Midstream (EQTNP) 22 Feb 222021 Q4 Earnings call transcript

0:04 Good morning. My name is Chantel, and I'll be your conference operator today. At this time, I would like to welcome everyone to Equitrans Midstream Fourth Quarter 2021 Earnings Call. [Operator Instructions]. 0:31 Nathan Tetlow, Vice President of Investor Relations, you may begin your conference.

welcome Corporation. year-end and for earnings morning, Midstream Equitrans Good to XXXX the call X:XX of call replay this A this evening. days for beginning XX will be available the is The or the number is replay phone XXX-XXX-XXXX for and conference ID XXXXXXX. XXX-XXX-XXXX related forward-looking Today's events future statements may and to call contain expectations. to ETRN's for the XX, to as XXXX, today's in updated and materially factors the cause for differ by Risk release refer XX-K forward-looking results year XX-Qs that these and actual could Please Factors Form statements. news Form from ended December X:XX December Also, this to with year the Form XX-K SEC for be XX, the ended week. the expected XXXX, is filed Today's call measures. may financial certain contain non-GAAP most to disclosures measure. comparable presentation Please morning's and release for this regarding our including important measures, investor the GAAP refer such financial news to reconciliations Chairman Senior call Diana Treasurer. Brian and Gas Oliver, Janis and Senior Engineering; the today CEO; Accounting Officer; Finance and Operating Financial Karam, Brunner, Chief Vice President Pietrandrea, Macken, and and Vice Vice Tom are Officer; Officer; President, and Chief On Justin President, Vice Kirk and President Chief Charletta, Planning X:XX Systems President prepared the we After to the will questions. call remarks, open X:XX I'll Tom. to With turn that, it over

Good we year net EBITDA reported of everyone. Thanks, XXXX of Adjusted morning, and of $X.X full billion. deferred billion X:XX loss $X revenue Nate. million. Today, $XXX

the going after as X:XX comparable biological predictable represent review and difference. traditional vacate and beyond beyond view, unprecedented level wrong the business XXXX the a well to above our was few in have and in Forest departure results second requirements again, that a We Our regulatory recent the believe their will to exceeding Circuit opinion significant from MVP on MVP's extensive solid, decisions forest biological agencies to that federal an an MVP core financial and court the provide projects This permit was in Crossing X-year results, minutes. review of deliver continues vacated the included our MVP and the X:XX which and opinion remind will details MVP's determine faced. a as project reissued judicial are, guidance. Kirk remand market. Fourth discuss permitting in we infrastructure MVP's permit Diana? path And completed permits remain counsel and about the bring update, to elevate Kirk provide The our to to are partners review, a is long for total we I'll operations reconsultation best and and project financial the When actively to targeting between to no the XXXX turn completion. are complete. Wildlife We and that summer uncertainty court ability then you, update legal XX% just to forward. path, Obviously, an to committed agencies, work FERC. Diana comprehensive and will it around discussions service. completing these with find decisions engaged now the federal longer our results. Fish conclude we And The

X:XX Tom, and everyone. good Thanks, morning,

to to thank employees teams priority I navigate continue who else. challenges. Thank again internal like Also, MVP all. above external all to strong continued you all safety both the of that our acknowledge and results a First, want delivered I'd through keep the and once to

appreciated. work, of moving truly the hours and perseverance X:XX business. base are Now dedication to countless Your

X% moved day we about On the XXXX. or X.X than XXXX gathering higher side, an of Bcf per in average

currently year-over-year driven in modest is Our initial implies plans decline volumes. customers' XXXX free by cash and a our development flow guidance

drilling. to to picture, we maintenance strip at volumes. continue X:XX be believe expect However, XXXX next pricing, to volumes customers we do upside for that the producer flat roughly as stick Big there level our few could gathered years current

a expect pipeline, Gulf in XXX access markets to per million through we system, is ways example we project, and Incremental build-out. guidance. separate able Clarington, includes our and XXXX. which approximately Bcf million transportation or contracted the Mid-Continent a is to project capital X In the utilize on recently reliability capacity million to long-term for project in $XXX compression X:XX approximately gathering incremental interconnects our were OVC submitted existing OVC be revenue perfect compression for about long-haul which On new delivery to design per approximately to CapEx save which pipes application incremental a includes day included the million of incremental This spend $XXX This We about $XX capital our and existing per day of includes existing targeted a a capacity Ohio, service paths meet X:XX does around of FERC on transmission million than expansion transmission, efficiency. overall transmission is The in the assets and assets, receipt to feet legacy Coast Connector and for generate deliverability our $XX project the Valley we million about of to million greenfield Ohio increased in expect relative compression, QX XXXX. the agreements. an finding long-term million, of projects through demand customer improvement an team cubic gathering OVCX. drive to needs invest of key currently system. in The day in on $XX fee. contracted with XXXX greenfield under extension Rather XXX about $XXX to about total, to is X:XX of

the of expect approximately and a X throughput. build realize on times multiple better depending to times potentially project X to We

which by XX-year XXXX, approximately In primarily system $XX million On the have to services infrastructure. Pennsylvania, X:XX an EQT. million water plan we recently next XXXX, a water commitment be working $XX services range. Beyond agreement side, to million majority The CapEx water-related to the revenue build for $XX water includes backbone finish signed expected water agreement we to of million backed been to the by is of years. with ESG. methane XX% out the In to Scope targets, and on annual the the closer first new made the to X:XX X XXXX, invest last X is use in several $XX Moving reduction in in we long-term established we advancements: years X reduction first, the and $XX important including X million emission a emissions Scope goal emissions by we've the total XX% greenhouse by And made becoming and progress. as for X a XXXX. XXXX XXXX X:XX gas great net X carbon already reduction of as X in well and

air as began as bleed Specifically a we in with well XXXX, systems. low to bleed gas-driven with high program replace certain instrument pneumatics pneumatics

GRI pneumatic we approximately report sustainability relative a have safety reporting standards. result, second our lowered methane Second, published followed our As corporate we XXXX emissions XX% methane X:XX to emission annual baseline. by annual and which

upgrade response. received received by to our and BBB a MSCI our in B year climate change being we to of an asked CDP on Lastly, score minus first respond, we

to over turn sustainability I'll our to into We forward the the improving are advancements and of operations Kirk. look now disclosure to call making our committed XXXX. XX:XX in more

good of per of and was and for loss $XXX share we $X.X Thanks, reported was a EBITDA E-Train diluted of This billion year $X just full and Diana, XX:XX Adjusted $X.XX. everyone. net million. E-Train common loss year billion $X.X revenue a over the The morning, loss deferred morning, billion. common shareholders attributable to net

million with by to and cash flow To a agreement want E-Train $XXX provided to $X.X We operating spend reported the a also where fourth transportation loss cash EQT, $XXX on remind did fee have cash fourth net XX:XX of it you, difference shareholders per billion, million, billion of and our for operating flow. $X.X diluted minute XX:XX fee receive and cash on. the $XXX we transmission a volumes million. the billion In $XXX the agreement amended XX:XX and we applies. allows adjustment loss common of a full For as year agreement we by recognize and December, loss certain activities credit relates we we million revenue to a this free gathering services approximately the EQT. million. $X.XX. the E-Train activities EBITDA The our Net deferred deferred with gas net revenue credit common Also, in was that quarter attributable between both we reported that $X.X a generated services. was quarter, cash share an for gathering revenue I collect provided of to deferred of is $XXX quarter net revenue adjusted In quarter, of free

to no Although back there free our lower being impact future amendment beginning is offset revenue gathering the contract. contract. to the gets of of the increase applied The transmission rate future with rate the of life XX:XX do over we lower average cash the gathering the expect flow, average

the additional by reservation adjustment fourth Net fourth joint impairment quarter in in by the million. was fee we legal on lower shows So for fourth impacted $X.X had segment. deferred and XX:XX Gathering items a venture, impacted cumulative Several quarter the MVP statements MVP. income through driven financial results. of the the both facing to year and our ongoing quarter, the to the a full firm billion challenges up which was regulatory impact $XXX the cumulative The investment revenue in approximately quarter revenue

to contractual prices debt exceeding loss impacted by deferred driven were net venture offer the on EQT, loss a for conditioned Henry was valuation venture adjusting to the million on common assets; bonds. adjusted million $XX share a to that certain instruments. NYMEX items, million with full which these million E-Train investment long-lived associated to from allowance beginning results the E-Train our year per valuation loss share the quarter impacted with After from QX on adjusted in -- QX MVP in loss receive assets shareholders items, gas to derivative deferred on million placed by the net and E-Train derivative MVP and XXXX our in related common million $XX per XXXX instruments, E-Train on billion we for full million was were a from This thresholds losses impairment these impairment through $X.XX. shareholders executed attributable earnings tax for joint adjusted tender entitling payments XX:XX adjusting income in to diluted adjusted in-service assets, early and resulting our on common a of E-Train the was impairment common and and Additionally, tax finally, natural $XXX specific year income was to was joint loss MVP's Hub cash the water Ohio by $XX of XXXX. is The $XX After $XXX occurs attributable outstanding cumulative the XX:XX XX:XX our allowance the million unrealized investment the unrealized $XX extinguishment assets, provision $X.XX. $XX $XX our also $X.X net million

and cash free the adjusted $XXX million. flow $XXX XX:XX free reported revenue of we earlier, year $XXX revenue by deferred million and million of just year mentioned retained cash compared decreased We billion $XXX EBITDA for of $X to flow. last of As $XXX in generated last for over comparable revenue. million Operating the same for deferred decreased year, were and operating year. the versus the impact year the were million compared period flat by quarter Both quarter revenue of by and essentially quarter expenses driven the for the XXXX. fourth Operating the for to

quarter, with common a For share E-train of close initial CapEx XXXX XX ultimate on recognition dividend February guidance and on EQT. items, the business under record per certain and paid agreement for MVP $X.XX cash provided and of flow, X. and the gathering lastly, shareholders impacts flow retained cash today, revenue of the fourth timing Because revenue XX:XX quarterly And we at common capital February the to free deferred contributions. including service cash free

provide our recent guidance these MVP for of guidance path revenue. XXXX review income, XX:XX for be evaluation expect and EBITDA forward the adjusted the to for of the deferred project. legal able to net unable completion items to decisions the are and after of provide We We possible

retained we midpoint. call year, XXXX capital the of to million at to between I'll XX:XX $XXX flow $XXX to total and Tom. and hand the million. the million free $XXX We expect also between be For now guidance $XX expenditures flow cash million our cash back expect million free $XXX

focused macro type Circuit so like carbon It's Fourth be and the more the economy, Kirk. time both decisions for need issued a clear. reliability a is blunt lower projects of the Thanks, being overreaching from that critical by XX:XX could necessary energy micro this not to infrastructure completed. MVP level, the when issues independence, XX:XX on court and At this transitioning at troubling nation

key designed retirement long the country. to supply essential Additional intensity to to transport the of States gas a lowest constructing not is the natural allies. can trading but of natural MVP Further, power for by gas to in potentially security evidenced Appalachian to United natural gas the with enhance coal the and displace are partners Appalachian needing to only other role the such the and valuable for is helping plants gas very regarding However, XX:XX LNG in term. support combat in ruling and the change, natural to globally facilitating ensure gas exports, energy climate Fourth reliability form challenges Southeast to affordable methane in reliability and of ensure supply areas increasing. MVP, significant coal-fired infrastructure natural Circuit infrastructure and as XX:XX the play

a reliability With happy questions. that, we with security our take risk we'll energy As nation, to security, energy our be these obstacles. national legal your and

from with Goldman XX:XX comes Mackay [Operator Instructions] Our Sachs. first John question

open. is line Your

us can't the table just of pieces Thanks everyone. not Or on understand is XXXX Hi, I MVP, now? a I reason there date moving yet. X possible? mean, XX:XX give I talk But I of time. that Good might on wanted morning. is right all and still you to be the kind understand through. think that for kind a that you the

XX:XX Good for is Thanks morning, John. the question. This Tom.

I to assess first think look, the actively court with saying we're we're engaged is, our the what and agencies partners rulings. comfortable

with statements recent required achieve the court that exploring the issues. these needed time. XX:XX this, we're you the away newly of I that legal Second, give encouraged projects. survive address and to a a say can't a critical legislators though of even give of challenge. answer hope And timing. by than permit it's the the timely And and lastly, issued but infrastructure completion you to every by want answer confidence appeal to scope supporting will been I to determine of we path a high you we've work We're because can any I this from and period, you public still much way, certain more degree directly timing the host not want, at this really within whole want, can't come

totally point. of the fair. consult kind your talking XX:XX understand more Okay. agencies just that's move with on I'll the one ask No, you're But forward about the partners side. Maybe to also I potential regulatory last conversations I on this. there. the understand need and

you even general your Would in curious if larger kind Just project out can means. taking versa? flesh your interested Just less interested curious this be of a point were that you of share the in or vice if there? what on partners thoughts

Yes. XX:XX

vein answer, to now think little all the to forward. with of I a bit we're path back of finding having the partners conversations first go our of best right are in the the

That’s there. will Thanks. Okay. I it XX:XX the will fair. back I in get leave queue.

XX:XX Thanks, John.

next Neel America. Mitra Bank with of Our comes question from XX:XX

for Hi, XX:XX time. Thanks good morning. the

trend leverage – a the context project the to alive kind X the the $XX are of to you're seems while it things? tending levels about at in construction of million keep at Looking to be looking and the what under those up, you how quarter distribution

Hi, Kirk. Yes. this XX:XX is

time optimistic, cautiously that address It's to to plans the that. no not to have a optimistic path we the completion. dividend. have We cut We're

generates to and that support dividend flow nothing substantial today cash announced we've changes core business that. the Our

it. can maybe just you kind XX:XX can then the of few you know opportunities, over type and some just that years from I getting the aside And of projects growth Northeast, ultimately doesn't that the some second outline Got other gas opportunities out MVP your see what emphasis looking question, you been see with intra next MVP, basin? of survive? has but of the if

it's Diana. XX:XX Hi,

continue capital system that with this perspective. drive we're top So and opportunity would say but transmission just systems right? probably So a a that's both and some as gathering looking have other filed we're from ways to. is efficiencies, opportunities extent it. I of certainly, by the we looking both that We're finding look as sides can. on FERC we on capital certainly forward our to efficiently system down using to Gathering, at from OVC transmission perspective. the growth We drive

really that's team and job has really in uses it. for And I far. better So think the repurposing already looking this at that ground with the done a finding pipe good

will you in queue. back very I get Thank much. the XX:XX Okay.

XX:XX question Rebecca with Our comes Advisors. next U.S. Capital from Followill

Your line is live.

you morning. leverage banks in the Where step credit Good with the do later stand your down on in this XX:XX There's year? facility?

Diana. Rebecca. Good is XX:XX This morning

supportive. been good they our We our with that's very group, have largely a driven relationship have and the bank And strength of been business. very by core

So see any facility not we addressing do with issues that the banks.

a the then then contract? one the right the different – way. have your Do partners just and And XX:XX know to project questions they I in from the would one there the up of Is project other other capital in to pick down investment? partners larger just just of have walk asking the wrote also. partners Do the

Tom. current This the XX:XX morning, time answer the in Good No, Rebecca. is frame. is short

and is no our typically, is in partners. nothing at answer with with private publicly odds the we other. conversations So say with lockstep our what each We're always are

all we're path accounting be booked. have here issues to seeking together, So any that notwithstanding forward the

you. I Thank guys, just for any the if timing weeks? Is maybe next get clarity lot And in. you it to next have Is Okay. a and that? can X quarter? on of to months? it you I issues do it for what but digest Any the feel there's for these more are? Is steps feel XX:XX some sneak by know the

still of appeal XX:XX Yes. legal Rebecca, off wave period. answering the the I fact to have that we're that in because

having. relative come the soon like can we to conversations So what as as I'd will we're back to say we is

XX:XX Understand. Thank you.

John XX:XX Goldman Our Mackay next Sachs. with question from comes

me. thanks back 'XX to Maybe Hi, just coming on guidance. for XX:XX

comment, But EBITDA. of of maybe the for pretty I Diana, much but everything kind kind your know on if in really you else said business and you you the of year-over-year, revenue gathering line deferred base declines, volume maybe can't I too is kind slight assumptions just in the underlying can otherwise, understand are color So the give line? everything

volumes a There XX:XX be in slight Yes. flat. producer just our in stay guidance. would they is if There year-over-year decline upside

So change the to is the depending throughout of on and that base decided year, prices what but the rest only to do really the business. producers

Okay. – squeeze in. then XX:XX And I’ll X squeeze That's helpful. final, I'll more

here. your ground? we're remediation in we're to considerable that scenario look the forward in not any pipe of curious of could on MVP. there kind what the existing Is guess, spend terms scenario able I the on where like? speaking Just, side from Just in hypothetically go is But that

the where in seem willing I any we're they to XX:XX respect. offer we're us. that Yes, at would made, to those reasonable be and not and I point Look, the you filed to mean XX-K and John. NextEra filings the estimates guidance that to point

XX:XX on And to ARO Tom, sorry, of clarify the to kind just there? you're recorded referring that, they

XX:XX Correct.

XX:XX for all today. you Okay. the And that. Thank appreciate time

John. Thanks, XX:XX

closing XX:XX remarks. There further I’ll Karam Tom over are questions call at no back the for time. this turn to

find that. much. hands XX:XX revert our soon that the joining back and you, path to as It's today, that on is thank everyone, just and we're We'll want announced to success quarter today. Well, have get very day. a strong, all back right and for core Thank tuned. And business it's you good some deck we a the clarity us very get to it's on as fact predictable on forward we that I stay MVP. resilient Have that been will us complicated to you

conference call. concludes today's This XX:XX

now may You disconnect.