EQT Midstream Partners, LP (NYSE: EQM) today announced first
quarter 2018 results, including net income of $177.2 million,
adjusted EBITDA of $204.4 million, net cash provided by
operating activities of $182.4 million, and distributable cash flow
of $187.2 million. EQM operating income was $178.3 million, which
was 23% 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 $80.7 million for the first quarter
2018.
EQM HIGHLIGHTS:
- Announced streamlining transaction in a
separate news release issued today
- Increased EQM per unit distribution by
20% compared to Q1 2017
- Maintained a 1.42x coverage ratio for
the quarter
- Generated 89% of operating revenue from
firm reservation fees
- Commenced construction of the Mountain
Valley Pipeline
- Initiated a binding open season for the
MVP Southgate project
EQM first quarter operating revenue increased $32.8 million, 16%
higher compared to the same quarter last year. The increase was
primarily due to higher contracted firm transmission and gathering
capacity and increased seasonal storage related services. During
the quarter, 89% of operating revenue was generated by firm
reservation fees. Operating expenses were flat versus the first
quarter of 2017, as higher operating and maintenance (O&M)
expense and depreciation and amortization expense were offset by
lower selling, general and administrative (SG&A) expense. The
increase in O&M expense was driven by higher system throughput
and SG&A expense was lower primarily from a decrease in
personnel costs.
STREAMLINING TRANSACTION
EQM, EQGP, Rice Midstream Partners LP (NYSE: RMP), and EQT
Corporation (NYSE: EQT) today announced a midstream streamlining
transaction that includes:
- EQM's purchase of EQT's retained
midstream assets for $1.15 billion in cash and 5.9 million EQM
common units and Gulfport Energy's 25% ownership in the Strike
Force Gathering System for $175 million in cash.
- The merger of EQM and RMP in a
unit-for-unit transaction at an exchange ratio of 0.3319x, which
implies a transaction value of $2.4 billion, including the
assumption of RMP debt. The RMP debt balance was $325 million as of
March 31, 2018.
- EQGP's purchase of the RMP Incentive
Distribution Rights from EQT for 36.3 million EQGP common
units.
For details on the streamlining transaction please refer to the
news release issued today and available at
www.eqtmidstreampartners.com or www.ricemidstream.com.
QUARTERLY DISTRIBUTION
EQM
For the first quarter of 2018, EQM will pay a quarterly cash
distribution of $1.065 per unit, which will be paid on May 15, 2018
to EQM unitholders of record at the close of business on May 4,
2018. The quarterly cash distribution is 4% higher than the fourth
quarter of 2017 and is 20% higher than the first quarter of
2017.
EQGP
For the first quarter of 2018, EQGP will pay a quarterly cash
distribution of $0.258 per unit, which will be paid on May 24, 2018
to EQGP unitholders of record at the close of business on May 4,
2018. The quarterly cash distribution is 6% higher than the fourth
quarter of 2017 and is 35% higher than the first quarter 2017
distribution. For the quarter, EQGP expects to receive $69.7
million of cash distributions from EQM and distribute $68.7
million.
GUIDANCE
The financial projections for full-year and Q2 2018 assume a May
1, 2018 effective date for the acquisition of EQT's retained
midstream assets and Gulfport Energy's 25% ownership of Strike
Force (Ohio Gathering Assets) and a September 1, 2018 closing date
for the RMP merger. Over the long-term, EQM is targeting 3.5x debt
to EBITDA, which is an investment grade metric; and a 1.1x-1.2x
distribution coverage ratio. EQM continues to target annual
distribution per unit growth of 15% to 20% for several years. Based
on the strength of EQM’s credit metrics and the current organic
growth project backlog, EQM is not forecasting any additional
public equity issuance at least through 2020.
EQM 2018 2019 2020
Net Income ($B) $0.70 – $0.80 $0.95 – $1.05 $1.00 – $1.10
Adjusted EBITDA ($B) $0.90 – $1.00 $1.40 – $1.50 $1.55 – $1.65
Distributable Cash Flow ($B) $0.75 – $0.85 $1.15 – $1.25 $1.25 –
$1.35 Distribution per unit (using midpoint of guidance)* $4.50
$5.29 $6.21
EQGP 2018 2019 2020
Distribution per unit* $1.21 $1.67 $2.09 Distribution per unit
year-over-year growth* 39% 38% 25%
*Based on midpoint of 15% - 20%
year-over-year distribution growth rate guidance for EQM.
EQM
Q2 2018
Net Income ($MM)
$170 – $180
Adjusted EBITDA ($MM)
$205 – $215
Due to the seasonal nature of some transmission and storage
services, primarily from utility customer contracts, second quarter
2018 revenue from these contracts and services will be lower than
first quarter by approximately $20 million.
EQM is unable to provide a projection of its full-year 2018,
2019 or 2020 net cash provided by operating activities, the most
comparable financial measure to distributable cash flow calculated
in accordance with GAAP. Please see the Non-GAAP Disclosures
section of this news release.
EQM EXPANSION & ONGOING MAINTENANCE
CAPITAL EXPENDITURES
Expansion
Expansion capital expenditures and capital contributions to
Mountain Valley Pipeline, LLC (MVP JV), totaled $198 million in the
first quarter 2018. The full-year pro forma forecast below assumes
a May 1, 2018 effective date for acquisition of the Ohio Gathering
Assets and a September 1, 2018 closing of the EQM/RMP merger.
$MM
Three Months Ended 2018 Full-year
March 31, 2018 Pro Forma Forecast Mountain Valley
Pipeline $117 $1,000 - $1,200 Gathering $67 $485 Transmission $14
$100 Water - $15 Total $198 $1,600 - $1,800
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 $3.9 million in the first
quarter 2018. EQM forecasts pro forma full-year 2018 ongoing
maintenance capital expenditures of $45 million.
PROJECT UPDATE
Mountain Valley Pipeline
In January 2018, MVP JV began filing requests for partial
Notices to Proceed with the Federal Energy Regulatory Commission
(FERC), and subsequently has received permission to begin
construction activities in nearly all areas along the route. In the
first quarter, MVP JV completed all tree-felling activities subject
to the March 31 biological deadline. The 303-mile pipeline is
estimated to cost $3.5 billion, with EQM funding its proportional
share, or approximately $1.6 billion. MVP JV has secured a total of
2 Bcf per day of firm capacity commitments at 20-year terms and
continues to target a late 2018 in-service date.
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 final project scope
will be determined after a binding open season, which is scheduled
to end on May 11, 2018. The preliminary project cost estimate is
$350 to $500 million. 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.
MANAGEMENT
On March 14, 2018, Jerry Ashcroft was named President and Chief
Executive Officer of EQM, EQGP, and Rice Midstream Partners LP.
Jerry was previously senior vice president and chief operating
officer for the general partner of EQM. He has more than 15 years
of experience in the oil, gas, and pipeline industries – including
most recently as chief executive officer of Gulf Oil L.P.
NON-GAAP DISCLOSURES
EQM Adjusted EBITDA and Distributable Cash Flow
As used in this news release, EQM adjusted EBITDA means EQM’s
net income plus net interest expense, depreciation and amortization
expense, payments on EQM's preferred interest in EQT Energy Supply,
LLC (Preferred Interest) and non-cash long-term compensation
expense less equity income and AFUDC - equity. As used in this news
release, distributable cash flow means EQM adjusted EBITDA less net
interest expense excluding interest income on the Preferred
Interest, capitalized interest and AFUDC - debt, and ongoing
maintenance capital expenditures net of expected reimbursements.
Distributable cash flow should not be viewed as indicative of the
actual amount of cash that EQM has available for distributions from
operating surplus or that EQM plans to distribute. Adjusted EBITDA
and distributable cash flow are non-GAAP supplemental financial
measures that management and external users of EQM’s consolidated
financial statements, such as industry analysts, investors, lenders
and rating agencies, use to assess:
- EQM’s operating performance as compared
to other publicly traded partnerships in the midstream energy
industry without regard to historical cost basis or, in the case of
adjusted EBITDA, financing methods;
- the ability of EQM’s assets to generate
sufficient cash flow to make distributions to EQM unitholders;
- EQM’s ability to incur and service debt
and fund capital expenditures; and
- the viability of acquisitions and other
capital expenditure projects and the returns on investment of
various investment opportunities.
EQM believes that adjusted EBITDA and distributable cash flow
provide useful information to investors in assessing EQM’s results
of operations and financial condition. Adjusted EBITDA and
distributable cash flow should not be considered as alternatives to
net income, operating income, net cash provided by operating
activities or any other measure of financial performance or
liquidity presented in accordance with GAAP. Adjusted EBITDA and
distributable cash flow have important limitations as analytical
tools because they exclude some, but not all, items that affect net
income and net cash provided by operating activities. Additionally,
because adjusted EBITDA and distributable cash flow may be defined
differently by other companies in its industry, EQM’s definition of
adjusted EBITDA and distributable cash flow may not be comparable
to similarly titled measures of other companies, thereby
diminishing the utility of the measures. The table below reconciles
adjusted EBITDA and distributable cash flow with net income and net
cash provided by operating activities as derived from the
statements of consolidated operations and cash flows to be included
in EQM’s quarterly report on Form 10-Q for the quarter ended
March 31, 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.
Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA)
EBITDA means the earnings before interest, taxes and
depreciation of the EQT's retained midstream assets. EBITDA of
these assets is a non-GAAP supplemental financial measure that
management and external users of EQM’s consolidated financial
statements, such as industry analysts, investors, lenders and
rating agencies, use to assess the impact of the potential sale of
the retained midstream assets from EQT Corporation (EQT) to EQM
through one or more drop-down transactions on EQM’s future results
of operations.
EQM believes that the projected EBITDA of the retained midstream
assets provides useful information to investors in assessing the
impact of the potential drop-down transactions on EQM’s future
results of operations. EBITDA should not be considered as an
alternative to net income, operating income, or any other measure
of financial performance or liquidity presented in accordance with
GAAP. EBITDA has important limitations as an analytical tool
because it excludes some, but not all, items that affect net
income. Additionally, because EBITDA may be defined differently by
other companies in EQM’s industry, the definition of EBITDA may not
be comparable to similarly titled measures of other companies,
thereby diminishing the utility of the measure.
EQM has not provided projected net income from the retained
midstream assets, the most comparable financial measure calculated
in accordance with GAAP, or a reconciliation of projected EBITDA to
projected net income of the assets. The retained midstream assets
are operated as part of EQT’s Production business segment, and EQT
does not allocate certain costs, such as interest and tax expenses,
to individual assets within its business segments. Therefore, the
projected net income of the retained midstream assets and a
reconciliation of projected EBITDA of the assets to projected net
income from those assets are not available without unreasonable
effort.
Reconciliation of EQM Adjusted EBITDA
and Distributable Cash Flow
Three Months Ended
(Thousands)
March 31, 2018
Net income $ 177,218 Add: Net interest expense 10,833
Depreciation and amortization expense 23,179 Preferred Interest
payments 2,746 Non-cash long-term compensation expense 331 Less:
Equity income (8,811 ) AFUDC – equity (1,065 ) Adjusted EBITDA $
204,431 Less: Net interest expense excluding interest income
on the Preferred Interest (12,500 ) Capitalized interest and AFUDC
– debt (817 ) Ongoing maintenance capital expenditures net of
expected reimbursements (3,865 ) Distributable cash flow $ 187,249
Distributions declared (1): Limited Partner $ 85,830
General Partner 46,491 Total $ 132,321 Coverage Ratio 1.42x
Net cash provided by operating activities $ 182,402
Adjustments: Capitalized interest and AFUDC – debt (817 ) Principal
payments received on the Preferred Interest 1,079 Ongoing
maintenance capital expenditures net of expected reimbursements
(3,865 ) Other, including changes in working capital 8,450
Distributable cash flow $ 187,249
(1)
Reflects cash distribution of $1.065 per
limited partner unit for the first quarter 2018 and 80,591,366
limited partner units outstanding as of March 31, 2018. If limited
partner units are issued on or prior to May 4, 2018, the aggregate
level of all distributions will be higher.
Q1 2018 Webcast Information
EQM and EQGP will host a joint live webcast with security
analysts today at 11:30 a.m. ET. Topics include first 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 90% limited
partner interest in EQGP, will also host a webcast with security
analysts today at 10:30 a.m. ET. EQM and EQGP unitholders are
encouraged to listen to EQT’s webcast, as the discussion may
include topics relevant to EQM and EQGP, such as EQT's financial
and operational results, specific reference to EQM and EQGP first
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 is a growth-oriented limited
partnership formed by EQT Corporation to own, operate, acquire, and
develop midstream assets in the Appalachian Basin. The Partnership
provides midstream services to EQT Corporation and third-party
companies through its strategically located transmission, storage,
and gathering systems that service the Marcellus and Utica regions.
The Partnership owns approximately 950 miles of FERC-regulated
interstate pipelines; and also owns approximately 1,800 miles of
high- and low-pressure gathering lines.
Visit EQT Midstream Partners, LP at www.eqtmidstreampartners.com.
About EQT GP Holdings:
EQT GP Holdings, LP is a limited partnership that owns the
general partner interest, all of the incentive distribution rights,
and a portion of the limited partner interests in EQT Midstream
Partners, LP. EQT Corporation owns the general partner interest and
a 90% limited partner interest in EQT GP Holdings, LP.
Visit EQT GP Holdings, LP at www.eqtmidstreampartners.com.
EQM and EQGP management speak to investors from time to time and
the analyst presentation for these discussions, which is updated
periodically, is available via the EQM and EQGP website at
www.eqtmidstreampartners.com.
Cautionary Statements
EQT is under no obligation to sell EQT's retained midstream
assets to EQM, 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 first 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 and transmission and storage revenue and volume growth;
revenue and expense projections; infrastructure programs (including
the timing, cost, capacity and sources of funding with respect to
gathering and transmission projects); the cost, capacity, timing of
regulatory approvals and anticipated in-service date of the
Mountain Valley Pipeline (MVP) and MVP Southgate project; the
ultimate terms, partners and structure of, and EQM's ownership
interest in, the MVP joint venture; the timing of the proposed
separation of EQT's production and midstream businesses and the
midstream streamlining transaction, and the parties' ability to
complete the separation and streamlining transaction; 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; internal
rate of return (IRR); compound annual growth rate (CAGR); capital
commitments, projected capital contributions and capital and
operating expenditures, including the amount and timing of capital
expenditures reimbursable by EQT, capital budget and sources of
funds for capital expenditures; liquidity and financing
requirements, including funding sources and availability;
distribution amounts, rates and growth; projected net income,
projected adjusted EBITDA, projected EBITDA for EQT's retained
midstream assets and projected distributable cash flow; the timing
and amount of future issuances of EQM common units under EQM’s $750
million at the market equity distribution program; 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.
No Offer or Solicitation
This release is for informational purposes only and shall not
constitute an offer to sell or the solicitation of an offer to buy
any securities pursuant to the proposed transactions or otherwise,
nor shall there be any sale of securities in any jurisdiction in
which the offer, solicitation or sale would be unlawful prior to
the registration or qualification under the securities laws of any
such jurisdiction. No offer of securities shall be made
except by means of a prospectus meeting the requirements of Section
10 of the Securities Act of 1933, as amended.
Additional Information and Where to Find It
In connection with their proposed business combination
transaction, EQM and RMP intend to file a registration statement on
Form S-4, containing a proxy statement/prospectus (the Form S-4)
with the SEC. This communication is not a substitute for the
registration statement, definitive proxy statement/prospectus or
any other documents that EQM or RMP may file with the SEC or send
to RMP unitholders in connection with the proposed transaction.
UNITHOLDERS OF RMP ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED
WITH THE SEC, INCLUDING THE FORM S-4 AND THE DEFINITIVE PROXY
STATEMENT/PROSPECTUS INCLUDED THEREIN IF AND WHEN FILED, AND ANY
OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, BECAUSE THEY WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. When
available, investors and security holders will be able to obtain
copies of these documents, including the proxy statement/prospectus
and the registration statement, and any other documents that may be
filed with the SEC with respect to the proposed transaction free of
charge at the SEC’s website, http://www.sec.gov or as described in
the following paragraph.
The documents filed with the SEC by EQT and its publicly traded
subsidiaries (including EQM, RMP and EQGP) may be obtained free of
charge at the applicable website (www.eqt.com for EQT,
www.eqtmidstreampartners.com for EQGP and EQM, and
www.ricemidstream.com for RMP) or by requesting them by mail at EQT
Corporation, 625 Liberty Avenue, Suite 1700, Pittsburgh, PA 15222,
Attention: Investor Relations, or by telephone at (412)
553-5700.
Participants in the Solicitation
EQT, EQM, RMP and EQGP (EQM, RMP and EQGP collectively, the
Partnerships) and certain of their respective directors and
executive officers may be deemed to be participants in the
solicitation of proxies from the unitholders of RMP in connection
with the proposed transaction. Information about the directors and
executive officers of the general partners of EQM, RMP and EQGP is
set forth, respectively, in the Annual Report on Form 10-K for the
year ended December 31, 2017 filed by such Partnership with the SEC
on February 15, 2018 and certain of the Partnerships’ respective
Current Reports on Form 8-K. Information regarding EQT’s directors
and executive officers is available in its Annual Report on Form
10-K for the year ended December 31, 2017 filed by EQT with the SEC
on February 15, 2018, EQT’s definitive proxy statement for its 2017
annual meeting of shareholders filed with the SEC on February 17,
2017 and certain of EQT’s Current Reports on Form 8-K. These
documents can be obtained free of charge from the sources indicated
above. Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, will be contained in
the proxy statement/prospectus and other relevant materials to be
filed with the SEC when they become available.
EQT MIDSTREAM PARTNERS, LP AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
Three Months Ended March 31, 2018
2017
(Thousands, except per
unitamounts)
Operating revenues (1) $ 232,842 $ 200,072 Operating expenses:
Operating and maintenance 18,176 16,817 Selling, general and
administrative 13,145 17,400 Depreciation and amortization 23,179
20,547 Total operating expenses 54,500 54,764
Operating income 178,342 145,308 Equity income 8,811 4,277
Other income 898 1,537 Net interest expense 10,833 7,926
Net income $ 177,218 $ 143,196
Calculation of limited partner interest in net income: Net income $
177,218 $ 143,196 Less general partner interest in net income –
general partner units (3,117 ) (2,519 ) Less general partner
interest in net income – incentive distribution rights (44,164 )
(30,686 ) Limited partner interest in net income $ 129,937 $
109,991 Net income per limited partner unit – basic
and diluted $ 1.61 $ 1.36 Weighted average limited partner units
outstanding – basic and diluted 80,607 80,602
(1)
Operating revenues included affiliate
revenues from EQT of $160.6 million and $143.4 million for the
three months ended March 31, 2018 and 2017, respectively.
EQT MIDSTREAM PARTNERS, LP AND SUBSIDIARIES
GATHERING RESULTS OF OPERATIONS Three Months
Ended March 31, 2018 2017
FINANCIAL DATA
(Thousands, except per
dayamounts)
Firm reservation fee revenues $ 109,933 $ 94,271 Volumetric based
fee revenues: Usage fees under firm contracts (1) 12,108 4,821
Usage fees under interruptible contracts 3,867 3,237 Total
volumetric based fee revenues 15,975 8,058 Total operating
revenues 125,908 102,329 Operating expenses: Operating and
maintenance 10,625 10,340 Selling, general and administrative 5,654
9,425 Depreciation and amortization 10,738 8,860 Total
operating expenses 27,017 28,625 Operating income $ 98,891
$ 73,704
OPERATIONAL DATA Gathering volumes
(BBtu per day) Firm capacity reservation 1,964 1,728 Volumetric
based services (2) 600 224 Total gathered volumes 2,564
1,952 Capital expenditures $ 68,933 $ 48,838
(1)
Includes fees on volumes gathered in
excess of firm contracted capacity.
(2)
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 Three Months
Ended March 31, 2018 2017
FINANCIAL DATA
(Thousands, except per
dayamounts)
Firm reservation fee revenues $ 97,775 $ 92,274 Volumetric based
fee revenues: Usage fees under firm contracts (1) 3,822 2,857 Usage
fees under interruptible contracts 5,337 2,612 Total
volumetric based fee revenues 9,159 5,469 Total operating
revenues 106,934 97,743 Operating expenses: Operating and
maintenance 7,551 6,477 Selling, general and administrative 7,491
7,975 Depreciation and amortization 12,441 11,687 Total
operating expenses 27,483 26,139 Operating income $ 79,451
$ 71,604
OPERATIONAL DATA Transmission
pipeline throughput (BBtu per day) Firm capacity reservation 2,815
2,119 Volumetric based services (2) 42 31 Total transmission
pipeline throughput 2,857 2,150 Average contracted firm
transmission reservation commitments (BBtu per day) 4,140 3,743
Capital expenditures $ 18,929 $ 21,389
(1)
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.
(2)
Includes volumes transported under
interruptible contracts and volumes transported in excess of firm
contracted capacity.
EQT MIDSTREAM PARTNERS, LP AND SUBSIDIARIES
CAPITAL EXPENDITURE SUMMARY Three Months Ended
March 31, 2018 2017 (Thousands)
Expansion capital expenditures (1) $ 80,554 $ 66,645 Maintenance
capital expenditures: Ongoing maintenance 6,664 3,582 Funded
regulatory compliance 644 — Total maintenance capital
expenditures 7,308 3,582 Total capital expenditures $ 87,862
$ 70,227
(1)
Expansion capital expenditures do not
include capital contributions made to the MVP JV of $117.0 million
and $19.8 million for the three months ended March 31, 2018 and
2017, respectively.
EQT GP HOLDINGS, LP AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
Three Months Ended March 31, 2018
2017
(Thousands, except per
unitamounts)
Operating revenues (1) $ 232,842 $ 200,072 Operating expenses:
Operating and maintenance 18,176 16,817 Selling, general and
administrative 14,372 18,612 Depreciation and amortization 23,179
20,547 Total operating expenses 55,727 55,976
Operating income 177,115 144,096 Equity income 8,811 4,277 Other
income 898 1,537 Net interest expense 10,817 7,922 Net
income 176,007 141,988 Net income attributable to noncontrolling
interests 95,334 80,612 Net income attributable to EQT GP
Holdings, LP $ 80,673 $ 61,376 Net income per common
unit – basic and diluted $ 0.30 $ 0.23 Weighted average common
units outstanding – basic and diluted 266,193 266,183
(1)
Operating revenues included affiliate
revenues from EQT of $160.6 million and $143.4 million for the
three months ended March 31, 2018 and 2017, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180426005438/en/
EQT Midstream Partners, LP and EQT GP Holdings, LPAnalyst
inquiries:Nate Tetlow, 412-553-5834Investor Relations
Directorntetlow@eqtmidstreampartners.comorPatrick Kane,
412-553-7833Chief Investor Relations Officerpkane@eqt.comorMedia
inquiries:Natalie Cox, 412-395-3941Corporate Director,
Communicationsncox@eqt.com
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