EQT Midstream Partners, LP (NYSE: EQM) today announced full-year
and fourth quarter 2016 results. For the year, EQM net income
totaled $538.0 million, adjusted EBITDA was $572.6 million,
net cash provided by operating activities was $537.9 million, and
distributable cash flow was $523.3 million. EQM operating income in
2016 was $526.9 million, 17% higher than last year. For the fourth
quarter, EQM net income totaled $135.7 million, adjusted EBITDA was
$156.9 million, net cash provided by operating activities was
$157.9 million, and distributable cash flow was $135.2 million. EQM
operating income in the fourth quarter 2016 was $134.6 million, 8%
higher than the same quarter last year. The Non-GAAP Disclosures
section of this news release provides reconciliations of non-GAAP
financial measures to their most comparable GAAP financial measure
as well as important disclosures regarding projected adjusted
EBITDA and projected distributable cash flow.
EQT GP Holdings, LP (NYSE: EQGP) today announced net income
attributable to EQGP of $234.2 million for 2016 and $57.6
million for the fourth quarter 2016.
2016 EQM Highlights:
- Achieved 21% year-over-year per unit
distribution growth
- Maintained a 1.5x coverage ratio for
the year
- Generated 84% of revenue from firm
reservation fees
- Placed the Ohio Valley Connector (OVC)
pipeline into service
- Acquired the Allegheny Valley Connector
and several Marcellus gathering systems from EQT
- Completed phase one of the header
pipeline for Range Resources
Effective October 1, 2016, EQM acquired the Allegheny Valley
Connector (AVC) and several Marcellus gathering systems from EQT
Corporation (EQT) (October 2016 Acquisition). As a result of the
October 2016 Acquisition, prior period financial statements have
been retrospectively recast for all periods presented to reflect
the acquisition.
EQM fourth quarter operating revenue increased $24.3 million,
14% higher compared to the same quarter last year. The increase was
primarily due to increased firm transmission capacity and higher
contracted firm gathering capacity. In the fourth quarter, 91% of
the operating revenue was generated by firm reservation fees.
Operating expenses were up $14.6 million versus the fourth quarter
of 2015, primarily from higher depreciation and amortization from
assets placed in service during 2016, timing of activities and
increases consistent with the growth of the business.
QUARTERLY DISTRIBUTION
EQM
For the fourth quarter of 2016, EQM will pay a quarterly cash
distribution of $0.85 per unit, which will be paid on February 14,
2017 to EQM unitholders of record at the close of business on
February 3, 2017. The quarterly cash distribution is 4% higher than
the third quarter of 2016 and is 20% higher than the fourth quarter
of 2015.
EQGP
For the fourth quarter of 2016, EQGP will pay a quarterly cash
distribution of $0.177 per unit, which will be paid on February 23,
2017 to EQGP unitholders of record at the close of business on
February 3, 2017. The quarterly cash distribution is 7% higher than
the third quarter of 2016 and is 45% higher than the fourth quarter
2015 distribution. For the quarter, EQGP expects to receive $47.9
million of cash distributions from EQM and distribute $47.1
million.
GUIDANCE
Current Guidance Full-year 2017
- $MM Net Income $555 – $595 Adjusted EBITDA $670 – $710
Distributable Cash Flow $590 – $630 Q1 2017 - $MM Net Income
$132 – $142 Adjusted EBITDA $160 – $170
EQM forecasts 20% growth in its annual per unit distribution for
2017, which results in EQGP per unit distribution growth of
approximately 40%.
Beginning in 2018, EQM is targeting annual per unit distribution
growth of 15% - 20% for several years. For EQGP, the corresponding
annual per unit distribution growth target is 30% - 40%.
EQM is unable to provide a projection of its full-year 2017 net
cash provided by operating activities, the most comparable
financial measure to distributable cash flow calculated in
accordance with GAAP. Please see the Non-GAAP Disclosures section
of this news release.
EQM EXPANSION & ONGOING MAINTENANCE
CAPITAL EXPENDITURES
Expansion
Expansion capital expenditures, including capital contributions
to Mountain Valley Pipeline, LLC (MVP JV), totaled $96 million in
the fourth quarter and $656 million for the full year.
$MM Q4 2016 2016
Full-year* Ohio Valley Connector $ 10 $ 214 Header Pipeline 31 172
Gathering 15 113 Mountain Valley Pipeline 22 98 Other Transmission
& AVC 18 59 Total $ 96 $ 656
* 2016 full-year has been recast to include the October 2016
Acquisition. The total includes $38 million EQT invested in the
acquired assets prior to the October 2016 Acquisition.
Ongoing Maintenance
Ongoing maintenance capital expenditures are cash expenditures
made to maintain, over the long-term, EQM operating capacity or
operating income. EQM ongoing maintenance capital expenditures, net
of expected reimbursements, totaled $12 million in the fourth
quarter 2016 and $21 million for the year, excluding ongoing
maintenance of $6.5 million attributable to the October 2016
Acquisition prior to the acquisition.
PROJECT UPDATE
Header Pipeline
On October 1, 2016, phase one of the natural gas header pipeline
for Range Resources was placed into service, providing 75 MMcf per
day of firm capacity. The firm capacity will increase to 600 MMcf
per day upon completion of the project, which is expected in Q2 of
2017. The project is backed by a ten-year firm capacity reservation
commitment.
Mountain Valley Pipeline
The Federal Energy Regulatory Commission (FERC) issued the Draft
Environmental Impact Statement for the project in September 2016
and the Commission is currently working to develop the Final
Environmental Impact Statement. MVP JV has secured a total of 2 Bcf
per day of firm capacity commitments at 20-year terms and is
targeting a late 2018 in-service date.
NON-GAAP DISCLOSURES
EQM Adjusted EBITDA and Distributable Cash Flow
As used in this news release, EQM adjusted EBITDA means EQM’s
net income plus net interest expense, depreciation and amortization
expense, income tax expense (if applicable), preferred interest
payments received post-conversion, and non-cash long-term
compensation expense (if applicable) less equity income, AFUDC -
equity, capital lease payments and adjusted EBITDA of assets prior
to acquisition dates. As used in this news release, distributable
cash flow means EQM adjusted EBITDA less net interest expense
excluding interest income on the preferred interest, capitalized
interest and AFUDC - debt, and ongoing maintenance capital
expenditures net of expected reimbursements. Distributable cash
flow should not be viewed as indicative of the actual amount of
cash that EQM has available for distributions from operating
surplus or that EQM plans to distribute. Adjusted EBITDA and
distributable cash flow are non-GAAP supplemental financial
measures that management and external users of EQM’s consolidated
financial statements, such as industry analysts, investors, lenders
and rating agencies, use to assess:
- EQM’s operating performance as compared
to other publicly traded partnerships in the midstream energy
industry without regard to historical cost basis or, in the case of
adjusted EBITDA, financing methods;
- the ability of EQM’s assets to generate
sufficient cash flow to make distributions to EQM unitholders;
- EQM’s ability to incur and service debt
and fund capital expenditures; and
- the viability of acquisitions and other
capital expenditure projects and the returns on investment of
various investment opportunities.
EQM believes that adjusted EBITDA and distributable cash flow
provide useful information to investors in assessing EQM’s results
of operations and financial condition. Adjusted EBITDA and
distributable cash flow should not be considered as alternatives to
net income, operating income, net cash provided by operating
activities or any other measure of financial performance or
liquidity presented in accordance with GAAP. Adjusted EBITDA and
distributable cash flow have important limitations as analytical
tools because they exclude some, but not all, items that affect net
income and net cash provided by operating activities. Additionally,
because adjusted EBITDA and distributable cash flow may be defined
differently by other companies in its industry, EQM’s definition of
adjusted EBITDA and distributable cash flow may not be comparable
to similarly titled measures of other companies, thereby
diminishing the utility of the measures. The table below reconciles
adjusted EBITDA and distributable cash flow with net income and net
cash provided by operating activities as derived from the
statements of consolidated operations and cash flows to be included
in EQM’s annual report on Form 10-K for the year ended December 31,
2016.
EQM is unable to project net cash provided by operating
activities or provide the related reconciliation of projected net
cash provided by operating activities to projected distributable
cash flow, the most comparable financial measure calculated in
accordance with GAAP, because net cash provided by operating
activities includes the impact of changes in operating assets and
liabilities. Changes in operating assets and liabilities relate to
the timing of EQM’s cash receipts and disbursements that may not
relate to the period in which the operating activities occurred,
and EQM is unable to project these timing differences with any
reasonable degree of accuracy to a specific day, three or more
months in advance. EQM is also unable to provide a reconciliation
of its projected EBITDA to projected net income, the most
comparable financial measure calculated in accordance with GAAP,
because EQM does not provide guidance with respect to the
intra-year timing of its or MVP JV’s capital spending, which impact
AFUDC-debt and equity and equity earnings, among other items, that
are reconciling items between adjusted EBITDA and net income. The
timing of capital expenditures is volatile as it depends on
weather, regulatory approvals, contractor availability, system
performance and various other items. EQM provides a range for the
forecasts of net income, adjusted EBITDA and distributable cash
flow to allow for the variability in the timing of cash receipts
and disbursements, capital spending and the impact on the related
reconciling items, many of which interplay with each other.
Therefore, the reconciliations of projected distributable cash flow
and adjusted EBITDA to projected net cash provided by operating
activities and net income are not available without unreasonable
effort.
Reconciliation of EQM Adjusted EBITDA and Distributable Cash
Flow
Three Months Ended Twelve Months Ended
December 31, 2016 December 31, 2016 (in thousands)
Net income $
135,700 $
537,954 Add: Net
interest expense 5,318 16,766 Depreciation and amortization expense
19,514 62,691 Income tax expense – 10,147 Preferred Interest
payments received post conversion(1) 2,764 2,764 Non-cash long-term
compensation expense – 195 Less: Equity income (3,759 ) (9,898 )
AFUDC – equity (2,669 ) (19,402 ) Pre-acquisition capital lease
payments for AVC(2) – (17,186 ) Adjusted EBITDA attributable to the
October 2016 Acquisition assets prior to acquisition(3) –
(11,420 )
Adjusted EBITDA $
156,868
$
572,611 Less: Net interest expense excluding
interest income on the Preferred Interest(4) (7,058 ) (18,506 )
Capitalized interest and AFUDC - debt (2,562 ) (9,400 ) Ongoing
maintenance capital expenditures, net of reimbursements(5)
(12,074 ) (21,434 )
Distributable cash flow $
135,174 $
523,271 Distributions
declared(6)
: Limited Partner $
68,495 $
254,859 General Partner 29,327
99,859 Total $
97,822 $
354,718
Coverage ratio
1.38x
1.48x
Three Months EndedDecember 31,
2016
Twelve Months EndedDecember 31,
2016
(in thousands)
Net cash provided by operating activities $
157,886 $ 537,904 Adjustments: Pre-acquisition
capital lease payments for AVC(2) – (17,186 ) Capitalized interest
and AFUDC - debt (2,562 ) (9,400 ) Ongoing maintenance capital
expenditures, net of reimbursements(5) (12,074 ) (21,434 ) Current
tax expense – 1,373 Adjusted EBITDA attributable to October 2016
Acquisition assets prior to acquisition (3) – (11,420 ) Other,
including changes in working capital (8,076 ) 43,434
Distributable Cash Flow $ 135,174 $ 523,271
(1) In conjunction with the October 2016 Acquisition,
the operating agreement of EQT Energy Supply, LLC (EES) was amended
and the accounting for EQM's preferred interest in EES converted
from a cost method investment to a note receivable effective
October 1, 2016. There were no changes in the annual $11 million
cash payments; however, distributions from EES subsequent to this
amendment were recorded partly as a reduction in the note
receivable and partly as interest income, which is included in net
interest expense in the accompanying statements of consolidated
operations. Distributions received from EES prior to this amendment
in 2016 were included in other income in the accompanying
statements of consolidated operations. The calculation of adjusted
EBITDA changed from the prior period in order to continue to
reflect the cash payments from the preferred interest in a
consistent manner despite the change in accounting treatment. (2)
Reflects capital lease payments due under the lease. These lease
payments were generally made monthly on a one-month lag prior to
the October 2016 Acquisition. (3) Adjusted EBITDA attributable to
AVC, excluding income tax expense and AFUDC – equity, was
previously included in EQM's results as a result of the capital
lease and was eliminated from adjusted EBITDA by subtracting the
capital lease payment; therefore, there is no adjustment for AVC's
adjusted EBITDA prior to acquisition other than the capital lease
payments, income tax expense and AFUDC - equity. Adjusted EBITDA
attributable to the acquisition assets other than AVC prior to the
October 2016 Acquisition for the periods presented was excluded
from EQM’s adjusted EBITDA calculations as these amounts were
generated prior to EQM’s acquisition; therefore, they were not
amounts that could have been distributed to EQM’s unitholders.
Adjusted EBITDA attributable to these assets prior to acquisition
for the year ended December 31, 2016 was calculated as net income
of $1.3 million plus depreciation and amortization expense of $2.1
million plus income tax expense of $10.1 million less interest
income of $0.5 million less AFUDC - equity of $1.6 million. (4)
The calculation of distributable cash flow
changed from the prior period in order to continue to reflect the
cash payments from the preferred interest in a consistent manner
despite the change in accounting treatment.
(5) For the year ended December 31, 2016, excludes ongoing
maintenance of $6.5 million attributable to the October 2016
Acquisition assets prior to acquisition. (6) Reflects cash
distribution of $0.85 per limited partner unit for the fourth
quarter and 80,581,758 million limited partner units outstanding as
of December 31, 2016. If limited partner units are issued on or
prior to February 3, 2017, the aggregate level of all distributions
will be higher than reflected.
Q4 2016 Webcast Information
EQM and EQGP will host a joint live webcast with security
analysts today at 11:30 a.m. ET. Topics include fourth quarter and
full-year 2016 financial results, operating results, and other
matters. The webcast is available at www.eqtmidstreampartners.com,
with a replay available for seven days following the call.
EQT, which owns EQGP’s general partner and holds a 90% limited
partner interest in EQGP, will also host a webcast with security
analysts today at 10:30 a.m. ET. EQM and EQGP unitholders are
encouraged to listen to EQT’s webcast, as the discussion may
include topics relevant to EQM and EQGP, such as EQT's financial
and operational results, and specific reference to EQM and EQGP
fourth quarter and full-year 2016 results. The webcast can be
accessed via www.eqt.com, with a replay available for seven days
following the call.
About EQT Midstream
Partners:
EQT Midstream Partners, LP is a growth-oriented limited
partnership formed by EQT Corporation to own, operate, acquire, and
develop midstream assets in the Appalachian Basin. The Partnership
provides midstream services to EQT Corporation and third-party
companies through its strategically located transmission, storage,
and gathering systems that service the Marcellus and Utica regions.
The Partnership owns approximately 950 miles of FERC-regulated
interstate pipelines; and also owns approximately 1,800 miles of
high- and low-pressure gathering lines.
Visit EQT Midstream Partners, LP at
www.eqtmidstreampartners.com.
About EQT GP Holdings:
EQT GP Holdings, LP is a limited partnership that owns the
general partner interest, all of the incentive distribution rights,
and a portion of the limited partner interests in EQT Midstream
Partners, LP. EQT Corporation owns a 90% limited partner interest
in EQT GP Holdings, LP.
Visit EQT GP Holdings, LP at
www.eqtmidstreampartners.com.
EQM and EQGP management speak to investors from time to time and
the analyst presentation for these discussions, which is updated
periodically, is available via the EQM and EQGP website at
www.eqtmidstreampartners.com.
Cautionary Statements
The distribution amounts from EQM to EQGP are subject to change
if EQM issues additional common units on or prior to the record
date for the fourth quarter 2016 distribution.
Disclosures in this news release contain certain forward-looking
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended. Statements that do not relate strictly to
historical or current facts are forward-looking. Without limiting
the generality of the foregoing, forward-looking statements
contained in this news release specifically include the
expectations of plans, strategies, objectives and growth and
anticipated financial and operational performance of EQGP and its
subsidiaries, including EQM, including guidance regarding EQM’s
gathering and transmission and storage revenue and volume growth;
revenue and expense projections; infrastructure programs (including
the timing, cost, capacity and sources of funding with respect to
gathering and transmission projects); the timing, cost, capacity
and expected interconnects with facilities and pipelines of the
Mountain Valley Pipeline (MVP); the ultimate terms, partners and
structure of the MVP joint venture; natural gas production growth
in EQM’s operating areas for EQT and third parties; asset
acquisitions, including EQM’s ability to complete any asset
purchases and anticipated synergies and accretion associated with
any acquisition; internal rate of return (IRR); compound annual
growth rate (CAGR); capital commitments, projected capital
contributions and capital and operating expenditures, including the
amount and timing of capital expenditures reimbursable by EQT,
capital budget and sources of funds for capital expenditures;
liquidity and financing requirements, including funding sources and
availability; distribution amounts, rates and growth; projected net
income, projected adjusted EBITDA, projected EBITDA and projected
distributable cash flow; the timing and amount of future issuances
of EQM common units under EQM’s $750 million at the market equity
distribution program; the expected cash distributions from EQT
Energy Supply, LLC; changes in EQM’s credit ratings; the effects of
government regulation and litigation; and tax position. These
forward looking statements involve risks and uncertainties that
could cause actual results to differ materially from projected
results. Accordingly, investors should not place undue reliance on
forward-looking statements as a prediction of actual results. EQM
and EQGP have based these forward-looking statements on current
expectations and assumptions about future events. While EQM and
EQGP consider these expectations and assumptions to be reasonable,
they are inherently subject to significant business, economic,
competitive, regulatory and other risks and uncertainties, many of
which are difficult to predict and beyond the partnerships’
control. The risks and uncertainties that may affect the
operations, performance and results of EQM’s and EQGP’s business
and forward-looking statements include, but are not limited to,
those set forth under (i) Item 1A, “Risk Factors” of EQM’s Form
10-K for the year ended December 31, 2015 as filed with the SEC and
Item 1A, “Risk Factors” of EQM’s Form 10-K for the year ended
December 31, 2016 to be filed with the SEC, and (ii) Item 1A, “Risk
Factors” of EQGP’s Form 10-K for the year ended December 31, 2015
as filed with the SEC and Item 1A, “Risk Factors” of EQGP’s Form
10-K for the year ended December 31, 2016 to be filed with the SEC,
in each case as may be updated by any subsequent Form 10-Qs. Any
forward-looking statement speaks only as of the date on which such
statement is made, and neither EQM nor EQGP intends to correct or
update any forward-looking statement, whether as a result of new
information, future events or otherwise.
Information in this news release regarding EQT Corporation and
its subsidiaries, other than EQM and EQGP, is derived from publicly
available information published by EQT.
This release serves as qualified notice to nominees under
Treasury Regulation Sections 1.1446-4(b)(4) and (d). Please note
that 100% of EQM’s and EQGP’s distributions to foreign investors
are attributable to income that is effectively connected with a
United States trade or business. Accordingly, all of EQM’s and
EQGP’s distributions to foreign investors are subject to federal
income tax withholding at the highest effective tax rate for
individuals or corporations, as applicable. Nominees, and not EQM
or EQGP, as applicable, are treated as the withholding agents
responsible for withholding on the distributions received by them
on behalf of foreign investors.
EQT Midstream Partners, LP
Statements of
Consolidated Operations (unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, (in thousands, except per
unit amounts)
2016
2015(1)
2016(1)
2015(1)
Operating revenues(2) $ 195,014 $ 170,713 $ 735,614 $ 632,936
Operating expenses: Operating and maintenance 21,526 18,451
73,213 70,103 Selling, general and administrative 19,384 14,324
72,761 61,902 Depreciation and amortization 19,514 13,013
62,691 49,895 Total operating expenses 60,424
45,788 208,665 181,900 Operating income
134,590 124,925 526,949 451,036 Other income 6,428 3,659 37,918
8,694 Net interest expense 5,318 4,982 16,766
21,345 Income before income taxes 135,700 123,602 548,101
438,385 Income tax expense (benefit) – 3,281 10,147
(16,741 ) Net income $ 135,700 $ 120,321 $
537,954 $ 455,126 Calculation of limited
partner interest in net income: Net income $ 135,700 $ 120,321 $
537,954 $ 455,126 Less: Pre-acquisition net income allocated to
parent – (7,612 ) (21,861 ) (72,782 ) General partner interest in
net income – GP units (2,387 ) (2,087 ) (9,173 ) (7,455 ) General
partner interest in net income - IDRs (27,607 ) (16,210 ) (93,568 )
(46,992 ) Limited partner interest in net income $ 105,706 $
94,412 $ 413,352 $ 327,897 Net income
per limited partner unit - basic $ 1.31 $ 1.27 $ 5.21 $ 4.71 Net
income per limited partner unit - diluted $ 1.31 $ 1.26 $ 5.21 $
4.70 Weighted average limited partner units outstanding –
basic 80,599 74,626 79,367 69,612 Weighted average limited partner
units outstanding – diluted 80,599 74,788 79,388 69,773 (1)
The twelve months ended December 31, 2015 have been recast to
include the pre-acquisition results of the Northern West Virginia
Marcellus gathering system (NWV Gathering), which was acquired by
EQM on March 17, 2015 and the October 2016 Acquisition. The twelve
months ended December 31, 2016 and the three months ended December
31, 2015 have been recast to include the pre-acquisition results of
the October 2016 Acquisition. (2) Operating revenues included
affiliate revenues of $143.0 million and $125.2 million for Q4 2016
and Q4 2015, respectively and $551.4 million and $462.4 million for
the years ended December 31, 2016 and December 31, 2015,
respectively.
EQT Midstream Partners,
LP
Transmission
Results of Operations
Three Months Ended Twelve Months Ended
December 31, December 31, 2016
2015(1)
2016(1)
2015(1)
Financial Data (in thousands) Transmission revenues Firm
reservation fee revenues $ 87,813 $ 65,139 $ 277,816 $ 247,231
Volumetric based fee revenues: Usage fees under firm contracts(2)
3,405 12,429 45,679 42,646 Usage fees under interruptible contracts
3,607 2,444 14,625 7,954
Total volumetric based fee revenues 7,012 14,873
60,304 50,600 Total transmission
revenues $ 94,825 $ 80,012 $ 338,120 $ 297,831
Operating expenses Operating and maintenance 10,899 9,462
34,846 33,092 Selling, general and administrative 8,477 7,320
33,083 31,425 Depreciation and amortization 11,612
6,236 32,269 25,535 Total operating
expenses $ 30,988 $ 23,018 $ 100,198 $ 90,052
Operating income $ 63,837 $ 56,994
$ 237,922 $ 207,779
Operating
Data (in BBtu per day) Transmission pipeline throughput Firm
capacity reservation 2,054 1,730 1,651 1,841 Volumetric based
services(3) 57 387 430 281
Total transmission throughput 2,111 2,117 2,081 2,122
Average contracted firm transmission reservation commitments 3,485
2,795 2,814 2,624 Capital Expenditures (in thousands) $
38,092 $ 69,065 $ 292,049 $ 203,706 (1) The twelve months
ended December 31, 2015 have been recast to include the
pre-acquisition results of NWV Gathering and the October 2016
Acquisition. The twelve months ended December 31, 2016 and the
three months ended December 31, 2015 have been recast to include
the pre-acquisition results of the October 2016 Acquisition. (2)
Includes commodity charges and fees on
volumes transported in excess of firm contracted capacity.
(3) Includes volumes transported under interruptible contracts and
volumes transported in excess of firm contracted capacity.
EQT Midstream Partners, LP
Gathering Results
of Operations
Three Months Ended Twelve Months Ended
December 31, December 31, 2016
2015(1)
2016(1)
2015(1)
Financial Data (in thousands) Gathering revenues Firm
reservation fee revenues $ 90,110 $ 76,600 $ 339,237 $ 267,517
Volumetric based fee revenues: Usage fees under firm contracts(2)
6,893 7,739 38,408 33,021 Usage fees under interruptible contracts
3,186 6,362 19,849 34,567
Total volumetric based fee revenues 10,079 14,101
58,257 67,588 Total gathering revenues
$ 100,189 $ 90,701 $ 397,494 $ 335,105
Operating expenses Operating and maintenance 10,627 8,989 38,367
37,011 Selling, general and administrative 10,907 7,004 39,678
30,477 Depreciation and amortization 7,902 6,777
30,422 24,360 Total operating expenses
$ 29,436 $ 22,770 $ 108,467 $ 91,848
Operating income $ 70,753 $ 67,931 $
289,027 $ 243,257
Operating Data (in
BBtu per day) Gathered volumes Firm capacity reservation 1,697
1,297 1,553 1,140 Volumetric based services(3) 285
430 420 485 Total gathered volumes
1,982 1,727 1,973 1,625 Capital Expenditures (in thousands)
$ 47,560 $ 43,109 $ 295,315 $ 225,537 (1) The twelve months
ended December 31, 2015 have been recast to include the
pre-acquisition results of NWV Gathering and the October 2016
Acquisition. The twelve months ended December 31, 2016 and the
three months ended December 31, 2015 have been recast to include
the pre-acquisition results of the October 2016 Acquisition. (2)
Includes fees on volumes gathered in excess of firm contracted
capacity. (3) Includes volumes gathered under interruptible
contracts and volumes gathered in excess of firm contracted
capacity.
EQT Midstream Partners, LP
Capital
Expenditure Summary
Three Months Ended Twelve Months Ended
December 31, December 31, (in thousands)
2016
2015(1)
2016(1)
2015(1)
Expansion capital expenditures(2) $ 73,546 $ 95,796 $ 558,071
$ 388,442 Maintenance capital expenditures: Ongoing
maintenance 12,098 15,450 28,498 37,422 Funded regulatory
compliance 8 928 795
3,379 Total maintenance capital expenditures 12,106
16,378 29,293 40,801
Total capital expenditures $ 85,652 $ 112,174 $ 587,364
$ 429,243 (1) The twelve months ended December
31, 2015 have been recast to include the pre-acquisition results of
NWV Gathering and the October 2016 Acquisition. The twelve months
ended December 31, 2016 and the three months ended December 31,
2015 have been recast to include the pre-acquisition results of the
October 2016 Acquisition. (2) Does not include capital
contributions made to MVP JV. EQM made capital contributions to MVP
JV of $22.1 million and $35.5 million in Q4 2016 and Q4 2015 and
$98.4 million and $84.4 million in 2016 and 2015.
EQT GP Holdings, LP
Statements of
Consolidated Operations (unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, (in thousands, except per
unit amounts)
2016
2015(1)
2016(1)
2015(1)
Operating revenues(2) $ 195,014 $ 170,713 $ 735,614 $ 632,936
Operating expenses: Operating and maintenance 21,526 18,451
73,213 70,103 Selling, general and administrative 20,042 15,008
75,726 63,958 Depreciation and amortization 19,514 13,013
62,691 49,895 Total operating expenses 61,082 46,472
211,630 183,956 Operating income 133,932
124,241 523,984 448,980 Other income 6,428 3,659 37,918 8,694 Net
interest expense 5,318 4,983 16,761 21,348
Income before income taxes 135,042 122,917 545,141 436,326 Income
tax expense – 3,281 10,147 2,326 Net income $
135,042 $ 119,636 $ 534,994 $ 434,000 Net income attributable to
noncontrolling interests 77,448 66,823 300,815
226,397 Net income attributable to EQT GP Holdings, LP $
57,594 $ 52,813 $ 234,179 $ 207,603
Calculation of limited partners' interest in net income: Net income
attributable to EQT GP Holdings, LP $ 57,594 $ 52,813 $ 234,179
207,603 Less: results attributable to the pre-IPO period – – –
(42,238 ) Less: pre-acquisition income allocated to parent – (7,612
) (21,861 ) (61,676 ) Limited partners' interest in net income $
57,594 $ 45,201 $ 212,318 $ 103,689 Net
income per limited partner unit – basic and diluted $ 0.22 $ 0.17 $
0.80 $ 0.39 Weighted average limited partner units
outstanding – basic and diluted 266,176 266,168 266,175 266,168 (1)
The twelve months ended December 31, 2015 have been recast
to include the pre-acquisition results of NWV Gathering and the
October 2016 Acquisition. The twelve months ended December 31, 2016
and the three months ended December 31, 2015 have been recast to
include the pre-acquisition results of the October 2016
Acquisition. (2) Operating revenues included affiliate revenues of
$143.0 million and $125.2 million for Q4 2016 and Q4 2015,
respectively and $551.4 million and $462.4 million for the years
ended December 31, 2016 and December 31, 2015, respectively.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170202005167/en/
EQT Midstream Partners, LP and EQT GP Holdings, LPAnalyst
inquiries please contact:Nate Tetlow – Investor Relations
Director, 412-553-5834ntetlow@eqtmidstreampartners.comorPatrick
Kane – Chief Investor Relations Officer,
412-553-7833pkane@eqtmidstreampartners.comorMedia inquiries
please contact:Natalie Cox – Corporate Director,
Communications, 412-395-3941ncox@eqtmidstreampartners.com
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