EQT Midstream Partners, LP (NYSE: EQM), an EQT Corporation (EQT) company, today announced third quarter 2013 financial and operating results. Net income for the quarter totaled $27.7 million and adjusted EBITDA was $33.1 million. Distributable cash flow was $29.2 million for the quarter. Operating income was $27.6 million, or 67% higher than the same quarter last year. The non-GAAP financial measures are reconciled in the Non-GAAP Disclosures section below.
EQT Midstream Partners, LP (Partnership) acquired the Sunrise Pipeline (Sunrise) from EQT on July 22, 2013. The Partnership’s third quarter results include Sunrise and prior period financials have been recast to account for the Sunrise acquisition.
For the third quarter, operating revenues increased $11.4 million, or 33%, compared to the same quarter last year. The increase was primarily due to increased contracted transmission capacity associated with Sunrise and the Blacksville compressor station and higher system throughput related to growth in Marcellus Shale development. Operating expenses increased $0.3 million versus the third quarter of 2012.
Operating revenues are seasonal, and based on utility customer contracts, are currently expected to be about $2 million per quarter higher in the first and fourth quarters of each year.
The Partnership announced a quarterly cash distribution of $0.43 per unit for the third quarter of 2013. The distribution will be paid on November 14, 2013 to all unitholders of record at the close of business on November 4, 2013. The quarterly cash distribution is $0.03 per unit or 8% higher than the second quarter 2013 and $0.08 per unit or 23% higher than the third quarter 2012.
The Partnership expects 2013 full-year adjusted EBITDA and distributable cash flows to be near the high-end of the previously provided guidance, or $118 million and $100 million, respectively.
Third quarter expansion capital expenditures totaled $20.7 million, of which $12.6 million related to the Low Pressure East Pipeline project, $5.3 million related to the Jefferson compressor expansion project, and the remainder related to new interconnects and dehydration upgrades.