Equitrans Midstream Announces Full-Year and Fourth Quarter 2022 Results
Equitrans Midstream Corporation (NYSE: ETRN) announced its financial and operational results for 2022, reporting a net cash flow of $846 million and $380 million in free cash flow. Highlights included reliance on firm reservation fees for 71% of total operating revenue, a mixed-use water system rollout, and the initiation of a booster compression expansion project. However, the company faces hurdles with the MVP project due to permitting challenges and legal matters. For Q4 2022, ETRN reported a net income of $66 million, with adjusted EBITDA of $271 million. The company also declared a quarterly dividend of $0.15 per share, reflecting its commitment to shareholder returns.
- Generated $846 million in net cash from operating activities.
- Achieved $380 million in free cash flow.
- 71% of total operating revenue derived from firm reservation fees.
- Initiated operations of a mixed-use water system and booster compression project.
- Paid a quarterly dividend of $0.15 per common share.
- Reported a net loss attributable to common shareholders of $327.9 million for 2022.
- Faced a $583.1 million impairment related to the Mountain Valley Pipeline.
- Ongoing legal challenges surrounding the MVP project may delay progress.
2022 Highlights:
-
Generated
of net cash from operating activities and$846 million of free cash flow$380 million -
Recorded
71% of total operating revenue from firm reservation fees - Initiated a mixed-use water system build out and commenced operations of first above ground water storage facility
- Secured a new booster compression expansion project
- Published our annual Corporate Sustainability Report in accordance with GRI and SASB
- Completed senior notes offering with proceeds used to repay nearest-term maturities
“We continue to pursue multiple paths in order to complete the MVP project. Although federal energy infrastructure permitting reform legislation was not enacted in 2022, we believe there continues to be significant bipartisan support for permitting reform in the new congress," said
"In 2022, we remained committed to operating safely and delivering strong results for our stakeholders as we continue to find ways to drive capital efficiency, optimize systems, and control costs," said
2022 YEAR-END AND FOURTH QUARTER SUMMARY RESULTS |
||||||
|
Three Months
|
|
Twelve Months
|
|||
$ millions (except per share metrics) |
2022 |
|
2022 |
|||
Net income (loss) attributable to ETRN common shareholders |
$ |
66.0 |
|
$ |
(327.9 |
) |
Adjusted net income attributable to ETRN common shareholders |
$ |
57.6 |
|
$ |
200.2 |
|
Earnings (loss) per diluted share attributable to ETRN common shareholders |
$ |
0.15 |
|
$ |
(0.76 |
) |
Adjusted earnings per diluted share attributable to ETRN common shareholders |
$ |
0.13 |
|
$ |
0.46 |
|
Net income (loss) |
$ |
82.2 |
|
$ |
(257.1 |
) |
Adjusted EBITDA |
$ |
271.3 |
|
$ |
1,071.4 |
|
Deferred revenue |
$ |
84.2 |
|
$ |
345.1 |
|
Net cash provided by operating activities |
$ |
99.2 |
|
$ |
845.8 |
|
Free cash flow |
$ |
136.0 |
|
$ |
379.9 |
|
Retained free cash flow |
$ |
71.1 |
|
$ |
120.2 |
|
Net income attributable to ETRN common shareholders for the fourth quarter 2022 was impacted by several items, including a
For the full-year 2022, net loss attributable to ETRN common shareholders was impacted by several items, including a
As a result of the gathering agreement entered into with EQT in
Operating revenue for the fourth quarter increased by
Operating revenue for the full year increased by
QUARTERLY DIVIDEND
For the fourth quarter 2022, ETRN paid a quarterly cash dividend of
TOTAL CAPITAL EXPENDITURES AND CAPITAL CONTRIBUTIONS
|
Three Months
|
|
Twelve Months
|
$ millions |
2022 |
|
2022 |
MVP |
|
|
|
Gathering(1) |
|
|
|
Transmission(2) |
|
|
|
Water(3) |
|
|
|
Total |
|
|
|
(1) |
Excludes |
(2) |
Includes capital contributions to MVP JV for the MVP Southgate project. |
(3) |
Full-year 2022 includes approximately |
2023 GUIDANCE
Due to the uncertainty around the ultimate MVP path to completion and timing of forward construction and in-service, ETRN has provided full-year 2023 guidance assuming an MVP in-service during the second half of 2023 and provided full-year 2023 guidance assuming the absence of forward MVP construction and completion in 2023. The MVP project in-service timing impacts revenue recognition under certain related gathering and transportation agreements with EQT, including deferred revenue and the Henry Hub cash bonus payment provision. Therefore, ETRN is unable to provide full-year 2023 guidance for net income, adjusted EBITDA, and deferred revenue for the potential outcome in which there is no forward construction and completion of MVP in 2023 since the basis for any potential delay beyond 2023 is not known or reasonably able to be estimated.
Full-Year 2023 Financial Outlook(1) |
|||
$ millions |
With MVP(2) |
|
Without MVP(3) |
Net income |
|
|
- |
Adjusted EBITDA |
|
|
- |
Deferred Revenue |
|
|
- |
Free cash flow |
|
|
|
Retained free cash flow |
|
|
|
(1) |
Full-year 2023 includes an estimate of |
(2) |
Assumes a second half of 2023 MVP in-service. Does not include any of the potential |
(3) |
Assumes no MVP forward construction and completion in 2023. |
Q1 2023 Financial Outlook(1)(2) |
|
$ millions |
|
Net income |
|
Adjusted EBITDA |
|
Deferred Revenue |
|
(1) |
Q1 2023 includes an estimate of |
(2) |
Assumes a second half of 2023 MVP in-service. The deferred revenue amounts are subject to the ultimate in-service date of MVP. |
Full-Year 2023 Capital Expenditures and Capital Contribution Outlook |
||||
$ millions |
|
With MVP(1) |
|
Without MVP(2) |
MVP |
|
|
|
|
Gathering(3) |
|
|
|
|
Transmission(4) |
|
|
|
|
Water |
|
|
|
|
Total |
|
|
|
|
(1) |
Assumes a second half of 2023 MVP in-service. |
(2) |
Assumes no MVP forward construction and completion in 2023. |
(3) |
Excludes approximately |
(4) |
Full-year 2023 includes an estimate of |
BUSINESS AND PROJECT UPDATES
Outstanding Debt and Liquidity
As of
Rager Mountain Natural Gas Storage Field Incident
On
Further, ETRN initiated a comprehensive review of all of its storage wells, including wells at the
Exercise of Cash Option
Pursuant to the 2020 gathering agreement with EQT, on
On
Mountain Valley Pipeline
MVP JV remains engaged in the permitting process with the relevant federal agencies regarding the outstanding permits required to complete the project. ETRN believes that the agencies are working to issue such authorizations over the next several months and to produce authorizations, for the third time in certain cases, that address points raised by the
MVP Southgate
The MVP JV continues to evaluate the MVP Southgate project and is focused on its ongoing discussions and negotiations with the shipper and other prospective customers regarding refining the project's design, scope and/or timing in lieu of pursuing the project as originally contemplated. ETRN has a
Water Services
During 2022, ETRN began the buildout of its mixed-use water system and, in
In the fourth quarter, water operating income was
2022 Year-End Earnings Conference Call Information
ETRN will host a conference call with security analysts today,
Call Access: An audio live stream of the call will be available on the internet, and participants are encouraged to pre-register online, in advance of the call. A link to the audio live stream will be available on the Investors page of ETRN’s website the day of the call.
Security Analysts :: Dial-In Participation
To participate in the Q&A session, security analysts may access the call in the
All Other Participants :: Webcast Registration
Please Note: For optimal audio quality, the webcast is best supported through
Call Replay: For 14 days following the call, an audio replay will be available at (800) 770-2030 or (647) 362-9199. The ETRN conference ID: 6625542.
ETRN management speaks to investors from time-to-time and the presentation for these discussions, which is updated periodically, is available via www.equitransmidstream.com.
NON-GAAP DISCLOSURES
Adjusted Net Income (Loss) Attributable to ETRN Common Shareholders and Adjusted Earnings (Loss) per Diluted Share Attributable to ETRN Common Shareholders
Adjusted net income (loss) attributable to ETRN common shareholders and adjusted earnings (loss) per diluted share attributable to ETRN common shareholders are non-GAAP supplemental financial measures that management and external users of ETRN’s consolidated financial statements, such as investors, may use to make period-to-period comparisons of earnings trends. Management believes that adjusted net income (loss) attributable to ETRN common shareholders and adjusted earnings (loss) per diluted share attributable to ETRN common shareholders as presented provide useful information for investors for evaluating period-over-period earnings. Adjusted net income (loss) attributable to ETRN common shareholders and adjusted earnings (loss) per diluted share attributable to ETRN common shareholders should not be considered as alternatives to net income (loss) attributable to ETRN common shareholders, earnings (loss) per diluted share attributable to ETRN common shareholders or any other measure of financial performance presented in accordance with GAAP. Adjusted net income (loss) attributable to ETRN common shareholders and adjusted earnings (loss) per diluted share attributable to ETRN common shareholders as presented have important limitations as analytical tools because they exclude some, but not all, items that affect net income (loss) attributable to ETRN common shareholders and earnings (loss) per diluted share attributable to ETRN common shareholders, including, as applicable, impairments of long-lived assets and equity method investments, unrealized gain (loss) on derivative instruments, loss on extinguishment of debt, gain on the sale of gathering assets, expenses for the
The table below reconciles adjusted net income attributable to ETRN common shareholders and adjusted earnings per diluted share attributable to ETRN common shareholders with net income (loss) attributable to ETRN common shareholders and earnings (loss) per diluted share attributable to ETRN common shareholders as derived from the statements of consolidated comprehensive income to be included in ETRN’s Annual Report on Form 10-K for the year ended
Reconciliation of Adjusted Net Income Attributable to ETRN Common Shareholders and Adjusted Earnings per Diluted Share Attributable to ETRN Common Shareholders |
|||||||
|
Three Months
|
|
Twelve Months
|
||||
(Thousands, except per share information) |
2022 |
|
2022 |
||||
Net income (loss) attributable to ETRN common shareholders |
$ |
65,986 |
|
|
$ |
(327,854 |
) |
Add back (deduct): |
|
|
|
||||
Impairment of equity method investment |
|
— |
|
|
|
583,057 |
|
Unrealized gain on derivative instruments |
|
(5,102 |
) |
|
|
(9,593 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
24,937 |
|
Gain on sale of gathering assets |
|
— |
|
|
|
(3,719 |
) |
|
|
8,055 |
|
|
|
8,055 |
|
Tax impact of non-GAAP items(1) |
|
(11,323 |
) |
|
|
(74,717 |
) |
Adjusted net income attributable to ETRN common shareholders |
$ |
57,616 |
|
|
$ |
200,166 |
|
Diluted weighted average common shares outstanding, assuming dilution |
|
434,347 |
|
|
|
434,111 |
|
Adjusted earnings per diluted share attributable to ETRN common shareholders |
$ |
0.13 |
|
|
$ |
0.46 |
|
(1) |
The adjustments were tax effected at ETRN’s federal and state statutory tax rate for each period and account for certain discrete valuation allowance adjustments associated with the impact of nonrecurring items. |
Adjusted EBITDA
As used in this news release, Adjusted EBITDA means, as applicable, net income (loss), plus income tax expense (benefit), net interest expense, loss on extinguishment of debt, depreciation, amortization of intangible assets, impairments of long-lived assets and equity method investment, payments on the preferred interest in
The table below reconciles adjusted EBITDA with net income (loss) as derived from the statements of consolidated comprehensive income to be included in ETRN's Annual Report on Form 10-K for the year ended
Reconciliation of Adjusted EBITDA |
|||||||
|
Three Months
|
|
Twelve Months
|
||||
(Thousands) |
2022 |
|
2022 |
||||
Net income (loss): |
$ |
82,163 |
|
|
$ |
(257,138 |
) |
Add (deduct): |
|
|
|
||||
Income tax (benefit) expense |
|
(1,483 |
) |
|
|
6,444 |
|
Net interest expense |
|
105,010 |
|
|
|
394,333 |
|
Loss on extinguishment of debt |
|
— |
|
|
|
24,937 |
|
Depreciation |
|
68,923 |
|
|
|
272,195 |
|
Amortization of intangible assets |
|
16,205 |
|
|
|
64,819 |
|
Impairment of equity method investment |
|
— |
|
|
|
583,057 |
|
Preferred Interest payments |
|
2,746 |
|
|
|
10,984 |
|
Non-cash long-term compensation expense |
|
3,658 |
|
|
|
15,800 |
|
|
|
8,055 |
|
|
|
8,055 |
|
Equity income |
|
(77 |
) |
|
|
(168 |
) |
AFUDC – equity |
|
(150 |
) |
|
|
(332 |
) |
Unrealized gain on derivative instruments |
|
(5,102 |
) |
|
|
(9,593 |
) |
Gain on sale of gathering assets |
|
— |
|
|
|
(3,719 |
) |
Adjusted EBITDA attributable to noncontrolling interest(1) |
|
(8,690 |
) |
|
|
(38,283 |
) |
Adjusted EBITDA |
$ |
271,258 |
|
|
$ |
1,071,391 |
|
(1) |
Reflects adjusted EBITDA attributable to noncontrolling interest associated with the third-party ownership interest in Eureka. Adjusted EBITDA attributable to noncontrolling interest for the three months ended |
Free Cash Flow
As used in this news release, free cash flow means net cash provided by operating activities plus principal payments received on the Preferred Interest, and payment of the EQT Cash Option, and less net cash provided by operating activities attributable to noncontrolling interest, dividends paid to Series A Preferred Shareholders, premiums and fees paid on extinguishment of debt, capital expenditures (excluding the noncontrolling interest share (
Retained Free Cash Flow
As used in this news release, retained free cash flow means free cash flow less dividends paid to common shareholders.
The table below reconciles free cash flow and retained free cash flow with net cash provided by operating activities as derived from the statements of consolidated cash flows to be included in ETRN's Annual Report on Form 10-K for the year ended
Reconciliation of Free Cash Flow and Retained Free Cash Flow |
|||||||
|
Three Months
|
|
Twelve Months
|
||||
(Thousands) |
2022 |
|
2022 |
||||
Net cash provided by operating activities |
$ |
99,236 |
|
|
$ |
845,775 |
|
Add (deduct): |
|
|
|
||||
Principal payments received on the Preferred Interest |
|
1,408 |
|
|
|
5,518 |
|
Payment of EQT Cash Option |
|
195,820 |
|
|
|
195,820 |
|
Net cash provided by operating activities attributable to noncontrolling interest(1) |
|
(7,360 |
) |
|
|
(33,413 |
) |
ETRN Series A Preferred Shares dividends(2) |
|
(14,628 |
) |
|
|
(58,512 |
) |
Premiums and fees on debt extinguishment |
|
— |
|
|
|
(20,400 |
) |
Capital expenditures(3)(4) |
|
(97,013 |
) |
|
|
(355,309 |
) |
Capital contributions to MVP JV |
|
(41,435 |
) |
|
|
(199,613 |
) |
Free cash flow |
$ |
136,028 |
|
|
$ |
379,866 |
|
Less: |
|
|
|
||||
Dividends paid to common shareholders (5) |
|
(64,917 |
) |
|
|
(259,650 |
) |
Retained free cash flow |
$ |
71,111 |
|
|
$ |
120,216 |
|
(1) |
Reflects |
(2) |
Reflects cash dividends paid of |
(3) |
Does not reflect amounts related to the noncontrolling interest share of Eureka. |
(4) |
ETRN accrues capital expenditures when the work has been completed but the associated bills have not yet been paid. Accrued capital expenditures are excluded from the statements of consolidated cash flows until they are paid. |
(5) |
Third quarter 2022 dividend of |
Adjusted EBITDA, free cash flow and retained free cash flow are non-GAAP supplemental financial measures that management and external users of ETRN's consolidated financial statements, such as industry analysts, investors, lenders, and rating agencies, may use to assess:
- ETRN’s operating performance as compared to other publicly traded companies in the midstream energy industry without regard to historical cost basis or, in the case of adjusted EBITDA, financing methods
- The ability of ETRN’s assets to generate sufficient cash flow to pay dividends to ETRN’s shareholders
- ETRN’s ability to incur and service debt and fund capital expenditures and capital contributions
- The viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities
ETRN believes that adjusted EBITDA, free cash flow, and retained free cash flow provide useful information to investors in assessing ETRN's financial condition and results of operations. Adjusted EBITDA, free cash flow, and retained free cash flow should not be considered as alternatives to net income (loss), operating income, or net cash provided by operating activities, as applicable, or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA, free cash flow, and retained free cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income (loss), operating income and net cash provided by operating activities. Additionally, because these non-GAAP metrics may be defined differently by other companies in ETRN's industry, ETRN's definitions of adjusted EBITDA, free cash flow, and retained free cash flow may not be comparable to similarly titled measures of other companies, thereby diminishing the utility of the measures. Free cash flow and retained free cash flow should not be viewed as indicative of the actual amount of cash that ETRN has available for dividends or that ETRN plans to distribute and are not intended to be liquidity measures.
ETRN is unable to provide a reconciliation of projected adjusted EBITDA from projected net income (loss), the most comparable financial measure calculated in accordance with GAAP, or a reconciliation of projected free cash flow or retained free cash flow to net cash provided by operating activities, the most comparable financial measure calculated in accordance with GAAP. ETRN has not provided a reconciliation of projected adjusted EBITDA to projected net income (loss), the most comparable financial measure calculated in accordance with GAAP, due to the inherent difficulty and impracticability of predicting certain amounts required by GAAP with a reasonable degree of accuracy. Net income (loss) includes the impact of depreciation expense, income tax expense (benefit), the impact of changes in the projected fair value of derivative instruments prior to settlement, potential changes in estimates for certain contract liabilities and unbilled revenues and certain other items that impact comparability between periods and the tax effect of such items, which may be significant and difficult to project with a reasonable degree of accuracy. Therefore, a reconciliation of projected adjusted EBITDA to projected net income (loss) is not available without unreasonable effort.
ETRN is unable to project net cash provided by operating activities because this metric includes the impact of changes in operating assets and liabilities related to the timing of cash receipts and disbursements that may not relate to the period in which the operating activities occurred. ETRN is unable to project these timing differences with any reasonable degree of accuracy to a specific day, three or more months in advance. Therefore, ETRN is unable to provide projected net cash provided by operating activities, or the related reconciliation of each of projected free cash flow and projected retained free cash flow to projected net cash provided by operating activities, without unreasonable effort. ETRN provides a range for the forecasts of net income (loss), adjusted EBITDA, free cash flow and retained free cash flow to allow for the inherent difficulty of predicting certain amounts and the variability in the timing of cash spending and receipts and the impact on the related reconciling items, many of which interplay with each other.
Water EBITDA
As used in this news release, water EBITDA means water operating income (loss) plus, as applicable, depreciation and impairment of long-lived assets of ETRN’s water services business. Water EBITDA is a non-GAAP supplemental financial measure that management and external users of ETRN’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, use to assess the impact of ETRN’s water services business on ETRN’s operating performance and ETRN’s ability to incur and service debt and fund capital expenditures. Water EBITDA should not be considered as an alternative to ETRN’s net income (loss), operating income or any other measure of financial performance presented in accordance with GAAP. Water EBITDA has important limitations as an analytical tool because the measure excludes some, but not all, items that affect net income (loss) and operating income. Additionally, because water EBITDA may be defined differently by other companies in ETRN’s industry, the definition of water EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing the utility of the measure. The table below reconciles water EBITDA from ETRN's water operating income as derived from ETRN's statements of consolidated comprehensive income to be included in ETRN's Annual Report on Form 10-K for the year ended
ETRN has not provided a reconciliation of projected water EBITDA from projected water operating income (loss), the most comparable measure calculated in accordance with GAAP. ETRN does not allocate certain costs, such as interest expense, to individual assets within its business segments. Therefore, the reconciliation of projected water EBITDA from projected water operating income (loss) is not available without unreasonable effort. ETRN provides a range for the forecast of water EBITDA to allow for the inherent difficulty of predicting certain amounts and the variability in the timing of cash spending and receipts and the impact on the related reconciling items, many of which interplay with each other.
Reconciliation of Water EBITDA |
|||||
|
Three Months
|
|
Twelve Months
|
||
(Thousands) |
2022 |
|
2022 |
||
Water operating income |
$ |
11,065 |
|
$ |
14,602 |
Add: Depreciation |
|
5,533 |
|
|
20,016 |
Water EBITDA |
$ |
16,598 |
|
$ |
34,618 |
About
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Cautionary Statements
This news release contains certain forward-looking statements within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended (the Exchange Act), and Section 27A of the United States Securities Act of 1933, as amended (the Securities Act), concerning ETRN and other matters. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of the management of ETRN, as well as assumptions made by, and information currently available to, such management. Words such as “focused,” “goal,” “guidance,” “scheduled,” “could,” “will,” “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” “target,” “seek,” “strive,” “continue,” "would," "approximate," or "outlook" and similar expressions are used to identify forward-looking statements. These statements are subject to various risks and uncertainties, many of which are outside ETRN's control. Without limiting the generality of the foregoing, forward-looking statements contained in this communication may include expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of ETRN and its affiliates, including guidance and any changes in such guidance in respect of ETRN’s gathering, transmission and storage and water services revenue and volume, including the anticipated effects associated with the
Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. ETRN has based these forward-looking statements on management’s current expectations and assumptions about future events. While ETRN considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, judicial and other risks and uncertainties, many of which are difficult to predict and are beyond ETRN’s control. The risks and uncertainties that may affect the operations, performance and results of ETRN’s business and forward-looking statements include, but are not limited to, those set forth under Part I, "Item 1A. Risk Factors" in ETRN's Annual Report on Form 10-K for the year ended
STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME |
|||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
2022 |
|
2021(1) |
|
2022 |
|
2021(1) |
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Thousands, except per share amounts) |
||||||||||||||
Operating revenues |
$ |
355,239 |
|
|
$ |
246,672 |
|
|
$ |
1,357,747 |
|
|
$ |
1,317,037 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Operating and maintenance |
|
53,847 |
|
|
|
42,175 |
|
|
|
154,667 |
|
|
|
153,179 |
|
Selling, general and administrative |
|
36,398 |
|
|
|
32,520 |
|
|
|
128,472 |
|
|
|
137,056 |
|
Depreciation |
|
68,923 |
|
|
|
66,450 |
|
|
|
272,195 |
|
|
|
270,404 |
|
Amortization of intangible assets |
|
16,205 |
|
|
|
16,205 |
|
|
|
64,819 |
|
|
|
64,819 |
|
Impairment of long-lived assets |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
56,178 |
|
Total operating expenses |
|
175,373 |
|
|
|
157,350 |
|
|
|
620,153 |
|
|
|
681,636 |
|
Operating income |
|
179,866 |
|
|
|
89,322 |
|
|
|
737,594 |
|
|
|
635,401 |
|
Equity income |
|
77 |
|
|
|
3,194 |
|
|
|
168 |
|
|
|
17,579 |
|
Impairments of equity method investment |
|
— |
|
|
|
(1,926,402 |
) |
|
|
(583,057 |
) |
|
|
(1,926,402 |
) |
Other income (expense), net |
|
5,747 |
|
|
|
(82,007 |
) |
|
|
13,871 |
|
|
|
(47,546 |
) |
Loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(24,937 |
) |
|
|
(41,025 |
) |
Net interest expense |
|
(105,010 |
) |
|
|
(93,763 |
) |
|
|
(394,333 |
) |
|
|
(378,650 |
) |
Income (loss) before income taxes |
|
80,680 |
|
|
|
(2,009,656 |
) |
|
|
(250,694 |
) |
|
|
(1,740,643 |
) |
Income tax (benefit) expense |
|
(1,483 |
) |
|
|
(407,586 |
) |
|
|
6,444 |
|
|
|
(343,353 |
) |
Net income (loss) |
|
82,163 |
|
|
|
(1,602,070 |
) |
|
|
(257,138 |
) |
|
|
(1,397,290 |
) |
Net income attributable to noncontrolling interests |
|
1,549 |
|
|
|
4,051 |
|
|
|
12,204 |
|
|
|
14,530 |
|
Net income (loss) attributable to ETRN |
|
80,614 |
|
|
|
(1,606,121 |
) |
|
|
(269,342 |
) |
|
|
(1,411,820 |
) |
Preferred dividends |
|
14,628 |
|
|
|
14,628 |
|
|
|
58,512 |
|
|
|
58,512 |
|
Net income (loss) attributable to ETRN common shareholders |
$ |
65,986 |
|
|
$ |
(1,620,749 |
) |
|
$ |
(327,854 |
) |
|
$ |
(1,470,332 |
) |
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share of common stock attributable to ETRN common shareholders - basic |
$ |
0.15 |
|
|
$ |
(3.74 |
) |
|
$ |
(0.76 |
) |
|
$ |
(3.40 |
) |
Earnings (loss) per share of common stock attributable to ETRN common shareholders - diluted |
$ |
0.15 |
|
|
$ |
(3.74 |
) |
|
$ |
(0.76 |
) |
|
$ |
(3.40 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding - basic |
|
433,365 |
|
|
|
433,032 |
|
|
|
433,341 |
|
|
|
433,008 |
|
Weighted average common shares outstanding - diluted |
|
434,347 |
|
|
|
433,032 |
|
|
|
433,341 |
|
|
|
433,008 |
|
(1) |
In the course of its year-end 2022 process, ETRN identified immaterial corrections in its previously issued consolidated financial statements. ETRN has revised the prior periods presented to reflect these items. Refer to ETRN’s Annual Report on Form 10-K for the year ended |
GATHERING RESULTS OF OPERATIONS |
|||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||
|
2022 |
|
2021(4) |
|
2022 |
|
2021(4) |
||||||
|
|
|
|
|
|
|
|
||||||
FINANCIAL DATA |
(Thousands, except per day amounts) |
||||||||||||
Firm reservation fee revenues(1) |
$ |
147,015 |
|
$ |
19,600 |
|
|
$ |
562,947 |
|
$ |
468,156 |
|
Volumetric-based fee revenues |
|
71,280 |
|
|
108,609 |
|
|
|
327,632 |
|
|
393,897 |
|
Total operating revenues |
|
218,295 |
|
|
128,209 |
|
|
|
890,579 |
|
|
862,053 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||
Operating and maintenance |
|
29,223 |
|
|
26,689 |
|
|
|
101,194 |
|
|
99,387 |
|
Selling, general and administrative |
|
22,539 |
|
|
20,921 |
|
|
|
82,590 |
|
|
93,245 |
|
Depreciation |
|
49,106 |
|
|
47,734 |
|
|
|
195,059 |
|
|
188,633 |
|
Amortization of intangible assets |
|
16,205 |
|
|
16,205 |
|
|
|
64,819 |
|
|
64,819 |
|
Total operating expenses |
|
117,073 |
|
|
111,549 |
|
|
|
443,662 |
|
|
446,084 |
|
Operating income |
$ |
101,222 |
|
$ |
16,660 |
|
|
$ |
446,917 |
|
$ |
415,969 |
|
|
|
|
|
|
|
|
|
||||||
Other income (expense), net (2) |
$ |
5,103 |
|
$ |
(81,911 |
) |
|
$ |
13,312 |
|
$ |
(47,804 |
) |
|
|
|
|
|
|
|
|
||||||
OPERATIONAL DATA |
|
|
|
|
|
|
|
||||||
Gathered volumes (BBtu per day) |
|
|
|
|
|
|
|
||||||
Firm capacity(1) |
|
5,248 |
|
|
5,232 |
|
|
|
5,211 |
|
|
5,216 |
|
Volumetric-based services |
|
2,137 |
|
|
3,068 |
|
|
|
2,484 |
|
|
3,098 |
|
Total gathered volumes |
|
7,385 |
|
|
8,300 |
|
|
|
7,695 |
|
|
8,314 |
|
|
|
|
|
|
|
|
|
||||||
Capital expenditures(3) |
$ |
69,939 |
|
$ |
53,098 |
|
|
$ |
265,864 |
|
$ |
223,807 |
|
|
|
|
|
|
|
|
|
(1) |
Includes revenues and volumes, as applicable, from contracts with MVCs. |
(2) |
Other income (expense), net, includes the unrealized gains (losses) on derivative instruments associated with the Henry Hub cash bonus payment provision and gain on sale of gathering assets. |
(3) |
Includes approximately |
(4) |
In the course of its year-end 2022 process, ETRN identified immaterial corrections in its previously issued consolidated financial statements. ETRN has revised the prior periods presented to reflect these items. Refer to ETRN’s Annual Report on Form 10-K for the year ended |
TRANSMISSION RESULTS OF OPERATIONS |
||||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
|||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|||||||
|
|
|
|
|
|
|
|
|||||||
FINANCIAL DATA |
(Thousands, except per day amounts) |
|||||||||||||
Firm reservation fee revenues |
$ |
98,640 |
|
$ |
97,084 |
|
|
$ |
370,769 |
|
|
$ |
366,323 |
|
Volumetric-based fee revenues |
|
12,447 |
|
|
7,915 |
|
|
|
33,748 |
|
|
|
33,879 |
|
Total operating revenues |
|
111,087 |
|
|
104,999 |
|
|
|
404,517 |
|
|
|
400,202 |
|
Operating expenses: |
|
|
|
|
|
|
|
|||||||
Operating and maintenance |
|
17,456 |
|
|
10,201 |
|
|
|
33,429 |
|
|
|
33,883 |
|
Selling, general and administrative |
|
11,512 |
|
|
9,576 |
|
|
|
37,782 |
|
|
|
36,483 |
|
Depreciation |
|
13,907 |
|
|
13,849 |
|
|
|
55,614 |
|
|
|
55,310 |
|
Total operating expenses |
|
42,875 |
|
|
33,626 |
|
|
|
126,825 |
|
|
|
125,676 |
|
Operating income |
$ |
68,212 |
|
$ |
71,373 |
|
|
$ |
277,692 |
|
|
$ |
274,526 |
|
|
|
|
|
|
|
|
|
|||||||
Equity income |
$ |
77 |
|
$ |
3,194 |
|
|
$ |
168 |
|
|
$ |
17,579 |
|
Impairments of equity method investment |
$ |
— |
|
$ |
(1,926,402 |
) |
|
$ |
(583,057 |
) |
|
$ |
(1,926,402 |
) |
|
|
|
|
|
|
|
|
|||||||
OPERATIONAL DATA |
|
|
|
|
|
|
|
|||||||
Transmission pipeline throughput (BBtu per day) |
|
|
|
|
|
|
|
|||||||
Firm capacity reservation |
|
3,312 |
|
|
3,058 |
|
|
|
3,140 |
|
|
|
2,960 |
|
Volumetric-based services |
|
10 |
|
|
16 |
|
|
|
33 |
|
|
|
11 |
|
Total transmission pipeline throughput |
|
3,322 |
|
|
3,074 |
|
|
|
3,173 |
|
|
|
2,971 |
|
|
|
|
|
|
|
|
|
|||||||
Average contracted firm transmission reservation commitments (BBtu per day) |
|
4,211 |
|
|
4,305 |
|
|
|
4,059 |
|
|
|
4,082 |
|
|
|
|
|
|
|
|
|
|||||||
Capital expenditures(1) |
$ |
12,977 |
|
$ |
8,927 |
|
|
$ |
35,971 |
|
|
$ |
25,977 |
|
|
|
|
|
|
|
|
|
(1) |
Transmission capital expenditures do not include aggregate capital contributions made to the MVP JV for the MVP and MVP Southgate projects of approximately |
WATER RESULTS OF OPERATIONS |
|||||||||||||
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||
|
2022 |
|
2021(2) |
|
2022 |
|
2021(2) |
||||||
|
|
|
|
|
|
|
|
||||||
FINANCIAL DATA |
(Thousands, except MMgal amounts) |
||||||||||||
Firm reservation fee revenues(1) |
$ |
9,375 |
|
$ |
1,229 |
|
|
$ |
33,877 |
|
$ |
5,063 |
|
Volumetric-based fee revenues |
|
16,482 |
|
|
12,235 |
|
|
|
28,774 |
|
|
49,719 |
|
Total operating revenues |
|
25,857 |
|
|
13,464 |
|
|
|
62,651 |
|
|
54,782 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||
Operating and maintenance |
|
7,142 |
|
|
5,220 |
|
|
|
19,960 |
|
|
19,801 |
|
Selling, general and administrative |
|
2,117 |
|
|
2,085 |
|
|
|
8,073 |
|
|
7,481 |
|
Depreciation |
|
5,533 |
|
|
4,493 |
|
|
|
20,016 |
|
|
25,233 |
|
Impairment of long-lived assets |
|
— |
|
|
— |
|
|
|
— |
|
|
56,178 |
|
Total operating expenses |
|
14,792 |
|
|
11,798 |
|
|
|
48,049 |
|
|
108,693 |
|
Operating income (loss) |
$ |
11,065 |
|
$ |
1,666 |
|
|
$ |
14,602 |
|
$ |
(53,911 |
) |
|
|
|
|
|
|
|
|
||||||
OPERATIONAL DATA |
|
|
|
|
|
|
|
||||||
Water services volumes (MMgal) |
|
|
|
|
|
|
|
||||||
Firm capacity reservation(1) |
|
110 |
|
|
35 |
|
|
|
433 |
|
|
105 |
|
Volumetric-based services |
|
348 |
|
|
178 |
|
|
|
706 |
|
|
1,015 |
|
Total water volumes |
|
458 |
|
|
213 |
|
|
|
1,139 |
|
|
1,120 |
|
|
|
|
|
|
|
|
|
||||||
Capital expenditures |
$ |
17,437 |
|
$ |
14,447 |
|
|
$ |
66,569 |
|
$ |
34,877 |
|
|
|
|
|
|
|
|
|
(1) |
Includes revenues and volumes from contracts with MVCs or Annual Revenue Commitments (ARCs), as applicable. |
(2) |
In the course of its year-end 2022 process, ETRN identified immaterial corrections in its previously issued consolidated financial statements. ETRN has revised the prior periods presented to reflect these items. Refer to ETRN’s Annual Report on Form 10-K for the year ended |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230221005346/en/
Analyst inquiries:
412-553-5834
ntetlow@equitransmidstream.com
Media inquiries:
ncox@equitransmidstream.com
Source:
FAQ
What were Equitrans Midstream's earnings for Q4 2022?
What is Equitrans Midstream's free cash flow for 2022?
What percentage of Equitrans' revenue comes from firm reservation fees?
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