Midstream (EQTNP) 31 Oct 232023 Q3 Earnings call transcript

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Equitrans Midstream Corporation Third Quarter 2023 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Nate Tetlow. ahead. go Please

The welcome is for and call Third XXXX (XXX)XXX-XXXX. this Quarter be is the Good XXX-XXXX (XXX) Midstream to Corporation. Call or evening. beginning days Equitrans for conference this number A Earnings for available replay ID morning, The XX the phone XXXXXXX. replay will of

XX-K ended for actual call certain disclosures including contain measures, forward-looking risk and these to non-GAAP XX, to refer Please results release as may forward-looking Form statements regarding and this events updated measure. the year from Please the reconciliations Today's XX-Qs contain most measures. presentation that today's may in to refer call and factors important for XXXX, and to Form for financial release ETRN's materially morning's such expectations. December could related to the statements. news by future GAAP differ financial comparable news cause Today's investor our factors

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

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

$XXX adjusted Kirk of we few on quarter million. results, XXXX details financial EBITDA income and of third $XXX everyone. reported in Nate, the and good million, Today, a provide morning, Thanks, including net deferred minutes. will of results $XX million revenue

at our stops, up The crews, $X.X construction quarter as revision targeted About cost history court July. particularly result two MVP. construction ramping unexpected factors, in of driven of court-related first the stay ago, of the a completion XXXX $XXX billion, in including a nearly the contingency. was inclusive a including total difficulty the X-week to multiple approximately million by project start revised we of of me with Let weeks

which was measures critical level challenging given source commitment to experience, our being was a than safety the necessary protocols unprecedented utilized. it Additionally, factor, and the more expected of environmental crews with to

longer working about right progress which While and complement good the originally of mid-October, of to people represents X,XXX took than we we planned, are reach on the able way, were every it full by workers, day. making

and anticipate confident financial release Over the boring as the to reduced activities and X,XXX expect in crossings. consumers X We're nearly to about up MVP be waterbody to we plan all we still released. weeks, major and that the next some the X to and are winter. Closer to complete provide much-needed schedule headcount finish crews year-end, can this optimistic

the now conclude closing and I'll turn some update, and financial then Diana operations with it And the I'll discuss results, to will Diana? comments. Kirk for

the everyone. Thanks, growth we quarter growth. third about sequential quarter, X% per Tom. morning, X and year-over-year Good gathered representing Bcf In day, X%

is This to demonstration system handle the our of significant capability quarter good production increases. of a quickly

at an context, no X a feet over QX. also producing day day above system and in million feet on per flow producer pads, QX, initial an turn customer To volumes had since had average our in give had each previously cubic per line some cubic you of a rate large million that late XXX pad added we and XXX

upstream in Operationally, and MVP. place, provide gathering assets to we backbone have systems connectivity direct these our will and transmission

annual compression digits per in the gathering in with MVP day expand the million through in service. growth dynamic, the We growing and cubic feet capacity to volume the to the MVP in combined TETCO MX Given service. years improvements with mid-single expected by this pricing for XXX Southeast, MVP demand ability anticipate following

pipeline customers our gas OVCX quarter. the The project to feet will targeted expansion construction incremental with segment, million reach per the have basin in-service a the will Transmission capacity. the commenced million day XXX liquidity Once is Bcf and is day capacity OVC per can for to of capacity, project a over capital optionality. provide ability XXXX. of X.X or cubic of $XXX move the half Ohio the same Connector of the MVP Valley first X.X incremental OVCX, Clarington is to also of capacity On expansion add complete, and third enhancing day backhaul we that in Bcf about in providing significant

of On we our water the line now of two mixed-use have of completes over of system. for to pads delivery trucks aboveground majority facilities, and produced offloading our receive the The up the well for day trunk system connected XXX segment, mixed XXX,XXX the connecting completed to ability into day backbone to allows the barrels per water Water water system. storage per the which the

third post-incident related the the Rager $X.X we incident. submitted year, expect full on $XX Mountain approved field. And well the Moving In we expense in Rager million to occurred on incur to storage activities. And approximately $X injection million fourth and to quarter, to injections we the to PHMSA. cause the root the million October, we of year. comprehensive at of update operating incurred an analysis and $XX for In August, approximately incident plan, the quarter expense last PHMSA Rager our that in began approximately of storage capital related million to

Lastly, and will efficiency on on are and ESG, incorporating the processes data progress improve we requirements. help collection collection which data standardize an making of reporting framework, enterprise meaningful

I'll to the over turn call Kirk. now

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

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

Net was to several income common shareholders attributable by items. impacted E-Train

provision This which million E-Train derivative to by EQT, related reported from of on a on by previously receive second, write-down the million NYMEX, natural in a cash in-service thresholds other to contract contractual gas specific Water And storage the through instruments, prices First, Henry mentioned certain is Hub income. exceeding segment; million Mountain incident. $X.X Rager unrealized asset operating conditioned the to expense $X.X a of entitling last, within loss the XXXX. relates post $X.X MVP's and payments

items, these adjusted third for common attributable share earnings adjusting net per common was E-Train income million After adjusted quarter $XXX and to was $X.XX. E-Train diluted shareholders

MVP increased driven of usage transmission $X.X of the increase The same Additionally, which last volumes quarter higher XXXX lower water revenue we with million quarter income primarily to offset is for million, and reported equity was to third revenue. partially Operating the relating quarter AFUDC year. volumes was third of compared associated higher construction. and gathering by was by primarily $XX.X

quarter of expenses other selling, the Mountain of Operating $X.X $X.X related in expenses $X.X a XXXX. expenses. $XX.X increase onetime Rager driven which Water for million million and third inclusion to $X.X by Fiscal gas the MVP associated million and operating Act his storage to cash Responsibility net favorable of than efforts occurred sales, with million administrative The asset general increased higher and Tom the were the in incident XXXX, maintenance, write-down third third XXXX, was expense of bonus the for field provisions million the of the awarded segment, the primarily quarter XXXX in quarter contract in

one amendment the maturity an we the October, to facility, EQM year to extending into by of credit In April XXXX. entered

billion is to revolver the April today, size of $X.XX As XXXX. of reduced $X.XX in and billion

business For release. quarter, November MVP the revised the available our November to X. at earnings $X.XX of will pay quarterly record on cost is year guidance a reflect on third third and of common dividend of close The XX E-Train shareholders last, share cash updated And project today's we estimates. full timing per in guidance quarter to XXXX

Tom. call to now back the hand I'll

Thanks, Kirk.

know, you January on the be taking CEO Chair be I'll Diana will As Executive and role. X, moving as to over

respected call. by She mark midstream has my across work colleagues undoubtedly role. an this this our the earnings displays So industry. final and and will ethic is unrelenting earned Diana

say I'm Looking Directors be honored Board all management on as company, last team them. with no to adversity well handled X as associated I that near back certainty can with group. this or the of has of years,

focus about an time, in safely per maintaining took gathered in business, same effort really at you to total production This needed and flexibility, daily It When that environmental much integrated Bcf priorities. amazing accident. team integrate by construct, all and the while assets, system of or the and X top States. stewardship day and an the with financial safety didn't operate happen our as of core United you done on this X% the QX see moved

the future forward filled as So better eventful I team under an had my leadership. in side. Executive Diana's last look with not or I by Board many and it's closing, serving X to a have and and been Chair to challenges, could years, success successes

With take your that, questions. we're to happy

the first [Operator question of with line Spiro from Instructions] Dounis Citigroup. Our come will

status 'XX there's is starting I you are to Chad kind just talk assumptions XQ target. sufficient MVP achievable? hit security time now to and quo hit just any Spiro. in want need be the mentioned change XQ about to Or the there. underlying This be of if line to latest that on risking able 'XX? that the you of order off, wanted But you to see line that that time the crews believe are just guess for construction I to continues, should for

Yes.

we 'XX. able over making We're cooperative. progress be halfway passed number now. water point XQ So week, the of weather we crossings. should steady to for Last hit been has The right

so developed we've us. we complement of about. over more the been or more days that on current the protocols issues work their and The the last environmental and more labor prioritizing weather. So that while daylight favorable schedule was heightened We're difficult XX certainly considering our productivity first, full based have considering behind of crews talking

We but of up and bores, crossings finishing but still be construction upland be we'll by January, handful We'll commissioning. expect year-end. a majority maybe some we complete largely to the to -- of have some work, and may have complete

Okay.

guess, comes could I how that the just opening opportunity emerge? -- potential on guess just Okay. thinking you quickly can ]? That's details I of know following any in kind And time there mainline it mentioned remarks. I how expansion the helpful. you [ that once And -- the a that MVP about MVP online, give up.

XX go feel a but when like we and working an -- the lot are season seen open we'll -- go from should permits a we're producer both we've for customers and It's months for it for need. After mainline. and We an need is And simplistic project comes then open compact and process about in more the we the for small regulatory it months. season, get and out construction. about -- you'll of right, asking. we more we customers out So is pull to -- ready expansion, that demand us everybody we time regulatory that XX see when demand are

question Your Severo of next Burgan comes ] the Wolfe with Research. [ from line

On to the for cost issues the workforce or the factors others? MVP largest? the able listed any agreement as from identify any the it or items PHMSA particular be would you increase, Is in

more the of and foresee increase So that were it things construction PHMSA the an aligned from than I to crews planned due done. was outlined and didn't part slow to agreement linked before say ramp in had largely the the largest. the half was the protocol. was We item That's in the challenges were would heightened order do in agreement. the environmental to to largely that we the

step capacity And up from to firm also the gathering all is new that specific and the the system the feet assets anticipated is signed? or just that any MVCs across were volumes, million XXX and gathering the mid-single-digit cubic growth

that... XXX OVC? The Is

MVC.

Yes.

Yes, on think, associated largely think the gathering. with customer new -- I there I was the

of be We related on as we systems. -- mean, would the expect growth. your mid-single-digit pretty volume I the well. then transmission that digit with question well do gathering on yes, on that But gathered some those integrated mid-single transmission, in as see gathered so was that's system growth related the And transmission have the as first growth. to move volumes, gathering system the to them a would --

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

quarter last work the last very got Could construction couple wet same second that wanted say, just we answers increase quarter, of an you what slipped in you've the that on given. of saw and if, kind let's cost this for touch construction of I on the equal to weather we delay? incremental some confirm quarter

No.

you're the now, going I mentioned see in which think comments. workers his X,XXX is at in what we're So field opening Tom right to

and at less issues and some increase. risk -- December weather we we X,XXX less work, in have down step to cost And will there's December So We get end completing type of people that then we we and as we're XXX of keep have less people, to the same on at right? people. of if January, location,

a Maybe awesome. That's right. follow-up. quick All

starting Obviously, their matter Could they it -- it's on share how matter flows capacity pipe new you sales I thoughts for doesn't announcements could and the still transmission time in now firm just agreements what have gathering once for there. maybe that? hold on we Just that know updated EQT's it but you of kind in XXXX for the the earnings you're necessarily of And get and again, until itself, XXXX. for line footprint, rest expecting MVP on to service? of them impacts just your any

Yes.

demand we've long-term in Southgate. first been about interest think, It's we just right? it's like the of all, I of both pull on expansion, support It supports producer contracts evidence seeing and and evidence for news, Southeast. also So MVP are points those the demand the great expansions talked -- and for data an appetite the

The market in the initially gas But and that demand will our going grow the to Northeast the giving more access customers Appalachia. from lower view dictate cost are Northeast displace gas Appalachia Southeast MVP. coming the on to that is flows dynamics volumes fundamental expensive

MVP growth there of with positioned basin, of growth even uniquely in we're to just our the only on the into amount if is pipes. So disproportionate access that capture modest a the inlet

that think that on they adds pipe. another were announcement happen going -- really are to to it's the I good, and the data So that point was just fundamentals

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

line free flow to cash like of E-Train. E-Train to sight appearing inflection at have looks is It

of kind we return curious opportunities. can capital if So about future think of

this the debt clearly when us on you expect And priority, but of leverage refresh First, of right open return kind further us if down line reduction the first is capital for could if which time is target? reach can target, you provide can whether you the just to curious Xx on opportunities road? up leverage a

after And as is we'll And MVP threshold. say the would I that years be X this Yes, of us. Kirk. kind Xx remains Brian, crossing for in service, Xx we target we we be the considering the to can opportunities of and and approach are be capital see what glide might we'll time, we'll what allocation path, do. us evaluating that at different

Valley as And downstream talked Pipeline. some my on counterparty a some Great. on Makes sense. follow-up, of up to contracts MVP fill about its contracts Mountain

] as its impact to just flows as at clarification, E-Train or a this business? transmission-based maybe So cash relates will all it [ GMP

commitments a then growth bit further little MVP kind to I ultimately on second, if opportunities. flow any And there? you But touched on curious Southgate think of could of these MVP through downstream

on gives to So far yes, I extending customers Southgate, that gas no. MVP then the answer the with then areas as end first different to from into think and question is other help pipe. of access your growth the And as

Tom further no turn any I'll questions call Karam back this have We remarks. closing at time. to the for

joining for you. fruitful and you Thank us a today. all thank hope we Well, safe everybody day. has And

thank We all meeting. for today's conclude will you That joining.

disconnect. You may now