Equitrans Midstream (US:ETRN)2023-05-02 20:04Financial Data and Key Metrics Changes - The company reported a net income of $106 million for Q1 2023, with adjusted EBITDA of $300 million and deferred revenue of $77 million [6][28]. - Net income attributable to common shareholders was $87 million, with earnings per diluted share of $0.20. Adjusted net income was $96 million, leading to adjusted earnings per diluted share of $0.22 [28][31]. - Operating revenues increased by $34 million compared to the same quarter last year, driven by one-time contract buyouts and higher water services revenue [31][51]. Business Line Data and Key Metrics Changes - In the Transmission segment, a one-time cash payment of approximately $24 million was received for a contract buyout, and a new agreement was established for an average capacity of 95 million per day [13]. - The Water segment saw strong delivered volumes, with a forecast to be at the high end of previous EBITDA guidance of $45 million for 2023 due to increased use of produced water in frac jobs [22][23]. - Gathering CapEx guidance for 2023 is set at $265 million, with $200 million for sustaining CapEx to maintain flat volumes [19]. Market Data and Key Metrics Changes - The company gathered about 7.4 Bcf per day in Q1 2023, with expectations for flat basin volumes due to takeaway constraints [19]. - The Ohio Valley Connector Expansion Project is anticipated to add about 350 million per day of deliverability, with construction expected to commence soon after necessary approvals are obtained [21]. Company Strategy and Development Direction - The company is focused on completing the Mountain Valley Pipeline (MVP) project, emphasizing the importance of energy infrastructure and the need for permitting reform legislation [11][18]. - The strategy includes leveraging existing assets and developing projects to extend and expand the system, with a focus on capturing new wellhead gathering opportunities [55][58]. - The Water team aims to create a premier mixed-use water system, maximizing the reuse of produced water, which has environmental advantages [59]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in addressing regulatory challenges and obtaining necessary permits for MVP, with expectations to complete construction by late 2023 [16][66]. - The company acknowledged the impact of delays on the balance sheet but did not speculate on dividend actions amid uncertainties regarding MVP [70]. Other Important Information - The company incurred approximately $4.1 million in operating expenses related to the Rager Mountain storage incident in Q1 2023, with full-year expectations of $8 million to $10 million in expenses [25][51]. - A quarterly cash dividend of $0.15 per common share is scheduled for May 15, 2023 [51]. Q&A Session Summary Question: Can you discuss the guidance update and the impact of MVP on financials? - Management noted that Q1 benefited from contract buyouts and seasonal factors, with no significant changes in gathering or transmission assumptions [35][36]. Question: What are the next critical hurdles for MVP? - Management indicated that the roadmap for permits is clear, and they expect to receive necessary permits in the coming months [64][66]. Question: How does the company view sustaining the dividend amid MVP uncertainties? - Management acknowledged the stress on the balance sheet but refrained from speculating on dividend actions at this time [70].