EQT Midstream Partners, LP (NYSE: EQM), a Delaware limited partnership and an EQT Corporation company, today announced third quarter 2012 financial and operating results. Net income for the quarter totaled $12.0 million, or $0.34 per limited partner unit, and adjusted EBITDA was $17.2 million, or $0.49 per unit. Distributable cash flow was $11.6 million, or $0.33 per unit, for the quarter. Adjusted operating income was higher by about $2 million, or 17%, when compared to the same quarter last year, adjusting for a $2.5 million credit to purchased gas costs in 2011. The non-GAAP financial measures are reconciled in the Non-GAAP Disclosures section of this press release.
Highlights for the third quarter 2012:
- Reported adjusted EBITDA and distributable cash flow are ahead of plan;
- Announced the first quarterly distribution of $0.35 per unit; and
- Increasing guidance for adjusted EBITDA and distributable cash flow over the twelve month period ending June 30, 2013.
EQT Midstream Partners, LP (Partnership) closed its initial public offering (IPO) on July 2, 2012. Results for periods prior to the IPO are attributable to its predecessor, Equitrans, LP (Equitrans).
The Partnership has a capital lease with EQT Corporation for the lease of the Sunrise Pipeline (Sunrise), and operates the pipeline as part of its transmission and storage system. Revenues and expenses associated with Sunrise are included in the Partnership’s financial statements; however, the monthly lease payment to EQT Corporation offsets the impact on the Partnership’s distributable cash flow; therefore, third quarter 2012 results are discussed on an adjusted basis, excluding Sunrise.Adjusted operating revenues, which exclude revenues associated with Sunrise, were $2.0 million or 7% higher than operating revenues for the same quarter last year. The increase in adjusted operating revenues was due to an increase in contracted transmission capacity and increased system throughput related to growth in Marcellus Shale development. Adjusted operating expenses, which exclude expenses associated with Sunrise, were unchanged versus operating expenses for the third quarter of 2011, also adjusting for a $2.5 million credit to purchased gas costs in 2011.