Midstream (EQTNP) 21 Feb 232022 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the Equitrans Midstream Year End 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session [Operator Instructions].

It's now my pleasure to turn today's call over to Mr. Tetlow. Nathan begin. please Sir,

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

the Justin questions. and will Officer; to After and On Brian Chief Accounting Vice the Senior Engineering; Operating Vice Vice President Charletta, James prepared Oliver, and Kirk call open call Planning remarks, Financial the Macken, Brenner, President Chief today Systems are and Senior Officer; Tom and Karam, Vice Diana Chairman and Officer; we President, Treasurer. President CEO; Patrandria, and President Gas Chief

to With Tom. over it that, I'll turn

today EBITDA results, a will financial being morning, $XXX nearly the and reported start everyone. Kirk of by million. of minutes. paths $XXX Nate, including $X.X provide adjusted million, Today, few XXXX the pursued. results details we Thanks, net in and addressing billion revenue loss MVP and deferred of a I'll year full good on

relevant First, path, of they on permitting work through the we analysis the another round actively yet and review. engaged agencies as with are exhaustive

the issued on Specifically and we be permits by timing XXth. Fish to opinion, mobilization This will receive MVP the Wildlife And XXXX. of summer by to over position expect based all we bring Services to crews in the months. permitting will statements, of in February biological approvals the next the the required allow the time line into opinion for expect based for recent few XXXX, service construction which agencies, the other announced biological us of on and

However, as [duly] we permits. we all these project yet expect to issued challenge know, components again

believe permits as the standards are Circuit. that raised well focused exceed by all previously the such, agencies As Fourth as will legal on points address we issuing

prevail, hostage which Act, process members every need permitting and is path. House, is said, especially remain passage some with construction authorized, projects. investment of if comply the and endlessly believe of of that why Reduction approval a that federal every This MVP needs we like Inflation infrastructure, promotes issue their Companies our renewable primarily be the assurance White permits since legal have won't variety the new channels. held way to gained should permitting to has committed we Projects that which That receive country view and desperately our the traction Congress reform. with also regular by

pass that permitting during a the December bill path, were in congressional lame duck we Congress On couldn't reform legislative disappointed the session.

legislation think be support believe there differences bipartisan new there for to continues potential prospects there between remains solution reform, in and to we of parties and Congress. Although the to the aisle sides a both within work from the as are on we

financial results. to then Kirk And will update, operations over an for now the Diana and it discuss I'll turn Diana?

Tom. Thanks, Good everyone. morning,

on designed well, We services as to and which well a after from specialty working storage a Pennsylvania that well the a and Equitrans casing. Pennsylvania. the halted Mountain storage Shortly First, Xth incident pressure area single County, vent technicians natural November located storage successfully remote on relieve is the on DEP want gas venting in engaged leading was Cambria our immediately to November notification, and the field, of occurred escaping from address Rager arrived which at I site The company. FINSA, control notified XXth. was gas observed on

from hopeful inject inventory Bcf. with were We Mountain we gas approved verification needs. are other Rager for So was season. after have field, inventory the the are permission an during do the to and but authorize field gas Rager to we active having gas into to completed in indicate inject the and that coming test the wells X.XX us previous several We've to tests, they’ll the inventory comparing customer the incident, approximately reduced FINSA withdraw currently field the results and discussions storage by on during not productive

evaluate the to to extent all inventory and We phase migration. root due some loss continue The investigation or cause now to is of venting to due potential whether was was what whether underway.

PA, a We conduct with incidents and expertise firm storage in an field independent to FINSA. also coordinate investigation. activities with we to our leading have closely DEP continue the And engaged

all initiated integrity. of storage we the root comprehensive have storage review filled cause our wells and In to of addition a analysis,

expect will provide analysis the review We cause is complete. income root of once to diligently incident, the work the and to throughout available. cause continue the more including

review expense which Kirk the what include moment, related estimates will a Our to Rager XXXX guidance, know on does capital incident based and in we today.

impacts. incident, information including evaluate and the gather to continuing financial related are We about

can these So in we remarks. today we provided prepared already in I've what beyond will what very say be limited

X.X I'll with averaged per XXXX, start gathering. In we on the Bcf moving of Now volume. about day gathered to segments.

as by development to in continues roughly driven in slated maintenance producers for and $XX includes growth the XXXX $XXX expansion that in approximately This million. XXXX, $XXX of will we compression largely is outlook Our million basin. XXXX booster approximately the $XX new initiated to volumes constraints hold be gathering we other that gathering which to XXXX CapEx for projects. in-service remain million for guidance level Today, flat plans, takeaway in the A-Basin million announced project

Moving on the FERC Connector Valley markets impact million will transmission. final or OVCX feet XXX pipeline, Valley which Clarington, day Coast interconnects expansion, The of access Connector in for environmental add to the about per Gulf a month, on expansion Ohio cubic through issued Ohio. Ohio the to project. Last our deliverability and provides Mid-Continent statement

the necessary first approvals We expect track half of and project to XXXX be during all remains to the half of service the in placed first XXXX. in on receive

which project. $XX million for OVCX guidance CapEx transmission $XXX includes XXXX the $XX Our is million approximately million, to

approximately segment, going our barrels. started In storage mixed-use first is build-out the a water XXXX, the system has water On we capacity of aboveground well. which operations XXX,XXX facility, at

We aboveground storage water about storage into capacity expect barrels. total water to the to the second in few next facility our bring service XXX,XXX months. will bring This

million. $XX logistics water million. for million road number we the storage, on water opportunities freshwater reported to $XX of And expect to as and potentially of the approximately system system. of the reducing and In discussing of producers with expand XXXX, of handling. addition We're of $XX approximately miles XXXX, trucks and also income of In simplifying water benefits and we approximately pipelines with the multiple continue see million the XX water they enhance to consist systems will EBITDA the to EBITDA operating water existing of two $XX interconnects the

we on Lastly, advancements during our ESG XXXX. many made program,

new pneumatics instituting Some first the a submitting sites received or CDP TCFD of full-air security and our in XX we assessment, XX to completing water low-bleed include: in for B, to the readiness a high-bleed policy pneumatics, compressor converting highlights environmental is addition from of converted voluntary which which questionnaire, sites we the XXXX. score justice

company month enhancing and industry efforts, participants Methane is to that Equitrans last announced a we monitoring methane AMI reductions to the region. specific as member facilitating other methane is of throughout also in committed Initiative. further the addition In additional emission our founding basin the Appalachian joining

efforts to to continuing look We XXXX. operations and forward committed are of sustainability in the our our

now over I'll the Kirk. call turn to

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

operating million. reported also cash approximately of year cash $XXX full net by $XXX provided activities million We of and flow free

cash cash $X.X the impacted attributable the on a $XX is MVP to shareholders These entitling both net and fourth provided quarter XXXX. cash and prices, operating million. the contractual of the NYMEX million placed $XX activities $XXX million service items fourth EBITDA payments payments a quarter receive reported we E-Train to natural was results. common was E-Train beginning Net specific million, quarter, E-Train quarter which common $XX certain $XXX on from gas in E-Train million Net are income running $XX Henry the attributable the in of revenue year shareholders related quarter, million unrealized of common exceeding adjusted per EQT. to instruments, Hub derivative earnings income flow. was was the and conditioned with net through deferred quarter $X.XX. In generated income Several for provision gain we For cash fourth to for share diluted which and and thresholds, is of by million by impacted full free the

$X.X year, gathered revenue last million year the a noncore to gain adjusted related Rager revenue and items, Mountain $XXX quarter shareholders previously After per water impacting executed to by the assets. impairment incident. same adjusted on primarily sale full diluted year results to from increased common the deferred volumes. by impacted deferred last partially and adjusting million were gain year early higher full on in assets, million was a million loss $X.XX. storage share unrealized and the derivative impacted of by $X.XX. MVP million benefit, of expenses Both $XX for earnings attributable Rager After for adjusted services and The income the E-Train $XXX earnings $X revenue and primarily associated was expenses items lower net extinguishment to our debt, that $X.X incident in and $XX tax described. $XX diluted million XXXX, of primarily allowance a share E-Train million a results items, was a attributable quarter to was by common adjusting year shareholders for operating on on E-Train valuation Other common these placed XXXX tax addition, to Operating In from million net million $XX by of adjusted gathering storage compared tender common year. $XX increased QX the offset $XXX and million we these offers in investment operating the year to of per instruments, income include increased quarter was were and income quarter, the compared Diana decrease due full the E-Train for Mountain related an mentioned revenue, million

Operating impairment expenses. lower from million primarily and year, expenses $XX last long lower lived were compared assets for of $XX the by a SG&A in to million XXXX year

For related the last of and million SG&A fourth quarter, $X.X the million from O&M, storage Rager compared operating the $XX higher Mountain year, incident increased to and by expenses primarily depreciation. expenses to

share guidance For quarterly paid to a for of quarter, day cash the shareholders the XXth on February common fourth finally, Xth. E-Train we E-Train the And business initiated on common record at close of February dividend XXXX. $X.XX of per

MVP uncertainty in-service, providing we're of construction the guidance ultimate path using the and and ongoing forward around to two scenarios. completion timing With

the initial included for XXXX estimates, following approximately XXXX. incident absence MVP completion The the to second the approximately the and million operating first $XX ongoing related assumes our CapEx to of work in-service $X Rager expenses based million MVP Mountain and $X guidance. million second in we've XXXX of on and forward and of assumes Also, of construction half

million. million capital $XXX flow the our million free scenario are full able know associated forecast, incident, the XXXX, million, forward $XX we construction to of and and free with based of cash Mountain expenses to million and MVP While year flow $XXX to and of $XXX under the $XXX on these absence in two contributions of retained with CapEx we cash Rager $XX completion what million to capital estimate today,

now to I'll back hand call Tom. the

Thanks, Kirk.

our to Before and moving embrace safety, core questions, to collaboration, integrity, work to transparency outstanding who acknowledge your of I values of excellence. the our want employees continued

and on working of as With have Specifically, above in commitment. to who operating managing cold MVP persevered our to all are remainder questions. incident XXXX, with possibly paths business, want take who and to and on for professionalism a as base hard we're the those acknowledge the Mountain we your keeping December, we focused our extreme to employees battling the I sound employees while can we also completion. else as as a all directly Rager lastly, safety weather that, look stakeholders, been to happy And priority get true

question of first line from Goldman the [Operator with Instructions] Your comes Olivia Holford Sachs.

start you targeting date? we any half still order permit outstanding on from these do could and are a of you to What Endangered both in-service in second Act extension the And Forest the the to have If of front, achieve data consultation and 'XX permits concerns Wildlife period? Fish the Species that on Service on the second Service. receive

which in No, National the week. We've ends the be extension. with Jefferson concern. that environmental period XXXX, statement the SEIS next by would biological we opinion XXth. April The by Wildlife period, that FERC we quality XX, Fish docket issued in don't additional Forest, comment of be and review any consultation put and of February will a be XX-day May cross to the Forest permits February XXth. The on the from to extended which agreement XXth, for period there have Then issued Service console consultation the expect is and been to on the end

the day that following to and the Land of Management two that. Bureau expect immediately following issue Forest within a we So Service or

the the to which months, bodies will four the to five the in probably cross us the in issue order to Corps service in expect individual work and And allow of to MVP bring Army construction, Engineers have we into months stop allow permits water mid-April. to subsequent then work that, FERC remaining forest. And five expect we lift We XXXX. to about closer should to of

we needs provided price MVP guidance MVP, North with other staying seen inflation natural today? And the projects. gas then see further on for spending given you large-scale cost risk labor any the and overruns Do above have American

not referencing, that there other are that along order of as that inflationary pressures. so pressures Well, scale be won't to projects Olivia, complete MVP of to think, magnitude large is MVP, inflationary the not not that more MVP. That's of to as XX% maybe you're I projects vulnerable respect far with say but

to magnitude we'll it see but I don't just to expect have be impacts how of significant and that So impact. a wait order

Karam. [Operator no are Instructions] the questions back will call I There Mr. now time. this further turn at to Tom over

out rest and I day has for hope a very you, everybody, there. much. call joining you Thank the today. Thank your everyone good of be safe

for Ladies This participating. and thank you today's concludes call. conference gentlemen,

You may now disconnect.