Reviewing options for a simplified business structure
PITTSBURGH–(BUSINESS WIRE)–EQT Midstream Partners, LP (NYSE: EQM) and Rice Midstream Partners, LP (NYSE: RMP) today announced that EQT Corporation (NYSE: EQT), the corporate sponsor of each entity, is considering a simplified business structure for the midstream entities under its control. The review includes the dropdown of EQT-owned midstream assets to EQM, as well as potential entity combinations. As a result of this review work, detailed midstream guidance for 2018 will not be provided at this time.
Based on standalone EQM, annual per unit distribution growth is expected to be 15% – 20% for several years, including 2018, while targeting a long-term coverage ratio of 1.1x. The corresponding annual per unit distribution growth target for standalone EQT GP Holdings, LP (NYSE: EQGP) is 30% – 40%.
Based on standalone RMP, annual per unit distribution growth is expected to be 15% – 20% for several years, including 2018, while targeting a long-term coverage ratio of 1.1x.
2018 EQM Investments:
EQM investments in organic projects, including capital contributions to Mountain Valley Pipeline, LLC (MVP JV), are expected to total approximately $1.4 – $1.6 billion in 2018. Ongoing maintenance capital expenditures are expected to be $35 – 40 million, net of expected reimbursements.
|$B||2018 Growth CAPEX|
|Mountain Valley Pipeline||$1.0 – $1.2|
|Total||$1.4 – $1.6|
2018 RMP Investments:
RMP investments in organic projects are expected to total approximately $260 million in 2018; including $215 million for gathering and compression and $45 million for water infrastructure. Estimated maintenance capital expenditures are $22 million.
Year-end Earnings Information:
EQM and EQGP intend to release full-year 2017 earnings and host a live webcast for security analysts on February 15, 2018. The webcast will be available at www.eqtmidstreampartners.com and will begin at 11:30 a.m. ET.
About EQT Midstream Partners:
EQT Midstream Partners, LP is a growth-oriented limited partnership formed by EQT Corporation to own, operate, acquire, and develop midstream assets in the Appalachian Basin. The Partnership provides midstream services to EQT Corporation and third-party companies through its strategically located transmission, storage, and gathering systems that service the Marcellus and Utica regions. The Partnership owns approximately 950 miles of FERC-regulated interstate pipelines; and also owns approximately 1,800 miles of high and low pressure gathering lines.
Visit EQT Midstream Partners, LP at www.eqtmidstreampartners.com.
About EQT GP Holdings:
EQT GP Holdings, LP is a limited partnership that owns the general partner interest, all of the incentive distribution rights, and a portion of the limited partner interests in EQT Midstream Partners, LP. EQT Corporation owns the general partner interest and a 90% limited partner interest in EQT GP Holdings, LP.
Visit EQT GP Holdings, LP at www.eqtmidstreampartners.com.
About Rice Midstream Partners:
Rice Midstream Partners LP is a fee-based, growth-oriented limited partnership formed to own, operate, develop and acquire midstream assets in the Appalachian basin. RMP provides midstream services to EQT Corporation and third-party companies through its natural gas gathering, compression and water assets in the rapidly developing dry gas cores of the Marcellus and Utica Shales.