Dear Stakeholders,
In 2023, we focused on achieving peak performance, on having our best year yet. Guided by the purpose of providing energy security to the world and lowering global emissions, we are committed to demonstrating how natural gas can play a leading role in the world’s energy evolution to lower carbon solutions.
After our participation in The 28th United Nations Climate Change Conference (COP28) in Dubai, it is clear the world recognizes the continued need for natural gas to ensure energy security and achieve the world’s decarbonization goals. It’s also clear that the removal of foreign coal from the power sector is a prerequisite to achieve global climate goals.
Natural gas is uniquely capable of supporting renewable energy sources and is the ideal lower-carbon, dispatchable complement to renewable power generation.
As one of the largest producers of natural gas in the United States, I believe that EQT is uniquely positioned to play a key role in both answering the call for more clean energy, as well as leading efforts to displace international coal. We are executing at record performance levels, securing historic physical supply deals, aggressively cutting emissions, and implementing our vision to become the preeminent low-cost natural gas producer on the domestic and global stage.
To realize our mission and achieve our goals, we strive to improve the way we work, maintain a rewarding and collaborative workplace, and actively engage with our landowners and the communities where we operate and where our employees live and work.
Throughout this report, we highlight examples of the work our employees, whom we refer to as our Qrew, have done to drive progress toward our Environmental, Social, and Governance (ESG) goals during 2023, as further noted below.
We made meaningful progress towards achieving our emissions goals, and minimizing our overall environmental impact.
- Reduced our in-scope net zero target emissions to 280,824 metric tons (MT) carbon dioxide equivalent (CO2e) — a 35% reduction compared to 2022 levels, and a 67% reduction since our current management team joined EQT in mid-2019.
- Reduced our EQT Production segment Scope 1 greenhouse gas (GHG) emissions intensity to 152 MT CO2e/billion cubic feet of natural gas equivalent (Bcfe) — an approximately 35% reduction compared to 2022 — beating our 2025 GHG emissions intensity target a full year ahead of our goal.
- Reduced the Production segment Scope 1 and Scope 2 GHG emissions from the assets acquired from Alta Resources by approximately 65% since we acquired and began operating them less than 3 years ago.
- Achieved a company-wide Production segment Scope 1 methane emissions intensity of 0.0074% for 2023, significantly surpassing our 2025 target of 0.02% a year ahead of schedule.
- Entered into a first-of-its-kind public-private forest management partnership with the State of West Virginia, designed to create one of the highest quality, most verifiable nature-based carbon sequestration projects anywhere in the world.
- Helped establish the Appalachian Methane Initiative, a world-class sector and technology-agnostic methane monitoring network designed to assess and further mitigate methane emissions across the entire Appalachian Basin.
- Recycled 96% of the water produced from our operations.
We continued to have a significant impact on the communities where we operate.
- Generated approximately $1.1 billion of gross domestic product (GDP) during 2023, and $606 million of indirect GDP through ancillary business activities.
- Paid $795 million in royalties to local landowners in 2023.
- EQT employees volunteered over 16,100 hours in local communities during 2023.
- Invested over $56 million in local communities through philanthropic investments and infrastructure improvements.
We continued to be a leading voice for our industry, with a strong foundation of ESG oversight and governance to hold us accountable for the things we do and say.
- Became the first independent, domestic operator to sign the Oil and Gas Decarbonization Charter announced at COP28.
- Included environmental and safety performance measures in our incentive compensation programs to align executive compensation opportunity with the successful achievement of our environmental and safety goals.
- Leveraged proprietary digital tools to measure and analyze nearly 400 ESG metrics to position us for opportunities to enhance our performance.
I am excited to share details about these initiatives and more with you in our 2023 ESG Report, Unlimited Potential. This report was produced under disclosure frameworks maintained by the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), the Task Force on Climate-related Financial Disclosures (TCFD), and the American Exploration and Production Council (AXPC). This report outlines our 2023 operational data, environmental and governance disclosures, and inclusion, diversity, employee engagement and social outreach efforts. For more information, please see our ESG Performance Highlights summary.
Sincerely,
Toby Z. Rice
President and Chief Executive Officer
June 25, 2024
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