Midstream (EQTNP) 3 Aug 212021 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Equitrans Midstream Q2 2021 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker, Nate Tetlow. Please go ahead.

to Corporation. quarter welcome for earnings and Midstream Equitrans morning, the XXXX second call Good of call replay this A this evening. days for beginning XX will be available XXX-XXXX is The XXX-XXXX the number conference replay phone or is for (XXX) and XXXXXXX. the ID (XXX) contain may to related statements expectations. future forward-looking and call Today's events results Please cause Factors XX-Qs differ and ETRN's as to by news Form Form the December XX-K forward-looking Risk today's refer ended XXXX, and for factors XX, could that for actual to release these from in the year materially updated statements. financial Today's contain certain call may measures. non-GAAP Please presentation GAAP refer to this financial including morning's such comparable news release and for our disclosures reconciliations investor measure. most important to the measures, regarding

turn Karam, Macken, Planning the Gas and President President Senior With Diana we and open Vice Pietrandrea, CEO; and the Senior Chief and call Kirk prepared Chief On Accounting Tom I'll Charletta, Officer; over Financial Vice Oliver, Brian Engineering; today and questions. call remarks, President, Justin Systems Chairman After the Chief will it are Vice President to to Operating Tom. and Officer. Officer; that,

morning, and everyone. good Nate, Thanks,

For marking the solid quarter income quarter, and results. another of was $XXX $XX adjusted million EBITDA net million, was

The people week, end we continue provide released Standards our Board guidance Last operations was as assets, Global corporate the on Sustainability in deliver report the report. Reporting high produced both Accounting details and more standards. GRI, Our SASB, and the quarter. exceeded a Initiative; in of minutes. few we EBITDA adjusted accordance will our to for Kirk financial with sustainability results annual

a encourage report equitransmidstream.com. to our progress outlines material of but access the I Our at we've also our ESG everyone XXXX range items expands made. website highlight I'll of and the couple through full topics report

XX% XX.X% First, we've decreased reducing to methane methane, XXXX made our progress air than intensity being total rate on year-over-year. And with XXXX. lower specific emissions great

our to and employee we program. Second, recruitment and inclusion-related The inclusion provides designed in formally XXXX, engagement is program processes, policies. enhance launched education employee new a

climate Lastly, human over policy. our developed a policy and we and initiated year, the rights past further sustainability framework

position turn enhanced X also Board I'll now and Officer whom the including Independent Directors, to operations have finance open are Board established additional we call We Directors. of provide back female. update, with Diana over your the before Sustainability now We a X X-member of Kirk of Independent remarks for to call will Chief the I'll short Directors, update. for questions. and our closing the Diana? some come the

morning, I'll with good and Tom, everyone. start Thanks, MVP.

around complete and upland working in to work since remaining and related Forest. Jefferson water approximately On the are areas construction is work approved on crossings areas miles XX miles fall. include will all spring the track in we have to the the been on complete, X National side, Once to this upland and related work the

indicated published that permitting the and FERC the certificate been applying to February, body schedule, to for information the Engineers With in FERC side, of On notice the in recently MVP which has remaining of assessment amendment providing the expected Army since Corps water U.S. to mid-August. published permits process, and regard is wetland be environmental FERC. requested

on Moving permit Corps process. the to Army individual

the are state Virginia of extensions December their years certificate and to FERC expected permitting it comprehensive, has that for process the federal end As Virginia the and XXX permitting will time In July, billion. putting first the for Corps be, the end been, support and in-service, we XX expect total water agencies MVP's appreciate perform remains additional $X.X cost The announced we on lines project its The through to in forth. effort that emissions. very We November JV and are carbon reviews. to frames both One plan, approximately the targeted of MVP the granted Virginia. and West to carbon XXXX Upon achieve continue and were the carbon Virginia estimate of time MVP. these United offsets. for anticipated, the the time West plans remain States for purchase will offset quality companies for of new become with and neutrality consistent Army and natural the implementation operational full first final MVP's neutralize summer the of operational transmission interstate of emissions gas service one comment of

MVP and to to Equitrans We the important efforts are partners and proud emission. industry's our commitment this make reduce with methane advance

with providing forecast which our Moving local our natural had to tailwind. Gathered were gas during drop the natural gas continued in Henry business. quarter the price uptick quarter, base and prices Both and a for some volumes ahead the July. of on nice transmission throughput Hub

focused customers we strength not remain production saw our growth, free flow pricing cash While last volume the have generation on same over we summer. the curtailments experienced means price-driven

season, growth. cautiously volume are modest the the resulting will withdrawal We optimistic gathered strong that into year-over-year prices winter remain summer in and through

to are for running we of segment, freshwater our water guidance million water the delivery full plan million. from also our increased $XX today $XX and On EBITDA ahead year

to on of contractor and In some delivery to reduction resulted our gathering shifting a million of lastly, of pipelines season segment, through Ohio. resulted is for our $XX decrease of recently refined in existing open interconnects pricing the plans capital, a from we've completed we interstate system. result our the previous interest Clarington, Coast, primarily shipper in Equitrans guidance. primarily Gulf project binding in markets and terms season in Midwest which The for favorable transmission the And related with system continued timing. The year, open a optimization access

We shipper and are requests. are received interest with evaluating we the pleased

later to call over discuss turn Kirk. We have details year. the to more this I'll expect to now

we second million. $XX Today, good EBITDA $X.XX. common million Net common and ETRN income Diana, diluted net share income $XXX Thanks, of per million Adjusted was was morning, reported and to earnings and everyone. attributable quarter revenue million. $XX was shareholders deferred $XX of

attributable operating shareholders common by $XXX was activities quarter. of million. of by million provided to and Net ETRN flow cash impacted during cash net the X reported also free We income items $XXX

from item Midstream Partners a Rice $XX the in is Ohio were first which water impairment XXXX. acquired The to million assets,

certain $XX $X a these which was thresholds natural instruments, entitling same to quarter last second to net ETRN by exceeding income. throughput is shareholders the was common based of attributable increased in higher compared million Henry offset provision After per $X share for quarter earnings This for quarter diluted XXXX starting and in impairment prices adjusted water for to quarter $X.XX. the the from of contractual Hub primarily volumes item by higher second items, gain relates year from on through on other quarter receive unrealized and the the EQT, operating to transmission derivative fourth is million in-service of adjusting second partially common ETRN higher revenue quarter $XX cash expenses income to second adjusted reported decreased and ETRN Ohio was million the water by services than continuing XXXX the the quarter of MVP's the gas XXXX $XX volume. driven million The XXXX. X primarily second were assets. increase million with Operating the payments gathering

billion August and of result And ETRN XXXX guidance Tom. share EBITDA adjusted the to $X.XX remainder cash the record on free guidance second we of the will hand $X.XX billion common year on our cash I'll our to call $XXX $XXX raised full X. a for to the dividend strong shareholders XX lastly, of back per $X.XX business quarter, common to at to August million year, quarterly million. as range quarter range of the results outlook of and close a pay For flow now second to

Kirk. Thanks,

continues deliver. price the business summarize, The has environment is gas to to our base macro strengthened outlook natural and So encouraging.

wash We're strides construction necessary the permitting expectations. front. on are continuing and healthier take great And and exhibit Our your benefit. long-term happy on making the to are customers With with that, your hands, getting lastly, we're stay questions. discipline please and track ESG our to safe, for

Instructions] [Operator is first with from Your Shneur UBS. Gershuni response

to MVP at West Virginia dates one looking you mentioned Virginia. the that a your have like actually remarks point, for If of Maybe I was you off start firm sort just specifically prepared does updates. by in extension March of that's correctly, that to understand how set kind date? so recall if larger Diana, Is don't and into Virginia for for Virginia? with Corps trying about play now then, out going to a Just act dynamics And and issue? the on the forth. they

Yes.

after So have waived is they DEQ that that ability the now does, we from have that point, they right don't Virginia assuming XX/XX but date Virginia all have that that indications from to. the have proceed set. would to Corps Corps The the hit that they've can and

the to is agencies But to we're everything that seeing, So date. up all it's really that Corps. working are of which is important the

that that or would from guess, like I and it And wedge not potentially create impact that issue a Corps that it? they Okay. ability, would date perspective legal the hit your would if did issued, supersede a

So if because there's I lot time going January and in mean little our they not I don't hit do schedule February. think bit we're to a a into built of really it,

which what late on they they So summer way originally COD to for, pushes really to is early it from if go MVP the summer. all March, asked just the

it. Got Okay.

bit, little that Sorry -- for but -- a

Shneur. This Tom, Shneur. is

Virginia, and The Let in bit. a little dates those and done date Virginia of were Virginia dates. XXXs were communication result agreement West were the me are and The just Virginia there's the out put a vacuum. among that and so for just that West clarify parties -- not with that was just the to those that consultation a in consultation Corps

that Okay. about there, little concert. Perfect. assume just to talk are really I clarification so bit that in done onboard appreciate we really and I here. everybody's can't pivot Maybe Hammerhead. and a

binding originally wondering Just the moved the was of updates season suggest latest throughput to open agreement some that Does open with seeing respect sort of that talk kind you what I to are ago? signed filed a the it? was open outside a season. of we're your Have if So about you there's transmission season? while can higher maybe

Yes.

has closed. season, So we move also did that binding a been open to and

right several. there of shipper evaluating what in, So now doing came all is that the we're and requests were

then good. is as really to the as what still those of that's is and and that forth with they required, shippers they go. come want determining and there far And economics, to where really some where evaluation from capital want is project So part back

we a And open next right the binding So shippers. give should But season. it that of with have we're now working all couple in results information. you final more months through good to of was

John is Your next Goldman Mackay response Sachs. of from

back from XXXX parts that I but said of circle couple there's kind gathering there to wanted moving Just a of the read on CapEx. just there change volumes any are on in know if curious you

color a of This CapEx. on morning. the little Good gathering, there is I'll the bit Justin. add

mix of want a projects terms So categories. system A of transparency in million customers, communication of gathering and 'XX. made on really lot of of chunk new our it $XX XXXX lower seeing deferrals, it we're deferral as XXXX. you is about that as aligning of spend. pricing timing related saw optimizing CapEx. a gathering downward to our some the then benefits to the producer into pad to it our now some our your falls and But I level well we're EQT, by do with contracts, creates relates and the realized question revision X seeing optimization, especially that in a our projects of note contractor which that That's and possible into

to goal really where construction Our winter avoid is possible. always

those of Again, construct moves still really the can later of 'XX, of pad makes generally a build fall spring organizations scheduled the pad we But between is early the possible. efforts the what the shift in that timing. if 'XX, meet level producers' is So the into to lines would 'XX. in coordination scheduling and that for if 'XX we

The of as optimize we is add the deferrals and producers other their production. compression, needed by compression to category

we're remain 'XX, level of is incremental expecting flat. we're But projects So most 'XX our compression still just it's online seeing at to in aren't higher fees The that projects terms ability of optimize implications to required compression is efforts related those a deferral and projects our the keep as accordingly. really mind a this volumes contracts volume that coordination time. of of CapEx in of layer when for to some of our our service. function deferred also to in that come And gathering spend move

from And hear helpful. to Maybe MVP. the still ask one the with comments on seen is well. going Really recently. We've great. just follow-up I'll EQT some relationship That's EPA good

I think kind were some. by they of misunderstood

will in you EPA's if guys is be. role that of and curious just update this kind us on the what give could So communication of kind of is overall where an and process going kind

Yes, permitting Corps the part of comments Sure. EPA were provided the as Army process.

So work. actually that's it's how to intended

can permitting they ensure they Corps comments through those the the that take go appropriately are and as now addressed So process.

be that either EPA. that then the all those individual issues And confident ultimately agency part that is we're the been from permit of the EPA the will So have Corps addressed. or that comments just process comments the Army from the were water

next response from Your Dounis Credit of is Spiro Suisse.

one a neutrality. carbon multipart is First question on

So carbon. obviously, you MVP its announced offsetting

you something the to more purchasing this permanent your is rest the to these implement offsets ability solution, rather from if talk integrated? more thinking over that return how something you're about ability then curious could long a the Just assets across generate little a initiative. of to I broadly, there kind than of And more do term like your and guess, about bit

energy. to reduce gas obligation essential needs our value attack for reduction, all and we have for a address Certainly the our but been also We've core that fits have looking has methane country strategies same and continue we questions. at strategy, the understand that good that emissions, lot competencies shareholders. -- time, find the to developing meeting to we something of greenhouse within time that and of wanting So an creates to and spending really

learn things, an there's hydrogen we're small certainly economic interested some sure in. attention. time We're value, little bit a paying some to add So something right waste, if very things, opportunity that of to research that to solar taking really small doing We're make heat, now. that's we're

smaller-scale those the don't our -- net there's opportunity plan XXXX learn We work a learned. cutting set, and as size to of be have balance get continue up to an bit end, XXXX. then through strengthen as that we've we some on us, then behind in And that our which other as XX% gas by to half, MVP get X right implement XXXX starts things. sheet we now goals to I far So have what a we we've methane think the total as greenhouse are cutting by by by to to

So we learning. we working and keep keep

see like seat and I that my I I'm organization, what It's approaching think a up from within show this can it which starting approach is in it's we're we safety, is seeing becoming permeating everybody's lot language. to of the part that is incorporated thing for involved. for that's so that us every to really we've sure into following participating. along getting of incentive the and culture, is And best that targets individual short-term whole the the some and organization our make

Great.

just don't and that believe while, asked in the to of assets been Second your more to as of change or MVP front stands, in seller one, that you've But I about that a M&A hands in where on think that. some and We're on both market. a curious potential buyer assets. a a lot happen check completing focus given just Would this is seeing desk. crossing

online, once be it? looking is is sheet sort as up line just comes quickly MVP of So your And how anything for ready thinking balance there to M&A here. you're even about then curious you'd

Spiro, always no of sheet. Tom. clearly, on around have mean, this us. MVP begin to mistake, delevering here is delevering we first on But is the job eyes our in going the complete what's our I and balance our make the -- rapid marketplace

aware we're forward you are hands focus but lot our of You're never, are a say assets out to right now, of. that MVP. right completing that change attempting anything on now leaning not but correct. there is There We're never

next from Walker, is response Derek Your BoA.

I the do update Maybe of quick sort ones a from guess provide of and other water what feedback you for and approach on Maybe of from of is these an kind get on have FERC in how Does your some permits EA you see Southgate couple there. of sort Southgate? of perhaps that potentially as states? any evolving influence that me. approach approach sort just the

Yes.

working those Southgate. now, right COD through certainly, all with on -- construction MVP spring 'XX now, we're a on 'XX of assuming helpful. the in certainty sometime in will So that we is obstacles Right mainline permitting start be

with yes, on on MVP So permitting does the mainline helps I Southgate. that that the positivity any think

guess they next now obviously, and between at do And for some of it. FERC I been forth. you there's they Got I have need anticipate this at anything here? back EA, said couple guess point, everything Or weeks and point? this you mid-August, Do the else the

Yes.

I think we're they them need, have everything but that contact as things they data in far with as close that. and like requests

I they well what think but have So to there positioned anything is right we're they everything need, them else, now. if give

[Operator Instructions] is Tonet Your next of response Jeremy JPMorgan. from

decarbonization, had follow And this RNG. the regards up see to of far. and you going any Just ETRN just and some to RNG point so wanted wanted to comments forward I at for questions opportunities guess, on on with thoughts

Yes.

to fits, have continue look we footprint think competency, consider interesting I that. set. with So and our that's now in forward it in right our to don't to in that's something anything that but our part continues tool that's that us. But interesting core at we're We us. It's moving be arena, that to as something of

There time. queue the are at in further this questions no

thanks, of for great to out day. forward us. you. in Please Have talking everyone, couple look stay you to and joining Well, Thank safe a we months. again a there,

for now This may disconnect. conference and participating, Thank concludes call. today's you you