Q2 2017 Results Announced For EQT Midstream Partners And EQT GP Holdings

EQT Midstream Partners, LP (NYSE: EQM) today announced second quarter 2017 results, including net income of $139.1 million, adjusted EBITDA of $165.2 million, net cash provided by operating activities of $158.9 million, and distributable cash flow of $150.4 million. EQM operating income was $141.1 million, which was 9% higher than 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 $63.3 million for the second quarter.

EQM Highlights:
  • Placed final phase of natural gas header pipeline for Range Resources into service
  • Increased EQM per unit distribution by 20% compared to Q2 2016
  • Maintained a 1.35x coverage ratio for the quarter
  • Generated 91% of operating revenue from firm reservation fees

EQM second quarter operating revenue increased $20.9 million, 12% higher compared to the same quarter last year. The increase was primarily due to increased firm transmission capacity and higher contracted firm gathering capacity. During the quarter, 91% of operating revenue was generated by firm reservation fees. Operating expenses were up $8.9 million versus the second quarter of 2016, primarily from higher depreciation and amortization, and operating and maintenance expenses from higher assets placed in-service.

On June 19, 2017, EQT Corporation (EQT), EQM's largest customer and corporate sponsor, announced that it has entered into a definitive agreement to acquire Rice Energy Inc. (Rice). Completion of the transaction is subject to the approval of both EQT and Rice shareholders, as well as certain customary closing conditions. As part of the transaction, EQT will acquire the retained midstream assets that are currently held at Rice. The retained midstream assets, which EQT intends to sell to EQM, are projected to generate $130 million of EBITDA in 2018. In addition to the drop-down opportunity, EQM expects to benefit from increased organic growth opportunities resulting from the combination of the EQT and Rice acreage positions. See the Non-GAAP Disclosures section for important information regarding the non-GAAP financial measure projected EBITDA of the Rice retained midstream assets.

If you liked this article you might like

EQT Stock Tanks on Acquisition of Rice Energy -- Jim Cramer Calls It a 'Terrific' Deal

EQT Midstream Partners, AbbVie, Blackstone Group: 'Mad Money' Lightning Round

Here's Why You Should Hope for Panic: Cramer's 'Mad Money' Recap (Friday 4/21/17)

Top 7 Energy Stocks to Own for 2017