2005, the FERC has substantial enforcement authority to prohibit the manipulation of natural gas markets and enforce its rules and orders, including the ability to assess substantial civil penalties of over $1 million per day for each violation and disgorgement of profits associated with any violation.

While the Company's production activities have not been regulated by the FERC as a natural gas company under the NGA, the Company is required to report aggregate volumes of natural gas purchased or sold at wholesale to the extent such transactions use, contribute to or may contribute to the formation of price indices.

In addition, Congress may enact legislation or the FERC may adopt regulations that may subject certain of the Company's otherwise non-FERC jurisdictional facilities to further regulation.

Failure to comply with those regulations in the future could subject the Company to civil penalty liability.

The CFTC also holds authority to monitor certain segments of the physical and futures energy commodities market including oil and natural gas.

With regard to physical purchases and sales of natural gas and other energy commodities, and any related hedging activities that the Company undertakes, the Company is thus required to observe anti-market manipulation and disruptive trading practices laws and related regulations enforced by the FERC and/or the CFTC.

While our production activities have not been regulated by the FERC as a natural gas company under the NGA, we are required to report aggregate volumes of natural gas purchased or sold at wholesale

to the extent such transactions use, contribute to or may contribute to the formation of price indices.

In addition, Congress may enact legislation or the FERC may adopt regulations that may subject certain of our otherwise non-FERC jurisdictional facilities to further regulation.

Failure to comply with those regulations in the future could subject us to civil penalty liability.

The CFTC also holds authority to monitor certain segments of the physical and futures energy commodities market including natural gas, NGLs and oil.

With regard to physical purchases and sales of natural gas and other energy commodities, and any related hedging activities that we undertake, we are thus required to observe anti-market manipulation and disruptive trading practices laws and related regulations enforced by the FERC and/or the CFTC.

The CFTC also holds substantial enforcement authority, including the ability to assess civil penalties.

The FERC also regulates interstate natural gas transportation rates and service conditions and establishes the terms under which the Company may use interstate natural gas pipeline capacity, which affects the marketing of natural gas that the Company produces, as well as the revenues the Company receives for sales of natural gas and release of its natural gas pipeline capacity.

The FERC also regulates interstate natural gas transportation rates and service conditions and establishes the terms under which we may use interstate natural gas pipeline capacity, which affects the marketing of natural gas that we produce, as well as the revenues we receive for sales of natural gas and release of our natural gas pipeline capacity.

Commencing in 1985, the FERC promulgated a series of orders, regulations and rule makings that significantly fostered competition in the business of transporting and marketing gas.

Today, interstate pipeline companies are required to provide nondiscriminatory transportation services to producers, marketers and other shippers, regardless of whether such shippers are affiliated with an interstate pipeline company.

Today, interstate pipeline companies are required to provide non-unduly discriminatory transportation services to producers, marketers and other shippers, regardless of whether such shippers are affiliated with an interstate pipeline company.

The FERC's initiatives have led to the development of a competitive, open access market for natural gas purchases and sales that permits all purchasers of natural gas to buy gas directly from third-party sellers other than pipelines.

However, the natural gas industry historically has been very heavily regulated;

therefore, the Company cannot guarantee that the less stringent regulatory approach currently pursued by the FERC and Congress will continue indefinitely into the future nor can the Company determine what effect, if any, future regulatory changes might have on the Company's natural gas-related activities.

therefore, we cannot guarantee that the less stringent regulatory approach currently pursued by the FERC and Congress will continue indefinitely into the future nor can we determine what effect, if any, future regulatory changes might have on our natural gas-related activities.

Under the FERC's current regulatory regime, transmission services must be provided on an open-access, nondiscriminatory basis at cost-based rates or negotiated rates, both of which are subject to FERC approval.

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Although the FERC has set forth a general test for determining whether facilities perform a non-jurisdictional gathering function or a jurisdictional transmission function, the FERC's determinations as to the classification of facilities are done on a case-by-case basis.

To the extent that the FERC issues an order that reclassifies certain jurisdictional transmission facilities as non-jurisdictional gathering facilities, and, depending on the scope of that decision, the Company's costs of transporting gas to point of sale locations may increase.

The Company believes that the third-party natural gas pipelines on which its gas is gathered meet the traditional tests the FERC has used to establish a pipeline's status as a gatherer not subject to regulation as a natural gas company.

However, the distinction between the FERC-regulated transmission services and federally unregulated gathering services could be subject to potential litigation, so the classification and regulation of those gathering facilities are subject to change based on future determinations by the FERC, the courts or Congress.

To the extent that the FERC issues an order that reclassifies certain jurisdictional transmission facilities as non-jurisdictional gathering facilities, and, depending on the scope of that decision, our costs of transporting gas to point of sale locations may increase.

We believe that the third-party natural gas pipelines on which our gas is gathered meet the traditional tests the FERC has used to establish a pipeline's status as a gatherer not subject to regulation as a natural gas company.

However, the distinction between the FERC-regulated transportation services and federally unregulated gathering services could be subject to potential litigation, so the classification and regulation of those gathering facilities are subject to change based on future determinations by the FERC, the courts or Congress.

State regulation of natural gas gathering facilities generally includes various occupational safety, environmental and, in some circumstances, nondiscriminatory-take requirements.

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Sales prices of oil and NGLs are not currently regulated and are made at market prices.

The Company's sales of these commodities are, however, subject to laws and to regulations issued by the Federal Trade Commission (FTC) prohibiting manipulative or fraudulent conduct in the wholesale petroleum market.

Our sales of these commodities are, however, subject to laws and to regulations issued by the Federal Trade Commission (FTC) prohibiting manipulative or fraudulent conduct in the wholesale petroleum market.

The FTC holds substantial enforcement authority under these regulations, including the ability to assess civil penalties of over $1 million per day per violation.

The Company's sales of these commodities, and any related hedging activities, are also subject to CFTC oversight as discussed above.

The price the Company receives from the sale of these products may be affected by the cost of transporting the products to market.

Some of the Company's transportation of oil and NGLs is through FERC-regulated interstate common carrier pipelines.

Our sales of these commodities, and any related hedging activities, are also subject to CFTC oversight as discussed above.

The price we receive from the sale of these products may be affected by the cost of transporting the products to market.

Some of our transportation of oil and NGLs is through FERC-regulated interstate common carrier pipelines.

Effective as of January 1, 1995, the FERC implemented regulations generally grandfathering all previously approved interstate transportation rates and establishing an indexing system for those rates by which adjustments are made annually based on the rate of inflation, subject to certain conditions and limitations.

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Every five years, the FERC must examine the relationship between the annual change in the applicable index and the actual cost changes experienced in the oil pipeline industry.

The Company is not able at this time to predict the effects of these regulations or FERC proceedings, if any, on the transportation costs associated with crude oil production from the Company's crude oil producing operations.

The FERC published the five-year index level for 2021-2026 in December 2020.

We are not able at this time to predict the effects of these regulations or FERC proceedings, if any, on the transportation costs associated with crude oil production from our crude oil producing operations.

Environmental, Health and Safety Regulation.

The business operations of the Company are also subject to numerous stringent federal, state and local environmental, health and safety laws and regulations pertaining to, among other things, the release, emission or discharge of materials into the environment;

Our business operations are also subject to numerous stringent federal, state and local environmental, health and safety laws and regulations pertaining to, among other things, the release, emission or discharge of materials into the environment;

the generation, storage, transportation, handling and disposal of materials (including solid and hazardous wastes);

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and preservation or protection of human health and safety, natural resources, wildlife and the environment.

The Company must take into account environmental, health and safety regulations in, among other things, planning, designing, constructing, operating and plugging and abandoning wells and related facilities.

We must take into account environmental, health and safety regulations in, among other things, planning, designing, constructing, operating and plugging and abandoning wells and related facilities.

Violations of these laws can result in substantial administrative, civil and criminal penalties.

These laws and regulations may require the acquisition of permits before drilling or other regulated activity commences, restrict the types, quantities and concentrations of various substances that can be released into the environment in connection with drilling and production, govern the sourcing and disposal of water used in the drilling and completion process, limit or prohibit drilling activities in certain areas and on certain lands lying within wilderness, wetlands, frontier and other protected areas or areas with endangered or threatened species restrictions, require some form of remedial action to prevent or mitigate pollution from former operations such as plugging abandoned wells or closing earthen pits, establish specific safety and health criteria addressing worker protection and impose substantial liabilities for pollution resulting from operations or failure to comply with applicable laws and regulations.

These laws and regulations may require the acquisition of permits before drilling or other regulated activity commences;

restrict the types, quantities and concentrations of various substances that can be released into the environment in connection with drilling and production;

govern the sourcing and disposal of water used in the drilling and completion process;

limit or prohibit drilling activities in certain areas and on certain lands lying within wilderness, wetlands and other protected areas or areas with endangered or threatened species restrictions;

require some form of remedial action to prevent or mitigate pollution from former operations, such as plugging abandoned wells or closing earthen pits;

establish specific safety and health criteria addressing worker protection;

and impose substantial liabilities for pollution resulting from operations or failure to comply with applicable laws and regulations.

In addition, these laws and regulations may restrict the rate of production.

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Additional proposals and proceedings that affect the oil and natural gas industry are regularly considered by Congress, federal agencies, the states, local governments and the courts.

The Company cannot predict when or whether any such proposals may become effective.

Therefore, the Company is unable to predict the future costs or impact of compliance.

We cannot predict when or whether any such proposals may become effective.

Therefore, we are unable to predict the future costs or impact of compliance.

The regulatory burden on the industry increases the cost of doing business and affects profitability.

The Company has established procedures, however, for the ongoing evaluation of its operations to identify potential environmental exposures and to track compliance with regulatory policies and procedures.

The following is a summary of the more significant existing environmental and occupational health and workplace safety laws and regulations, as amended from time to time, to which the Company's business operations are subject and for which compliance may have a material adverse impact on the Company's financial condition, earnings or cash flows.

We have established procedures, however, for the ongoing evaluation of our operations to identify potential environmental exposures and to track compliance with regulatory policies and procedures.

The following is a summary of the more significant existing environmental and occupational health and workplace safety laws and regulations, as amended from time to time, to which our business operations are subject and for which compliance may have a material adverse impact on our financial condition, earnings or cash flows.

Hazardous Substances and Waste Handling.

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Under CERCLA, such persons may be subject to joint and several strict liability for the costs of cleaning up the hazardous substances that have been released into the environment and for damages to natural resources, and it is not uncommon for neighboring landowners and other third parties to file claims for personal injury and property damage allegedly caused by the hazardous substances released into the environment.

In addition, despite the "petroleum exclusion" of Section 101(14) of CERCLA, which currently encompasses crude oil and natural gas, the Company generates materials in the course of its operations that may be regulated as hazardous substances based on their characteristics;

however, the Company is unaware of any liabilities arising under CERCLA for which the Company may be held responsible that would materially and adversely affect the Company.

In addition, despite the "petroleum exclusion" of Section 101(14) of CERCLA, which currently encompasses crude oil and natural gas, we generate materials in the course of our operations that may be regulated as hazardous substances based on their characteristics;

however, we are unaware of any liabilities arising under CERCLA for which we may be held responsible that would materially and adversely affect us.

The Resource Conservation and Recovery Act (RCRA) and analogous state laws establish detailed requirements for the generation, handling, storage, treatment and disposal of nonhazardous and hazardous solid wastes.

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Moreover, it is possible that these particular oil and natural gas exploration, development and production wastes now classified as nonhazardous solid wastes could be classified as hazardous wastes in the future.

Recently, in April 2019, following litigation and a resulting consent decree related to the EPA's requirements under RCRA to review oil and gas waste regulations, the EPA determined that revisions to the regulations were not required, concluding that any adverse effects related to oil and gas waste were more appropriately and readily addressed within the framework of existing state regulatory programs.

Any changes to state programs could result in an increase in the Company's costs to manage and dispose waste, which could have a material adverse effect on the Company's results of operations and financial condition.

The Company currently owns, leases, or operates numerous properties that have been used for oil and natural gas exploration and production activities for many years.

Although the Company believes that it has used operating and waste disposal practices that were standard in the industry at the time, hazardous substances, wastes, or petroleum hydrocarbons may have been released on, under or from the properties owned or leased by the Company, or on, under or from other locations, including offsite locations, where such substances have been taken for recycling or disposal.

In addition, some of the Company's properties have been operated by third parties or by previous owners or operators whose treatment and disposal of hazardous substances, wastes, or petroleum hydrocarbons was not under the Company's control.

The Company is able to control directly the operation of only those wells with respect to which the Company acts or has acted as operator.

The failure of a prior owner or operator to comply with applicable environmental regulations may, in certain circumstances, be attributed to the Company as current owner or operator under CERCLA.

In April 2019, following litigation and a resulting consent decree related to the EPA's requirements under RCRA to review oil and gas waste regulations, the EPA determined that revisions to the regulations were not required, concluding that any adverse effects related to oil and gas waste were more appropriately and readily addressed within the framework of existing state regulatory programs.

Any changes to state or federal programs could result in an increase in our costs to manage and dispose waste, which could have a material adverse effect on our results of operations and financial condition.

We currently own, lease or operate numerous properties that have been used for oil and natural gas exploration and production activities for many years.

Although we believe that we have used operating and waste disposal practices that were standard in the industry at the time, hazardous substances, wastes or petroleum hydrocarbons may have been released on, under or from the properties owned or leased by us, or on, under or from other locations, including offsite locations, where such substances have been taken for recycling or disposal.

In addition, some of our properties have been operated by third parties or by previous

owners or operators whose treatment and disposal of hazardous substances, wastes or petroleum hydrocarbons was not under our control.

We are able to control directly the operation of only those wells with respect to which we act or have acted as operator.

The failure of a prior owner or operator to comply with applicable environmental regulations may, in certain circumstances, be attributed to us as current owner or operator under CERCLA.

These properties and the substances disposed or released on, under or from them may be subject to CERCLA, RCRA and analogous state laws.

Under such laws, the Company could be required to undertake response or corrective measures, regardless of fault, which could include removal of previously disposed substances and wastes, cleanup of contaminated property or performance of remedial plugging or waste pit closure operations to prevent future contamination.

Under such laws, we could be required to undertake response or corrective measures, regardless of fault, which could include removal of previously disposed substances and wastes, cleanup of contaminated property or performance of remedial plugging or waste pit closure operations to prevent future contamination.

Water Discharges.

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Army Corps of Engineers (Corps).

In June 2015, the EPA and the Corps issued a final rule defining the scope of the EPA's and the Corps' jurisdiction over waters of the United States (WOTUS), but several legal challenges to the rule followed, and the WOTUS rule was stayed nationwide in October 2015 pending resolution of the legal challenges.

In June 2015, the EPA and the Corps issued a final rule defining the scope of the EPA's and the Corps' jurisdiction over waters of the United States (WOTUS), which was stayed nationwide in October 2015 pending resolution of several legal challenges.

The EPA and the Corps proposed a rule in July 2017 to repeal the WOTUS rule and announced their intent to issue a new rule defining the CWA's jurisdiction.

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In October 2019, the EPA issued a final rule repealing the WOTUS rule and the repeal rule became effective in December 2019.

The repeal rule has already been challenged in federal district courts in New Mexico, New York, and South Carolina.

In January 2020, the EPA and the Corps announced the final rule redefining the definition of WOTUS.

The new definition narrows the scope of waters that are covered as jurisdictional under the CWA.

Several groups have already announced their intention to challenge the new rule.

As a result, future implementation is uncertain at this time.

To the extent a stay of this rule or the implementation of a revised rule expands the scope of the CWA's jurisdiction, the Company could face increased costs and delays with respect to obtaining permits for dredge and fill activities in wetland areas, which could delay the development of the Company's natural gas and oil projects.

Also, pursuant to these laws and regulations, the Company may be required to obtain and maintain approvals or permits for the discharge of wastewater or stormwater and to develop and implement spill prevention, control and countermeasure (SPCC) plans in connection with on-site storage of significant quantities of oil.

In April 2020, the EPA and the Corps published the Navigable Waters Protection Rule (NWPR), which narrowed the definition of WOTUS to four categories of jurisdictional waters and includes twelve categories of exclusions, including groundwater.

A coalition of states and cities, environmental groups, and agricultural groups have challenged the NWPR and a federal district court in Colorado stayed implementation of the rule.

The stay is limited to application of the rule in Colorado;

the rule has taken effect in all other states.

In addition, in an April 2020 decision defining the scope of the CWA that was handed down just days after the NWPR was published, the U.S.

Supreme Court held that, in certain cases, discharges from a point source to groundwater could fall within the scope of the CWA and require a permit.

The Court rejected the EPA and Corps’ assertion that groundwater should be totally excluded from the CWA.

The Court’s decision is expected to bolster challenges to the NWPR.

On January 20, 2021, the Biden Administration announced it will review the NWPR in accordance with the January 20, 2021 Executive Order that revokes President Trump’s Executive Order 13778, which required review and reversal of the WOTUS rule.

The EPA and the Corps have requested to stay the litigation over the NWPR during the agencies’ review of the rule.

To the extent a revised rule expands the scope of the CWA's jurisdiction, we could face increased costs and delays with respect to obtaining permits for dredge and fill activities in wetland areas, which could delay the development of our natural gas and oil projects.

Also, pursuant to these laws and regulations, we may be required to obtain and maintain approvals or permits for the discharge of wastewater or stormwater and to develop and implement spill prevention, control and countermeasure (SPCC) plans in connection with on-site storage of significant quantities of oil.

These laws and any implementing regulations provide for administrative, civil and criminal penalties for any unauthorized discharges of oil and other substances in reportable quantities and may impose substantial potential liability for the costs of removal, remediation and damages.

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The federal Clean Air Act (CAA) and comparable state laws regulate the emission of air pollutants from many sources, such as, for example, tank batteries and compressor stations, through air emissions standards, construction and operating permitting programs and the imposition of other compliance requirements.

These laws and regulations may require the Company to obtain pre‑approval for the construction or modification of certain projects or facilities expected to produce or significantly increase air emissions, obtain and strictly comply with stringent air permit requirements or use specific equipment or technologies to control emissions of certain pollutants, the costs of which could be significant.

The need to obtain permits has the potential to delay the development of the Company's oil and natural gas projects.

Over the next several years, the Company may be required to incur certain capital expenditures for air pollution control equipment or other air emissions-related issues.

For example, although

all counties in which the Company operates are currently in attainment with the 2015 National Ambient Air Quality Standard (NAAQS) for ozone, these determinations may be revised in the future.

These laws and regulations may require us to obtain pre‑approval for the construction or modification of certain projects or facilities expected to produce or significantly increase air emissions, obtain and strictly comply with stringent air permit requirements or use specific equipment or technologies to control emissions of certain pollutants, the costs of which could be significant.

The need to obtain permits has the potential to delay the development of our oil and natural gas projects.

Over the next several years, we may be required to incur certain capital expenditures for air pollution control equipment or other air emissions-related issues.

Reclassification of areas or imposition of more stringent standards may make it more difficult to construct new facilities or modify existing facilities in any newly designated non-attainment areas.

Compliance with more stringent standards and other environmental regulations could delay or prohibit the Company's ability to obtain permits for its operations or require the Company to install additional pollution control equipment, the costs of which could be significant.

Compliance with more stringent standards and other environmental regulations could delay or prohibit our ability to obtain permits for our operations or require us to install additional pollution control equipment, the costs of which could be significant.

Climate Change and Regulation of "Greenhouse Gas" Emissions.

In response to findings that emissions of carbon dioxide, methane and other greenhouse gases (GHG) present an endangerment to public health and the environment, the EPA has adopted regulations under existing provisions of the CAA that, among other things, establish Prevention of Significant Deterioration (PSD) construction and Title V operating permit reviews for certain large stationary sources that are already potential major sources of certain principal, or criteria, pollutant emissions.

Facilities required to obtain PSD permits for their GHG emissions are required to meet "best available control technology" standards established by the states or, in some cases, by the EPA on a case‑by‑case basis.

These CAA requirements could adversely affect the Company's operations and restrict or delay the Company's ability to obtain air permits for new or modified sources.

In addition, the EPA has adopted rules requiring the monitoring and reporting of GHG emissions from specified onshore and offshore oil and gas production sources in the United States on an annual basis, which include certain of the Company's operations.

Facilities required to obtain PSD permits for their

GHG emissions are required to meet "best available control technology" standards established by the states or, in some cases, by the EPA on a case‑by‑case basis.

These CAA requirements could adversely affect our operations and restrict or delay our ability to obtain air permits for new or modified sources.

In June 2016, the EPA finalized new regulations that established New Source Performance Standards (NSPS), known as Subpart OOOOa, for methane and volatile organic compounds (VOC) from new and modified oil and natural gas production and natural gas processing and transmission facilities.

In September 2018, the EPA proposed amendments to the 2016 Subpart OOOOa standards that would reduce the 2016 rule's fugitive emissions monitoring requirements and expand exceptions to pneumatic pump requirements, among other changes.

In September 2020, the EPA finalized amendments to the 2016 Subpart OOOOa standards, known as the Reconsideration Rule, that reduce the 2016 rule's fugitive emissions monitoring requirements and expand exceptions to pneumatic pump requirements, among other changes.

Various industry and environmental groups have separately challenged both the methane requirements and the EPA's attempts to delay the implementation of the rule.

In addition, in April 2018, several states filed a lawsuit seeking to compel the EPA to issue methane performance standards for existing sources in the oil and natural gas source category.

In November 2019, the EPA issued a proposed rulemaking to revise Subpart OOOOa to rescind the methane-specific requirements for certain oil and natural gas sources in the production and processing segments.

As a result of the actions described above, the Company cannot predict with certainty the scope of any final methane regulations or the costs for complying with federal methane regulations.

In September 2020, the EPA issued a rule to revise Subpart OOOOa to rescind the methane-specific requirements for certain oil and natural gas sources in the production and processing segments, known as the Review Rule.

Both the Reconsideration Rule and the Review Rule are subject to pending litigation.

On January 20, 2021, President Biden issued an Executive Order directing the EPA to rescind the Reconsideration Rule by September 2021 and consider revising the Review Rule.

As a result of the actions described above, we cannot predict with certainty the scope of any final methane regulations or the costs for complying with federal methane regulations.

At the state level, several states have proceeded with regulation targeting GHG emissions.

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These BAT standards include a 200 ton per year limit on methane emissions, above which a BAT requirement for methane emissions control applies.

Moreover, in December 2019, the Pennsylvania Environmental Quality Board (EQB) approved a proposed rulemaking for the control of emissions of VOCs and other pollutants for existing sources.

Upon publication in the Pennsylvania Bulletin, the PADEP will accept public comments on the proposed rulemaking.

A final rulemaking could be submitted to and approved by the EQB in late 2020.

State regulations such as these could impose increased compliance costs on the Company's operations.

Moreover, in May 2020, the Pennsylvania Environmental Quality Board (EQB) published in the Pennsylvania Bulletin a proposed rulemaking for the control of emissions of VOCs and other pollutants for existing sources.

EQB accepted public comments on the proposed rulemaking through July 2020;

however, a final rulemaking has yet to be approved by the EQB.

State regulations such as these could impose increased compliance costs on our operations.

While Congress has from time to time considered legislation to reduce emissions of GHGs, there has not been significant activity in the form of federal legislation in recent years.

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In October 2019, Pennsylvania Governor Tom Wolf signed an Executive Order directing the PADEP to draft regulations establishing a cap-and-trade program under its existing authority to regulate air emissions, with the intent of enabling Pennsylvania to join the Regional Greenhouse Gas Initiative (RGGI), a multi-state regional cap-and-trade program comprised of several Eastern U.S.

Subsequently, legislators in the Pennsylvania General Assembly introduced a bill that, if approved, would require legislative approval by both chambers of the Pennsylvania General Assembly in order for Pennsylvania to join the RGGI.

The EQB also accepted an economy-wide cap-and-trade petition for study in April 2019.

The PADEP is evaluating the petition and will provide a recommendation to the EQB that could result in a state-wide cap-and-trade program across all sectors of the economy.

If Pennsylvania ultimately becomes a member of the RGGI, or otherwise implements a cap-and-trade program, it could result in increased operating costs if the Company is required to purchase emission allowances in connection with its operations.

On an international level, the United States is one of almost 200 nations that, in December 2015, agreed to an international climate change agreement in Paris, France, that calls for countries to set their own GHG emissions targets and be transparent about the

measures each country will use to achieve its GHG emissions targets (Paris Agreement).

In September 2020, the EQB approved promulgation of the RGGI regulation, and a public comment period and hearings regarding the regulation commenced at the end of 2020.

Based on the current timeline for implementation, final rulemaking is expected to be sent to the EQB for review and approval in the fourth quarter of 2021, with the first year of compliance anticipated to begin in 2022.

Assuming Pennsylvania ultimately becomes a member of the RGGI in 2022, as currently anticipated, it will result in increased operating costs if we are required to purchase emission allowances in connection with our operations.

The Paris Agreement was signed by the United States in April 2016 and entered into force on November 4, 2016;

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In August 2017, the U.S.

Department of State officially informed the United Nations of the United States' intent to withdraw from the Paris Agreement.

The Paris Agreement provides for a four-year exit process beginning when it took effect in November 2016, which would result in an effective exit date of November 2020.

The United States' adherence to the exit process and/or the terms on which the United States may reenter the Paris Agreement or a separately negotiated agreement are unclear at this time.

Although it is not possible at this time to predict how legislation or new regulations that may be adopted to address GHG emissions would impact the Company's business, any such future laws and regulations imposing reporting obligations on, or limiting emissions of GHGs from, the Company's equipment and operations could require the Company to incur costs to reduce emissions of GHGs associated with the Company's operations.

Substantial limitations on GHG emissions could also adversely affect demand for the oil and natural gas the Company produces and lower the value of its reserves.

Notwithstanding potential risks related to climate change, the International Energy Agency estimates that oil and gas will continue to represent a major share of global energy use through 2040, and other private sector studies project continued growth in demand for the next two decades.

However, recent activism directed at shifting funding away from companies with energy-related assets could result in limitations or restrictions on certain sources of funding for the energy sector.

Department of State officially informed the United Nations of the United States' intent to withdraw from the Paris Agreement, with such withdrawal becoming effective in November 2020.

However, on January 20, 2021, President Biden issued written notification to the United Nations of the United States’ intention to rejoin the Paris Agreement, which will become effective in 30 days from such date.

Although it is not possible at this time to predict how legislation or new regulations that may be adopted to address GHG emissions would impact our business, any such future laws and regulations imposing reporting obligations on, or limiting emissions of GHGs from, our equipment and operations could require us to incur costs to reduce emissions of GHGs associated

with our operations.

Substantial limitations on GHG emissions could also adversely affect demand for the oil and natural gas we produce and lower the value of our reserves.

Notwithstanding potential risks related to climate change, the International Energy Agency estimates that natural gas will continue to represent a major share of global energy use through 2040, and other private sector studies project continued growth in demand for the next two decades, in large part driven by the fact that natural gas produces significantly less CO2 compared to other fossil fuels - up to 50% less than coal and 20-30% less than oil, according to the U.S.

Energy Information Administration.

Nonetheless, recent activism directed at shifting funding away from fossil fuel companies could result in limitations or restrictions on certain sources of funding for the sector.

Moreover, activist shareholders have introduced proposals that may seek to force companies to adopt aggressive emission reduction targets or to shift away from more carbon-intensive activities.

While the Company cannot predict the outcomes of such proposals, they could ultimately make it more difficult to engage in exploration and production activities.

While we cannot predict the outcomes of such proposals, they could ultimately make it more difficult to engage in exploration and production activities.

Finally, it should be noted that a number of scientists have concluded that increasing concentrations of GHGs in the Earth's atmosphere may produce climate changes that have significant physical effects, such as increased frequency and severity of storms, floods, droughts and other extreme climatic events;

if any such effects were to occur, they have the potential to cause physical damage to the Company's assets or affect the availability of water and thus could have an adverse effect on the Company's exploration and production operations.

if any such effects were to occur, they have the potential to cause physical damage to our assets or affect the availability of water and thus could have an adverse effect on our exploration and production operations.

Hydraulic Fracturing Activities.

Vast quantities of natural gas deposits exist in shale and other formations.

It is customary in the Company's industry to recover natural gas from these shale formations through the use of hydraulic fracturing, combined with sophisticated horizontal drilling.

It is customary in our industry to recover natural gas from these shale formations through the use of hydraulic fracturing, combined with sophisticated horizontal drilling.

Hydraulic fracturing is the process of creating or expanding cracks, or fractures, in formations underground where water, sand and other additives are pumped under high pressure into a shale gas formation.

These deeper formations are geologically separated and isolated from fresh ground water supplies by overlying rock layers.

The Company's well construction practices include installation of multiple layers of protective steel casing surrounded by cement that are specifically designed and installed to protect freshwater aquifers.

To assess water sources near the Company's drilling locations, the Company conducts baseline and, as appropriate, post-drilling water testing at all water wells within at least 2,500 feet of the Company's drilling pads.

Our well construction practices include installation of multiple layers of protective steel casing surrounded by cement that are specifically designed and installed to protect freshwater aquifers.

To assess water sources near our drilling locations, we conduct baseline and, as appropriate, post-drilling water testing at all water wells within at least 2,500 feet of our drilling pads.

Hydraulic fracturing typically is regulated by state oil and natural gas agencies, but the EPA has asserted federal regulatory authority pursuant to the federal Safe Drinking Water Act (SDWA) over certain hydraulic fracturing activities involving the use of diesel fuels and issued permitting guidance in February 2014 regarding such activities.

The EPA also finalized rules in June 2016 to prohibit the discharge of wastewater from hydraulic fracturing operations to publicly owned wastewater treatment plants.

Certain governmental reviews have been conducted or are underway that focus on the environmental aspects of hydraulic fracturing practices.

For example, in December 2016, the EPA released its final report on the potential impacts of hydraulic fracturing on drinking water resources.

The final report concluded that "water cycle" activities associated with hydraulic fracturing may impact drinking water resources "under some circumstances," noting that the following hydraulic fracturing water cycle activities and local- or regional-scale factors are more likely than others to result in more frequent or more severe impacts:

water withdrawals for fracturing in times or areas of low water availability;

surface spills during the management of fracturing fluids, chemicals or produced water;

injection of fracturing fluids into wells with inadequate mechanical integrity;

injection of fracturing fluids directly into groundwater resources;

discharge of inadequately treated fracturing wastewater to surface waters;

and disposal or storage of fracturing wastewater in unlined pits.

Because the report did not find a direct link between hydraulic fracturing itself and contamination of groundwater resources, this years-long study report does not appear to provide any basis for further regulation of hydraulic fracturing at the federal level.

In addition, Congress has from time to time considered legislation to provide for federal regulation of hydraulic fracturing under the SDWA and to require disclosure of the chemicals used in the hydraulic fracturing process.

The EPA also finalized rules in June 2016 to prohibit the discharge of wastewater from hydraulic fracturing operations to publicly owned wastewater treatment plants, and after a legal challenge by environmental groups, in July 2019, the EPA declined to revise the rules.

Congress has from time to time considered legislation to provide for federal regulation of hydraulic fracturing under the SDWA and to require disclosure of the chemicals used in the hydraulic fracturing process.

At the state level, several states have adopted or are considering legal requirements that could impose more stringent permitting, disclosure and well construction requirements on hydraulic fracturing activities.

For example, in January 2016, the PADEP issued new rules establishing stricter

disposal requirements for wastes associated with hydraulic fracturing activities, which include, among other things, a requirement to obtain new permits, or closure, of centralized impoundments used for the storage of drill cuttings and waste fluids.

For example, in January 2016, the PADEP issued new rules establishing stricter disposal requirements for wastes associated with hydraulic fracturing activities, which include, among other things, a requirement to obtain new permits, or closure, of centralized impoundments used for the storage of drill cuttings and waste fluids.

Further, these rules include requirements relating to storage tank security, secondary containment for storage vessels, construction rules for gathering lines and horizontal drilling under streams and temporary transport lines for freshwater and wastewater.

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Some states and municipalities have sought to ban hydraulic fracturing altogether.

If new or more stringent federal, state, or local legal restrictions relating to the hydraulic fracturing process are adopted in areas where the Company operates, the Company could incur potentially significant added costs to comply with such requirements, experience delays or curtailment in the pursuit of exploration, development, or production activities, and perhaps even be precluded from constructing wells.

If new or more stringent federal, state or local legal restrictions relating to the hydraulic fracturing process are adopted in areas where we operate, we could incur potentially significant added costs to comply with such requirements, experience delays or curtailment in the pursuit of exploration, development or production activities, and perhaps even be precluded from constructing wells.

Occupational Safety and Health Act.

The Company is also subject to the requirements of the federal Occupational Safety and Health Act (OSHA), as amended, and comparable state laws that regulate the protection of the health and safety of employees.

In addition, OSHA's hazard communication standard, the Emergency Planning and Community Right to Know Act and implementing regulations and similar state statutes and regulations require that information be maintained about hazardous materials used or produced in the Company's operations and that this information be provided to employees, state and local government authorities, and citizens.

Endangered Species Act.

We are also subject to the requirements of the federal Occupational Safety and Health Act (OSHA), as amended, and comparable state laws that regulate the protection of the health and safety of employees.

In addition, OSHA's hazard communication standard, the Emergency Planning and Community Right to Know Act and implementing regulations and similar state statutes and regulations require that information be maintained about hazardous materials used or produced in our operations and that this information be provided to employees, state and local government authorities, and citizens.

Endangered Species Act and Migratory Bird Treaty Act.

The federal Endangered Species Act (ESA) provides for the protection of endangered and threatened species.

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Fish and Wildlife Service (FWS) may designate critical habitat and suitable habitat areas that it believes are necessary for survival of a threatened or endangered species.

A critical habitat or suitable habitat designation could result in further material restrictions to federal land use and may materially delay or prohibit access to protected areas for natural gas and oil development.

Further, the designation of previously unprotected species as threatened or endangered in areas where underlying property operations are conducted could cause the Company to incur increased costs arising from species protection measures or could result in limitations on the Company's exploration and production activities that could have an adverse impact on the Company's ability to develop and produce reserves.

In August 2019, the FWS and National Marine Fisheries Service issued three rules amending implementation of the ESA regulations revising, among other things, the process for listing species and designating critical habitat.

A coalition of states and environmental groups have challenged the three rules and litigation remains pending.

In addition, on December 18, 2020, the FWS amended its regulations governing critical habitat designations;

the amended regulations are subject to ongoing litigation.

Similar protections are offered to migratory birds under the Migratory Bird Treaty Act (MBTA), which makes it illegal to, among other things, hunt, capture, kill, possess, sell, or purchase migratory birds, nests, or eggs without a permit.

This prohibition covers most bird species in the U.S.

In January 2021, the Department of the Interior finalized a rule limiting application of the MBTA;

however, the Department of the Interior under President Biden delayed the effective date of the rule and opened a public comment period for further review.

Future implementation of the rules implementing the ESA and the MBTA are uncertain.

Further, the designation of previously unprotected species as threatened or endangered in areas where underlying property operations are conducted could cause us to incur increased costs arising from species protection measures or could result in limitations on our exploration and production activities that could have an adverse impact on our ability to develop and produce reserves.

See Note 16 to the Consolidated Financial Statements for a description of expenditures related to environmental matters.

The Company and its subsidiaries had 647 employees as of December 31, 2019 ;

none are subject to a collective bargaining agreement.

Availability of Reports

The Company makes certain filings with the SEC, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments and exhibits to those reports, available free of charge through its website, http://www.eqt.com, as soon as reasonably practicable after they are filed with or furnished to the SEC.

Human Capital Resources

As of December 31, 2020, we had 624 permanent employees, none of whom were subject to a collective bargaining agreement.

Of our total permanent employee base, 74% were male and 26% were female.

The substantial majority of our employees reside in Pennsylvania and West Virginia.

We aim to develop a workforce that produces peer leading results.

To further that goal, we have focused on creating a modern, innovative, collaborative and digitally-enabled work environment.

In 2019, we simplified our organizational structure and instituted a cloud-based digital work environment with an emphasis on the democratization of data.

Our digital work environment serves as our primary platform for communication and collaboration as well as the home for our critical work processes and drives decision-making based on a shared and transparent view of operational data.

We use our digital work environment to engage directly with our employees by sharing company updates and personnel accomplishments and internal polling.

We understand that providing employees with the resources and support they need to live a physically, mentally, and financially healthy life is critical for sustaining a workplace of choice.

We offer benefits that include subsidized health insurance, a company-contribution and company-match on 401(k) retirement savings, an employee stock purchase plan, paid maternity and paternity leave, flexible work arrangements, volunteer time off, and a company-match on employee donations to qualified non-profits.

We also offer our employees the flexibility to elect to work a “9/80” work schedule, under which, during the standard 80-hour pay period, an employee works eight 9-hour days and one 8-hour day (Friday), with a tenth day off (alternative Friday).

In 2020, we launched an “equity-for-all” program, which granted equity awards to all of our permanent full-time employees.

With the equity-for-all program, all of our permanent full-time employees have the opportunity to share directly in our financial success.

These grants were in addition to, and not in lieu of, existing compensation for these employees.

Availability of Reports and Other Information

We make certain filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments and exhibits to those reports, available free of charge through our investor relations website, http://ir.eqt.com, as soon as reasonably practicable after they are filed with or furnished to the SEC.

Reports filed with the SEC are also available on the SEC's website, http://www.sec.gov.

We also use our Twitter account, @EQTCorp, our Facebook account, @EQTCorporation, and our LinkedIn account, EQT Corporation, as additional ways of disseminating information that may be relevant to investors.

We generally post the following to our investor relations website shortly before or promptly following its first use or release:

financially-related press releases, including earnings releases and supplemental financial information;

various SEC filings;

presentation materials associated with earnings and other investor conference calls or events;

and access to live and recorded audio from earnings and other investor conference calls or events.

In certain cases, we may post the presentation materials for other investor conference calls or events several days prior to the call or event.

For earnings and other conference calls or events, we generally include within our posted materials a cautionary statement regarding forward-looking and non-GAAP financial information as well as non-GAAP to GAAP financial information reconciliations (if available).

Such GAAP reconciliations may be in materials for the applicable presentation, in materials for prior presentations or in our annual, quarterly or current reports.

In certain circumstances, we may post information, such as presentation materials and press releases, to our corporate website, www.EQT.com, or our investor relations website to expedite public access to information regarding EQT in lieu of making a filing with the SEC for first disclosure of the information.

When permissible, we expect to continue to do so without also providing disclosure of this information through filings with the SEC.

Where we have included internet addresses in this Annual Report on Form 10-K, we have included those internet addresses as inactive textual references only.

Except as specifically incorporated by reference into this Annual Report on Form 10-K, information on those websites is not part hereof.

Composition of Operating Revenues

The following table presents operating revenues for each class of products and services.

The following table presents total operating revenues for each class of our products and services.

Years Ended December 31,

2020 2019 2018

Operating revenues:

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Jurisdiction and Year of Formation

The Company is a Pennsylvania corporation formed in 2008 in connection with a holding company reorganization of the former Equitable Resources, Inc.

We are a Pennsylvania corporation formed in 2008 in connection with a holding company reorganization of the former Equitable Resources, Inc.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business