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(Mark One)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

or
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			FOR THE TRANSITION PERIOD FROM TO
			COMMISSION FILE NUMBER			001-38629

Pennsylvania						83-0516635
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)

(Registrant's telephone number, including area code)

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, no par value

ETRN

New York Stock Exchange

Large Accelerated Filer

☒

Accelerated Filer

☐

Emerging Growth Company

☐

Non-Accelerated Filer

☐

Smaller Reporting Company

☐

 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).        Yes  ☐  No  ☒

									Page No.
Glossary of Commonly Used Terms, Abbreviations and Measurements									3
Part I.			Financial Information:
Item 1.						Financial Statements (Unaudited):
						Statements of Consolidated Comprehensive Income for the Three and Nine Months Ended September 30, 2020 and 2019			5
						Statements of Consolidated Cash Flows for the Nine Months Ended September 30, 2020 and 2019			7
						Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019			8
						Statements of Consolidated Equity and Mezzanine Equity for the Three and Nine Months Ended September 30, 2020 and 2019			10
						Notes to Consolidated Financial Statements			12
Item 2.						Management's Discussion and Analysis of Financial Condition and Results of Operations			35
Item 3.						Quantitative and Qualitative Disclosures About Market Risk			53
Item 4.						Controls and Procedures			56
Part II.			Other Information:
Item 1.						Legal Proceedings			57
Item 1A.						Risk Factors			61
Item 2.						Unregistered Sales of Equity Securities and Use of Proceeds			66
Item 6.						Exhibits			67
Signature									68

Allowance for Funds Used During Construction (AFUDC) – carrying costs for the construction of certain long-lived regulated assets are capitalized and amortized over the related assets' estimated useful lives. The capitalized amount for construction of regulated assets includes interest cost and a designated cost of equity for financing the construction of these regulated assets.

Appalachian Basin – the area of the United States composed of those portions of West Virginia, Pennsylvania, Ohio, Maryland, Kentucky and Virginia that lie in the Appalachian Mountains.

associated gas – natural gas that is produced as a byproduct of principally oil production activities.

British thermal unit – a measure of the amount of energy required to raise the temperature of one pound of water one-degree Fahrenheit.

EQGP – EQGP Holdings, LP (formerly known as EQT GP Holdings, LP) and its subsidiaries.

EQM – EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP) and its subsidiaries.

EQT – EQT Corporation (NYSE: EQT) and its subsidiaries.

EQT Global GGA – that certain Gas Gathering and Compression Agreement entered into on February 26, 2020 (the EQT Global GGA Effective Date) by the Company (through EQM) with EQT and certain affiliates of EQT for the provision of certain gas gathering services to EQT in the Marcellus and Utica Shales of Pennsylvania and West Virginia, as subsequently amended.

firm contracts – contracts for gathering, transmission, storage and water services that reserve an agreed upon amount of pipeline or storage capacity regardless of the capacity used by the customer during each month, and generally obligate the customer to pay a fixed, monthly charge.

firm reservation fee revenues – contractually obligated revenues that include fixed monthly charges under firm contracts and fixed volumetric charges under MVC (defined below) contracts.

gas – natural gas.

Minimum volume commitments (MVC or MVCs) – contracts for gathering or water services that obligate the customer to pay for a fixed amount of volumes daily, monthly, annually or over the life of the contract.

Mountain Valley Pipeline (MVP) – an estimated 300 mile, 42-inch diameter natural gas interstate pipeline with a targeted capacity of 2.0 Bcf per day that will span from the Company's existing transmission and storage system in Wetzel County, West Virginia to Pittsylvania County, Virginia, providing access to the growing Southeast demand markets.

Mountain Valley Pipeline, LLC (MVP Joint Venture) – a joint venture among the Company and, as applicable, affiliates of each of NextEra Energy, Inc., Consolidated Edison, Inc. (Con Edison), AltaGas Ltd. and RGC Resources, Inc. that is constructing the MVP and the MVP Southgate (defined below) projects.

MVP Southgate – a proposed 75-mile interstate pipeline that will extend from the MVP at Pittsylvania County, Virginia to new delivery points in Rockingham and Alamance Counties, North Carolina.

Preferred Interest – the preferred interest that the Company has in EQT Energy Supply, LLC (EES), a subsidiary of EQT.

throughput – the volume of natural gas transported or passing through a pipeline, plant, terminal or other facility during a particular period.

Water Services Letter Agreement – that certain letter agreement entered into on February 26, 2020 by the Company (through EQM) and EQT, pursuant to which EQT agreed to utilize the Company for the provision of water services in Pennsylvania under existing water services agreements and new water services agreements if negotiated between the parties.

wellhead – the equipment at the surface of a well used to control the well's pressure and the point at which the hydrocarbons and water exit the ground. 

Abbreviations			Measurements
ASC – Accounting Standards Codification			Btu = one British thermal unit
ASU – Accounting Standards Update			BBtu = billion British thermal units
FASB – Financial Accounting Standards Board			Bcf   = billion cubic feet
FERC – U.S. Federal Energy Regulatory Commission			Mcf = thousand cubic feet
GAAP – United States Generally Accepted Accounting Principles			MMBtu = million British thermal units
IDRs – incentive distribution rights			MMcf  = million cubic feet
NYMEX – New York Mercantile Exchange			MMgal  = million gallons
NYSE – New York Stock Exchange
SEC – U.S. Securities and Exchange Commission

			Three Months Ended September 30,												Nine Months Ended September 30,
			2020						2019						2020						2019
			(Thousands, except per share amounts)
Operating revenues (a)			$	350,000					$	408,434					$	1,143,703					$	1,204,383
Operating expenses:
Operating and maintenance (a)			33,905						43,021						113,990						117,460
Selling, general and administrative (a)			31,626						24,151						94,186						83,553
Separation and other transaction costs			984						256						23,797						24,606
Depreciation			66,772						59,460						191,271						166,730
Amortization of intangible assets			16,204						14,540						46,990						38,677
Impairments of long-lived assets (b)			—						305,459						55,581						385,594
Total operating expenses			149,491						446,887						525,815						816,620
Operating income (loss)			200,509						(38,453)						617,888						387,763
Equity income (c)			60,917						44,448						171,233						112,293
Other income (d)			21,864						70						39,006						2,637
Loss on early extinguishment of debt (e)			—						—						24,864						—
Net interest expense (a)			86,411						65,606						219,960						188,268
Income (loss) before income taxes			196,879						(59,541)						583,303						314,425
Income tax expense			28,440						1,948						81,846						45,868
Net income (loss)			168,439						(61,489)						501,457						268,557
Net income attributable to noncontrolling interests			3,973						4,336						210,765						203,562
Net income (loss) attributable to Equitrans Midstream			164,466						(65,825)						290,692						64,995
Preferred dividends (f)			14,628						—						44,132						—
Net income (loss) attributable to Equitrans Midstream common shareholders			$	149,838					$	(65,825)					$	246,560					$	64,995
Earnings (loss) per share of common stock attributable to Equitrans Midstream common shareholders - basic (g)			$	0.35					$	(0.26)					$	0.78					$	0.26
Earnings (loss) per share of common stock attributable to Equitrans Midstream common shareholders - diluted (g)			$	0.35					$	(0.26)					$	0.78					$	0.25
Weighted average common shares outstanding - basic			432,773						254,915						314,411						254,868
Weighted average common shares outstanding - diluted			432,821						254,915						314,411						254,887
Statement of comprehensive income (loss):
Net income (loss)			$	168,439					$	(61,489)					$	501,457					$	268,557
Other comprehensive income (loss), net of tax:
Pension and other post-retirement benefits liability adjustment, net of tax expense of $10, $7, $30 and $22			30						21						90						(252)
Other comprehensive income (loss)			30						21						90						(252)
Comprehensive income (loss)			168,469						(61,468)						501,547						268,305
Less: Comprehensive income attributable to noncontrolling interests			3,973						4,336						210,765						203,562
Less: Comprehensive income attributable to preferred dividends (f)			14,628						—						44,132						—
Comprehensive income (loss) attributable to Equitrans Midstream common shareholders			$	149,868					$	(65,804)					$	246,650					$	64,743
Dividends declared per common share			$	0.15					$	0.45					$	0.45					$	1.35

(f)See Notes 2 and 11 for disclosures regarding the Equitrans Midstream Preferred Shares (as defined in Note 1).

			Nine Months Ended September 30,
			2020						2019
			(Thousands)
Cash flows from operating activities:
Net income			$	501,457					$	268,557
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			191,271						166,730
Amortization of intangible assets			46,990						38,677
Deferred income taxes			79,415						45,868
Impairments of long-lived assets (Note 4)			55,581						385,594
Equity income (Note 8)			(171,233)						(112,293)
Other income			(38,403)						(3,866)
Loss on early extinguishment of debt			24,864						—
Share-based compensation plans			9,388						1,900
Changes in other assets and liabilities:
Accounts receivable			(11,021)						28,773
Accounts payable			3,151						(72,369)
Accrued interest			(5,592)						(39,103)
Deferred revenue			148,770						—
Other assets and other liabilities			(10,443)						(17,999)
Net cash provided by operating activities			824,195						690,469
Cash flows from investing activities:
Capital expenditures			(377,592)						(769,937)
Capital contributions to the MVP Joint Venture			(144,264)						(512,852)
Bolt-on Acquisition (as defined in Note 3), net of cash acquired			—						(837,231)
Principal payments received on the Preferred Interest			3,726						3,471
Net cash used in investing activities			(518,130)						(2,116,549)
Cash flows from financing activities:
Proceeds from revolving credit facility borrowings			1,965,000						1,969,000
Payments on revolving credit facility borrowings			(2,080,000)						(2,325,500)
Proceeds from the issuance of long-term debt			1,600,000						1,400,000
Debt issuance costs and credit facility origination fees			(26,720)						(2,563)
Payment for retirement of long-term debt			(594,000)						(32,825)
Redemption of EQM Series A Preferred Units (as defined in Note 1)			(617,338)						—
Distributions paid to noncontrolling interest EQM unitholders			(128,770)						(285,834)
Distributions paid to holders of EQM Series A Preferred Units (as defined in Note 1)			(61,931)						(22,979)
Dividends paid to holders of Equitrans Midstream Preferred Shares			(2,251)						—
Dividends paid to common shareholders			(213,524)						(333,493)
Cash Shares and Cash Amount (as defined in Note 6)			(52,323)						—
Purchase of EQGP Common Units (as defined in Note 2)			—						(238,455)
Proceeds from issuance of EQM Series A Preferred Units, net of offering costs			—						1,158,313
Net cash (used in) provided by financing activities			(211,857)						1,285,664
Net change in cash and cash equivalents			94,208						(140,416)
Cash and cash equivalents at beginning of period			88,322						294,172
Cash and cash equivalents at end of period			$	182,530					$	153,756
Cash paid during the period for:
Interest, net of amount capitalized			$	221,918					$	223,257
Non-cash activity during the period for:
Issuance of Equitrans Midstream common stock pursuant to the EQM Merger (as defined in Note 1), net of tax			$	2,736,229					$	—
Issuance of Equitrans Midstream Preferred Shares pursuant to the Restructuring Agreement (as defined in Note 1)			667,214						—
Contract liability			121,483						—

			September 30, 2020						December 31, 2019
			(Thousands)
ASSETS
Current assets:
Cash and cash equivalents			$	182,530					$	88,322
Accounts receivable (net of allowance for credit losses of $3,609 and allowance for doubtful accounts of $285 as of September 30, 2020 and December 31, 2019, respectively) (a)(b)			263,657						255,344
Other current assets (a)			86,855						31,546
Total current assets			533,042						375,212
Property, plant and equipment			8,782,420						8,583,124
Less: accumulated depreciation			(943,687)						(859,157)
Net property, plant and equipment			7,838,733						7,723,967
Investment in unconsolidated entity			2,722,081						2,324,108
Goodwill			486,698						486,698
Net intangible assets			732,795						797,439
Deferred income tax asset			—						90,597
Other assets (a)			317,331						243,688
Total assets			$	12,630,680					$	12,041,709
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of revolving credit facility borrowings and long-term debt (c)			$	302,500					$	6,000
Accounts payable			101,134						128,114
Capital contributions payable to the MVP Joint Venture			127,626						45,150
Accrued interest			67,863						73,455
Accrued liabilities			73,187						83,238
Total current liabilities			672,310						335,957
Long-term liabilities:
Revolving credit facility borrowings (d)			485,000						902,500
Long-term debt			6,440,628						5,421,983
Contract liability (e)			321,775						—
Deferred income tax liability			293,583						—
Regulatory and other long-term liabilities			95,889						99,189
Total liabilities			8,309,185						6,759,629
Mezzanine equity:
Equitrans Midstream Preferred Shares, 30,018 and 0 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively (f)			681,842						—
Shareholders' equity:
Common stock, no par value, 432,470 and 254,745 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively			3,955,934						1,292,804
Retained deficit			(781,363)						(618,062)
Accumulated other comprehensive loss			(1,936)						(2,026)
Total common shareholders' equity			3,172,635						672,716
Noncontrolling interests			467,018						4,609,364
Total shareholders' equity			3,639,653						5,282,080
Total liabilities, mezzanine equity and shareholders' equity			$	12,630,680					$	12,041,709

(b)See Note 1 for a discussion of the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.

									Common Stock
																											Accumulated
																					Retained						Other
									Shares						No						Earnings						Comprehensive						Noncontrolling						Total
									Outstanding						Par Value						(Deficit)						Loss						Interests						Equity
									(Thousands, except per share and unit amounts)
Balance at January 1, 2019									254,271						$	425,370					$	33,932					$	(1,509)					$	4,801,840					$	5,259,633
Other comprehensive income (net of tax):
Net income									—						—						56,299						—						143,267						199,566
Pension and other post-retirement benefits liability adjustment, net of tax expense of $8									—						—						316						(295)						—						21
Dividends ($0.41 per share)									—						—						(104,251)						—						—						(104,251)
Share-based compensation plans									413						853						—						—						255						1,108
Distributions paid to noncontrolling interest unitholders ($1.13 per common unit for EQM)									—						—						—						—						(94,030)						(94,030)
Purchase of EQGP Common Units									—						(38,648)						—						—						(199,807)						(238,455)
Net changes in ownership of consolidated entities (See Note 2)									—						991,098						—						—						(1,337,641)						(346,543)
Balance at March 31, 2019									254,684						$	1,378,673					$	(13,704)					$	(1,804)					$	3,313,884					$	4,677,049
Other comprehensive income (net of tax):
Net income									—						—						74,521						—						55,959						130,480
Pension and other post-retirement benefits liability adjustment, net of tax expense of $7									—						—						—						22						—						22
Dividends ($0.45 per share)									—						—						(114,608)						—						—						(114,608)
Share-based compensation plans									7						1,510						—						—						—						1,510
Distributions paid to noncontrolling interest unitholders ($1.145 per common unit for EQM)									—						—						—						—						(95,278)						(95,278)
Issuance of EQM Series A Preferred Units, net of offering costs									—						—						—						—						1,158,313						1,158,313
Bolt-on Acquisition									—						—						—						—						486,062						486,062
Net changes in ownership of consolidated entities									—						1,627						—						—						—						1,627
Balance at June 30, 2019									254,691						$	1,381,810					$	(53,791)					$	(1,782)					$	4,918,940					$	6,245,177
Other comprehensive income (net of tax):
Net income (loss)									—						—						(65,825)						—						4,336						(61,489)
Pension and other post-retirement benefits liability adjustment, net of tax expense of $7									—						—						—						21						—						21
Dividends ($0.45 per share)									—						—						(114,634)						—						—						(114,634)
Share-based compensation plans, net									53						(718)						—						—						—						(718)
Distributions paid to noncontrolling interest unitholders ($1.160 per common unit for EQM)									—						—						—						—						(96,526)						(96,526)
Distribution paid to EQM Series A Preferred unitholders ($0.9339 per unit)									—						—						—						—						(22,979)						(22,979)
Bolt-on Acquisition measurement period adjustments (Note 3)									—						—						—						—						(7,602)						(7,602)
Balance at September 30, 2019									254,744						$	1,381,092					$	(234,250)					$	(1,761)					$	4,796,169					$	5,941,250

																																							Mezzanine
																																							Equity
			Common Stock
																					Accumulated																		Equitrans
															Retained						Other																		Midstream
			Shares						No						Earnings						Comprehensive						Noncontrolling						Total						Preferred
			Outstanding						Par Value						(Deficit)						Loss						Interests						Equity						Shares
			(Thousands, except per share and unit amounts)
Balance at January 1, 2020			254,745						$	1,292,804					$	(618,062)					$	(2,026)					$	4,609,364					$	5,282,080					$	—
Other comprehensive income (net of tax):
Net income			—						—						69,732						—						119,828						189,560						—
Pension and other post-retirement benefits liability adjustment, net of tax expense of $10			—						—						—						30						—						30						—
Dividends on common shares ($0.45 per share)			(178)						—						(115,400)						—						—						(115,400)						—
Share-based compensation plans			85						4,500						—						—						285						4,785						—
Distributions paid to noncontrolling interest unitholders ($1.16 per common unit for EQM)			—						—						—						—						(96,526)						(96,526)						—
Distributions paid to holders of EQM Series A Preferred Units ($1.0364 per EQM Series A Preferred Unit)			—						—						—						—						(25,501)						(25,501)						—
Share Purchase Agreements (as defined in Note 6)			(25,300)						—						(190,992)						—						—						(190,992)						—
Adoption of Topic 326 (as defined in Note 1)			—						—						(3,718)						—						—						(3,718)						—
Balance at March 31, 2020			229,352						$	1,297,304					$	(858,440)					$	(1,996)					$	4,607,450					$	5,044,318					$	—
Other comprehensive income (net of tax):
Net income			—						—						54,243						—						86,964						141,207						2,251
Pension and other post-retirement benefits liability adjustment, net of tax expense of $10			—						—						—						30						—						30						—
Dividends on common shares ($0.15 per share)			—						—						(34,634)						—						—						(34,634)						—
Share-based compensation plans			(20)						1,856						—						—						—						1,856						—
Distributions paid to noncontrolling interest unitholders ($0.3875 per common unit for EQM)			—						—						—						—						(32,244)						(32,244)						—
Distributions paid to holders of EQM Series A Preferred Units ($1.0364 per EQM Series A Preferred Unit)			—						—						—						—						(25,501)						(25,501)						—
Partial period distributions on EQM Series A Preferred Units converted in the EQM Merger			—						—						—						—						(10,929)						(10,929)						—
Redemption of EQM Series A Preferred Units			—						—						(27,253)						—						(590,085)						(617,338)						—
Restructuring Agreement (as defined in Note 1)			—						(82,717)						—						—						(579,157)						(661,874)						667,214
EQM Merger (as defined in Note 1)			203,137						2,736,229						—						—						(2,993,453)						(257,224)						—
Balance at June 30, 2020			432,469						$	3,952,672					$	(866,084)					$	(1,966)					$	463,045					$	3,547,667					$	669,465
Other comprehensive income (net of tax):
Net income			—						—						149,838						—						3,973						153,811						14,628
Pension and other post-retirement benefits liability adjustment, net of tax expense of $10			—						—						—						30						—						30						—
Dividends on common shares ($0.15 per share)			—						—						(65,117)						—						—						(65,117)						—
Share-based compensation plans			1						3,262						—						—						—						3,262						—
Dividends paid to holders of Equitrans Midstream Preferred Shares ($0.075 per share)																																							(2,251)
Balance at September 30, 2020			432,470						$	3,955,934					$	(781,363)					$	(1,936)					$	467,018					$	3,639,653					$	681,842

1.    Financial Statements

Organization. On November 12, 2018, Equitrans Midstream Corporation (together with its consolidated subsidiaries as applicable, the Company or Equitrans Midstream), EQT and, for certain limited purposes, EQT Production Company, a wholly owned subsidiary of EQT, entered into a Separation and Distribution Agreement, pursuant to which, among other things, EQT effected the separation of EQT's midstream business, which was composed of the separately-operated natural gas gathering, transmission and storage and water services operations of EQT, from EQT's upstream business, which was composed of the natural gas, oil and natural gas liquids development, production and sales and commercial operations of EQT (the Separation), including the transfer of certain assets and liabilities to Equitrans Midstream, and distributed 80.1% of the then-outstanding shares of common stock, no par value, of Equitrans Midstream (Equitrans Midstream common stock) to EQT shareholders of record as of the close of business on November 1, 2018 (the Distribution). The Distribution was effective at 11:59 p.m., Eastern Time, on November 12, 2018. As part of the Separation, EQT retained the remaining 19.9% of the outstanding shares in Equitrans Midstream.

EQM Merger. On June 17, 2020, pursuant to that certain Agreement and Plan of Merger, dated as of February 26, 2020 (the EQM Merger Agreement), by and among the Company, EQM LP Corporation, a wholly owned subsidiary of the Company (EQM LP), LS Merger Sub, LLC, a wholly owned subsidiary of EQM LP (Merger Sub), EQM and EQGP Services, LLC, the general partner of EQM (the EQM General Partner), Merger Sub merged with and into EQM (the EQM Merger), with EQM continuing and surviving as an indirect, wholly owned subsidiary of the Company. Upon consummation of the EQM Merger, the Company acquired all of the outstanding common units representing limited partner interests in EQM (EQM Common Units) that the Company and its subsidiaries did not already own. Following the closing of the EQM Merger, EQM was no longer a publicly traded entity. See Note 2 for further information on the EQM Merger.

Preferred Restructuring Agreement. On February 26, 2020, Equitrans Midstream and EQM entered into a Preferred Restructuring Agreement (the Restructuring Agreement) with all of the holders of the Series A Perpetual Convertible Preferred Units representing limited partner interests in EQM (such units, EQM Series A Preferred Units and, such investors, collectively, the Investors), pursuant to which, at the effective time of the EQM Merger (the Effective Time): (i) EQM redeemed $600 million aggregate principal amount of the Investors' EQM Series A Preferred Units issued and outstanding immediately prior to the Restructuring Closing (defined below), which occurred substantially concurrent with the closing of the EQM Merger, for cash at 101% of the EQM Series A Preferred Unit purchase price of $48.77 per such unit (the EQM Series A Preferred Unit Purchase Price) plus any accrued and unpaid distribution amounts and partial period distribution amounts, and (ii) immediately following such redemption, each remaining issued and outstanding EQM Series A Preferred Unit was exchanged for 2.44 shares of a newly authorized and created series of preferred stock, without par value, of Equitrans Midstream, convertible into Equitrans Midstream common stock (the Equitrans Midstream Preferred Shares) on a one for one basis, in each case, in connection with the occurrence of the “Series A Change of Control” (as defined in the Fourth Amended and Restated Agreement of Limited Partnership of EQM (as amended, the Former EQM Partnership Agreement)) that occurred upon the closing of the EQM Merger (collectively, the Restructuring and, the closing of the Restructuring, the Restructuring Closing). See Note 2 for further information on the Restructuring Agreement.

Basis of Presentation. References in these financial statements to Equitrans Midstream or the Company refer collectively to Equitrans Midstream Corporation and, as applicable, its consolidated subsidiaries for all periods presented, unless otherwise indicated.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard amended guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, this standard eliminated the probable initial recognition threshold in then current GAAP, and, in its place, requires an entity to recognize its current estimate of all expected credit losses. The amendments affected loans, debt securities, trade receivables, contract assets, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope of the standard that have the contractual right to receive cash. In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses (Topic 326). The update provides entities with targeted transition relief that is intended to increase comparability of financial statement information for some entities that otherwise would have measured similar financial instruments using different measurement methodologies. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. The update clarifies and addresses stakeholders' specific issues in ASU 2016-13.

			Accounts Receivable						Contract Asset (a)						Other Assets (b)						Total
Balance at December 31, 2019			$	(285)					$	—					$	—					$	(285)
Adoption of Topic 326			(2,708)						—						(1,010)						(3,718)
Provision for (recovery of) expected credit losses			(616)						(222)						26						(812)
Balance at September 30, 2020			$	(3,609)					$	(222)					$	(984)					$	(4,815)

(a)    Included in other current assets in the consolidated balance sheets.

(b)    Includes the Company's Preferred Interest in EES and other long-term receivables.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement, Changes to the Disclosure Requirements for Fair Value Measurement, which makes a number of changes to the hierarchy associated with Level 1, 2 and 3 fair value measurements and the related disclosure requirements. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this standard on January 1, 2020. The adoption of this standard did not have an impact on the Company's financial statements.

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which enhances and simplifies various aspects of the income tax accounting guidance including the elimination of certain exceptions related to the approach for intra-period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company early-adopted the standard in the first quarter of 2020 with no significant effect on its financial statements or related disclosures.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848), which provides practical expedients for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. This guidance is applicable for the Amended EQM Credit Facility, the Amended 2019 EQM Term Loan Agreement (as defined in Note 9) and the Eureka Credit Facility, as well as for each dividend following March 31, 2024 for the Equitrans Midstream Preferred Shares, which each use the London Inter-Bank Offered Rate (LIBOR) as a reference rate. The ASU is effective immediately but is only available through December 31, 2022. The Company is currently evaluating the potential impact of this standard on its financial statements.

In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the amendments in the ASU 2020-06 also simplify the guidance in ASC Subtopic 815-40, Derivatives and Hedging: Contracts in Entity’s Own Equity, by removing certain criteria that must be satisfied in order to classify a contract as equity. Finally, the amendments revise the guidance on calculating earnings per share, requiring use of the if-converted method for all convertible instruments and rescinding an entity’s ability to rebut the presumption of share settlement for instruments that may be settled in cash or other assets. The amendments will be effective for fiscal years beginning after December 15, 2021. Early adoption is permitted for fiscal years beginning after December 15, 2020. Adoption of the guidance must commence at the beginning of the annual fiscal year. The Company is currently evaluating the potential impact of this standard on its financial statements.

2.    Investments in Consolidated, Non-Wholly Owned Entities

EQM Merger. As discussed in Note 1, on June 17, 2020, the Company, EQM, EQM LP, Merger Sub and the EQM General Partner completed the EQM Merger, pursuant to which Merger Sub merged with and into EQM, with EQM continuing and surviving as an indirect, wholly owned subsidiary of the Company. As a result of the EQM Merger, EQM is no longer a publicly traded entity.

Because the Company controlled EQM both before and after the EQM Merger, the increase in the Company’s ownership interest in EQM resulting from the EQM Merger was accounted for as an equity transaction and reflected as a reduction of the noncontrolling interest associated with public ownership of EQM Common Units, offset by an increase in common stock, no par value. No gain or loss was recognized in the Company’s statement of consolidated comprehensive income as a result of the EQM Merger. In addition, the tax effects of the EQM Merger are reported as adjustments to deferred income taxes and Equitrans Midstream common stock, consistent with ASC 740, Income Taxes.

Preferred Restructuring Agreement. As discussed in Note 1, on June 17, 2020, concurrently with the closing of the EQM Merger: (i) EQM redeemed $600 million aggregate principal amount of the EQM Series A Preferred Units issued and outstanding immediately prior to the Effective Time for cash at 101% of the EQM Series A Preferred Unit Purchase Price plus any accrued and unpaid distribution amounts and partial period distribution amounts, and (ii) immediately following such redemption, each remaining issued and outstanding EQM Series A Preferred Unit was exchanged for 2.44 Equitrans Midstream Preferred Shares, in each case, in connection with the occurrence of the “Series A Change of Control” (as defined in the Former EQM Partnership Agreement) that occurred upon the closing of the EQM Merger. The Equitrans Midstream Preferred Shares issued were not registered under the Securities Act of 1933, as amended (the Securities Act), in reliance upon the exemption provided in Section 4(a)(2) of the Securities Act and/or Regulation D promulgated thereunder.

The Equitrans Midstream Preferred Shares were a new class of security as of June 2020. They rank pari passu with any other outstanding class or series of preferred stock of the Company and senior to Equitrans Midstream common stock with respect to dividend rights and rights upon liquidation. The Equitrans Midstream Preferred Shares vote on an as-converted basis with Equitrans Midstream common stock and have certain other class voting rights with respect to any amendment to the Certificate of Designations or the Company’s Amended and Restated Articles of Incorporation that would be adverse (other than in a de minimis manner) to any of the rights, preferences or privileges of the Equitrans Midstream Preferred Shares.

3.    Mergers and Acquisitions

EQM Merger. See Note 2.

Bolt-on Acquisition. On March 13, 2019, the Company (through EQM) entered into a Purchase and Sale Agreement with North Haven Infrastructure Partners II Buffalo Holdings, LLC (NHIP), an affiliate of Morgan Stanley Infrastructure Partners, pursuant to which the Company acquired from NHIP a 60% Class A interest in Eureka Midstream Holdings, LLC (Eureka Midstream) and a 100% interest in Hornet Midstream Holdings, LLC (Hornet Midstream) (collectively, the Bolt-on Acquisition) for total consideration of approximately $1.04 billion, composed of approximately $852 million in cash, net of purchase price adjustments, and approximately $192 million in assumed pro-rata debt. At the time of the acquisition, Eureka Midstream owned a 190-mile gathering header pipeline system in Ohio and West Virginia that services both dry Utica and wet Marcellus Shale production and Hornet Midstream owned a 15-mile, high-pressure gathering system in West Virginia that connects to the Eureka Midstream system. The Bolt-on Acquisition closed on April 10, 2019 and was funded through proceeds from the March

(in thousands)						Preliminary Purchase Price Allocation (As initially reported)						Measurement Period Adjustments (a)						Purchase Price Allocation (As adjusted)
Consideration given:
Cash consideration (b)						$	861,250					$	(11,404)					$	849,846
Buyout of portion of Eureka Midstream Class B Units and incentive compensation						2,530						—						2,530
Total consideration						863,780						(11,404)						852,376
Fair value of liabilities assumed:
Current liabilities						52,458						(9,857)						42,601
Long-term debt						300,825						—						300,825
Other long-term liabilities						10,203						—						10,203
Amount attributable to liabilities assumed						363,486						(9,857)						353,629
Fair value of assets acquired:
Cash						15,145						—						15,145
Accounts receivable						16,817						—						16,817
Inventory						12,991						(26)						12,965
Other current assets						882						—						882
Net property, plant and equipment						1,222,284						(8,906)						1,213,378
Intangible assets (c)						317,000						(6,000)						311,000
Deferred tax asset						5,773						(5,268)						505
Other assets						14,567						—						14,567
Amount attributable to assets acquired						1,605,459						(20,200)						1,585,259
Noncontrolling interests						(486,062)						7,602						(478,460)
Goodwill as of April 10, 2019						$	107,869					$	(8,663)					$	99,206
Impairment of goodwill (d)																		(99,206)
Goodwill as of September 30, 2020																		$	—

(a)    The Company recorded measurement period adjustments to its preliminary acquisition date fair values due to the refinement of its valuation models, assumptions and inputs. The measurement period adjustments were based upon information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of the amounts recognized at that date.

(b)     The cash consideration for the Bolt-on Acquisition was adjusted by approximately $11.4 million related to working capital adjustments and the release of all escrowed indemnification funds to EQM.

(c)    After considering the refinements to the valuation models, the Company estimated the fair value of the customer-related intangible assets acquired as part of the Bolt-on Acquisition to be $311.0 million. As a result, the fair value of the customer-related intangible assets was decreased by $6.0 million on September 30, 2019 with a corresponding increase to goodwill. In addition, the change to the provisional amount resulted in a decrease in amortization expense and accumulated amortization of approximately $0.4 million.

(d)    During the third quarter of 2019, the Company identified impairment indicators that suggested the fair value of its goodwill was more likely than not below its carrying amount. As such, the Company performed an interim goodwill impairment assessment, which resulted in the Company recognizing impairment to goodwill of approximately $268.1 million, of which $99.2 million was associated with its Eureka/Hornet reporting unit, bringing the reporting unit's goodwill balance to zero. See Note 4 for further detail.

Goodwill. On February 26, 2020 (the EQT Global GGA Effective Date), the Company (through EQM) entered into a Gas Gathering and Compression Agreement (as amended, the EQT Global GGA) with EQT for the provision of certain gas gathering services to EQT in the Marcellus and Utica Shales of Pennsylvania and West Virginia (as further discussed in Note 6). Prior to the EQT Global GGA Effective Date, the Company operated three reportable operating segments and seven reporting units, which are one level below the operating segment level and are generally based on how segment management

Long-lived assets, including intangible assets and equity method investments. The Company evaluates long-lived assets, including related intangibles, for impairment when events or changes in circumstances indicate, in management's judgment, that the carrying value of such assets may not be recoverable. Asset recoverability is measured by comparing the carrying value of the asset or asset group with its expected future pre-tax undiscounted cash flows. These cash flow estimates require the Company to make projections and assumptions for many years into the future for pricing, demand, competition, operating cost and other factors. If the carrying amount exceeds the expected future undiscounted cash flows, the Company recognizes an

As of March 31, 2020, the Company performed a recoverability test of the Hornet Midstream long-lived assets due to decreased producer activity. As a result of the recoverability test, management determined that the carrying value of the Hornet Midstream long-lived assets (which consisted of gathering assets and customer-related intangible assets) was not recoverable under ASC 360, Impairment Testing: Long-Lived Assets Classified as Held and Used. During the first quarter of 2020, the Company estimated the fair value of the Hornet Midstream asset group and determined that the fair value was not in excess of the assets’ carrying value, which resulted in impairment charges of approximately $37.9 million to the gathering assets and approximately $17.7 million to the customer-related intangible assets both within the Company’s Gathering segment. The non-cash impairment charges were recognized during the first quarter of 2020 and are included in the impairments of long-lived assets line on the statements of consolidated comprehensive income.

The Company is also required to evaluate its equity method investments, including investments in the MVP Joint Venture, to determine whether they are impaired under ASC 323, Investments - Equity Method and Joint Ventures. The standard for determining whether an impairment must be recorded under ASC 323 is whether there occurred an other-than-temporary decline in value. The evaluation and measurement of impairments under ASC 323 involves the same uncertainties as described above for long-lived assets that the Company owns directly and accounts for in accordance with ASC 360. The estimates that the Company makes with respect to its equity method investments are based upon assumptions that management believes are reasonable, and the impact of variations in these estimates or the underlying assumptions could be material. Additionally, if the projects in which the Company holds these investments recognize an impairment under ASC 360, the Company would record its proportionate share of that impairment loss and would evaluate its investment for an other-than-temporary decline in value under ASC 323. The Company evaluated its equity method investments, including investments in the MVP Joint Venture, as of September 30, 2020 and determined that there was not an other-than-temporary decline in value.

			Three Months Ended September 30,												Nine Months Ended September 30,
			2020						2019						2020						2019
			(Thousands)
Revenues from customers:
Gathering			$	232,651					$	299,491					$	764,229					$	847,038
Transmission			93,329						87,299						288,869						289,926
Water			24,020						21,644						90,605						67,419
Total operating revenues			$	350,000					$	408,434					$	1,143,703					$	1,204,383
Operating income (loss):
Gathering (a)			$	129,186					$	(98,489)					$	400,647					$	177,720
Transmission			63,460						59,690						201,714						207,684
Water			10,118						7,722						40,173						18,980
Headquarters (b)			(2,255)						(7,376)						(24,646)						(16,621)
Total operating income (loss)			$	200,509					$	(38,453)					$	617,888					$	387,763
Reconciliation of operating income (loss) to net income (loss):
Equity income (c)			$	60,917					$	44,448					$	171,233					$	112,293
Other income			21,864						70						39,006						2,637
Loss on early extinguishment of debt			—						—						24,864						—
Net interest expense			86,411						65,606						219,960						188,268
Income tax expense			28,440						1,948						81,846						45,868
Net income (loss)			$	168,439					$	(61,489)					$	501,457					$	268,557

(a)Impairments of long-lived assets of $298.7 million for the three months ended September 30, 2019 and $55.6 million and $378.8 million for the nine months ended September 30, 2020 and 2019, respectively, were included in Gathering operating income (loss). See Note 4 for further information.

(b)Includes separation and other transaction costs and other unallocated corporate expenses.

(c)Equity income is included in the Transmission segment.

			September 30, 2020						December 31, 2019
			(Thousands)
Segment assets:
Gathering			$	7,743,615					$	7,572,911
Transmission (a)			4,279,330						3,903,707
Water			208,899						202,440
Total operating segments			12,231,844						11,679,058
Headquarters, including cash			398,836						362,651
Total assets			$	12,630,680					$	12,041,709

(a)The equity investments in the MVP Joint Venture are included in the Transmission segment.

			Three Months Ended September 30,												Nine Months Ended September 30,
			2020						2019						2020						2019
			(Thousands)
Depreciation:
Gathering			$	44,648					$	38,943					$	126,915					$	104,502
Transmission			13,659						13,347						40,787						38,474
Water			8,105						6,907						22,720						19,801
Headquarters			360						263						849						3,953
Total			$	66,772					$	59,460					$	191,271					$	166,730
Capital expenditures for segment assets:
Gathering (a)			$	90,452					$	271,860					$	303,063					$	686,178
Transmission (b)			6,721						16,296						32,983						46,287
Water			2,530						13,466						8,377						31,490
Headquarters			447						1,068						3,234						6,787
Total (c)			$	100,150					$	302,690					$	347,657					$	770,742

(a)Includes approximately $13.5 million and $37.1 million of capital expenditures related to the noncontrolling interest in Eureka Midstream for the three and nine months ended September 30, 2020, respectively, and includes approximately $6.7 million and $17.6 million of capital expenditures related to the noncontrolling interest in Eureka Midstream for the three and nine months ended September 30, 2019, respectively.

(b)Transmission capital expenditures do not include capital contributions made to the MVP Joint Venture for the MVP and MVP Southgate projects of $65.6 million and $211.7 million for the three months ended September 30, 2020 and 2019, respectively, and $144.3 million and $512.9 million for the nine months ended September 30, 2020 and 2019, respectively.

(c)The Company accrues capital expenditures when the work has been completed but the associated bills have not yet been paid. Accrued capital expenditures are excluded from the statements of consolidated cash flows until they are paid. The net impact of non-cash capital expenditures, including the effect of accrued capital expenditures, assumed capital expenditures associated with the Bolt-on Acquisition, transfers from inventory as assets are assigned to a project and capitalized share-based compensation costs, was $8.3 million and $(15.3) million for the three months ended September 30, 2020 and 2019, respectively, and $29.9 million and $(0.8) million for the nine months ended September 30, 2020 and 2019, respectively.

Summary of Disaggregated Revenues. The tables below provide disaggregated revenue information by business segment.

						Three Months Ended September 30, 2020
						Gathering						Transmission						Water						Total
						(Thousands)
Firm reservation fee revenues (a)						$	145,533					$	84,612					$	9,005					$	239,150
Volumetric-based fee revenues						87,118						8,717						15,015						110,850
Total operating revenues						$	232,651					$	93,329					$	24,020					$	350,000
						Three Months Ended September 30, 2019
						Gathering						Transmission						Water						Total
						(Thousands)
Firm reservation fee revenues						$	154,791					$	81,990					$	840					$	237,621
Volumetric-based fee revenues						144,700						5,309						20,804						170,813
Total operating revenues						$	299,491					$	87,299					$	21,644					$	408,434

						Nine Months Ended September 30, 2020
						Gathering						Transmission						Water						Total
						(Thousands)
Firm reservation fee revenues (a)						$	446,721					$	267,973					$	32,788					$	747,482
Volumetric-based fee revenues						317,508						20,896						57,817						396,221
Total operating revenues						$	764,229					$	288,869					$	90,605					$	1,143,703
						Nine Months Ended September 30, 2019
						Gathering						Transmission						Water						Total
						(Thousands)
Firm reservation fee revenues						$	431,520					$	263,051					$	4,531					$	699,102
Volumetric-based fee revenues						415,518						26,875						62,888						505,281
Total operating revenues						$	847,038					$	289,926					$	67,419					$	1,204,383

(a)    For the three months ended September 30, 2020, firm reservation fee revenues associated with Gathering and Water included approximately $2.6 million and $1.9 million, respectively, of MVC unbilled revenues. For the nine months ended September 30, 2020, firm reservation fee revenues associated with Gathering and Water included approximately $13.7 million and $11.4 million, respectively, of MVC unbilled revenues. There were no MVC unbilled revenues associated with Gathering and Water during the three and nine months ended September 30, 2019.

Contract Assets. The Company recognizes contract assets in instances where billing occurs subsequent to revenue recognition and the Company's right to invoice the customer is conditioned on something other than the passage of time. The Company's contract assets primarily consist of revenue recognized under contracts containing MVCs whereby management has concluded (i) it is probable there will be a MVC deficiency payment at the end of the then-current MVC period, which is typically the period beginning at the inception of such contracts through the successive twelve month periods after that date, and (ii) that a significant reversal of revenue recognized currently for the future MVC deficiency payment will not occur. As a result, the Company's contract assets related to the Company's future MVC deficiency payments are generally expected to be collected within the next twelve months and are included in other current assets in the Company's consolidated balance sheets until such time as the MVC deficiency payments are invoiced to the customer.

						Unbilled Revenue
						(Thousands)
Balance as of January 1, 2020						$	—
Revenue recognized in excess of amounts invoiced (a)						25,086
Minimum volume commitments invoiced (b)						—
Balance as of September 30, 2020						$	25,086