Midstream (EQTNP) 2 Aug 222022 Q2 Earnings call transcript

Hello and thank you for standing by. My name is Rutina and I’ll be your conference operator today. At this time, I’d like to welcome everyone to the Equitrans Midstream Second Quarter 2022 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Nate Tetlow, Vice President of Corporate Development and Investor Relations Chairman and CEO. 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 replay phone or for (XXX) (XXX) And the conference is XXXXXXX. ID to Today's expectations. events statements and future call forward-looking may contain related from XX-K as could to release materially updated to XX-Qs factors that Form by the refer year-ended actual December differ factors in and Form forward-looking Please the risk XX, cause results today's ETRN's news statements. for these XXXX, and for call may non-GAAP certain contain financial Today's measures. Please refer measure. news and release measures, investor our the disclosures and reconciliation important regarding to this including financial morning's presentation for GAAP most comparable such

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

net Thanks, EBITDA of Nate. morning, we including Today, second $XX results of And ahead and forecast, our million, everyone. quarter adjusted deferred million of of million. $XXX recorded revenue good income $XX

pooling project of our Corporate compression nice we enhance The business a a efforts continues recently base to that of increased Kirk the our will solid ESG results detailed minutes. as few in reiterate we service Sustainability cost progress total second during core provide On project published at with financial secured half Report. our continue also billion. full We will guidance. state XXXX And will MVP, $X.X financial to make year the a targeted we details on assets. our many in the growth results, further deliver

I'll follow within work process. and Diana? belief to our appreciate Kirk that remain for focused are by the required MVP operations everything renewal every permitting now the the turn on it and We agencies results. projects prevail. on And the then process like required Diana being the financial by We and control. done every receive will encouraged federal discuss permit should And update

Thanks, everyone. with Tom. I'll start Good morning, gathering.

we quarter, level, is times realize with booster in backed this, compression to the projects At a be million. entered becomes The mid-XXXX, further into typically During producer high targeted agreement. by of customer believe away we capacity to roughly that A volumes project flat agreement in with existing basin a firm an about range. to long-term service On build add we $XX investment a compression total take to an until in available. multiple four a remain still six like the will facilities

will current gathered expect down on based development For volumes be timing. year-over-year continue plans the this year we to and pad year, slightly

on the Moving July, we Connector impact Ohio of project. the its And on for expected interconnects to first an XXXX. Ohio to transmission. our environmental are In deliverability provided FERC to we Connector about announced of cubic prepare in based through which OVCX timeframe, Valley markets FERC million Claridon, intent an process. statement pipeline, add in Valley of began notice on Ohio. per now the Gulf the provides XXX project targeting OVCX Expansion application Earlier and day midcontinent feet this the in-service half access year, permitting and Coast will the or

year $XX progress the we side, water making water mixed and for system of on good the are EBITDA the our use million accept On build to continue approximately out.

also report Gas Initiative and Corporate utilizes Standards set reflect on XXXX follow & continues materiality The assessment, SASB of Sustainability including engagement the environmental Global the report. and week, Reporting external ESG. which and results XXXX the released a many to recently, report of we we Oil Annual adoption stakeholders. Next and Last justice consolidated published XXXX, update newest In our The our Midstream GRI policy. investment supplier input policy. of both our we and commitments the community more formalized policy first human for the stakeholder rights And time from Code internal included of standards. Conduct,

climate are emissions our reduction in by and outlined As toward also Scope policy, X targeted steps taking active the XXXX. methane X in XX% we achieving Scope

of example, our projects year, included of controller at last reduction of our the methane compressor one For conversion pneumatic stations. some

Kirk. an giving, those of methane XXXX, around many equitransmidstream.com and initiatives to community our our we culture turn over report in baseline now environmental details found inclusion. everyone I and highlights full to and the ESG exit we I'll with report safety together implement, be to the pneumatic diversity our to XXXX conversion local continue initiatives through at project access that inventory. estimated to in the this reduction call additional to emissions workplace partnerships in leadership, As decrease relative including methane see XX% effort. website encourage are expected result the to are There

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

post income. certain cash and provision other receive within and Natural to prices ETRN items, common net free conditioned related MVPs of by NYMEX through entitling million. shareholders is reported instruments, reported provided on the flow to ETRN and activities derivative This impacted by $XXX gain $XX in-service income Hub $XXX from million attributable contractual EQT, Net to specific cash Henry also cash million XXXX,. on first payments unrealized exceeding several is was a We of thresholds operating by which Gas

long common net adjusting After second these is shareholders per of diluted million and tax of decreases and expensive. lower result second of in as quarter $XX impairment of remaining adjusted XXXX earnings than revenue, lastly quarter impact $X.XX. in same valuation line. operating revenue of to deferred same quarter common assets ETRN was for a $XX train $XX This second loss from million by extinguishment for debt, a ETRN adjusted the the lower tender within items, purchase million $X related and by SG&A deferred Operating notes million. the on of from ETRN quarter And amount of primarily of of lived $XX million gathered volumes last year reported million $XX compared by services decrease of which XXXX. of $XX offers. Second was gets for principal expense billion quarter O&M XXXX were last quarter year, lower primarily tax lower allowances EQM a senior of expenses second reduction assets. to lower was share the is revenue. the to attributable the The of This income the the a aggregate was and because income water

of share million $XXX were the June, the In cash million rate For record on near-term the common $XXX of to maturities. year forego August per Xrd. market to of tranche of an dividend year debt we outstanding the the senior XXX July, will billion close of notes. at common new bond XXX eight $X payment EQT successfully the We second approximately relief. cash a between XX, XXX shareholders outstanding business to notes purchase million notes quarter, quarterly split $X.XX pay and In million access address five a tranche. ETRN of of million notes, August used on Net XXXX to proceeds to receive future early XXXX XXXX outstanding and elected issued

average providing will revolver payment. reporting be the This have Because We in the rate increase $XXX rate today. gathering no we make financial we'll update ample to agreement. This longer is into for reflected availability The slight relief under GAAP gathering rate the a guidance average used under be the the million of provided periods. by the means less in deferring will future revenue $X.XX. approximately increase gathering gas

a of guidance. As full mentioned increased we have our on year strong QX, the heels

For I'll year of full to XXXX, and revenue Tom. to now to $XXX $X.XXX million forecast call the million. $XXX billion EBITDA $X.XXX $XXX deferred net approximately back income Adjusted the of hand billion now of million. we

Kirk. Thanks,

meet would not MVP reserves term and remain process. in gas our growth the also We've operations and increasing abundant clear be working our natural must remains that It's business will a play hard role continues. unrest provide core energy, developed will to compression base permitting are world's on demand near the resilient. reliable that for transported It domestic the maturities, we only enhance the summary, addressed added that debt completing clear reliable in our energy as business. also MVP We've So geopolitical key a project security and energy.

document, our comprehensive work will July far Wildlife outlined regulatory Circuit's the to recently biological issuance well As raised Opinion approved permits, US the to XX. of its the by assessment, completed which submitted the and in as was Valley supplement the the on Mountain and as legal exceeds Service updated biological concerns believe and standards toward opinions, We remand of XXXX issues the previously this Fourth Biological opponents. for Fish project decision we to address reissuance vacate which

reliability and Federal Appalachian clear. by offer essential very and agencies, proposed extremely produce access And thorough part nation's for announced including our provides the highlight and several Basin real our federal review as construct further of to reform companies the enhances as extension energy consequences energy carbon the clean execute of yesterday, Americans Permitting and review and with bill to to as MVP. it furthering nation's should system. leading These is judicial addresses is in Act, need relates future. gas and is result producer that demands last, critical energy, an permitting time resources beyond public be the absolutely point allies, both address for nation's of world renewables, while the and is domestic our MVP. approval addition, to insights a ensuring a by natural national consuming rules, our process, as best transition creating Jobs deliver In at has this have our process It resources, to letters our many the in as led support perfect importantly, and lower and project, energy into It this with defined which were vast and presented issues is comprehensive ability a our our legislation By renewable process affordability. goes delays of producers. been essential to the energy security far well timely ability to effectively time that to utilities, MVP transition of expertise certificate southeast provides pleased costly ability and as same infrastructure, need that best security. to set construction inadequate natural proposed to were It supports collateral practices proposed for proposed export for deliver we A Most a damage this a the ensures of the a support facilities in of continued filed uncertain and energy role MVP permitting about and energy crystal and case FERC the reform for for participation. supplies, This our Reform allies. to our

we important forward and your oil this proposed With this certain happy of projects, resolve leadership nearing MVP infrastructure relating are and for an of Manchin end permitting long delayed the a just this it renewable is legislation. timely as project, and which applaud providing spearheading benefit legislation important will expansion as look the by developments Senator questions. infrastructure gas. and that, we MVP in We timely is to While and projects energy And as to and other its MVP take Southgate as well for energy is process, legislation. permitting further to steadfast the process,

Tonet will Instructions] first come Our Jeremy Morgan, of the [Operator with line JP question from

morning. good Hi,

there. kind familiar if some that any directly and reports can a wondering MVP up with that of media side separate could end provide points initiatives if bill Just your follow at Senator wanted there? Manchin have pipeline to these you're indicated aid thoughts of been the proposed with you has just There's permitting,

that legislation bill reform Reform referenced, that Act Yes, comprehensive Jeremy, permitting the and treatment for Federal MVP. proposed Permitting the is a I direct for the thanks question. includes The Jobs

issues broader that think much disclosed addresses and beneficial the to as what well I time infrastructure reform those as energy is not was actively issues, you there And additional but for quite suspected, of we natural legislation. some highlighted bill have to issues. on be And engaging no oil gas energy side that. infrastructure, as Republican specific we've been senators is MVP So permitting That Democratic reform might and with now, yesterday, renewable would only as infrastructure. all the proposed

Got timeline it. point? Thanks MVP were at how for expected that. might And impact for if be to this passed, that this bill the

the all that too we'll near timing to this and in it But that proposed with be will depends term. be tell legislation those And of clearly cautiously needed. on -- It's legislation, get to revise and say itself. our that the we optimistic guidance able pleased passed suffice early as to we're it it we're points, the data once

of the Your John Mackay Goldman next question from Sachs. line comes with

time. just of potential you up the remaining legislation through those I MVP, for days, to issues let's your you kind on pick cases. Fourth it comfortable thanks wanted I questions. the ongoing early and for understanding this Hey, with specifically say Circuit last and if you getting of, is couple thinking all can are I'm Are

that. Just wondering comment if on you can

We're and is through respond. Fourth of me and confidence we're reissuance through withstand all get the going degree of in Tom, Circuit, thresholds me of and right permits confident review. to exceed we respond that those the our a now far that Army ways. have comfortable judicial the opinion, Corps process to our and course two the work let efforts John, with so any high Yes, biological submissions have issued on of our the let ordinary the This

the So that's confident answer what's would legislation included we there A, that answer requisite proposed B provide yes, is in MVP. around certainty are the

that just great. it's that's right, thank All one. pick And you. clear, Maybe up last

Let's say do for have still this. course go of to kind we normal

what the you permits in the the Thanks. of extension. and FERC hearing on sharing some federal for timing getting also You might of from just terms the timeline back on thoughts think

ordinary So outstanding the to through to Circuit. will is expect if of XXXX half we course, that the get process MVP in have guidance and the you with Fourth second complete that says when we put incorporates service permitting

So our guidance. that's already within

is probably this coming end permits year. the the With of by

Is still you to right start the about can So year. next construction way think it? that early

and opinion. timely But Correct. by hand them expect don't expect as we We've actual in those have year Wildlife, they provided have act permits issue our supplemental date exact to all would end. an We the that. to when Fish to the we of in to

a of of Your with Neel next question comes from Mitra America. Bank line

I now. to morning. wanted the good right just Hi, understand process current

then for the assuming I'm So are Forests the the you can West you first. Jefferson and would when National Circuit Virginia Fourth with opinion permits? on where you describe file the in process water the And need biological permit, Virginia you

Service, the So, of relates The XXX of that litigation And year. Neel, Circuit. think Corps for the gatekeeper issue Army I like and well the biological that Virginia, to the end as would other run opinion actually the ongoing Engineers. fall as West through Virginia is permits agencies is Fourth their as be it should the this the toward Forest the to through

this prevail, things those confident sustained for all We're of in going and we're all permits. again, statutory requirements So are process. to that exceed

proposed Okay. want And question about ask then the I a did to legislation.

branch, that interplay between Fourth of water understand like to for issues, the other future kind reports way so as things in legislation that permits, on is like can the be and progress, legislation as a DC also to past media to intervene I issues. could passed, Circuit wanted rather the it the saying there So the Circuit the And than pushed Fourth be Circuit. well there's judicial

court the obviously issue cases that project major the Fourth I of legislation has would terms the been Circuit the the forward. there, So together how and just wondering moving fit was because in

in manner to legislation certainty. purview. we Congress's you with a tell needed certainty provides things to we outside lane consistent is is I the that What that not the talk can't state my within Neel, be that that MVP proposed confidence I want swim and and careful about can

comes of from Your next Blum question line Wells the Michael from Fargo.

Permitting that Yes, everyone. Act? hear the is morning, mansion Good Jobs quote Reform that I Federal side to just earlier comments. unquote, saying Thanks. what a Are one just clarify actually correctly? deal the your of leadership and and wanted first reporting is media Or just as did you between

on of is only the aware characterization, and pieces not respond proposed of, that way. the that by the They're and focus Reform commenting Inflation And legislation are direct Federal anxious legislation Act. renewable Permitting the Reduction any Michael, we're Act. can we're I'm reforms good within Federal pieces Jobs passed. the of two that thing of Yes, MVP. the our many industry to I the legislation within Permitting Reform of well Act, really that on permitting as proposed that body the and are is of to only morning, have as the the is industry The aware And Jobs

got Understood. that. Appreciate Okay, it.

question. unrelated another had Just

or if natural seeing. customers higher activity drilling price curious around messaging activity you're seeing change plans the producer Just drilling of to in environment your or light from any we're change tone in gas

to Yes, up can forecasts look, are think speak point customers, about our production and and constraints statements to all limiting about the them have is we need to that maybe ability basin, basin I that. made the of it's of can't public for grow. we takeaway additional the publicly speak some the capacity that you the to, capacity takeaway the within of to the What in factors them one for

Kania from Wolfe comes line question with next of Research. Your Alex the

I Sorry, Good on mute. morning. was

on, release. press a Just the question in

you've egress been, what's on these any already been forward having uses for under horse maybe on could if entail. MVP with of boost what's discussions a a particular. I the wondering mentioned trying little gas extension, re-scoping Southgate there's cited provide discussion if all You other what going that color was And just on entities for the kind cart kind the been beyond just of evolving bit export maybe putting of you to there's more again, could then that before

now, to on Good this don't potential discussions do right Diana, have an with constructive conversations our have we and is Southgate, We continue existing customer so and update customers. morning. Yes,

we're have fit So discussions need we think to the exactly to and environment it. positive. now I what the those when right need news, And in they that continued is they

[Operator with Instructions] line Reynolds Your next come UBS. question from Brian of the will

Good morning, everyone.

timeline, the revision you curious follow have Permitting in up changes the a unintentionally buy deal, a cetera. up of the water any ultimate Federal of in Clean in any the Act MVP this process Thanks. on impact As impact could and existing permit, would if kind Reform there's for is mentioned side timeline Corps ultimately, permitting Army included et the whether Act Water the

there's the timing any that's think going as be to proposed side impact don't relates I permitting provisions. it the is to think on I a deal. anything in So this don't

I industry is talk gas hoping industry a reforms. efficient you think in the industry the legislation in this industry, of get necessary to the and energy we've been we could to that infrastructure. both piece proposed the And renewable anyone and if oil make more constructing such

of have So important may get to piece for it legislation this transition time. And country's been for for But piece I aisle or ability secure over the it. time think was this legislation remain is sides of may because that a of this passed, have and energy played us, to very is a both a supporting. now's for into to leverage that provide of not orderly critical and an independent, piece of the there

important this of impacts So And first, as there's is part no question on it legislation. relates no, to the secondly, this piece what's very timing legislation. in proposed of a your is

perspective. a maybe But then proposals switch follow as it minimum tax the side, energy to relates appreciate Understood, to corporate tax. the there from up, are the permitting as and to color

speak prior the prior of being if potentially the offset from given was prior to to earnings delays to to addition MVP In NOLS exposure not curious ETRN’s able years. impact Thanks. could you NOLs, future

on going stands changes. at have Kirk, looked now, keep us. it think we eye that. we'll is it's Yes, everyone We Obviously, as We'll This Yes. anything any we've updated. us. on impact language keep see don't an the on Brian. to any don't if impact But right

back for management With to turn remarks. the conference over that, any I'll closing

very today. you We're of with results joining us very Thank quarter. for our much pleased the

legislation call you will talked business your of have all proposed day industry. and and you hope this today Our that for everybody the important support is Thank the remain this that let energy a everybody to weekend you. safe We on to permitting strong. With come. enjoy critically reform that that know

Thank Ladies all that today's joining. you and call. gentlemen, for concludes

You may now disconnect.