EQT Midstream Partners, LP (NYSE: EQM), an EQT Corporation (EQT) company, today announced fourth quarter and full-year 2013 financial and operating results. Net income for the quarter totaled $30.8 million and adjusted EBITDA was $36.3 million. Distributable cash flow was $26.7 million for the quarter. Adjusted operating income was $30.8 million, or 17% higher than the same quarter last year. For the year, adjusted EBITDA was $119.5 million and distributable cash flow was $101.4 million. The non-GAAP financial measures are reconciled in the Non-GAAP Disclosures section included in this news release.
On December 17, 2013, EQT Midstream Partners (Partnership) entered into a capital lease with EQT for the lease of its Allegheny Valley Connector (AVC) facilities, which includes a 200-mile, FERC-regulated pipeline that EQT acquired in December 2013 as part of the transfer of its natural gas distribution business. The Partnership operates the AVC as part of its transmission and storage system. Revenue and expenses associated with the AVC are included in the Partnership’s financial statements; however, the monthly lease payment to EQT offsets the impact on the Partnership’s distributable cash flow. As a result, fourth quarter 2013 operating results are discussed on an adjusted basis, excluding the AVC. The lease payment totaled $1.0 million for the fourth quarter. The revenues and expenses associated with AVC are found in the reconciliation table in the Non-GAAP Disclosures section of this news release.
Fourth quarter adjusted operating revenues increased $7.7 million, or 18%, compared to the same quarter last year. The increase was primarily due to increased contracted transmission capacity and higher system throughput related to growth in Marcellus Shale development. Adjusted operating expenses increased $0.7 million versus the fourth quarter of 2012, excluding a non-cash $2.5 million favorable regulatory reserve reversal in the fourth quarter of 2012.
Quarterly DistributionThe Partnership announced a quarterly cash distribution of $0.46 per unit for the fourth quarter of 2013. The distribution will be paid on February 14, 2014 to all unitholders of record at the close of business on February 4, 2014. The quarterly cash distribution is $0.03 per unit, or 7% higher, than the third quarter 2013 and $0.11 per unit, or 31% higher, than the fourth quarter 2012.