Q3 2016 Results Announced For EQT Midstream Partners And EQT GP Holdings

EQT Midstream Partners, LP (NYSE: EQM) today announced third quarter 2016 results, including net income of $126.6 million, adjusted EBITDA of $136.0 million, net cash provided by operating activities of $101.7 million, and distributable cash flow of $125.7 million. EQM operating income was $121.4 million and adjusted operating income was $120.7 million, each 18% 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 (NYSE: EQGP) today announced net income attributable to EQGP of $53.2 million for the third quarter.

EQM Highlights:
  • Acquired Allegheny Valley Connector and several Marcellus gathering systems from EQT
  • Placed the Ohio Valley Connector (OVC) pipeline into service
  • Completed phase one of header pipeline for Range Resources
  • Increased net income guidance for 2016 to $510 - $515 million
  • Increased adjusted EBITDA guidance for 2016 to $568 - $573 million
  • Raised distributable cash flow guidance for 2016 to $515 - $520 million
  • Maintained a 1.4x coverage ratio for the quarter
  • Increased EQM per unit distribution by 21% compared to Q3 2015

In December 2013, EQM entered into a capital lease with EQT Corporation (EQT) for the Allegheny Valley Connector facilities (AVC). EQM operated the AVC and the related revenue and expenses were included in its financial statements; however, the monthly lease payment to EQT offset the impact on adjusted EBITDA and distributable cash flow. As a result, third quarter 2016 operating results are discussed on an adjusted basis, excluding the AVC. Payments due under the lease totaled $3.8 million for the third 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. As a result of EQM's previously announced acquisition of the AVC, EQM will terminate the capital lease in Q4 2016.

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