EQT Midstream Partners, LP (NYSE: EQM) today announced second
quarter 2018 results, including net income attributable to EQM of
$172.6 million, adjusted EBITDA of $209.5 million, net cash
provided by operating activities of $220.2 million, and
distributable cash flow of $174.7 million. EQM operating income was
$182.3 million, which was 29% 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.
EQT GP Holdings, LP (NYSE: EQGP) today announced net income
attributable to EQGP of $103.3 million for the second quarter
2018.
EQM HIGHLIGHTS:
- Closed acquisition of Rice Midstream
Partners LP on July 23rd
- Completed acquisition of Olympus and
Strike Force gathering systems from EQT and Gulfport
- Issued $2.5 billion of senior
notes
- Increased EQM per unit distribution by
17% and EQGP by 46% compared to Q2 2017
- Generated 72% of operating revenue from
firm reservation fees
In the second quarter EQM closed the acquisition of the Olympus
gathering system and 75% interest in the Strike Force gathering
system from EQT Corporation (EQT) for $1.15 billion in cash and 5.9
million EQM common units (May 2018 Acquisition). EQM also completed
the purchase of the remaining 25% interest in the Strike Force
gathering system from Gulfport Energy for $175 million in cash. The
acquisitions were effective May 1, 2018.
On May 22, 2018, EQGP purchased the Rice Midstream Partners LP
(RMP) Incentive Distribution Rights from EQT for 36.3 million EQGP
common units.
EQM's financial statements have been retrospectively recast to
include the pre-acquisition results of the May 2018 Acquisition
from the time common control began on November 13, 2017 as a result
of EQT's acquisition of Rice Energy. EQM's second quarter operating
revenue increased $72.9 million, a 37% increase compared to the
same quarter last year. The May 2018 Acquisition accounted for
$55.3 million of the operating revenue increase, with the remaining
increase due to higher contracted firm transmission and gathering
capacity. During the quarter, 72% of operating revenue was
generated by firm reservation fees. Operating expenses increased
$32.0 million versus the second quarter of 2017, with approximately
$30.1 million of the increase due to the May 2018 Acquisition
assets, including $3.4 million in transaction costs. The remaining
operating expense increase is consistent with higher system
throughput and additional assets placed in service, consistent with
the growth in the business.
ACQUISITION OF RICE MIDSTREAM PARTNERS
LP
On July 23, 2018 EQM closed the acquisition of RMP, with each
RMP unitholder receiving 0.3319 units of EQM. The RMP debt balance
of $260 million was retired using proceeds from EQM's $2.5 billion
senior note offering. The RMP Incentive Distribution Rights were
canceled in connection with the closing of the acquisition. In the
second quarter RMP had net income of $61.2 million, adjusted EBITDA
of $79.7 million, net cash provided by operating activities of
$118.7 million and distributable cash flow of $68.6 million. In the
second quarter approximately 65% of RMP's adjusted EBITDA was from
the Gathering and Compression segment, with the Water Services
segment contributing 35%.
The acquisition of RMP closed prior to the EQM second quarter
distribution record date, therefore the RMP unitholders will
receive the EQM second quarter distribution.
QUARTERLY DISTRIBUTION
EQM
For the second quarter of 2018, EQM will pay a quarterly cash
distribution of $1.09 per unit, which will be paid on August 14,
2018 to EQM unitholders of record at the close of business on
August 3, 2018. The quarterly cash distribution is 2% higher than
the first quarter of 2018 and is 17% higher than the second quarter
of 2017.
EQGP
For the second quarter of 2018, EQGP will pay a quarterly cash
distribution of $0.306 per unit, which will be paid on August 23,
2018 to EQGP unitholders of record at the close of business on
August 3, 2018. The quarterly cash distribution is 19% higher than
the first quarter of 2018 and is 46% higher than the second quarter
2017 distribution. For the quarter, EQGP expects to receive $94.3
million of cash distributions from EQM and distribute $92.6
million.
EQM GUIDANCE
Full-year 2018 Net Income ($MM)* $930 – $970 Adjusted
EBITDA ($MM) $980 – $1,020 Distributable Cash Flow ($MM) $800 –
$840
Q3 2018 Net Income ($MM)* $200 – $215 Adjusted
EBITDA ($MM) $265 – $280
* Reflects financial recast for May 2018 Acquisition and
RMP.
Please see the Non-GAAP Disclosures section of this news release
for information regarding reconciliations of projected Non-GAAP
measures.
Distribution Growth Outlook
EQM now forecasts annual distribution per unit growth of 15% for
the next several years including 2018. EQM is not forecasting any
public equity issuance at least through 2020. EQM expects to
continue to grow the distribution per unit at one of the highest
growth rates in the master limited partnership (MLP) industry,
while also remaining focused on funding growth without compromise
to the balance sheet. Over the long-term, EQM is targeting 3.5x
debt to EBITDA, which is an investment grade metric; and a
1.1x-1.2x distribution coverage ratio.
EQGP now forecasts annual distribution per unit growth of 38% in
2018 followed by annual growth of 30% and 22% in 2019 and 2020,
respectively.
EQM EXPANSION & ONGOING MAINTENANCE
CAPITAL EXPENDITURES
Expansion
Expansion capital expenditures and capital contributions to
Mountain Valley Pipeline, LLC (MVP JV), totaled $226 million in the
second quarter 2018 and $468 million year-to-date.
Three Months Ended Six Months Ended
2018 Full-year $MM
June 30, 2018 June 30, 2018
Forecast* Mountain Valley Pipeline $66 $183 $1,000 - $1,200
Gathering $139 $250 $750 Transmission $21 $35 $100 Water - - $25
Total $226 $468 $1,875 - $2,075
* 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 $76.9
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 $7 million in the second
quarter 2018 and $11 million year-to-date. EQM forecasts full-year
2018 ongoing maintenance capital expenditures of $45 million.
PROJECT UPDATE
Mountain Valley Pipeline
On May 22, 2018, the Sierra Club and other opponents filed a
Motion to Stay 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). As part of
the permit, the USACE incorporated the West Virginia Special
Conditions, which included a provision that stream and wetland
crossings be completed within 72 hours. The Sierra Club argued that
MVP cannot comply with the permit condition to complete four
waterbody crossings (Elk, Gauley, Greenbrier, and Meadow Rivers)
within 72 hours.
As interpreted by both MVP and the West Virginia DEP, the
72-hour provision was intended to apply to water crossings that are
constructed in an open trench while the river is flowing (“wet-cut”
method). MVP plans to utilize a "dry-ditch" coffer dam method
to cross the four rivers as this technique is more protective of
the environment as construction activity is not performed in a
flowing river. This crossing technique has been approved by both
the FERC and the West Virginia DEP.
On June 21, 2018, the U.S. Court of Appeals for the Fourth
Circuit issued an order staying the Nationwide 12 permit, which
affects water crossings in approximately 160 miles of the route in
West Virginia. However, prior to the stay issued by the Court, the
USACE had suspended its Nationwide 12 permit for MVP for the four
major crossings in West Virginia to further evaluate whether the
time limitation should apply.
After evaluation, the USACE reinstated the Nationwide 12 permit
for MVP on July 3, 2018, concluding that MVP's dry-ditch crossing
method is significantly more protective of the environment and
provides more stringent water quality protection. MVP’s dry-ditch
crossing method for the four river crossings is now a requirement
of the Nationwide 12 permit, which eliminates the premise of the
Sierra Club's argument. On July 11, 2018, the USACE filed a
motion with the Court to lift the stay of the permit, arguing that
its new decision eliminates the legal predicate for the stay. We
expect that the briefing will be complete by the end of July, after
which time the Court will review and rule on the USACE's motion to
lift the stay.
MVP JV has modified its construction schedule and now
anticipates a first quarter 2019 in-service date. The 303-mile
pipeline is estimated to cost $3.5 - $3.7 billion, with EQM funding
its 45.5% proportional share. 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
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 is
expected to have between 33% and 48% ownership in the project 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 55 miles
from southwestern Pennsylvania to Mobley, West Virginia, where both
the MVP and the Ohio Valley Connector originate. The pipeline is
estimated to cost $460 million and is expected to be placed
in-service during the third quarter of 2019.
SENIOR NOTES OFFERING
On June 25, 2018 EQM closed on $2.5 billion in aggregate
principal through the offering of three tranches of senior
notes.
- $1.1 billion of 4.75% senior notes due
2023
- $850 million of 5.5% senior notes due
2028
- $550 million of 6.5% senior notes due
2048
EQM utilized the proceeds to repay the 364-day term loan
facility, to repay RMP's revolving credit facility, and for general
partnership purposes.
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. 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 and
distributable cash flow are non-GAAP supplemental financial
measures that management and external users of EQM’s consolidated
financial statements, such as industry analysts, investors, lenders
and rating agencies, use to assess:
- EQM’s operating performance as compared
to other publicly traded partnerships in the midstream energy
industry without regard to historical cost basis or, in the case of
adjusted EBITDA, financing methods;
- the ability of EQM’s assets to generate
sufficient cash flow to make distributions to EQM unitholders;
- EQM’s ability to incur and service debt
and fund capital expenditures; and
- the viability of acquisitions and other
capital expenditure projects and the returns on investment of
various investment opportunities.
EQM believes that adjusted EBITDA and distributable cash flow
provide useful information to investors in assessing EQM’s results
of operations and financial condition. Adjusted EBITDA and
distributable cash flow should not be considered as alternatives to
net income, operating income, net cash provided by operating
activities or any other measure of financial performance or
liquidity presented in accordance with GAAP. Adjusted EBITDA and
distributable cash flow have important limitations as analytical
tools because they exclude some, but not all, items that affect net
income and net cash provided by operating activities. Additionally,
because adjusted EBITDA and distributable cash flow may be defined
differently by other companies in its industry, EQM’s definition of
adjusted EBITDA and distributable cash flow may not be comparable
to similarly titled measures of other companies, thereby
diminishing the utility of the measures. The table below reconciles
adjusted EBITDA and distributable cash flow with net income and net
cash provided by operating activities as derived from the
statements of consolidated operations and cash flows to be included
in EQM’s quarterly report on Form 10-Q for the quarter ended
June 30, 2018.
EQM is unable to project net cash provided by operating
activities or provide the related reconciliation between projected
distributable cash flow and projected net cash provided by
operating activities, the most comparable financial measure
calculated in accordance with GAAP, because net cash provided by
operating activities includes the impact of changes in operating
assets and liabilities. Changes in operating assets and liabilities
relate to the timing of EQM’s cash receipts and disbursements that
may not relate to the period in which the operating activities
occurred, and EQM is unable to project these timing differences
with any reasonable degree of accuracy to a specific day, three or
more months in advance. EQM is also unable to provide a
reconciliation of its projected EBITDA to projected net income, the
most comparable financial measure calculated in accordance with
GAAP, because EQM does not provide guidance with respect to the
intra-year timing of its or the MVP JV’s capital spending, which
impact AFUDC-debt and equity and equity earnings, among other
items, that are reconciling items between adjusted EBITDA and net
income. The timing of capital expenditures is volatile as it
depends on weather, regulatory approvals, contractor availability,
system performance and various other items. EQM provides a range
for the forecasts of net income, adjusted EBITDA and distributable
cash flow to allow for the variability in the timing of cash
receipts and disbursements, capital spending and the impact on the
related reconciling items, many of which interplay with each other.
Therefore, the reconciliations of projected distributable cash flow
and adjusted EBITDA to projected net cash provided by operating
activities and net income are not available without unreasonable
effort.
Reconciliation of EQM Adjusted EBITDA and Distributable Cash
Flow
Three Months Ended
(Thousands)
June 30, 2018 Net income attributable to EQM $
172,619 Add: Net interest expense 20,683 Depreciation 28,076
Amortization of intangible assets 10,387 Preferred Interest
payments 2,746 Transaction costs 3,424 Less: Equity income (10,938
) AFUDC – equity (1,072 ) Adjusted EBITDA attributable to the May
2018 Acquisition (16,417 ) Adjusted EBITDA $ 209,508 Less:
Net interest expense excluding interest income on the Preferred
Interest (22,336 ) Capitalized interest and AFUDC – debt (1,940 )
Ongoing maintenance capital expenditures net of expected
reimbursements (7,115 ) Transaction costs (3,424 ) Distributable
cash flow $ 174,693 Distributions declared (1):
Limited Partner $ 131,295 General Partner 70,510 Total $
201,805 Coverage Ratio (2) 0.87x Net cash provided by
operating activities $ 220,225 Adjustments: Capitalized interest
and AFUDC – debt (1,940 ) Principal payments received on the
Preferred Interest 1,093 Ongoing maintenance capital expenditures
net of expected reimbursements (7,115 ) Adjusted EBITDA
attributable to the May 2018 Acquisition (16,417 ) Other, including
changes in working capital (21,153 ) Distributable cash flow $
174,693 (1) Reflects cash distribution of $1.09 per
limited partner unit for the second quarter 2018 and 120,457,148
limited partner units outstanding as of July 25, 2018. If limited
partner units are issued on or prior to August 3, 2018, the
aggregate level of all distributions will be higher. (2) The second
quarter distributions declared is based on the post RMP acquisition
unit count for EQM, however RMP’s distributable cash flow of $68.6
million is not included in the coverage ratio calculation. If the
RMP distributable cash flow was included, the coverage ratio would
be 1.21x for the second quarter.
RMP Adjusted EBITDA and Distributable Cash Flow
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 RMP Adjusted EBITDA and Distributable Cash
Flow
Three Months Ended
(Thousands)
June 30, 2018 Net income $ 61,213 Add: Net interest
expense 2,380 Depreciation 14,034 Non-cash long-term compensation
expense 140 Transaction costs 1,926 Adjusted EBITDA $ 79,693
Less: Net interest expense (2,380 ) Capitalized interest
(1,252 ) Estimated maintenance capital expenditures (5,500 )
Transaction costs (1,926 ) Distributable cash flow $ 68,635
Net cash provided by operating activities $ 118,725
Adjustments: Capitalized interest (1,252 ) Estimated maintenance
capital expenditures (5,500 ) Other, including changes in working
capital (43,338 ) Distributable cash flow $ 68,635
Q2 2018 Webcast Information
EQM and EQGP will host a joint live webcast with security
analysts today at 11:30 a.m. ET. Topics include second quarter 2018
financial results, operating results, the midstream streamlining
transaction and other matters. The webcast is available at
www.eqtmidstreampartners.com, with a
replay available for seven days following the call.
EQT, which owns EQGP’s general partner and holds a 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 second
quarter 2018 results and the midstream streamlining transaction.
The webcast can be accessed via www.eqt.com, with a replay available for seven
days following the call.
About EQT Midstream
Partners:
EQT Midstream Partners, LP (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 third-party companies
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 EQT Midstream Partners, LP at www.eqtmidstreampartners.com.
About EQT GP Holdings:
EQT GP Holdings, LP is a limited partnership that owns the
general partner interest, all of the incentive distribution rights,
and a portion of the limited partner interests in EQT Midstream
Partners, LP. EQT Corporation owns the general partner interest and
a 91% limited partner interest in EQT GP Holdings, LP.
Visit EQT GP Holdings, LP at www.eqtmidstreampartners.com.
EQM and EQGP management speak to investors from time to time and
the analyst presentation for these discussions, which is updated
periodically, is available via the EQM and EQGP website at
www.eqtmidstreampartners.com.
Cautionary Statements
EQT is not restricted from competing with EQM and may acquire,
construct or dispose of midstream assets without any obligation to
offer EQM the opportunity to purchase or construct the assets.
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 second 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) and MVP Southgate
projects; the ultimate terms, partners and structure of, and EQM's
ownership interests in, the MVP joint venture; the timing of the
proposed separation of EQT's production and midstream businesses,
and the parties' ability to complete the separation; the expected
synergies resulting from the streamlining transaction; asset
acquisitions, including EQM’s ability to complete any asset
purchases from third parties 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;
liquidity and financing requirements, including funding sources and
availability; distribution amounts, rates and growth; 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 under EQM’s $750 million at the
market equity distribution program; 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.
EQT MIDSTREAM PARTNERS, LP AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED OPERATIONS
(UNAUDITED) (1)
Three Months Ended June 30, 2018
2017 (Thousands, except per unit amounts) Operating
revenues (2) $ 269,761 $ 196,815 Operating expenses: Operating and
maintenance 24,587 18,315 Selling, general and administrative
24,438 15,812 Depreciation 28,076 21,400 Amortization of intangible
assets 10,387 — Total operating expenses 87,488
55,527 Operating income 182,273 141,288 Equity income
10,938 5,111 Other income 944 1,402 Net interest expense 20,683
8,662 Net income 173,472 139,139 Net income
attributable to noncontrolling interests 853 — Net
income attributable to EQM $ 172,619 $ 139,139
Calculation of limited partner interest in net income: Net income
attributable to EQM $ 172,619 $ 139,139 Less pre-acquisition net
income allocated to parent (11,407 ) — Less general partner
interest in net income – general partner units (1,700 ) (2,448 )
Less general partner interest in net income – incentive
distribution rights (68,121 ) (34,150 ) Limited partner interest in
net income $ 91,391 $ 102,541 Net income per
limited partner unit – basic and diluted $ 1.09 $ 1.27 Weighted
average limited partner units outstanding – basic and diluted
83,553 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). (2) Operating revenues included affiliate
revenues from EQT of $180.4 million and $148.2 million for the
three months ended June 30, 2018 and 2017, respectively.
EQT MIDSTREAM PARTNERS, LP AND SUBSIDIARIES
GATHERING RESULTS OF OPERATIONS
(1)
Three Months Ended June 30, 2018
2017 FINANCIAL DATA (Thousands, except per day
amounts) Firm reservation fee revenues $ 111,702 $ 101,858
Volumetric based fee revenues: Usage fees under firm contracts (2)
9,956 6,479 Usage fees under interruptible contracts (3) 58,958
3,808 Total volumetric based fee revenues 68,914 10,287 Total
operating revenues 180,616 112,145 Operating expenses: Operating
and maintenance 15,777 10,293 Selling, general and administrative
17,175 8,872 Depreciation 15,646 9,555 Amortization of intangible
assets 10,387 — Total operating expenses 58,985 28,720 Operating
income $ 121,631 $ 83,425
OPERATIONAL DATA Gathering
volumes (BBtu per day) Firm capacity reservation 2,007 1,780
Volumetric based services (4) 2,494 281 Total gathered volumes
4,501 2,061 Capital expenditures $ 139,099 $ 53,708 (1)
EQM’s consolidated financial statements have been
retrospectively recast to include the pre-acquisition results of
the May 2018 Acquisition. (2) Includes fees on volumes gathered in
excess of firm contracted capacity. (3) Includes volumes under
contracts under which EQM has agreed to hold capacity available but
for which it does not receive a capacity reservation fee. (4)
Includes volumes gathered under interruptible contracts and volumes
gathered in excess of firm contracted capacity.
EQT
MIDSTREAM PARTNERS, LP AND SUBSIDIARIES
TRANSMISSION RESULTS OF OPERATIONS
(1)
Three Months Ended June 30, 2018
2017 FINANCIAL DATA (Thousands, except per day
amounts) Firm reservation fee revenues $ 82,222 $ 79,512
Volumetric based fee revenues: Usage fees under firm contracts (2)
4,828 3,503 Usage fees under interruptible contracts 2,095 1,655
Total volumetric based fee revenues 6,923 5,158 Total operating
revenues 89,145 84,670 Operating expenses: Operating and
maintenance 8,810 8,022 Selling, general and administrative 7,263
6,940 Depreciation 12,430 11,845 Total operating expenses 28,503
26,807 Operating income $ 60,642 $ 57,863 Equity income $
10,938 $ 5,111
OPERATIONAL DATA Transmission pipeline
throughput (BBtu per day) Firm capacity reservation 2,826 2,218
Volumetric based services (3) 41 21 Total transmission pipeline
throughput 2,867 2,239 Average contracted firm transmission
reservation commitments (BBtu per day) 3,607 3,341 Capital
expenditures $ 27,962 $ 29,978 (1) EQM’s consolidated
financial statements have been retrospectively recast to include
the pre-acquisition results of the May 2018 Acquisition. (2)
Includes fees on volumes transported in excess of firm contracted
capacity as well as commodity charges 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.
EQT MIDSTREAM PARTNERS, LP AND
SUBSIDIARIES
CAPITAL EXPENDITURE SUMMARY
(1)
Three Months Ended June 30, 2018
2017 (Thousands) Expansion capital expenditures (2) $
159,968 $ 80,224 Ongoing maintenance capital expenditures 7,093
3,462 Total capital expenditures $ 167,061 $ 83,686 (1)
EQM’s consolidated financial statements have been retrospectively
recast to include the pre-acquisition results of the May 2018
Acquisition. (2) Expansion capital expenditures do not include
capital contributions made to the MVP JV of $65.8 million and $40.2
million for the three months ended June 30, 2018 and 2017,
respectively.
EQT GP HOLDINGS, LP AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED OPERATIONS
(UNAUDITED) (1)
Three Months Ended June 30, 2018
2017 (Thousands, except per unit amounts) Operating
revenues (2) $ 269,761 $ 196,815 Operating expenses: Operating and
maintenance 24,587 18,315 Selling, general and administrative
26,369 16,401 Depreciation 28,076 21,400 Amortization of intangible
assets 10,387 — Total operating expenses 89,419
56,116 Operating income 180,342 140,699 Equity income 10,938 5,111
Other income 944 1,402 Net interest expense 20,659 8,658 Net
income 171,565 138,554 Net income attributable to noncontrolling
interests 68,269 75,224 Net income attributable to EQGP $
103,296 $ 63,330 Calculation of limited partner
interest in net income: Net income attributable to EQGP $ 103,296 $
63,330 Less pre-acquisition net income allocated to parent (11,407
) — Limited partner interest in net income $ 91,889 $ 63,330
Net income per common unit – basic and diluted $ 0.32 $ 0.24
Weighted average common units outstanding – basic and diluted
284,343 266,186 (1) EQGP’s consolidated financial statements
have been retrospectively recast to include the pre-acquisition
results of the May 2018 Acquisition. (2) Operating revenues
included affiliate revenues from EQT of $180.4 million and $148.2
million for the three months ended June 30, 2018 and 2017,
respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180726005130/en/
EQT Midstream Partners, LP and EQT GP Holdings,
LPAnalyst inquiries please contact:Nate Tetlow –
Investor Relations Director,
412-553-5834ntetlow@eqtmidstreampartners.comorPatrick Kane – Chief
Investor Relations Officer, 412-553-7833pkane@eqt.comorMedia
inquiries please contact:Natalie Cox – Corporate Director,
Communications, 412-395-3941ncox@eqt.com
EQT GP HOLDINGS, LP (NYSE:EQGP)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
EQT GP HOLDINGS, LP (NYSE:EQGP)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024