“ETRN” Trading on NYSE Begins
Equitrans Midstream Corporation (NYSE:ETRN), one of the largest
natural gas gatherers and transmission pipeline operators in the
United States, with a premier asset footprint in the Marcellus and
Utica Shale region, today announced that it has completed the
previously announced spin-off from EQT Corporation (NYSE: EQT). As
a standalone publicly traded company, Equitrans Midstream’s common
stock begins “regular-way” trading today on the NYSE under the
symbol “ETRN.”
The separation of EQT’s upstream and midstream businesses into
two standalone companies – Equitrans Midstream Corporation and EQT
Corporation – took effect at 11:59 p.m. (ET) on November 12, 2018
through a pro rata distribution of 80.1% of the outstanding common
stock of ETRN. EQT shareholders retained their EQT shares and
received 0.80 shares of ETRN common stock for each share of EQT
common stock outstanding as of the close of business on November 1,
2018. EQT retained 19.9% of the outstanding common stock of
ETRN.
“Today, we launch Equitrans Midstream as a powerful independent
company with a very bright future,” stated Thomas F. Karam,
president and chief executive officer. “Through its long history
and unique asset position across the Marcellus and Utica shale
region, EQT built and transformed its midstream business by
capturing opportunities that achieved tremendous growth. ETRN now
emerges with strong fundamentals and – as we work to deliver
solutions for our customers and create additional value for our
shareholders – our goal is to achieve the scale and scope of a
premier, top-tier midstream company.”
ETRN’s strategy will focus on leveraging existing pipeline and
storage infrastructure systems by developing organic growth
projects that will expand its footprint across the Appalachian
Basin with delivery to major demand markets. These organic projects
will primarily involve gathering and transporting natural gas
supplies from the most prolific natural gas basin in North America;
increasing access to local, regional, and national markets; and
providing water and other midstream services to producers across
the Basin. Additionally, ETRN’s ongoing asset optimization efforts,
disciplined capital spending, and operating cost control will
create meaningful value for ETRN shareholders.
“During the past decade, EQT continued to build its midstream
business in parallel with upstream growth to create one of the
strongest midstream companies in the Appalachian Basin,” said Diana
Charletta, chief operating officer of Equitrans Midstream. “We are
laser-focused on the execution of our inflight projects, including
the Mountain Valley Pipeline, which are expected to drive more than
50% growth in EBITDA over the next three years. During this same
period, the strength of our customer relationships and associated
contracts are expected to drive an increase in ETRN’s firm
revenues, from 54% to approximately 60% of total revenue.”
ETRN owns the general partner interest and a 91.3% limited
partner interest in EQGP Holdings, LP (NYSE: EQGP), which owns the
general partner interest, all of the incentive distribution rights,
and an approximate 17.9% limited partner interest in EQM Midstream
Partners, LP (NYSE: EQM). ETRN holds an approximate 12.7% limited
partner interest in EQM, which owns, operates, acquires and
develops natural gas gathering, transmission and storage, and water
services assets in the Appalachian Basin.
Through its ownership interests in EQGP and EQM, ETRN’s assets,
located in southwestern Pennsylvania, northern West Virginia, and
southeastern Ohio, are uniquely positioned across the Marcellus and
Utica Shales. The Equitrans transmission and storage system
provides flexibility to producers and marketers, as well as to
demand customers through its diverse supply, numerous storage
pools, and interconnectivity to other pipeline systems. Along with
existing asset connectivity options, additional projects that are
backed by firm commitments are currently underway. These projects
include the Mountain Valley Pipeline, MVP Southgate, and several
pipeline extensions to in-Basin power plants – all of which will
increase the strategic nature of ETRN’s pipeline infrastructure
system by accessing new and growing demand markets.
NON-GAAP DISCLOSURES
EQM Adjusted EBITDA
As used in this news release, 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 is a non-GAAP supplemental financial
measure that management and external users of ETRN’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 financing
methods;
- the ability of EQM’s assets to generate
sufficient cash flow to make distributions to EQM unitholders,
including EQGP and ETRN;
- 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.
ETRN believes that EQM adjusted EBITDA provides useful
information to investors in assessing ETRN’s results of operations
and financial condition. EQM adjusted EBITDA should not be
considered as an alternative to EQM net income, operating income or
any other measure of financial performance presented in accordance
with GAAP. EQM adjusted EBITDA has important limitations as an
analytical tool because it excludes some, but not all, items that
affect net income. Additionally, because EQM adjusted EBITDA may be
defined differently by other companies in its industry, ETRN’s
definition of EQM adjusted EBITDA may not be comparable to
similarly titled measures of other companies, thereby diminishing
the utility of the measures.
ETRN is unable to provide a reconciliation of EQM’s projected
adjusted EBITDA to EQM’s 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. Therefore, the
reconciliation of projected EQM adjusted EBITDA to projected EQM
net income is not available without unreasonable effort.
About Equitrans Midstream Corporation
Equitrans Midstream Corporation (ETRN) has a premier asset
footprint in the Appalachian Basin and is one of the largest
natural gas gatherers in the United States. With a rich 135-year
history in the energy industry, ETRN was launched as a standalone
company in 2018 and, through its subsidiaries, has an operational
focus on gas gathering systems, transmission and storage systems,
and water services assets that support natural gas producers across
the Basin. ETRN is helping to meet America’s growing need for
clean-burning energy and strives to provide a rewarding workplace
and enrich the communities where its employees live and work. ETRN
owns the general partner interest and a 91.3% limited partner
interest in EQGP Holdings, LP (NYSE: EQGP) and a 12.7% limited
partner interest in EQM Midstream Partners, LP (NYSE: EQM). EQGP
owns the general partner interest, all of the incentive
distribution rights, and a 17.9% limited partner interest in
EQM.
For more information on Equitrans Midstream Corporation, visit
www.equitransmidstream.com
About EQM Midstream Partners
EQM Midstream Partners, LP (EQM) is a growth-oriented limited
partnership formed 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 producers, utilities, and other customers 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.
For more information on EQM Midstream Partners, LP visit
www.eqm-midstreampartners.com
About EQGP Holdings
EQGP Holdings, LP (EQGP) 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. Equitrans Midstream Corporation owns the general
partner interest and a 91.3% limited partner interest in EQGP.
For more information on EQGP Holdings, LP, visit
www.eqm-midstreampartners.com
Cautionary Statements
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 ETRN and its
subsidiaries, including the expected growth in earnings before
interest, taxes, depreciation, and amortization and firm revenues.
These 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. ETRN
has based these forward-looking statements on current expectations
and assumptions about future events. While ETRN considers these
expectations and assumptions to be reasonable, they are inherently
subject to significant business, economic, competitive, regulatory
and other risks and uncertainties, many of which are difficult to
predict and beyond ETRN’s control. The risks and uncertainties that
may affect the operations, performance and results of ETRN’s
business and forward-looking statements include, but are not
limited to, those risks discussed in ETRN’s Registration Statement
on Form 10 and other filings with the Securities and Exchange
Commission.
Any forward-looking statement speaks only as of the date on
which such statement is made and ETRN does not intend 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 EQGP and its
subsidiaries, including EQM, is derived from publicly available
information published by the partnerships.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181113005145/en/
For Equitrans Midstream CorporationAnalyst/Investor
inquiries:Nate Tetlow, 412-553-5834Vice President, Corporate
Development and Investor
Relationsntetlow@equitransmidstream.comorMedia
inquiries:Natalie A. Cox, 412-395-3941Director,
Communicationsncox@equitransmidstream.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