On Dec 8, EQT Midstream Partners, LP (EQM), a unit of the integrated energy firm EQT Corporation (EQT), provided an outlook for its 2015 operations.
Cash Distribution
EQT Midstream expects a quarterly distribution growth of at least 3 cents per unit through the end of 2016. The partnership also expects year-over-year growth of 22% in 2015.
Capital Budget & Operational Update
EQT Midstream anticipates growth capital in the range of $380 million to $410 million and maintenance capital spending of about $30 million in 2015.
The partnership also provided an update on its growth projects and the capital allocated to them.
Ohio Valley Connector: The pipeline, connecting northern West Virginia to Clarington, OH, will expand EQT Midstream’s pipeline portfolio. Construction work on the connector is likely to start in the third quarter of 2015 and the pipeline is anticipated to come online by the middle of 2016. The partnership has allocated about $120–$130 million of the 2015 capex for this project. Total cost of the project is expected at $300 million.
Mountain Valley Pipeline: The pipeline will expand the partnership’s transportation and storage facilities in Wetzel County, WV to Pittsylvania County,VA. The pipeline is likely to come online in the final quarter of 2018. EQT Midstream will acquire EQT Corp.’s stake in this joint venture project which is partnered with NextEra Energy, Inc. (NEE). EQT Midstream has allocated about $75–$85 for this project.
Equitrans Transmission Expansion Project: EQT Midstream announced its plans to invest $25 million next year to complete the East Side Expansion project for Antero Resources Corp. (AR). Several other multi-year expansion projects are likely to start operating in 2015. The partnership plans to invest a total of $50 million in this project.
Gathering Projects: EQT Midstream plans to invest $135–$145 million in gathering projects including its Jupiter Gathering System and other gathering systems for third-party producers.
Cash Balance
EQT Midstream announced that it has $125 million available cash and $750 million under its revolving credit facility as of Nov 30.
Zacks Rank
EQT Midstream Partners carries a Zacks Rank #3 (Hold).
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