EQT Midstream Partners, LP has announced second quarter 2016 results, including net income of US$124.8 million, adjusted EBITDA of US$138.1 million, net cash provided by operating activities of US$150.4 million, and distributable cash flow of US$129.1 million. EQM operating income was US$124.3 million and adjusted operating income was US$123 million, each 23% higher than the same quarter last year. The Non-GAAP Disclosures section of this news release provides reconciliations of non-GAAP financial measures to their most comparable GAAP financial measure as well as important disclosures regarding projected adjusted EBITDA and projected distributable cash flow.
EQT GP Holdings, LP announced net income attributable to EQGP of US$51.2 million for the second quarter.
In December 2013, EQM entered into a capital lease with EQT Corporation (EQT) for its Allegheny Valley Connector facilities (AVC), which includes a 200 mile pipeline regulated by the Federal Energy Regulatory Commission (FERC). EQM operates the AVC and the related revenue and expenses are included in the financial statements; however, the monthly lease payment to EQT offsets the impact on adjusted EBITDA and distributable cash flow. As a result, second quarter 2016 operating results are also discussed on an adjusted basis, excluding the AVC. Payments due under the lease totalled US$4.0 million for the second quarter. The revenue and expenses associated with the AVC are found in the reconciliation table in the Non-GAAP Disclosures section of this news release.
EQM second quarter operating revenue increased US$27.4 million and adjusted operating revenue increased US$26.7 million, each 19% higher compared to the same quarter last year. The increase was primarily due to higher contracted firm gathering capacity, increased gathered volumes, and increased volumetric-based transmission fees from EQT. Operating expenses were up US$4.5 million and adjusted operating expenses were up US$3.5 million versus the second quarter of 2015, consistent with the growth of the business.
Ohio Valley Connector
In the second quarter, EQM continued construction of the 37 mile pipeline that will extend the transmission and storage system from northern West Virginia to Clarington, Ohio, providing shippers access to Midwest and Gulf Coast markets. EQM has entered into a 20 year transportation service agreement with EQT for a total of 650 million ft3/d of firm transmission capacity on the OVC, which is on schedule to be placed in-service during the fourth quarter of 2016.
In the second quarter, EQM continued construction of a natural gas header pipeline for Range Resources. The pipeline is contracted to provide 600 million ft3/d of capacity and is backed by a 10 year firm capacity reservation commitment. EQM plans to complete the pipeline in two phases, with phase one expected to be in-service during the second half of 2016 and phase two in-service during the first half of 2017.Mountain Valley Pipeline
MVP JV filed the formal application requesting FERC authorisation to construct the pipeline on 23 October 2015. On 28 June 2016 FERC issued the Notice of Schedule for Environmental Review (NOS). Based on the schedule provided in the NOS, MVP JV anticipates commencing construction mid-year 2017 and reiterates the late 2018 target in-service date. MVP JV has secured a total of 2 billion ft3/d of firm capacity commitments at 20 year terms.
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Edited from various sources by Stephanie Roker
Read the article online at: https://www.worldpipelines.com/business-news/29072016/2q16-results-for-eqt/