Please replace the release with the following corrected version
due to a correction in the 2018 Adjusted EBITDA.
The corrected release reads:
Q3 2018 RESULTS ANNOUNCED FOR EQM MIDSTREAM
PARTNERS AND EQGP HOLDINGS
EQM Midstream Partners, LP (NYSE: EQM) today announced third
quarter 2018 results, including net income of $209.9 million,
adjusted EBITDA of $280.1 million, net cash provided by
operating activities of $242.6 million, and distributable cash flow
of $218.6 million. EQM operating income was $233.5 million, which
was 60% higher than 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.
EQGP Holdings, LP (NYSE: EQGP) today announced net income
attributable to EQGP of $97.5 million for the third quarter
2018.
HIGHLIGHTS:
- Increased EQM per unit distribution by
14% and EQGP by 38% compared to Q3 2017
- Generated 93% of transmission and
storage operating revenue from firm reservation fees
- Generated 45% of gathering operating
revenue from firm reservation fees
- Adjusted EBITDA increases more than 50%
over next three years
- Equitrans Midstream Corporation
expected to begin Regular Way trading on November 13, 2018
On July 23, 2018 EQM closed the acquisition of Rice Midstream
Partners LP (RMP), with each RMP unitholder receiving 0.3319 units
of EQM. On May 1, 2018 EQM acquired the Olympus gathering system
and a 75% interest in the Strike Force gathering system (May 2018
Acquisition) from EQT Corporation (EQT). EQM also purchased the
remaining 25% interest in the Strike Force gathering system from
Gulfport Energy on May 1, 2018. As a result of the RMP acquisition
and the May 2018 Acquisition, EQM's financial statements have been
retrospectively recast to include the pre-acquisition results of
each acquisition from the time common control began on November 13,
2017, which is when EQT closed its acquisition of Rice Energy.
EQM's third quarter operating revenue increased $158.3 million,
a 77% increase compared to the same quarter last year. The RMP
acquisition and the May 2018 Acquisition accounted for $147.8
million of the increase, with the remaining increase from higher
contracted firm transmission and gathering capacity. Operating
expenses increased $70.5 million versus the third quarter of 2017,
with approximately $67.0 million resulting from the RMP acquisition
and the May 2018 Acquisition. The remaining increase was primarily
related to $2.2 million in transaction costs related to the RMP
acquisition, and higher system throughput and additional assets
placed in service, consistent with the growth in the business.
QUARTERLY DISTRIBUTION
EQM
For the third quarter of 2018, EQM will pay a quarterly cash
distribution of $1.115 per unit, which will be paid on November 14,
2018 to EQM unitholders of record at the close of business on
November 2, 2018. The quarterly cash distribution is 2% higher than
the second quarter of 2018 and is 14% higher than the third quarter
of 2017.
EQGP
For the third quarter of 2018, EQGP will pay a quarterly cash
distribution of $0.315 per unit, which will be paid on November 23,
2018 to EQGP unitholders of record at the close of business on
November 2, 2018. The quarterly cash distribution is 3% higher than
the second quarter of 2018 and is 38% higher than the third quarter
2017 distribution. For the quarter, EQGP expects to receive $97.7
million of cash distributions from EQM and distribute $95.3
million.
OUTLOOK
EQM 2018 Guidance Full-year 2018 Net Income
($MM)* $930 – $950
Adjusted EBITDA ($MM)**
$990 – $1,010
Distributable Cash Flow ($MM) $810 – $830 *
Reflects financial recast for May 2018
Acquisition and RMP.
**
The original release had an incorrect
range for the projected full-year 2018 EQM adjusted EBITDA. This
range is corrected in this news release.
Please see the Non-GAAP Disclosures section of this news release
for information regarding reconciliations of projected Non-GAAP
measures.
Growth Projections
2019 2020
2021
EQM Net Income ($B) $1.0 $1.1 $1.2 EQM Adjusted EBITDA ($B) $1.3
$1.7 $1.8 Expansion Capex + MVP capital contributions ($B) $2.0
$0.7 $0.5
EQM EXPANSION & ONGOING MAINTENANCE
CAPITAL EXPENDITURES
Expansion
Expansion capital expenditures and capital contributions to
Mountain Valley Pipeline, LLC (MVP JV), totaled $489 million for
the third quarter 2018 and $1.0 billion year-to-date.
$MM
Three Months Ended September 30,
2018
Nine Months Ended September 30,
2018
2018 Full-year Forecast*
Mountain Valley Pipeline $263
$446
$900 Gathering $183 $501 $750 Transmission $35 $70 $100 Water $8
$17 $25 Total $489 $1,034 $ 1,775
* Includes full-year May 2018 Acquisition
and RMP expansion capital expenditures. Approximately $51.8 million
of expansion capital expenditures had been spent on the May 2018
Acquisition assets prior to the May 2018 Acquisition. Approximately
$84.5 million of expansion capital expenditures had been spent on
the RMP assets prior to the RMP 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 $14 million in the third
quarter 2018 and $25 million year-to-date. EQM forecasts full-year
2018 ongoing maintenance capital expenditures of $45 million.
PROJECT UPDATE
Mountain Valley Pipeline
On October 2, 2018, the U.S. Court of Appeals for the Fourth
Circuit issued a decision to vacate the Clean Water Act Section 404
stream and wetland crossing permit (Nationwide 12 permit) issued by
the Huntington District of the U.S. Army Corps of Engineers
(USACE). Subsequently, the Norfolk District and the Pittsburgh
District of the USACE suspended its Nationwide 12 permit pending
resolution of the Nationwide 12 permit by the Huntington District.
The court decision and suspension impacts stream and wetland
crossings in West Virginia and Virginia.
During the past few months, the West Virginia Department of
Environmental Protection (WVDEP) has proposed modifications to its
Section 401 Nationwide Permit Certification which clarify that a
72-hour limitation does not apply to dry-cut crossing methods and
other environmentally protective crossing methods. MVP JV intends
to apply for a new or reissued permit with the USACE as soon as
practical following the WVDEP modification process. MVP JV expects
to secure the Nationwide 12 permit from the USACE in Q1 2019.
MVP JV continues construction activities at the three compressor
sites and along much of the upland portions of the route. MVP JV
anticipates a fourth quarter 2019 in-service date and estimates a
total project cost of $4.6 billion, with EQM funding $2.2 billion.
MVP JV has secured a total of 2 Bcf per day of firm capacity
commitments at 20-year terms.
MVP Southgate
The MVP Southgate project will receive gas from MVP and extend
approximately 70 miles south to new delivery points in Rockingham
and Alamance Counties, North Carolina. The project is anchored by a
300 MMcf per day firm capacity commitment from PSNC Energy. The
preliminary project cost estimate is $350 to $500 million,
depending on final project scope. The capital is expected to be
spent in 2019 and 2020. EQM has a 33% ownership interest and will
operate the pipeline. Subject to approval by the FERC, MVP
Southgate has a targeted in-service date of the fourth quarter
2020.
Hammerhead Pipeline
The Hammerhead pipeline is designed as a 1.2 Bcf per day
gathering header pipeline that will traverse approximately 64 miles
from southwestern Pennsylvania to Mobley, West Virginia, where both
the MVP and the Ohio Valley Connector originate. The pipeline is
estimated to cost $555 million and is expected to be placed
in-service during the fourth quarter of 2019 in-conjunction with
MVP.
EQUITRANS MIDSTREAM
CORPORATION
In February 2018 EQT announced a plan to separate its upstream
and midstream businesses. Following the separation, Equitrans
Midstream Corporation (NYSE: ETRN) will own the midstream interest
held by EQT, which consists of the general partner interest in
EQGP, 276.0 million units of EQGP and 15.4 million units of
EQM.
Each share of EQT common stock held as of the close of business
on November 1, 2018 (Record Date) will receive 0.8 share of ETRN
common stock. The distribution date is November 12, 2018.
The “when issued” trading period for ETRN will run from October
31, 2018 through November 12, 2018. ETRN will trade under the
symbol “ETRN WI” during “when issued” trading. Trades made in ETRN
during the “when issued” period will settle after the completion of
the distribution. On November 13, 2018, “regular-way” trading will
commence on the NYSE for ETRN under the symbol “ETRN.”
In connection with the separation, ETRN will hold an investor
presentation on Monday, October 29, 2018. The presentation will be
webcast live beginning at approximately 10:00 AM until 11:30 AM,
Eastern Time via EQT’s web site at www.eqt.com and via ETRN’s web
site at www.equitransmidstream.com, with a replay available for
seven days following the call.
NON-GAAP DISCLOSURES
EQM Adjusted EBITDA and Distributable Cash Flow
As used in this news release, EQM adjusted EBITDA means net
income attributable to EQM plus net interest expense, depreciation,
amortization of intangible assets, payments on EQM's preferred
interest in EQT Energy Supply, LLC (Preferred Interest), non-cash
long-term compensation expense and transaction costs less equity
income, AFUDC - equity and adjusted EBITDA of assets prior to
acquisition. Adjusted EBITDA attributable to RMP for the three
months ended September 30, 2018 was calculated as net income
plus net interest expense, depreciation and non-cash compensation
expense. Run rate adjusted EBITDA as used in this news release
means EQM’s adjusted EBITDA for the third quarter of 2018 plus the
RMP adjusted EBITDA prior to merger, annualized for four quarters.
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,
ongoing maintenance capital expenditures net of expected
reimbursements and transaction costs. 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, run rate 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, run rate adjusted EBITDA and
distributable cash flow provide useful information to investors in
assessing EQM’s results of operations and financial condition.
Adjusted EBITDA, run rate 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, run rate 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 definitions
of adjusted EBITDA, run rate 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 quarterly report on Form 10-Q for the
quarter ended September 30, 2018.
Projected firm project EBITDA means the projected earnings
before interest, taxes and depreciation of EQM’s firm capacity
gathering and transmission projects, including the Hammerhead,
Equitrans Expansion and other gathering projects, plus EQM’s
proportionate interest of the projected earnings before interest,
taxes and depreciation of Mountain Valley Pipeline, LLC’s MVP and
MVP Southgate projects. Projected water EBITDA means the projected
earnings before interest, taxes and depreciation of EQM’s water
services business. Projected firm project EBITDA and projected
water EBITDA 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 the anticipated impact of EQM’s firm
capacity projects, both on an aggregate and project-by-project
basis, and EQM’s water services business on EQM’s operating
performance, the project returns on firm capacity projects and
EQM’s ability to incur and service debt and fund capital
expenditures. Firm project EBITDA and water EBITDA should not be
considered as alternatives to net income, operating income or any
other measure of financial performance presented in accordance with
GAAP. Firm project EBITDA and water EBITDA have important
limitations as analytical tools because they exclude some, but not
all, items that affect net income. Additionally, because firm
project EBITDA and water EBITDA may be defined differently by other
companies in EQM’s industry, the definitions of firm project EBITDA
and water EBITDA may not be comparable to similarly titled measures
of other companies, thereby diminishing the utility of the
measures.
EQM has not provided projected net income from the firm projects
or the projected net income of EQM’s water business segment, the
most comparable financial measures calculated in accordance with
GAAP, or reconciliation of projected firm project EBITDA or
projected water EBITDA to projected net income of the firm projects
or projected net income of EQM’s water business segment. The
projects are under construction projects that, upon completion,
will be reported in EQM’s Gathering and Transmission business
segments. EQM does not allocate certain costs, such as interest
expenses, to individual assets within its business segments. In
addition, for the MVP and MVP Southgate projects, EQM does not
provide guidance with respect to the intra-year timing of its or
Mountain Valley Pipeline, LLC’s capital spending, which impact
AFUDC-debt and equity and equity earnings, among other things, that
are reconciling items between adjusted firm project EBITDA and net
income of the projects. The timing of capital expenditures is
volatile as it depends on weather, regulatory approvals, contractor
availability, system performance and various other items.
Therefore, the projected net income of the firm projects, in the
aggregate or on a project-by-project basis, and the projected net
income of EQM’s water business segment, and reconciliations of
projected firm project EBITDA and projected water EBITDA to
projected net income of the firm projects and projected net income
of EQM’s water business segment are not available without
unreasonable effort.
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 adjusted EBITDA or run rate adjusted 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 Mountain
Valley Pipeline, LLC’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, run rate adjusted EBITDA and adjusted EBITDA to projected net
cash provided by operating activities and net income, as
applicable, are not available without unreasonable effort.
RMP 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, may use to assess
impact of the measures on EQM’s future financial results and cash
flows.
EQM believes that RMP adjusted EBITDA and distributable cash
flow provide useful information to investors in assessing its
financial condition and results of operations. RMP adjusted EBITDA
and distributable cash flow should not be considered as
alternatives to RMP’s net income, operating income, net cash
provided by operating activities or any other measure of financial
performance or liquidity presented in accordance with GAAP. RMP
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 RMP adjusted EBITDA and
distributable cash flow may be defined differently by other
companies in EQM’s industry, RMP adjusted EBITDA and distributable
cash flow may not be comparable to similarly titled measures of
other companies, thereby diminishing the utility of the
measures.
Reconciliation of EQM Adjusted EBITDA
and Distributable Cash Flow
(Thousands)
Three Months Ended September 30,
2018
Net income $ 209,927 Add: Net interest expense 41,005
Depreciation 43,567 Amortization of intangible assets 10,387
Preferred Interest payments 2,746 Non-cash long-term compensation
expense 636 Transaction costs 2,161 Less: Equity income (16,087 )
AFUDC – equity (1,448 ) Adjusted EBITDA attributable to RMP prior
to the merger (12,825 ) Adjusted EBITDA $ 280,069 Less:
Net interest expense excluding interest
income on the PreferredInterest
(42,921 ) Capitalized interest and AFUDC – debt (3,202 )
Ongoing maintenance capital expenditures
net of expectedreimbursements
(13,181 ) Transaction costs (2,161 ) Distributable cash flow $
218,604 Distributions declared (1): Limited Partner $
134,309 General Partner 73,426 Total $ 207,735 Coverage
Ratio 1.05x Net cash provided by operating activities $
242,575 Adjustments: Capitalized interest and AFUDC – debt (3,202 )
Principal payments received on the Preferred Interest 1,109
Ongoing maintenance capital expenditures
net of expectedreimbursements
(13,181 ) Adjusted EBITDA attributable to RMP prior to the merger
(12,825 ) Other, including changes in working capital 4,128
Distributable cash flow $ 218,604 (1)
Reflects cash distribution of $1.115 per
limited partner unit for the third quarter 2018 and 120,456,425
limited partner units outstanding as of July 25, 2018. If limited
partner units are issued on or prior to November 2, 2018, the
aggregate level of all distributions will be higher.
Q3 2018 Webcast Information
EQM and EQGP will host a joint live webcast with security
analysts today at 11:30 a.m. ET. Topics include third quarter 2018
financial results, operating results, the separation of EQT’s
production and midstream businesses and other matters. The webcast
is available at www.eqm-midstreampartners.com, with a replay
available for seven days following the call.
EQT, which owns EQGP’s general partner and holds a 91% 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, specific reference to EQM and EQGP third
quarter 2018 results and the separation of EQT’s production and
midstream businesses. The webcast can be accessed via www.eqt.com, with a replay available for seven
days following the call.
About EQM Midstream
Partners:
EQM Midstream Partners, LP (EQM) is a growth-oriented limited
partnership formed by EQT Corporation to own, operate, acquire, and
develop midstream assets in the Appalachian Basin. As the third
largest gatherer of natural gas in the United States, EQM provides
midstream services to EQT Corporation and other producers through
its strategically located natural gas transmission, storage, and
gathering systems, and water services to support energy development
and production in the Marcellus and Utica regions. EQM owns
approximately 950 miles of FERC-regulated interstate pipelines and
approximately 2,130 miles of high-and low-pressure gathering
lines.
Visit EQM Midstream Partners, LP at www.eqm-midstreampartners.com.
About EQGP Holdings:
EQGP 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 EQM Midstream Partners,
LP. EQT Corporation owns the general partner interest and a 91%
limited partner interest in EQGP Holdings, LP.
Visit EQGP Holdings, LP at www.eqm-midstreampartners.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.eqm-midstreampartners.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 third quarter 2018 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, transmission and storage and water revenue and volume
growth; revenue and expense projections; infrastructure programs
(including the timing, cost, capacity and sources of funding with
respect to gathering, transmission and water projects); the cost,
capacity, timing of regulatory approvals and anticipated in-service
date of the Mountain Valley Pipeline (MVP) mainline and MVP
Southgate projects; the ultimate terms, partners and structure of,
and EQM's ownership interests in, the MVP joint ventures; the
timing of the proposed separation of EQT's production and midstream
businesses, the parties' ability to complete the separation and the
effects of the change of control of EQM and EQGP on the
partnerships; the expected synergies resulting from the
streamlining transactions and the expected disynergies associated
with the separation of EQT’s production and midstream businesses;
asset acquisitions, including EQM’s ability to complete any asset
purchases and anticipated synergies and accretion associated with
any acquisition; the expected benefits to EQM resulting from EQT's
acquisition of Rice Energy Inc. and EQM’s acquisition of RMP;
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, including EQM’s plan to
increase its borrowing capacity to up to $3 billion; liquidity and
financing requirements, including funding sources and availability;
distribution amounts, rates and growth; the structure and timing of
any simplification of the midstream structure to address EQM’s
incentive distribution rights, if pursued and implemented;
projected net income, projected adjusted EBITDA, projected
distributable cash flow and projected coverage ratio; the timing
and amount of future issuances of EQM common units; 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 Item 1A, “Risk Factors” of EQM’s
Form 10-K for the year ended December 31, 2017 as filed with
the Securities and Exchange Commission (SEC) and Item 1A, “Risk
Factors” of EQGP’s Form 10-K for the year ended December 31,
2017 as 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.
EQM MIDSTREAM PARTNERS, LP AND
SUBSIDIARIES
STATEMENTS OF CONSOLIDATED OPERATIONS
(UNAUDITED) (1)
Three Months Ended September
30,
2018 2017
(Thousands, except per unit
amounts)
Operating revenues (2) $ 364,584
$
206,293 Operating expenses: Operating and maintenance 48,092 19,589
Selling, general and administrative 29,038 18,758 Depreciation
43,567 22,244 Amortization of intangible assets 10,387 — Total
operating expenses 131,084 60,591 Operating income 233,500 145,702
Equity income 16,087 6,025 Other income 1,345 637 Net interest
expense 41,005 9,426 Net income $ 209,927 $ 142,938
Calculation of limited partner interest in net income: Net income $
209,927 $ 142,938 Less pre-acquisition net income allocated to
parent (8,490 ) — Less general partner interest in net income –
general partner units (2,379 ) (2,515 )
Less general partner interest in net
income – incentive distributionrights
(70,967 ) (37,615 ) Limited partner interest in net income $
128,091 $ 102,808 Net income per limited partner unit –
basic and diluted $ 1.14 $ 1.28 Weighted average limited partner
units outstanding – basic and diluted 111,980 80,603 (1)
EQM’s consolidated financial statements have been
retrospectively recast to include the pre-acquisition results of
Rice Olympus Midstream LLC (ROM), Strike Force Midstream Holdings
LLC (Strike Force) and Rice West Virginia Midstream LLC (Rice WV),
which were acquired by EQM effective on May 1, 2018 (the May 2018
Acquisition) and RMP, which was merged with and into EQM effective
on July 23, 2018 (the EQM-RMP Merger). (2) Operating revenues
included affiliate revenues from EQT of $276.9 million and $154.2
million for the three months ended September 30, 2018 and 2017,
respectively.
EQM MIDSTREAM PARTNERS, LP AND
SUBSIDIARIES
GATHERING RESULTS OF OPERATIONS
(1)
Three Months Ended September
30,
2018 2017 FINANCIAL DATA
(Thousands, except per day
amounts)
Firm reservation fee revenues $ 112,598 $ 104,772 Volumetric based
fee revenues: Usage fees under firm contracts (2) 8,661 7,873 Usage
fees under interruptible contracts (3) 131,602 3,877 Total
volumetric based fee revenues 140,263 11,750 Total operating
revenues 252,861 116,522 Operating expenses: Operating and
maintenance 18,850 10,104 Selling, general and administrative
20,363 10,503 Depreciation 25,359 9,983 Amortization of intangible
assets 10,387 — Total operating expenses 74,959 30,590 Operating
income $ 177,902 $ 85,932
OPERATIONAL DATA Gathering
volumes (BBtu per day) Firm capacity reservation 2,114 1,838
Volumetric based services (4) 4,437 370 Total gathered volumes
6,551 2,208 Capital expenditures $ 194,477 $ 48,182
(1) EQM’s consolidated financial statements have been
retrospectively recast to include the pre-acquisition results of
the May 2018 Acquisition and the EQM-RMP Merger. (2) Includes fees
on volumes gathered in excess of firm contracted capacity. (3)
Includes volumes from contracts under which EQM has agreed to hold
capacity available without charging a capacity reservation fee. (4)
Includes volumes gathered under interruptible contracts and volumes
gathered in excess of firm contracted capacity.
EQM MIDSTREAM PARTNERS, LP AND
SUBSIDIARIES
TRANSMISSION RESULTS OF OPERATIONS
(1)
Three Months Ended September
30,
2018 2017 FINANCIAL DATA
(Thousands, except per day
amounts)
Firm reservation fee revenues $ 82,669 $ 84,438 Volumetric based
fee revenues: Usage fees under firm contracts (2) 5,331 3,427 Usage
fees under interruptible contracts 1,350 1,906 Total volumetric
based fee revenues 6,681 5,333 Total operating revenues 89,350
89,771 Operating expenses: Operating and maintenance 10,721 9,485
Selling, general and administrative 7,581 8,255 Depreciation 12,357
12,261 Total operating expenses 30,659 30,001 Operating income $
58,691 $ 59,770 Equity income $ 16,087 $ 6,025
OPERATIONAL DATA Transmission pipeline throughput (BBtu per
day) Firm capacity reservation 2,927 2,517 Volumetric based
services (3) 104 21 Total transmission pipeline throughput 3,031
2,538
Average contracted firm transmission
reservation commitments (BBtuper day)
3,658 3,474 Capital expenditures $ 37,626 $ 22,312
(1) EQM’s consolidated financial statements have been
retrospectively recast to include the pre-acquisition results of
the May 2018 Acquisition and the EQM-RMP Merger. (2) Includes fees
on volumes transported in excess of firm contracted capacity as
well as usage fees and fees on all volumes transported under firm
contracts. (3) Includes volumes transported under interruptible
contracts and volumes transported in excess of firm contracted
capacity.
EQM MIDSTREAM PARTNERS, LP AND
SUBSIDIARIES
WATER RESULTS OF OPERATIONS
Three Months Ended September
30,
2018
2017
FINANCIAL DATA (Thousands) Water services revenues $
22,373 $ — Operating expenses: Operating and maintenance 18,521 —
Selling, general and administrative 1,094 — Depreciation 5,851 —
Total operating expenses 25,466 — Operating (loss) income $ (3,093
) $ —
OPERATIONAL DATA Water services volumes (MMgal)
449 — Capital expenditures $ 7,981 $ —
EQM MIDSTREAM PARTNERS, LP AND
SUBSIDIARIES
CAPITAL EXPENDITURE SUMMARY
(1)
Three Months Ended September
30,
2018 2017 (Thousands) Expansion capital
expenditures (2) $ 226,078 $ 60,679 Ongoing maintenance capital
expenditures 14,006 9,815 Total capital expenditures $ 240,084 $
70,494 (1) EQM’s consolidated financial statements
have been retrospectively recast to include the pre-acquisition
results of the May 2018 Acquisition and the EQM-RMP Merger. (2)
Expansion capital expenditures do not include capital contributions
made to the MVP JV of $263.2 million and $43.5 million for the
three months ended September 30, 2018 and 2017, respectively.
EQGP HOLDINGS, LP AND
SUBSIDIARIES
STATEMENTS OF CONSOLIDATED OPERATIONS
(UNAUDITED) (1)
Three Months Ended September
30,
2018 2017
(Thousands, except per unit
amounts)
Operating revenues (2) $ 364,584 $ 206,293 Operating expenses:
Operating and maintenance
48,092 19,589 Selling, general and administrative 31,619 19,301
Depreciation 43,567 22,244 Amortization of intangible assets 10,387
— Total operating expenses 133,665 61,134 Operating income 230,919
145,159 Equity income 16,087 6,025 Other income 1,345 637 Net
interest expense 40,966 9,414 Net income 207,385 142,407 Net income
attributable to noncontrolling interests 109,896 75,463 Net income
attributable to EQGP $ 97,489 $ 66,944 Calculation of
limited partner interest in net income: Net income attributable to
EQGP $ 97,489 $ 66,944 Less pre-acquisition net income allocated to
parent (2,386 ) — Limited partner interest in net income $ 95,103 $
66,944 Net income per common unit – basic and diluted $ 0.31
$ 0.25 Weighted average common units outstanding – basic and
diluted 302,490 266,186 (1) EQGP’s consolidated
financial statements have been retrospectively recast to include
the pre-acquisition results of the May 2018 Acquisition and the
EQM-RMP Merger. (2) Operating revenues included affiliate revenues
from EQT of $276.9 million and $154.2 million for the three months
ended September 30, 2018 and 2017, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181025005217/en/
For EQM Midstream Partners, LP and EQGP Holdings,
LPAnalyst inquiries:Nate Tetlow, 412-553-5834Investor
Relations Directorntetlow@eqtmidstreampartners.comorMedia
inquiries:Natalie Cox, 412-395-3941Corporate Director,
Communicationsncox@eqt.com
EQT GP HOLDINGS, LP (NYSE:EQGP)
Historical Stock Chart
From Jun 2024 to Jul 2024
EQT GP HOLDINGS, LP (NYSE:EQGP)
Historical Stock Chart
From Jul 2023 to Jul 2024