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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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or
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FOR THE TRANSITION PERIOD FROM ___________ TO __________
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COMMISSION FILE NUMBER
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001-38629
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Pennsylvania
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83-0516635
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification No.)
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Title of each class
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Trading Symbol
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Name of each exchange on which registered
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Common Stock, no par value
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ETRN
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New York Stock Exchange
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Large Accelerated Filer
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☒
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Accelerated Filer
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☐
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Emerging Growth Company
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☐
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Non-Accelerated Filer
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☐
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(Do not check if a
smaller reporting company)
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Smaller Reporting Company
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☐
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Page No.
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PART I
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PART II
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PART III
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PART IV
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Abbreviations
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ADIT – Accumulated Deferred Income Taxes
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ARO – asset retirement obligations
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ASU – Accounting Standards Update
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CERCLA – Comprehensive Environmental Response, Compensation and Liability Act
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DOT – U.S. Department of Transportation
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EPA – U.S. Environmental Protection Agency
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FASB – Financial Accounting Standards Board
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FERC – U.S. Federal Energy Regulatory Commission
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GAAP – U.S. Generally Accepted Accounting Principles
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GHG – greenhouse gas
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HCA - high consequence area
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IDRs – incentive distribution rights
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IRS – U.S. Internal Revenue Service
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NAAQS – National Ambient Air Quality Standards
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NGA – Natural Gas Act of 1938
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NGPA – Natural Gas Policy Act of 1978
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NYMEX – New York Mercantile Exchange
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NYSE – New York Stock Exchange
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PHMSA – Pipeline and Hazardous Materials Safety Administration of the DOT
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RCRA – Resource Conservation and Recovery Act
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SEC – U.S. Securities and Exchange Commission
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Measurements
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Btu = one British thermal unit
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BBtu = billion British thermal units
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Bcf = billion cubic feet
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Mcf = thousand cubic feet
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MMBtu = million British thermal units
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MMcf = million cubic feet
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MMgal = million gallons
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guidance regarding EQM’s gathering, transmission and storage and water service revenue and volume growth, including the anticipated effects associated with the EQT Global GGA (as defined in Note 18);
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projected revenue (including from firm reservation fees) and expenses, and the effect on projected revenue associated with the EQT Global GGA;
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the weighted average contract life of gathering, transmission and storage contracts;
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infrastructure programs (including the timing, cost, capacity and sources of funding with respect to gathering, transmission and storage and water expansion projects);
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the cost, capacity, timing of regulatory approvals, final design and targeted in-service dates of current projects;
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the ultimate terms, partners and structure of the MVP Joint Venture and ownership interests therein;
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expansion projects in EQM's operating areas and in areas that would provide access to new markets;
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EQM's ability to provide produced water handling services and realize expansion opportunities and related capital avoidance;
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Equitrans Midstream’s and EQM's ability to identify and complete acquisitions and other strategic transactions, including the proposed EQM Merger (as defined in Note 18) and joint ventures, effectively integrate transactions (including Eureka Midstream Holdings, LLC and Hornet Midstream Holdings, LLC) into Equitrans Midstream’s and EQM’s operations, and achieve synergies, system optionality and accretion associated with transactions, including through increased scale;
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EQM's ability to access commercial opportunities and new customers for its water services business, and the timing and final terms of any definitive water services agreement between EQT and EQM related to the Water Services Letter Agreement (as defined in Note 18);
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any further credit rating impacts associated with MVP, customer credit ratings changes, including EQT's, and defaults, acquisitions and financings and any further changes in Equitrans Midstream's and EQM's respective credit ratings;
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the timing and amount of future issuances or repurchases of securities, including in connection with the EQM Merger and the Share Purchases (as defined in Note 18);
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effects of conversion of EQM securities into Merger Consideration (as defined in Note 18) or ETRN Preferred Shares (as defined in Note 18), as applicable, in connection with the EQM Merger;
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effects of seasonality;
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expected cash flows and MVCs, including those associated with the EQT Global GGA and any definitive agreement between EQT and EQM related to the Water Services Letter Agreement;
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capital commitments;
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projected capital contributions and capital and operating expenditures, including the amount and timing of reimbursable capital expenditures, capital budget and sources of funds for capital expenditures;
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dividend and distribution amounts, timing and rates, including the effect thereon of completion of the MVP project and expected changes announced in connection with the execution of the EQM Merger Agreement (as defined in Note 18);
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the effect and outcome of pending and future litigation and regulatory proceedings;
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changes in commodity prices and the effect of commodity prices on EQM's business;
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liquidity and financing requirements, including sources and availability;
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interest rates;
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the Company's, EQM's and EQM's subsidiaries' respective abilities to service debt under, and comply with the covenants contained in, their respective credit agreements, including obtaining modifications to such covenants;
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expectations regarding production volumes in EQM's areas of operations;
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Equitrans Midstream’s and EQM’s abilities to achieve the anticipated benefits associated with the execution of the EQT Global GGA, the EQM Merger Agreement and related agreements;
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the effects of government regulation; and tax status and position.
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an approximate 91.3% limited partner interest and the entire non-economic general partner interest in EQGP, a partnership formed in January 2015 to hold EQT's partnership interests in EQM. At the Separation Date, EQGP held an approximate 17.9% limited partner interest in EQM, an approximate 1.2% general partner interest in EQM and all of the IDRs in EQM; and
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an approximate 12.7% limited partner interest in EQM.
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On April 25, 2018, EQM, RMP and certain of their affiliates entered into an agreement and plan of merger, pursuant to which EQM acquired RMP and the RMP General Partner (the EQM-RMP Mergers). The EQM-RMP Mergers closed on July 23, 2018.
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On May 1, 2018, EQM acquired the remaining outstanding limited liability company interests in Strike Force Midstream from Gulfport Midstream Holdings, LLC (Gulfport Midstream), an affiliate of Gulfport Energy Corporation, in exchange for $175 million in cash (the Gulfport Transaction). As a result, EQM indirectly owns 100% of Strike Force Midstream.
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On May 22, 2018, EQM, through its wholly-owned subsidiary EQM Gathering Holdings, LLC (EQM Gathering), acquired all the outstanding limited liability company interests in each of EQM West Virginia, EQM Olympus and Strike Force Holdings (collectively the Drop-Down Entities) pursuant to the terms of a contribution and sale agreement dated as of April 25, 2018 by and among EQM, EQM Gathering, EQT and Rice Midstream Holdings, in exchange for an aggregate of 5,889,282 common units representing limited partner interests in EQM (EQM common units) and cash consideration of $1.15 billion, plus working capital adjustments (the Drop-Down Transaction). As a result of the closing of the Drop-Down Transaction, effective May 1, 2018, the Drop-Down Entities and Strike Force Midstream became indirect, wholly-owned subsidiaries of EQM.
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Years Ended December 31,
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2019
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2018
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2017
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Gathering operating revenues
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71
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%
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67
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%
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57
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%
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Transmission operating revenues
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24
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%
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26
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%
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42
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%
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Water operating revenues
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5
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%
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7
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%
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1
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%
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Mountain Valley Pipeline. The MVP Joint Venture is a joint venture among EQM and affiliates of each of NextEra Energy, Inc., Con Edison, AltaGas Ltd. and RGC Resources, Inc. that is tasked with constructing the MVP. As of
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Wellhead Gathering Expansion and Hammerhead Projects. During the twelve months ended December 31, 2019, EQM invested approximately $785 million in gathering expansion projects. In 2020, EQM expects to invest approximately $500 million in gathering expansion projects (inclusive of expected capital expenditures related to noncontrolling interests in Eureka Midstream), including the continued gathering infrastructure expansion of core development areas in the Marcellus and Utica Shales in southwestern Pennsylvania, eastern Ohio and northern West Virginia, for EQT, Range Resources Corporation (Range Resources) and other producers, and the Hammerhead project, a 1.6 Bcf per day gathering header pipeline that is primarily designed to connect natural gas produced in Pennsylvania and West Virginia to the MVP and is supported by a 20-year term, 1.2 Bcf per day, firm capacity commitment from EQT. The Hammerhead project is expected to cost approximately $555 million. During the twelve months ended December 31, 2019, EQM invested approximately $300 million in the Hammerhead project. The Hammerhead project is expected to become operational in the second quarter of 2020 and will provide interruptible service until the MVP is placed in-service, at which time the firm capacity commitment will begin. The Hammerhead project has a targeted full in-service date of late 2020.
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MVP Southgate Project. In April 2018, the MVP Joint Venture announced the MVP Southgate project, a proposed 75-mile interstate pipeline that will extend from the MVP at Pittsylvania County, Virginia to new delivery points in Rockingham and Alamance Counties, North Carolina. The MVP Southgate project is backed by a 300 MMcf per day firm capacity commitment from Dominion Energy North Carolina. As designed, the MVP Southgate project has expansion capabilities that could provide up to 900 MMcf per day of total capacity. The MVP Southgate project is estimated to cost a total of approximately $450 million to $500 million, which is expected to be spent primarily in 2020 and 2021. EQM is expected to fund approximately $225 million of the overall project cost. During the twelve months ended December 31, 2019, EQM made capital contributions of approximately $19 million to the MVP Joint
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Transmission Expansion. During the twelve months ended December 31, 2019, EQM invested approximately $45 million in transmission expansion projects. In 2020, EQM expects to invest approximately $60 million in transmission expansion projects, primarily attributable to the Allegheny Valley Connector (AVC), the Equitrans, L.P. Expansion project (EEP), which is designed to provide north-to-south capacity on the mainline Equitrans, L.P. system, including for deliveries to the MVP, and power plant projects. A portion of EEP commenced operations with interruptible service in the third quarter of 2019. EEP will provide capacity of approximately 600 MMcf per day and offers access to several markets through interconnects with Texas Eastern Transmission, Dominion Transmission and Columbia Gas Transmission. EEP will also provide delivery into the MVP and once the MVP is placed in service, firm transportation agreements for 550 MMcf per day of capacity will commence under 20-year terms. EEP has a targeted full in-service date of late 2020.
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Water Expansion. During the twelve months ended December 31, 2019, EQM invested approximately $37 million in the expansion of its fresh water delivery infrastructure. In 2020, EQM expects to invest approximately $20 million in the expansion of its fresh water delivery infrastructure in Pennsylvania and Ohio.
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rates and charges for EQM's natural gas transmission and storage and FERC-regulated gathering services;
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certification and construction of new interstate transmission and storage facilities;
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abandonment of interstate transmission and storage services and facilities and certificated gathering facilities;
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maintenance of accounts and records;
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relationships between pipelines and certain affiliates;
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terms and conditions of services and service contracts with customers;
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depreciation and amortization policies;
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acquisitions and dispositions of interstate transmission and storage facilities; and
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initiation and discontinuation of interstate transmission and storage services.
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requiring the acquisition of various permits to conduct regulated activities;
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requiring the installation of pollution-control equipment or otherwise restricting the way EQM can handle or dispose of its wastes;
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limiting or prohibiting construction activities in sensitive areas, such as wetlands, coastal regions or areas inhabited by endangered or threatened species; and
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requiring investigatory and remedial actions to mitigate or eliminate pollution conditions caused by EQM's operations or attributable to former operations.
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prevailing and projected natural gas, natural gas liquids (NGLs) and oil prices and the effect thereon of the supply of associated natural gas from oil wells in other formations such as the Permian Basin;
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the proximity, capacity, cost and availability of gathering and transportation facilities, and other factors that result in differentials to benchmark prices;
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the availability and cost of capital on a satisfactory economic basis to fund EQT's operations and refinance existing indebtedness as it becomes due, any changes in EQT's credit ratings and the effects of EQT's credit support obligations on such availability;
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natural gas price volatility or a sustained period of lower commodity prices may have an adverse effect on EQT's drilling operations, revenue, profitability, future rate of growth, creditworthiness and liquidity;
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a further reduction in or slowing of EQT's anticipated drilling and production schedule, which would directly and adversely impact demand for EQM's services;
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the costs of producing natural gas and the availability and costs of drilling rigs and crews and other equipment;
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infrastructure capacity constraints and interruptions;
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geologic considerations;
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risks associated with the operation of EQT's wells and facilities, including potential environmental liabilities;
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EQT's ability to identify exploration, development and production opportunities based on market conditions;
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uncertainties inherent in projecting future rates of production, levels of reserves, and demand for natural gas, NGLs and oil;
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EQT's ability to develop additional reserves that are economically recoverable, to optimize existing well production and to sustain production, including by use of large-scale, sequential, highly choreographed drilling and hydraulic fracturing;
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EQT’s ability to achieve anticipated efficiencies associated with its strategic plan and to successfully execute on its announced de-levering plan;
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adverse effects of governmental and environmental regulation, including the availability of drilling permits, the regulation of hydraulic fracturing, the potential removal of certain federal income tax deductions with respect to natural gas and oil exploration and development or additional state taxes on natural gas extraction, changes in tax laws and negative public perception regarding EQT's operations;
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the loss of key personnel and/or the effectiveness of their replacements; and
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risk associated with cyber security, environmental activists and other threats.
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rates and charges for EQM's natural gas transmission and storage and FERC-regulated gathering services;
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certification and construction of new interstate transmission and storage facilities;
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abandonment of interstate transmission and storage services and facilities and certificated gathering facilities;
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maintenance of accounts and records;
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relationships between pipelines and certain affiliates;
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terms and conditions of services and service contracts with customers;
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depreciation and amortization policies;
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acquisitions and dispositions of interstate transmission and storage facilities; and
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initiation and discontinuation of interstate transmission and storage services.
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the level of existing and new competition to provide services to EQM's markets;
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the macroeconomic factors affecting natural gas economics for EQM's current and potential customers;
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the balance of supply and demand, on a short-term, seasonal and long-term basis, in EQM's markets;
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the extent to which the customers in EQM's markets are willing to contract on a long-term basis; and
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the effects of federal, state or local regulations on the contracting practices of EQM's customers.
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an inability to identify attractive expansion projects;
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an inability to obtain necessary rights-of-way, real-estate rights or permits or other government approvals, including approvals by regulatory agencies;
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an inability to successfully integrate the infrastructure EQM builds;
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an inability to raise financing for expansion projects on economically acceptable terms;
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incorrect assumptions about volumes, revenues and costs, including potential growth; or
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an inability to secure adequate customer commitments to use the newly expanded facilities.
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mistaken assumptions about volumes, revenues and costs, including synergies and potential growth;
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an inability to secure adequate customer commitments to use the acquired systems or facilities;
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an inability to integrate successfully the assets or businesses EQM acquires;
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the assumption of unknown liabilities for which EQM is not indemnified or for which EQM's indemnity is inadequate;
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the diversion of management's and employees' attention from other business concerns; and
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unforeseen difficulties operating in new geographic areas or business lines.
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damage to pipelines, facilities, equipment, environmental controls and surrounding properties caused by hurricanes, earthquakes, tornadoes, abnormal amounts of rainfall, floods, fires, droughts, landslides and other natural disasters and acts of sabotage, vandalism and terrorism;
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inadvertent damage from construction, vehicles, and farm and utility equipment;
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uncontrolled releases of natural gas and other hydrocarbons;
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leaks, migrations or losses of natural gas as a result of the malfunction of equipment or facilities and, with respect to storage assets, as a result of undefined boundaries, geologic anomalies, natural pressure migration and wellbore migration;
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ruptures, fires and explosions;
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pipeline freeze offs due to cold weather; and
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other hazards that could also result in personal injury and loss of life, pollution to the environment and suspension of operations.
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perform ongoing assessments of pipeline integrity;
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identify and characterize applicable threats to pipeline segments that could impact an HCA;
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maintain processes for data collection, integration and analysis;
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repair and remediate pipelines as necessary; and
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implement preventive and mitigating actions.
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incur or guarantee additional debt;
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make distributions on or redeem or repurchase units;
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incur or permit liens on assets;
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enter into certain types of transactions with affiliates;
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enter into certain mergers or acquisitions; and
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dispose of all or substantially all of their respective assets.
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EQM's ability to obtain additional financing, if necessary, for working capital, capital expenditures, acquisitions or other purposes may be impaired, or such financing may not be available on favorable terms;
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EQM's funds available for operations, future business opportunities and distributions to unitholders, including us, will be reduced by that portion of its cash flow required to make interest payments on its debt;
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EQM may be more vulnerable to competitive pressures or a downturn in its business or the economy generally; and
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EQM's flexibility in responding to changing business and economic conditions may be limited.
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additional or more restrictive covenants that impose operating and financial restrictions on EQM and its subsidiaries;
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EQM's subsidiaries to guarantee such debt and certain other debt; and
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EQM and its subsidiaries to provide collateral to secure such debt.
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the rates EQM charges for EQM's gathering, transmission, storage and water services;
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the level of EQM’s MVCs, firm gathering, transmission and storage capacity sold and the volumes of natural gas EQM gathers, transports and stores for its customers and EQM’s ability to provide produced water handling services, the volume of water delivered to, or stored for, EQM’s customers and the cost of water;
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EQM’s ability to successfully implement or execute on its business plan;
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regional, domestic and foreign supply (including, without limitation, associated natural gas produced from oil wells in other formations such as the Permian Basin) and perceptions of supply of natural gas; the level of demand and perceptions of demand in EQM's end-use markets (which may be met or otherwise affected by production of associated gas and the availability of such gas in EQM’s end-use markets); and actual and anticipated future prices of natural gas and other commodities (and the volatility thereof), which may affect, among other things, production volumes, customer financial health, and EQM's ability to renew and replace firm gathering, transmission and storage, and water services agreements;
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the effect of seasonal variations in temperature on the amount of natural gas that EQM gathers, transports and stores and the amount of water EQM delivers;
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the level of competition from other midstream energy companies in EQM's geographic markets;
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the creditworthiness and defaults, if any, of EQM's customers, including EQT;
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restrictions contained in EQM's joint venture agreements;
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the amount and timing of distributions, if any, received by EQM under its joint venture agreements;
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the level of EQM's operating and maintenance and general and administrative costs;
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the availability and price of alternative and competing fuel sources, and the rates of growth of alternative energy sources and consumer adoption of alternative energy sources relative to natural gas;
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regulatory action affecting the supply of, or demand for, natural gas, the rates EQM can charge on its assets, how EQM contracts for services, EQM's existing contracts, EQM's operating costs and EQM's operating flexibility;
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natural disasters, weather-related delays, casualty losses, third-party opposition to EQM’s operations in the form of protests, sabotage, intervention in regulatory or administrative proceedings, or lawsuits, and other matters beyond our or EQM’s control;
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the ultimate terms of renegotiation of EQM’s commercial contracts with EQT and timing of the completion, if any, of such negotiations; and
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prevailing market conditions.
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EQM’s cash flows, including cash flow from operations and working capital borrowings;
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the level and timing of capital expenditures and capital contributions EQM makes;
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the level of EQM’s operating and maintenance and general and administrative expenses;
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EQM's ability to successfully identify and consummate joint ventures and other transactions, including strategic acquisitions, if any, and to successfully integrate those acquisitions into EQM's business;
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the cost of EQM’s acquisitions, if any;
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EQM's and its subsidiaries’ respective debt service requirements and other liabilities;
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distributions to the holders of EQM Series A Preferred Units;
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fluctuations in EQM's working capital needs;
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liquidity and financing requirements, including EQM's ability to borrow funds and access capital markets on satisfactory terms or at all;
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restrictions on distributions contained in EQM's and its subsidiaries’ respective debt and joint venture agreements;
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the amount of EQM's cash reserves; and
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other business risks affecting EQM's cash levels.
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EQM’s existing unitholders' proportionate ownership interest in EQM would decrease;
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the amount of distributable cash flow on each unit may decrease;
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EQM’s ability to maintain its current cash distribution level may be adversely affected;
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the ratio of taxable income to distributions may increase;
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the relative voting strength of each previously outstanding unit will be diminished; and
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the market price of EQM common units may decline.
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actual or anticipated fluctuations in our or EQM's operating results;
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declines, or flat or slow growth, in the production of natural gas by EQT and other customers in EQM's areas of operation;
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declining operating revenues derived from EQM's core business;
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any further delays to the MVP in-service date or further MVP cost increases;
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delays in MVP Southgate in-service date or MVP Southgate cost increases;
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the gain or loss of significant customers;
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additions or departures of key personnel;
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the operating and stock price performance of companies that investors deem comparable to us;
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changes in the regulatory and legal environment under which we operate;
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increasing growth in the production of associated natural gas in other formations such as the Permian Basin and the supply of such gas to EQM’s end-use markets;
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market conditions in the oil-and-gas industry and domestic and worldwide economy as a whole;
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the effect of commodity prices on our or EQM’s business;
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changes in recommendations by securities analysts;
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news reports relating to trends, concerns and other issues in the energy, gas and water industries;
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new technology used, or services offered, by competitors;
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perceptions in the marketplace regarding us, our competitors, our customers and our industry;
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significant acquisitions or business combinations, strategic partnerships, joint ventures or capital commitments by or involving us or our competitors;
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failure to identify or integrate acquisitions or realize anticipated benefits from acquisitions, business combinations, strategic partnerships or joint ventures;
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changes in our, EQM's or our customers’ (including EQT's) respective credit ratings and access to capital;
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defaults, if any, of EQM's customers, including EQT;
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additional investments from third parties;
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dividend and distribution amounts and timing and rates; and
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issuance of additional shares of our common stock.
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an increase in our operating expenses;
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an increase in our general and administrative expenses;
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an increase in our working capital requirements; or
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an increase in the cash needs of EQM or its subsidiaries that reduces EQM's distributions, including as a result of an increase in EQM's and its subsidiaries’ debt service requirements, distributions to the holders of EQM Series A Preferred Units and/or other liabilities.
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Our ability to obtain additional financing, if necessary, for working capital, capital expenditures, acquisitions or other purposes may be impaired, or such financing may not be available on favorable terms;
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Our funds available for operations, future business opportunities and dividends to shareholders will be reduced by that portion of our cash flow required to service our debt;
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We may be more vulnerable to competitive pressures or a downturn in our business or the economy generally; and
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Our flexibility in responding to changing business and economic conditions may be limited.
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requiring the vote of the holders of not less than 80% of the combined voting power of the then-outstanding shares of capital stock for the approval of certain transactions;
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requiring the vote of the holders of not less than 80% of the combined voting power of the then-outstanding shares of capital stock to amend our articles of incorporation and bylaws, under certain circumstances;
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authorizing blank check preferred stock, which we could issue with voting, liquidation, dividend and other rights superior to those of our common stock;
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limiting the liability of, and providing indemnification to, our directors and officers;
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specifying that our shareholders may take action only at a duly called annual or special meeting of shareholders and otherwise in accordance with our bylaws and prohibiting our shareholders from calling special meetings;
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requiring advance notice of proposals by our shareholders for business to be conducted at shareholder meetings and for nominations of candidates for election to our Board; and
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controlling the procedures for conduct of our Board and shareholder meetings and election, appointment and removal of our directors.
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the terms and conditions of any contractual agreements between us and our affiliates, on the one hand, and EQM, on the other hand;
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the determination of the amount of cash to be distributed to EQM's partners, including us, and the amount of cash to be reserved for the future conduct of EQM's business;
|
•
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the determination of whether EQM should make acquisitions and on what terms;
|
•
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the determination of whether EQM should use cash on hand, borrow or issue equity to raise cash to finance acquisitions, other strategic transactions or expansion capital projects, repay indebtedness, meet working capital needs, pay distributions or otherwise;
|
•
|
any decision we make in the future to engage in business activities independent of EQM; and
|
•
|
the allocation of shared overhead expenses between EQM and us.
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•
|
Prior to the Separation, our business was operated by EQT as part of its broader corporate organization, rather than as an independent company. EQT and certain of its affiliates performed certain corporate functions for us. Our historical and pro forma financial results prior to the Separation reflect allocations of corporate expenses from EQT for such functions that are less than similar expenses we incur as a separate publicly traded company.
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•
|
Leading up to and continuing since the Separation, certain key employees in the corporate services functions have faced sustained periods of unusually high utilization in an effort to pursue and implement our operating priorities and strategies as an independent public company. If we are unable to attract, develop and retain qualified employees to support the various functions of our business, including by providing effective development
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•
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As a public company, we are subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act of 2002 (the Sarbanes-Oxley Act) and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the Dodd-Frank Act) and are required to prepare our financial statements according to the rules and regulations required by the SEC. Complying with these requirements has resulted in significant costs to us and required and will require us to divert substantial resources, including management time, from other activities.
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•
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allow us to more effectively pursue and implement our own distinct operating priorities and strategies and improve board of director and management fit and focus, enabling us to pursue unique opportunities for long-term growth and profitability;
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•
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allow our equity to be used as a focused acquisition currency, and as such, provide us with greater opportunities to pursue strategic investments and merger and acquisition opportunities;
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•
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afford us direct access to capital markets, facilitating our ability to pursue our specific growth objectives;
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•
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allow us the flexibility to develop a growth strategy that capitalizes on our distinct strengths and consequently enable us to be well-positioned to capitalize on the available opportunity set in our specific market;
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•
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permit us to concentrate our financial resources solely on our own operations, providing us with greater flexibility to invest capital in our business at a time and in a manner appropriate for our distinct strategy and business needs;
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•
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facilitate a more efficient allocation of capital based on our profitability, cash flow and growth opportunities and allow us to pursue an optimal mix of return of capital to shareholders, reinvestment in technology and value-enhancing investments and merger and acquisition and joint venture opportunities;
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•
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facilitate our access to equity capital markets by making us eligible for inclusion in certain stock indices and to debt capital markets by allowing ratings agencies to evaluate our creditworthiness on a standalone basis;
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•
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facilitate deeper understanding by investors of our business, allowing investors to more transparently value our merits, strategy, performance and future prospects, further facilitating our access to capital markets;
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•
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facilitate EQM's ability to contract with customers and suppliers, especially those that prefer to enter into certain commercial arrangements with pure-play midstream business rather than integrated midstream and upstream companies, thereby allowing EQM to expand and diversify its customer and supplier bases; and
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•
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facilitate incentive compensation arrangements for employees that are more directly tied to the performance of our businesses. An improved equity currency will enhance employee hiring and retention by, among other things, improving the alignment of management and employee incentives with performance and growth objectives.
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•
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changes in the Company's, EQM's and EQT's business, operations and prospects or market assessments thereof;
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•
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interest rates, general market, industry and economic conditions and other factors generally affecting the price of Equitrans Midstream common stock; and
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•
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federal, state and local legislation, governmental regulation and legal developments in the businesses and industry in which the Company and EQM operate.
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•
|
we will be required to pay our costs relating to the EQM Merger, such as legal, accounting and financial advisory expenses, whether or not the EQM Merger is completed;
|
•
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time and resources committed by our management to matters relating to the EQM Merger could otherwise have been devoted to pursuing other beneficial opportunities; and
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•
|
the market price of Equitrans Midstream common stock could decline to the extent that the current market price reflects a market assumption that the EQM Merger will be completed.
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•
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The ETRN Preferred Shares are a new class of security that will rank pari passu with any other outstanding class or series of preferred stock of the Company and senior to all shares of Equitrans Midstream common stock with respect to dividend rights and rights upon liquidation.
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•
|
The ETRN Preferred Shares will vote on an as-converted basis with Equitrans Midstream common stock and will have certain other class voting rights with respect to any amendment to the Certificate of Designations or the Company’s articles of incorporation that would be adverse (other than in a de minimis manner) to any of the rights, preferences or privileges of the ETRN Preferred Shares.
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•
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The holders of the ETRN Preferred Shares will receive cumulative quarterly dividends at a rate per annum of 9.75% for each quarter ending on or before March 31, 2024, and thereafter the quarterly dividends at a rate per annum equal to the sum of (i) three-month LIBOR as of a LIBOR Determination Date (as defined in the Certificate of Designation) in respect of the applicable quarter and (ii) 8.15%; provided that the rate per annum shall not be less than 10.50%.
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•
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The Company will not be entitled to pay any dividends on any junior securities, including any of Equitrans Midstream common stock, prior to paying the quarterly dividends payable to the ETRN Preferred Shares, including any previously accrued and unpaid dividends.
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•
|
Each holder of the ETRN Preferred Shares may elect to convert all or any portion of the ETRN Preferred Shares owned by it into Equitrans Midstream common stock initially on a one-for-one basis, subject to certain anti-dilution adjustments and an adjustment for any dividends that have accrued but not been paid when due and partial period dividends (referred to as the “conversion rate”), at any time (but not more often than once per fiscal quarter) after April 10, 2021 (or earlier liquidation, dissolution or winding up of the Company), provided that any conversion is for at least $20 million (calculated based on the closing price of the ETRN Preferred Shares on the trading day preceding notice of the conversion) or such lesser amount if such conversion relates to all of a holder’s remaining ETRN Preferred Shares.
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•
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The Company may elect to convert all or any portion of the ETRN Preferred Shares for Equitrans Midstream common stock at any time (but not more often than once per quarter) after April 10, 2021 if (i) the Equitrans Midstream common stock is listed for, or admitted to, trading on a national securities exchange, (ii) the closing price per share of Equitrans Midstream common stock on the national securities exchange on which such shares are listed for, or admitted to, trading exceeds 140% of the price at which the ETRN Preferred Shares were issued (the ETRN Preferred Shares Issue Price) for the 20 consecutive trading days immediately preceding notice of the conversion, (iii) the average daily trading volume of the Equitrans Midstream common stock on the national securities exchange on which the Equitrans Midstream common stock is listed for, or admitted to, trading exceeds 1,000,000 shares of Equitrans Midstream common stock for the 20 consecutive trading days immediately preceding notice of the conversion, (iv) the Company has an effective registration statement on file with the Securities and Exchange Commission covering resales of the Equitrans Midstream common stock to be received by such holders upon any such conversion and (v) the Company has paid all accrued quarterly dividends in cash to the holders.
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•
|
Upon certain events involving a Change of Control (as defined in the Certificate of Designations) in which more than 90% of the consideration payable to the holders of the Company's common stock is payable in cash, the ETRN Preferred Shares will automatically convert into Equitrans Midstream common stock at a conversion ratio equal to the ETRN Preferred Shares Issue Price multiplied by 110% plus any unpaid dividends on such date and any partial period dividend with respect to the ETRN Preferred Shares for the quarter in which the conversion occurs, divided by (ii) the ETRN Preferred Shares Issue Price.
|
•
|
In connection with other Change of Control events that do not satisfy the 90% cash consideration threshold described above, in addition to certain other conditions, each holder of ETRN Preferred Shares may elect to (a) convert all, but not less than all, of its ETRN Preferred Shares into Equitrans Midstream common stock at the then applicable conversion rate, (b) if the Company is not the surviving entity (or if the Company is the surviving entity, but Equitrans Midstream common stock will cease to be listed), require the Company to use commercially reasonable efforts to cause the surviving entity in any such transaction to issue a substantially equivalent security (or if the Company is unable to cause such substantially equivalent securities to be issued, to convert into shares of Equitrans Midstream
|
•
|
At any time on or after January 1, 2024, the Company will have the right to redeem ETRN Preferred Shares, in whole or in part, by paying cash for each ETRN Preferred Share to be redeemed in an amount equal to the greater of (a) the sum of (i)(1) the ETRN Preferred Shares Issue Price multiplied by (2) 110%, plus (ii) any unpaid dividends on such date and any partial period dividend with respect to the ETRN Preferred Shares for the quarter in which the conversion occurs and (b) the amount the holder of such ETRN Preferred Share would receive if such holder had converted such ETRN Preferred Share into shares of Equitrans Midstream common stock at the applicable conversion ratio and the Company liquidated immediately thereafter.
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•
|
Pursuant to the terms of the Restructuring Agreement, in connection with the Restructuring Closing, the Company has agreed to enter into the Registration Rights Agreement pursuant to which, among other things, the Company will give the Investors certain rights to require the Company to file and maintain one or more registration statements with respect to the resale of the ETRN Preferred Shares and the shares of Equitrans Midstream common stock that are issuable upon conversion of the ETRN Preferred Shares, and to require the Company to initiate underwritten offerings for the ETRN Preferred Shares and the shares of Equitrans Midstream common stock that are issuable upon conversion of the ETRN Preferred Shares.
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•
|
Sierra Club, et al. v. U.S. Army Corps of Engineers, et al., consolidated under Case No. 18-1173, Fourth Circuit Court of Appeals (Fourth Circuit). In February 2018, the Sierra Club filed a lawsuit in the Fourth Circuit against the U.S. Army Corps of Engineers (the U.S. Army Corps). The lawsuit challenges the verification by the Huntington District of the U.S. Army Corps that Nationwide Permit 12, which generally authorizes discharges of dredge or fill material into waters of the United States and the construction of pipelines across such waters under Section 404 of the Clean Water Act, could be utilized in the Huntington District (which covers all but the northernmost area of West Virginia) for the MVP project. The crux of Sierra Club's position was that the MVP Joint Venture, pursuant to its FERC license, planned to use a certain methodology (dry open cut creek crossing methodology) to construct the pipeline across streams in West Virginia that would take considerably longer than the 72 hours allowed for such activities pursuant to the terms of West Virginia's Clean Water Act Section 401 certification for Nationwide Permit 12. A three-judge panel of the Fourth Circuit agreed with the Sierra Club and on October 2, 2018, issued a preliminary order stopping the construction in West Virginia of that portion of the pipeline that is subject to Nationwide Permit 12. Following the issuance of the court's preliminary order, the U.S. Army Corps' Pittsburgh District (which had also verified use of Nationwide Permit 12 by MVP in the northern corner of West Virginia) suspended its verification that allowed the MVP Joint Venture to use Nationwide Permit 12 for stream and wetlands crossings in northern West Virginia. On November 27, 2018, the Fourth Circuit panel issued its final decision vacating the Huntington District's verification of the use of Nationwide Permit 12 in West Virginia. West Virginia subsequently revised its Section 401 certification for Nationwide Permit 12, however, unless and until the U.S. Army Corps Huntington and Pittsburgh Districts re-verify the MVP Joint Venture's use of Nationwide Permit 12, or the MVP Joint Venture secures an individual Section 404 permit with the concurrence of both Districts, the MVP Joint Venture cannot perform any construction activities in any streams and wetlands in West Virginia.
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•
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WVDEP Rulemaking Proceedings - Section 401 Nationwide Permit. On April 13, 2017, the West Virginia Department of Environmental Protection (WVDEP) issued a 401 Water Quality Certification for the U.S. Army Corps Nationwide Permits. In August 2018, the WVDEP initiated an administrative process to revise this certification and requested public comment to, among other things, specifically revise the 72-hour limit for stream crossings noted as problematic by the Fourth Circuit as well as other conditions. The WVDEP issued a new notice and comment period for further modifications of the 401 certification. On April 24, 2019, the WVDEP submitted the modification to the United States EPA for approval (since the WVDEP is also required to obtain the EPA's agreement to the modified 401 certification) and provided notice to the U.S. Army Corps. The EPA's agreement to the WVDEP's modification of its water quality certification was received in August 2019 and, accordingly, the MVP Joint Venture anticipates that it will once again secure from the U.S. Army Corps Districts within West Virginia verification that its activities, including stream crossings, may proceed under Nationwide Permit 12 as re-certified by the WVDEP. The U.S. Army Corps approved the WVDEP's modification of its Nationwide Permit on January 24, 2020. The MVP Joint Venture submitted a new permit application on January 28, 2020 anticipating a permit decision in early 2020. However, the MVP Joint Venture cannot guarantee that the WVDEP's action will not be challenged or that the U.S. Army Corps Districts will act promptly or be deemed to have acted properly if challenged, in which case reverification may be further delayed.
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•
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Sierra Club, et al. v. U.S. Army Corps of Engineers et al., Case No. 18-1713, Fourth Circuit Court of Appeals. In June 2018, the Sierra Club filed a second petition in the Fourth Circuit against the U.S. Army Corps, seeking review and a stay of the U.S. Army Corps Norfolk District's decision to verify the MVP Joint Venture's use of Nationwide Permit 12 for stream crossings in Virginia. The Fourth Circuit denied the Sierra Club's request for a stay on August 28, 2018. On October 5, 2018, the U.S. Army Corps' Norfolk District suspended its verification under Nationwide Permit 12 for stream crossings in Virginia pending the resolution of the West Virginia proceedings outlined above. On December 10, 2018, the U.S. Army Corps filed a motion to place the case in abeyance which the court granted on January 9, 2019. Until the U.S. Army Corps lifts its suspension, the MVP Joint Venture cannot perform any construction activities in any streams and wetlands in Virginia. Once the Huntington and Pittsburgh District issues are resolved as discussed above, the Norfolk District will be in the position to consider lifting the suspension of the verification for the MVP Joint Venture's use of Nationwide Permit 12. The administrative proceeding described above is addressing the issues raised by the court. However, the MVP Joint Venture cannot guarantee that the agencies' actions will not be challenged
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•
|
Sierra Club, et al. v. U.S. Forest Service, et al., consolidated under Case No. 17-2399, Fourth Circuit Court of Appeals. In a different Fourth Circuit appeal filed in December 2017, the Sierra Club challenged a BLM decision to grant a right-of-way to the MVP Joint Venture and a U.S. Forest Service (USFS) decision to amend its management plan to accommodate MVP, both of which affect the MVP's 3.6-mile segment in the Jefferson National Forest in Virginia. On July 27, 2018, agreeing in part with the Sierra Club, the Fourth Circuit vacated the BLM and USFS decisions, finding fault with the USFS' analysis of erosion and sedimentation effects and the BLM's analysis of the practicality of alternate routes. On August 3, 2018, citing the court's vacatur and remand, the FERC issued a stop work order for the entire pipeline pending the agency actions on remand. The FERC modified its stop work order on August 29, 2018 to allow work to continue on all but approximately 25 miles of the project. On October 10, 2018, the Fourth Circuit granted a petition for rehearing filed by the MVP Joint Venture for the limited purpose of clarifying that the July 27, 2018 order did not vacate the portion of the BLM's Record of Decision authorizing a right-of-way and temporary use permit for MVP to cross the Weston and Gauley Bridge Turnpike Trail in Braxton County, West Virginia. On October 15, 2018, the MVP Joint Venture filed with the FERC a request to further modify the August 3, 2018 stop work order to allow the MVP Joint Venture to complete the bore and install the pipeline under the Weston and Gauley Bridge Turnpike Trail. On October 24, 2018, the FERC granted the MVP Joint Venture's request to further modify the stop work order and authorize construction. However, work on the 3.6-mile segment in the Jefferson National Forest must await a revised authorization, which the MVP Joint Venture is working to obtain.
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•
|
Challenges to FERC Certificate, Court of Appeals for the District of Columbia Circuit (DC Circuit). Multiple parties have sought judicial review of the FERC's order issuing a certificate of convenience and necessity to the MVP Joint Venture and/or the exercise by the MVP Joint Venture of eminent domain authority. On February 19, 2019, the DC Circuit issued an order rejecting multiple consolidated petitions seeking direct review of the FERC order under the Natural Gas Act and certain challenges to the exercise by the MVP Joint Venture of eminent domain authority in Appalachian Voices, et al. v. FERC, et al., consolidated under Case No. 17-1271. No petitions for rehearing or petitions for rehearing en banc were filed by the April 5, 2019 deadline. The mandate was issued on April 17, 2019. Another group of parties filed a complaint in the U.S. District Court for the District of Columbia asserting that the FERC's order issuing certificates is unlawful on constitutional and other grounds in Bold Alliance, et al. v. FERC, et al., Case No. 1:17-cv-01822-RJL. The district court plaintiffs seek declaratory relief as well as an injunction preventing the MVP Joint Venture from developing its project or exercising eminent domain authority. In December 2017 and January 2018, the FERC and the MVP Joint Venture, respectively, moved to dismiss the petitions for lack of subject matter jurisdiction. The court granted the motion and dismissed plaintiffs' complaint on September 28, 2018. On October 26, 2018, plaintiffs appealed to the DC Circuit in Bold Alliance, et al. v. FERC, et al., Case No. 18-5322. On December 3, 2018, the FERC, as appellee, filed a joint motion with the appellants to hold Case No. 18-5322 in abeyance pending completion of the appeals of the final agency orders related to the MVP certificate in consolidated Case No. 17-1271 and Atlantic Coast Pipeline’s (ACP) certificate. The MVP Joint Venture filed a motion to dismiss the case as to some of the plaintiffs. On February 15, 2019, the DC Circuit entered an order holding this appeal in abeyance pending rulings on the appeals from the ACP and MVP FERC proceedings. ACP's proceeding remains pending. Case No. 18-5322 remains in abeyance. If this challenge were successful, it could result in the MVP Joint Venture's certificate of convenience and necessity being vacated and/or additional proceedings before the FERC, the outcome of which the MVP Joint Venture cannot predict.
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•
|
Mountain Valley Pipeline, LLC v. 6.56 Acres of Land et al., Case No. 18-1159, Fourth Circuit Court of Appeals. Several landowners filed challenges to the condemnation proceedings by which the MVP Joint Venture obtained access to their property in various U.S. District Courts. In each case, the district court found that the MVP Joint Venture was entitled to immediate possession of the easements, and the landowners appealed to the Fourth Circuit. The Fourth Circuit consolidated these cases and issued two opinions in 2019, one granting the MVP Joint Venture immediate access for construction of the pipeline and the other finding that the MVP Joint Venture did not have to condemn the interest of coal owners and that coal owners are not entitled to assert claims in the condemnation proceedings for lost coal on tracts for which they do not own a surface interest being condemned. A group of landowners filed a writ of certiorari with the United States Supreme Court regarding the Fourth Circuit’s ruling on immediate access which was denied on October 7, 2019. District court trials on just compensation are ongoing.
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•
|
Greenbrier River Watershed Ass’n v. WVDEP, Circuit Court of Summers County, West Virginia. In August 2017, the Greenbrier River Watershed Association appealed the MVP Joint Venture's Natural Stream Preservation Act Permit obtained from the West Virginia Environmental Quality Board (WVEQB) for the Greenbrier River crossing. Petitioners alleged that the issuance of the permit failed to comply with West Virginia's Water Quality Standards for turbidity and sedimentation. The WVEQB dismissed the appeal in June 2018. In July 2018, the Greenbrier River
|
•
|
Sierra Club et al. v. U.S. Dep’t of Interior et al., Case No. 18-1082, Fourth Circuit Court of Appeals. On August 6, 2018, the Fourth Circuit held that the National Park Service (NPS) acted arbitrarily and capriciously in granting the ACP a right-of-way permit across the Blue Ridge Parkway. Specifically, the Fourth Circuit found that the permit cited the wrong source of legal authority and the NPS failed to make a “threshold determination that granting the right-of-way is ‘not inconsistent with the use of such lands for parkway purposes’ and the overall National Park System to which it belongs.” Even though the MVP Joint Venture is not named in the ACP litigation, the MVP route crosses the Blue Ridge Parkway roughly midway between mileposts 246 and 247 of the pipeline route and implicates some the same deficiencies addressed by the court. The MVP Joint Venture elected to request that the NPS temporarily suspend its Blue Ridge Parkway permit until the deficiencies identified in the ACP litigation are resolved. While the MVP and ACP rights-of-way share some of the same regulatory issues, unlike ACP the portion of the MVP pipeline that crosses the Blue Ridge Parkway is completely constructed. NPS granted the MVP Joint Venture the ability to continue final restoration efforts on that portion of the pipeline during the course of the suspended permit. The MVP Joint Venture is working with the NPS to address MVP-related right-of-way issues.
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•
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Wild Virginia et al. v. United States Department of the Interior; Case No. 19-1866, Fourth Circuit Court of Appeals. Petitioners filed a petition in the Fourth Circuit to challenge MVP’s Biological Opinion and Incidental Take Statement issued by the Department of the Interior’s Fish and Wildlife Service (FWS) which was approved in November 2017 (BiOp). Petitioners also requested a stay of the application of MVP’s BiOp during the pendency of the court case. FWS subsequently requested that the court approve a stay of the litigation until January 11, 2020. On August 15, 2019, the MVP Joint Venture submitted a project-wide voluntary suspension of construction activities that pose a risk of incidental take, based on the BiOp. On October 11, 2019, the Fourth Circuit issued an order approving the stay of the BiOp and held the litigation in abeyance until January 11, 2020 pending re-consultation between FWS and the FERC regarding FWS’s review of the BiOp. In response to the Fourth Circuit's order, on October 15, 2019, the FERC issued an order to the MVP Joint Venture to cease all forward-construction progress. Subsequently, the FERC authorized certain limited construction activities to resume. On January 9, 2020, the Fourth Circuit granted FWS' motion to hold the case in abeyance until March 11, 2020.
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•
|
Cowpasture River Preservation Association, et al. v. U.S. Forest Service, et al., Case No. 18-1144, Fourth Circuit Court of Appeals. On December 13, 2018, in an unrelated case involving the ACP, the Fourth Circuit held that the USFS, which is part of the Department of Agriculture, lacked the authority to grant rights-of-way for oil and gas pipelines to cross the Appalachian Trail. Although the MVP Joint Venture obtained its grant to cross the Appalachian Trail from the BLM, a part of the Department of Interior, the rationale of the Fourth Circuit's opinion could apply to the BLM as well. On February 25, 2019, the Fourth Circuit denied ACP’s petition for en banc rehearing. The federal government and ACP filed petitions to the United States Supreme Court on June 26, 2019 seeking judicial review of the Fourth Circuit's decision. On October 4, 2019, the Supreme Court formally accepted the Petitioners' writ of certiorari. The oral arguments occurred on February 24, 2020. Based on general court practice, the Company anticipates that the Supreme Court will issue its decision by June 2020. The MVP Joint Venture is continuing to pursue multiple options to address the Appalachian Trail issue, including but not limited to, administrative, regulatory and legislative options.
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•
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Grand Jury Subpoena. On January 7, 2019, the MVP Joint Venture received a letter from the U.S. Attorney's Office for the Western District of Virginia stating that it and the EPA are investigating potential criminal and/or civil violations of the Clean Water Act and other federal statutes as they relate to the construction of the MVP. The January 7, 2019 letter requested that the MVP Joint Venture and its members, contractors, suppliers and other entities involved in the construction of the MVP preserve documents related to the MVP generated from September 1, 2018 to the present. In a telephone call on February 4, 2019, the U.S. Attorney's Office confirmed that it has opened a criminal investigation. On February 11, 2019, the MVP Joint Venture received a grand jury subpoena from the U.S. Attorney's Office for the Western District of Virginia requesting certain documents related to the MVP from August 1, 2018 to the present. The MVP Joint Venture is complying with the letter and subpoena but cannot predict whether any action will ultimately be brought by the U.S. Attorney's Office or what the outcome of such an action would be. The MVP Joint
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•
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Paylor et al. v. Mountain Valley Pipeline, LLC, Case No. CL18-4874-00, Circuit Court of Henrico County. On December 7, 2018, the Virginia Department of Environmental Quality and the State Water Control Board (the Plaintiffs) filed a lawsuit against the MVP Joint Venture in the Circuit Court of Henrico County alleging violations of Virginia's State Water Control Law, Water Resources and Wetlands Protection Program, and Water Protection Permit Program Regulations at sites in Craig, Franklin, Giles, Montgomery and Roanoke Counties, Virginia. On October 11, 2019, the Plaintiffs issued a consent decree to the MVP Joint Venture. As part of the consent decree, the MVP Joint Venture would agree to court-supervised compliance with environmental laws and third-party monitoring of erosion controls. The MVP Joint Venture would also agree to pay $2.15 million in penalties. The consent decree was signed by the judge on December 11, 2019, and the penalty was paid in December 2019 and accepted by the agency on January 7, 2020. Beyond the civil penalty, MVP is required to complete additional corrective actions and comply with reporting requirements outlined in the consent decree.
|
Name
|
|
Age
|
|
Year Initially Elected as Executive Officer
|
|
Title
|
Thomas F. Karam
|
|
61
|
|
2018
|
|
Chief Executive Officer
|
Diana M. Charletta
|
|
47
|
|
2018
|
|
President and Chief Operating Officer
|
Kirk R. Oliver
|
|
62
|
|
2018
|
|
Senior Vice President and Chief Financial Officer
|
Stephen M. Moore
|
|
60
|
|
2019
|
|
Senior Vice President and General Counsel
|
Brian P. Pietrandrea
|
|
45
|
|
2019
|
|
Vice President and Chief Accounting Officer
|
Period
|
|
Total number of shares purchased (a)
|
|
Average price paid per share
|
|
Total number of shares purchased as part of publicly announced plans or programs
|
|
Approximate dollar value of shares that may yet be purchased under plans or programs
|
||||||
October 2019 (October 1 - October 31)
|
|
84
|
|
|
$
|
13.37
|
|
|
—
|
|
|
$
|
—
|
|
November 2019 (November 1 - November 30)
|
|
269
|
|
|
10.19
|
|
|
—
|
|
|
—
|
|
||
December 2019 (December 1 - December 31)
|
|
221
|
|
|
16.59
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
574
|
|
|
$
|
13.12
|
|
|
—
|
|
|
$
|
—
|
|
(a)
|
Reflects the number of shares withheld by the Company to pay taxes upon vesting of restricted stock.
|
|
11/13/2018
|
|
12/31/2018
|
|
12/31/2019
|
||||||
Equitrans Midstream Corporation
|
$
|
100.00
|
|
|
$
|
95.84
|
|
|
$
|
71.75
|
|
S&P 500
|
100.00
|
|
|
92.82
|
|
|
122.05
|
|
|||
Old Peer Group (a)
|
100.00
|
|
|
90.81
|
|
|
104.34
|
|
|||
New Peer Group (b)
|
100.00
|
|
|
91.00
|
|
|
105.23
|
|
(a)
|
There are eighteen companies included in the Company's first customized peer group which are: Antero Midstream Corp, Cheniere Energy Inc., Crestwood Equity Partners LP, DCP Midstream LP, Enable Midstream Partners LP, Energy Transfer LP, EnLink Midstream, LLC, Enterprise Products Partners L.P., Kinder Morgan, Inc., Magellan Midstream Partners LP, MPLX LP, ONEOK, Inc., Phillips 66 Partners LP, Plains All American Pipeline LP, Plains GP Holdings LP, Targa Resources Corp., Western Gas Equity Partners LP and The Williams Companies, Inc. Andeavor Logistics LP (Andeavor) was acquired and ceased trading in July of 2019. Buckeye Partners, LP (Buckeye) was acquired and ceased trading in November of 2019. Andeavor and Buckeye were included in the Company’s peer group for 2019.
|
(b)
|
The eighteen companies included in the Company's second customized peer group are: Antero Midstream Corp, Cheniere Energy Partners, L.P., Crestwood Equity Partners LP, DCP Midstream LP, Enable Midstream Partners LP, Energy Transfer LP, EnLink Midstream, LLC, Enterprise Products Partners L.P., Kinder Morgan, Inc., Magellan Midstream Partners, L.P., MPLX LP, ONEOK, Inc., Phillips 66 Partners LP, Plains All American Pipeline LP, Plains GP Holdings LP, Targa Resources Corp., Western Midstream Partners, LP and The Williams Companies, Inc. Cheniere Energy Partners, LP replaces Cheniere Energy, Inc. because it is a closer peer to the Company because Cheniere Energy Partners, LP holds more assets than Cheniere Energy Inc.
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2019(a)
|
|
2018
|
|
2017(a)
|
|
2016
|
|
2015
|
||||||||||
|
(Thousands, except per share amounts)
|
||||||||||||||||||
Operating revenues
|
$
|
1,630,242
|
|
|
$
|
1,495,098
|
|
|
$
|
895,558
|
|
|
$
|
732,272
|
|
|
$
|
632,936
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (loss) income attributable to Equitrans Midstream Corporation
|
(203,743
|
)
|
|
218,398
|
|
|
(27,156
|
)
|
|
65,153
|
|
|
174,296
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
(Loss) earnings per share of common stock attributable to Equitrans Midstream
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
(0.80
|
)
|
|
$
|
0.86
|
|
|
$
|
(0.11
|
)
|
|
$
|
0.26
|
|
|
$
|
0.69
|
|
Diluted
|
$
|
(0.80
|
)
|
|
$
|
0.86
|
|
|
$
|
(0.11
|
)
|
|
$
|
0.26
|
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash dividends declared per share of common stock
|
$
|
1.80
|
|
|
$
|
0.41
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(a)
|
For the years ended December 31, 2019 and December 31, 2017, because the Company generated a net loss, the Company's computation of loss per share excluded potentially dilutive securities; as such, basic and diluted average common stock outstanding were the same for the years ended December 31, 2019 and December 31, 2017.
|
|
December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015 (a)
|
||||||||||
|
(Thousands)
|
||||||||||||||||||
Total assets
|
$
|
12,041,709
|
|
|
$
|
10,523,835
|
|
|
$
|
8,328,796
|
|
|
$
|
4,392,155
|
|
|
$
|
3,486,515
|
|
Long-term debt, including credit facilities (b)
|
6,324,483
|
|
|
4,660,244
|
|
|
1,453,352
|
|
|
985,732
|
|
|
493,401
|
|
(a)
|
Unaudited.
|
(b)
|
Includes outstanding borrowings under EQM's and Eureka Midstream's credit facilities.
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Thousands)
|
||||||
Operating income attributable to EQM
|
$
|
204,186
|
|
|
$
|
726,653
|
|
Less:
|
|
|
|
||||
Separation and other transaction costs
|
6,736
|
|
|
77,682
|
|
||
Impairment of long-lived assets
|
114,951
|
|
|
—
|
|
||
Additional expenses, net
|
6,499
|
|
|
5,887
|
|
||
Operating income attributable to Equitrans Midstream
|
$
|
76,000
|
|
|
$
|
643,084
|
|
(a)
|
Includes the pre-acquisition results of the Drop-Down Transaction and the EQM-RMP Mergers, which were effective May 1, 2018 and July 23, 2018, respectively. The recasts are for the period the acquired businesses were under the common control of EQT, which began on November 13, 2017 as a result of the Rice Merger.
|
(b)
|
Includes approximately $25.9 million of capital expenditures related to noncontrolling interests in Eureka Midstream for the year ended December 31, 2019.
|
|
Years Ended December 31,
|
||||||||||||||||
|
2019
|
|
2018
|
|
%
Change |
|
2017
|
|
%
Change |
||||||||
FINANCIAL DATA
|
(Thousands, except per day amounts)
|
||||||||||||||||
Firm reservation fee revenues
|
$
|
356,569
|
|
|
$
|
356,725
|
|
|
—
|
|
|
$
|
348,193
|
|
|
2.5
|
|
Volumetric-based fee revenues
|
33,951
|
|
|
30,076
|
|
|
12.9
|
|
|
23,793
|
|
|
26.4
|
|
|||
Total operating revenues
|
390,520
|
|
|
386,801
|
|
|
1.0
|
|
|
371,986
|
|
|
4.0
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||
Operating and maintenance
|
33,989
|
|
|
39,563
|
|
|
(14.1
|
)
|
|
33,908
|
|
|
16.7
|
|
|||
Selling, general and administrative
|
26,865
|
|
|
31,936
|
|
|
(15.9
|
)
|
|
31,922
|
|
|
—
|
|
|||
Depreciation
|
51,935
|
|
|
49,723
|
|
|
4.4
|
|
|
58,689
|
|
|
(15.3
|
)
|
|||
Total operating expenses
|
112,789
|
|
|
121,222
|
|
|
(7.0
|
)
|
|
124,519
|
|
|
(2.6
|
)
|
|||
Operating income
|
$
|
277,731
|
|
|
$
|
265,579
|
|
|
4.6
|
|
|
$
|
247,467
|
|
|
7.3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Equity income
|
$
|
163,279
|
|
|
$
|
61,778
|
|
|
164.3
|
|
|
$
|
22,171
|
|
|
178.6
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
OPERATIONAL DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Transmission pipeline throughput (BBtu per day)
|
|
|
|
|
|
|
|
|
|
||||||||
Firm capacity reservation
|
2,823
|
|
|
2,903
|
|
|
(2.8
|
)
|
|
2,399
|
|
|
21.0
|
|
|||
Volumetric-based services
|
90
|
|
|
59
|
|
|
52.5
|
|
|
37
|
|
|
59.5
|
|
|||
Total transmission pipeline throughput
|
2,913
|
|
|
2,962
|
|
|
(1.7
|
)
|
|
2,436
|
|
|
21.6
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Average contracted firm transmission reservation commitments (BBtu per day)
|
3,966
|
|
|
3,909
|
|
|
1.5
|
|
|
3,627
|
|
|
7.8
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures(a)
|
$
|
59,313
|
|
|
$
|
114,450
|
|
|
(48.2
|
)
|
|
$
|
111,102
|
|
|
3.0
|
|
(a)
|
Transmission capital expenditures do not include capital contributions made to the MVP Joint Venture for the MVP and MVP Southgate projects of approximately $774.6 million, $913.2 million and $159.6 million for the years ended December 31, 2019, 2018 and 2017, respectively.
|
|
Years Ended December 31,
|
||||||||||||||||
|
2019
|
|
2018(a)
|
|
%
Change |
|
2017(a)
|
|
%
Change |
||||||||
FINANCIAL DATA
|
(Thousands)
|
||||||||||||||||
Water service revenues
|
$
|
79,791
|
|
|
$
|
111,227
|
|
|
(28.3
|
)
|
|
$
|
13,605
|
|
|
717.5
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
||||||||
Operating and maintenance
|
34,638
|
|
|
44,152
|
|
|
(21.5
|
)
|
|
5,598
|
|
|
688.7
|
|
|||
Selling, general and administrative
|
2,933
|
|
|
5,895
|
|
|
(50.2
|
)
|
|
347
|
|
|
1,598.8
|
|
|||
Depreciation
|
26,915
|
|
|
23,513
|
|
|
14.5
|
|
|
3,515
|
|
|
568.9
|
|
|||
Total operating expenses
|
64,486
|
|
|
73,560
|
|
|
(12.3
|
)
|
|
9,460
|
|
|
677.6
|
|
|||
Operating income
|
$
|
15,305
|
|
|
$
|
37,667
|
|
|
(59.4
|
)
|
|
$
|
4,145
|
|
|
808.7
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
OPERATIONAL DATA
|
|
|
|
|
|
|
|
|
|
||||||||
Water services volumes (MMgal)
|
1,808
|
|
|
2,088
|
|
|
(13.4
|
)
|
|
226
|
|
|
823.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures
|
$
|
37,457
|
|
|
$
|
23,537
|
|
|
59.1
|
|
|
$
|
6,233
|
|
|
277.6
|
|
(a)
|
Includes the pre-acquisition results of the EQM-RMP Mergers, which were effective July 23, 2018. The recast is for the period the acquired businesses were under the common control of EQT, which began on November 13, 2017 as a result of the Rice Merger.
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Thousands)
|
||||||||||
Expansion capital expenditures (a)(b)
|
$
|
866,295
|
|
|
$
|
803,347
|
|
|
$
|
328,529
|
|
Maintenance capital expenditures
|
65,187
|
|
|
51,891
|
|
|
43,328
|
|
|||
Headquarters capital expenditures
|
9,779
|
|
|
29,336
|
|
|
—
|
|
|||
Total capital expenditures (b)
|
941,261
|
|
|
884,574
|
|
|
371,857
|
|
|||
Plus: accrued capital expenditures at the end of prior period (c)
|
109,347
|
|
|
90,655
|
|
|
26,678
|
|
|||
Plus: accrued capital expenditures at acquisition on April 10, 2019 (c)
|
8,759
|
|
|
—
|
|
|
—
|
|
|||
Plus: accrued capital expenditures at acquisition on November 13, 2017 (c)
|
—
|
|
|
—
|
|
|
72,271
|
|
|||
Less: accrued capital expenditures at the end of current period (c)
|
(91,998
|
)
|
|
(109,347
|
)
|
|
(90,655
|
)
|
|||
Total cash capital expenditures
|
$
|
967,369
|
|
|
$
|
865,882
|
|
|
$
|
380,151
|
|
(a)
|
Expansion capital expenditures do not include capital contributions made to the MVP Joint Venture of $774.6 million, $913.2 million and $159.6 million related to the MVP and MVP Southgate projects for the years ended December 31, 2019, 2018 and 2017, respectively.
|
(b)
|
Includes approximately $22.5 million of expansion capital expenditures and $3.4 million of maintenance capital expenditures related to noncontrolling interests in Eureka Midstream for the year ended December 31, 2019.
|
(c)
|
The Company accrues capital expenditures when capital work has been completed but the associated bills have not been paid. Accrued capital expenditures are excluded from the statements of consolidated cash flows until they are paid. See Note 6.
|
|
Equitrans Midstream
|
|
EQM
|
||||
|
Term Loan B
|
|
Senior Notes
|
||||
Rating Service
|
Rating
|
|
Outlook
|
|
Rating
|
|
Outlook
|
Moody's
|
Ba3
|
|
Stable
|
|
Ba1
|
|
Stable
|
S&P
|
BB
|
|
Negative
|
|
BBB-
|
|
Negative
|
Fitch
|
BB
|
|
Negative
|
|
BBB-
|
|
Negative
|
|
Total
|
|
2020
|
|
2021 – 2022
|
|
2023 – 2024
|
|
2025 +
|
||||||||||
|
(Thousands)
|
||||||||||||||||||
EQM long-term debt (a)
|
$
|
4,900,000
|
|
|
$
|
—
|
|
|
$
|
1,400,000
|
|
|
$
|
1,600,000
|
|
|
$
|
1,900,000
|
|
ETRN Term Loan Credit Agreement
|
594,000
|
|
|
6,000
|
|
|
12,000
|
|
|
576,000
|
|
|
—
|
|
|||||
Credit facility borrowings (b)
|
902,500
|
|
|
—
|
|
|
292,500
|
|
|
610,000
|
|
|
—
|
|
|||||
Interest payments on senior notes (c)
|
1,850,292
|
|
|
175,375
|
|
|
350,750
|
|
|
270,573
|
|
|
1,053,594
|
|
|||||
Purchase obligations (d)
|
24,062
|
|
|
24,062
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Operating lease obligations (e)
|
81,483
|
|
|
14,675
|
|
|
22,420
|
|
|
13,725
|
|
|
30,663
|
|
|||||
Other liabilities (f)
|
14,519
|
|
|
3,381
|
|
|
11,138
|
|
|
—
|
|
|
—
|
|
|||||
Total contractual obligations
|
$
|
8,366,856
|
|
|
$
|
223,493
|
|
|
$
|
2,088,808
|
|
|
$
|
3,070,298
|
|
|
$
|
2,984,257
|
|
(a)
|
Includes $3.5 billion in aggregate principal amount of EQM's senior notes and $1.4 billion associated with the term loans issued pursuant to the 2019 EQM Term Loan Agreement as of December 31, 2019. See Note 11 for further information.
|
(b)
|
Credit facility borrowings were classified based on the termination date of the credit facility agreements. As of December 31, 2019, the Company had aggregate credit facility borrowings outstanding of approximately $610 million and $293 million under the EQM Credit Facility and the Eureka Credit Facility, respectively. See Note 11 for further information.
|
(c)
|
Interest payments exclude interest related to the EQM Credit Facility, Eureka Credit Facility and term loans issued under the 2019 EQM Term Loan and ETRN Term Loan as the interest rates on the credit facility borrowings and the term loans are variable.
|
(d)
|
Purchase obligations represent agreements to purchase goods or services that are enforceable, legally binding and specify all significant terms, including the approximate timing of the transaction. As of December 31, 2019, the Company's purchase obligations included commitments for capital expenditures, operating expenses and service contracts.
|
(e)
|
Operating leases are primarily entered into for various office locations and warehouse buildings, as well as lease obligations for compression equipment under existing contracts with third parties.
|
(f)
|
Other liabilities represent commitments for estimated payouts as of December 31, 2019 for various Equitrans Midstream liability award plans. See "Critical Accounting Policies and Estimates" below and Note 10 for discussion of factors that affect the ultimate amount of the payout of these obligations.
|
|
Page No.
|
Reports of Independent Registered Public Accounting Firm
|
|
Statements of Consolidated Comprehensive Income for the Years Ended December 31, 2019, 2018 and 2017
|
|
Statements of Consolidated Cash Flows for the Years Ended December 31, 2019, 2018 and 2017
|
|
Consolidated Balance Sheets as of December 31, 2019 and 2018
|
|
Statements of Consolidated Equity for the Years Ended December 31, 2019, 2018 and 2017
|
|
Notes to Consolidated Financial Statements
|
/s/ Ernst & Young, LLP
|
|
We have served as the Company's auditor since 2018.
|
|
Pittsburgh, Pennsylvania
|
|
February 27, 2020
|
|
/s/ Ernst & Young, LLP
|
|
Pittsburgh, Pennsylvania
|
|
February 27, 2020
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Thousands, except per share amounts)
|
||||||||||
Operating revenues (a)
|
$
|
1,630,242
|
|
|
$
|
1,495,098
|
|
|
$
|
895,558
|
|
Operating expenses:
|
|
|
|
|
|
|
|||||
Operating and maintenance (b)
|
165,367
|
|
|
163,451
|
|
|
84,831
|
|
|||
Selling, general and administrative (b)
|
112,915
|
|
|
123,810
|
|
|
80,339
|
|
|||
Separation and other transaction costs (b)
|
26,080
|
|
|
85,444
|
|
|
85,124
|
|
|||
Depreciation
|
227,364
|
|
|
175,821
|
|
|
96,674
|
|
|||
Amortization of intangible assets
|
53,258
|
|
|
41,547
|
|
|
5,540
|
|
|||
Impairments of long-lived assets (c)
|
969,258
|
|
|
261,941
|
|
|
—
|
|
|||
Total operating expenses
|
1,554,242
|
|
|
852,014
|
|
|
352,508
|
|
|||
Operating income
|
76,000
|
|
|
643,084
|
|
|
543,050
|
|
|||
Equity income (d)
|
163,279
|
|
|
61,778
|
|
|
22,171
|
|
|||
Other income
|
2,661
|
|
|
5,011
|
|
|
4,439
|
|
|||
Net interest expense (e)
|
256,195
|
|
|
115,454
|
|
|
34,801
|
|
|||
(Loss) income before income taxes
|
(14,255
|
)
|
|
594,419
|
|
|
534,859
|
|
|||
Income tax expense
|
50,704
|
|
|
83,142
|
|
|
212,402
|
|
|||
Net (loss) income
|
(64,959
|
)
|
|
511,277
|
|
|
322,457
|
|
|||
Less: Net income attributable to noncontrolling interests
|
138,784
|
|
|
292,879
|
|
|
349,613
|
|
|||
Net (loss) income attributable to Equitrans Midstream Corporation
|
$
|
(203,743
|
)
|
|
$
|
218,398
|
|
|
$
|
(27,156
|
)
|
|
|
|
|
|
|
||||||
(Loss) earnings per share of common stock attributable to Equitrans Midstream Corporation:
|
|
|
|
|
|
||||||
Basic:
|
|
|
|
|
|
||||||
Weighted average common stock outstanding
|
254,884
|
|
|
254,432
|
|
|
254,432
|
|
|||
Net (loss) income
|
$
|
(0.80
|
)
|
|
$
|
0.86
|
|
|
$
|
(0.11
|
)
|
Diluted:
|
|
|
|
|
|
||||||
Weighted average common stock outstanding
|
254,884
|
|
|
255,033
|
|
|
254,432
|
|
|||
Net (loss) income
|
$
|
(0.80
|
)
|
|
$
|
0.86
|
|
|
$
|
(0.11
|
)
|
|
|
|
|
|
|
||||||
Net (loss) income
|
$
|
(64,959
|
)
|
|
$
|
511,277
|
|
|
$
|
322,457
|
|
Other comprehensive loss, net of tax:
|
|
|
|
|
|
||||||
Pension and other post-retirement benefits liability adjustment, net of tax expense of $70 and $638
|
(517
|
)
|
|
(1,509
|
)
|
|
—
|
|
|||
Other comprehensive loss
|
(517
|
)
|
|
(1,509
|
)
|
|
—
|
|
|||
Comprehensive (loss) income
|
(65,476
|
)
|
|
509,768
|
|
|
322,457
|
|
|||
Less: Comprehensive income attributable to noncontrolling interests
|
138,784
|
|
|
292,879
|
|
|
349,613
|
|
|||
Comprehensive (loss) income attributable to Equitrans Midstream Corporation
|
$
|
(204,260
|
)
|
|
$
|
216,889
|
|
|
$
|
(27,156
|
)
|
|
|
|
|
|
|
||||||
Dividends declared per common share
|
$
|
1.80
|
|
|
$
|
0.41
|
|
|
$
|
—
|
|
(a)
|
Operating revenues included related party revenues from EQT Corporation (NYSE: EQT) (EQT) of approximately $1,122.6 million, $1,111.3 million and $665.9 million for the years ended December 31, 2019, 2018 and 2017, respectively. See Note 9.
|
(b)
|
Operating and maintenance expense included charges from EQT of $2.4 million, $49.8 million and $40.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. Selling, general and administrative expense included charges from EQT of $1.0 million, $85.1 million and $75.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. See Note 9. Separation and other transaction costs represent the expenses related to the Rice Merger, the EQM-RMP Mergers, the Drop-Down Transaction, the Separation and the EQGP Buyout (each defined in Note 1) and included charges from EQT of $53.3 million and $85.1 million for the years ended December 31, 2018 and 2017, respectively. See Notes 1 and 9.
|
(c)
|
See Note 3 for disclosure regarding impairments of long-lived assets.
|
(d)
|
Represents equity income from Mountain Valley Pipeline, LLC (the MVP Joint Venture). See Note 8.
|
(e)
|
Net interest expense included interest income on the preferred interest that EQM has in EQT Energy Supply, LLC (EES) (the Preferred Interest) of $6.3 million, $6.6 million and $6.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
||||
Net (loss) income
|
$
|
(64,959
|
)
|
|
$
|
511,277
|
|
|
$
|
322,457
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation
|
227,364
|
|
|
175,821
|
|
|
96,674
|
|
|||
Amortization of intangible assets
|
53,258
|
|
|
41,547
|
|
|
5,540
|
|
|||
Impairment of long-lived assets (a)
|
969,258
|
|
|
261,941
|
|
|
—
|
|
|||
Deferred income taxes
|
50,704
|
|
|
25,246
|
|
|
158,369
|
|
|||
Equity income (b)
|
(163,279
|
)
|
|
(61,778
|
)
|
|
(22,171
|
)
|
|||
Other income
|
(5,716
|
)
|
|
(5,570
|
)
|
|
(5,110
|
)
|
|||
Non-cash long-term compensation expense
|
2,786
|
|
|
4,190
|
|
|
468
|
|
|||
Changes in other assets and liabilities:
|
|
|
|
|
|
||||||
Accounts receivable
|
17,523
|
|
|
(36,225
|
)
|
|
(24,569
|
)
|
|||
Accounts payable
|
(90,301
|
)
|
|
(90,502
|
)
|
|
130,347
|
|
|||
Other assets and other liabilities
|
(20,151
|
)
|
|
(104,237
|
)
|
|
7,736
|
|
|||
Net cash provided by operating activities
|
976,487
|
|
|
721,710
|
|
|
669,741
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
||||
Capital expenditures
|
(967,369
|
)
|
|
(865,882
|
)
|
|
(380,151
|
)
|
|||
Capital contributions to the MVP Joint Venture
|
(774,593
|
)
|
|
(913,195
|
)
|
|
(159,550
|
)
|
|||
Bolt-on Acquisition (defined in Note 2), net of cash acquired
|
(837,231
|
)
|
|
—
|
|
|
—
|
|
|||
Purchase of interests in the MVP Joint Venture
|
—
|
|
|
(11,302
|
)
|
|
—
|
|
|||
Principal payments received on the Preferred Interest
|
4,661
|
|
|
4,406
|
|
|
4,166
|
|
|||
Net cash used in investing activities
|
(2,574,532
|
)
|
|
(1,785,973
|
)
|
|
(535,535
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
||||
Proceeds from credit facility borrowings
|
2,484,000
|
|
|
3,446,500
|
|
|
544,000
|
|
|||
Payments on credit facility borrowings
|
(2,495,500
|
)
|
|
(3,271,000
|
)
|
|
(344,000
|
)
|
|||
Proceeds from the issuance of EQM's senior notes
|
—
|
|
|
2,500,000
|
|
|
—
|
|
|||
Proceeds from the issuance of EQM's long-term debt
|
1,400,000
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from the issuance of Equitrans Midstream's long-term debt
|
—
|
|
|
600,000
|
|
|
—
|
|
|||
Cash paid for long-term debt
|
(34,325
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from issuance of EQM Series A Preferred Units, net of offering costs
|
1,158,313
|
|
|
—
|
|
|
—
|
|
|||
Net (payments on) proceeds from EQGP's working capital loan with EQT
|
—
|
|
|
(168
|
)
|
|
84
|
|
|||
Net distributions to EQT
|
—
|
|
|
(1,117,577
|
)
|
|
(1,009,501
|
)
|
|||
Net contribution to Strike Force Midstream LLC by minority owner
|
—
|
|
|
—
|
|
|
6,738
|
|
|||
Distributions paid to noncontrolling interest unitholders
|
(382,360
|
)
|
|
(380,651
|
)
|
|
(236,123
|
)
|
|||
Distributions paid to holders of EQM Series A Preferred Units
|
(48,480
|
)
|
|
—
|
|
|
—
|
|
|||
Acquisition of 25% of Strike Force Midstream LLC
|
—
|
|
|
(175,000
|
)
|
|
—
|
|
|||
Dividends paid
|
(448,128
|
)
|
|
—
|
|
|
—
|
|
|||
Purchases of EQGP common units
|
(238,455
|
)
|
|
(291,206
|
)
|
|
—
|
|
|||
Debt discount, debt issuance costs and credit facility origination fees
|
(2,870
|
)
|
|
(73,467
|
)
|
|
(2,257
|
)
|
|||
Net cash provided by (used in) financing activities
|
1,392,195
|
|
|
1,237,431
|
|
|
(1,041,059
|
)
|
|||
|
|
|
|
|
|
||||||
Net change in cash and cash equivalents
|
(205,850
|
)
|
|
173,168
|
|
|
(906,853
|
)
|
|||
Cash and cash equivalents at beginning of year (c)
|
294,172
|
|
|
121,004
|
|
|
1,027,857
|
|
|||
Cash and cash equivalents at end of year
|
$
|
88,322
|
|
|
$
|
294,172
|
|
|
$
|
121,004
|
|
(a)
|
See Note 3 for disclosure regarding impairments of long-lived assets.
|
(b)
|
Represents equity income from the MVP Joint Venture. See Note 8.
|
(c)
|
Cash and cash equivalents at January 1, 2017 included $61.6 million of cash and cash equivalents acquired at the effective time of the Rice Merger. See Note 2.
|
|
2019
|
|
2018
|
||||
|
(Thousands)
|
||||||
ASSETS
|
|
||||||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
88,322
|
|
|
$
|
294,172
|
|
Accounts receivable (net of allowance for doubtful accounts of $285 and $75 as of December 31, 2019 and 2018, respectively) (a)
|
255,344
|
|
|
255,496
|
|
||
Other current assets
|
31,546
|
|
|
19,171
|
|
||
Total current assets
|
375,212
|
|
|
568,839
|
|
||
|
|
|
|
||||
Property, plant and equipment
|
8,583,124
|
|
|
6,469,846
|
|
||
Less: accumulated depreciation
|
(859,157
|
)
|
|
(602,199
|
)
|
||
Net property, plant and equipment
|
7,723,967
|
|
|
5,867,647
|
|
||
|
|
|
|
||||
Investment in unconsolidated entity
|
2,324,108
|
|
|
1,510,289
|
|
||
Goodwill (b)
|
486,698
|
|
|
1,239,269
|
|
||
Net intangible assets
|
797,439
|
|
|
576,113
|
|
||
Deferred income taxes
|
90,597
|
|
|
597,321
|
|
||
Other assets
|
243,688
|
|
|
164,357
|
|
||
Total assets
|
$
|
12,041,709
|
|
|
$
|
10,523,835
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Current portion of long-term debt
|
$
|
6,000
|
|
|
$
|
6,000
|
|
Accounts payable (c)
|
128,114
|
|
|
210,007
|
|
||
Capital contribution payable to the MVP Joint Venture
|
45,150
|
|
|
169,202
|
|
||
Accrued interest
|
73,455
|
|
|
80,236
|
|
||
Accrued liabilities
|
83,238
|
|
|
84,011
|
|
||
Total current liabilities
|
335,957
|
|
|
549,456
|
|
||
|
|
|
|
||||
Credit facility borrowings (d)
|
902,500
|
|
|
641,500
|
|
||
EQM long-term debt
|
4,859,499
|
|
|
3,456,639
|
|
||
Equitrans Midstream long-term debt
|
562,484
|
|
|
562,105
|
|
||
Regulatory and other long-term liabilities
|
99,189
|
|
|
54,502
|
|
||
Total liabilities
|
6,759,629
|
|
|
5,264,202
|
|
||
|
|
|
|
||||
Shareholders' equity:
|
|
|
|
|
|
||
Common stock, no par value, 254,745 and 254,271 shares issued and outstanding as of December 31, 2019 and 2018, respectively
|
1,292,804
|
|
|
425,370
|
|
||
Retained (deficit) earnings
|
(618,062
|
)
|
|
33,932
|
|
||
Accumulated other comprehensive loss
|
(2,026
|
)
|
|
(1,509
|
)
|
||
Total common shareholders' equity
|
672,716
|
|
|
457,793
|
|
||
Noncontrolling interests
|
4,609,364
|
|
|
4,801,840
|
|
||
Total shareholders' equity
|
5,282,080
|
|
|
5,259,633
|
|
||
Total liabilities and shareholders' equity
|
$
|
12,041,709
|
|
|
$
|
10,523,835
|
|
(a)
|
Accounts receivable as of December 31, 2019 and 2018 included $175.2 million and $175.9 million, respectively, of accounts receivable due from EQT, a related party.
|
(b)
|
See Note 3 for disclosure regarding impairments of goodwill.
|
(c)
|
Accounts payable as of December 31, 2018 included approximately $34.1 million due to EQT. There was no related party balance with EQT included in accounts payable as of December 31, 2019.
|
(d)
|
As of December 31, 2019, the Company had aggregate credit facility borrowings outstanding of approximately $610 million and $293 million under the EQM Credit Facility and the Eureka Credit Facility, respectively (both defined in Note 11). The Company had no borrowings outstanding under its credit facility as of December 31, 2019 (see Note 11). As of December 31, 2018, the Company had aggregate credit facility borrowings outstanding of approximately $625 million and $17 million under the EQM Credit Facility and its credit facility, respectively. See Note 11 for further detail.
|
|
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
Accumulated Other
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
Retained
|
|
|
|
|
|
||||||||||||||
|
Parent Net
|
|
Shares
|
|
No
|
|
Earnings
|
|
Comprehensive
|
|
Noncontrolling
|
|
Total
|
|||||||||||||
|
Investment
|
|
Outstanding
|
|
Par Value
|
|
(Deficit)
|
|
Loss
|
|
Interests
|
|
Equity
|
|||||||||||||
|
(Thousands, except per unit amounts)
|
|||||||||||||||||||||||||
Balance at January 1, 2017
|
$
|
(66,300
|
)
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,258,966
|
|
|
$
|
3,192,666
|
|
Net (loss) income
|
(27,156
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
349,613
|
|
|
322,457
|
|
||||||
Net distributions to EQT
|
(893,682
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(893,682
|
)
|
||||||
Net contribution to Strike Force Midstream LLC by minority owner
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,738
|
|
|
6,738
|
|
||||||
Share-based compensation plans
|
278
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
190
|
|
|
468
|
|
||||||
Distributions paid to noncontrolling interest unitholders ($3.655 and
$0.806 per common unit for EQM and EQGP, respectively) |
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(236,123
|
)
|
|
(236,123
|
)
|
||||||
Rice Merger (a)
|
2,130,629
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,715,611
|
|
|
3,846,240
|
|
||||||
Balance at December 31, 2017
|
$
|
1,143,769
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,094,995
|
|
|
$
|
6,238,764
|
|
Other comprehensive income (net of tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income
|
184,466
|
|
|
—
|
|
|
—
|
|
|
33,932
|
|
|
—
|
|
|
292,879
|
|
|
511,277
|
|
||||||
Pension and other post-retirement benefits liability adjustment, net of tax expense of $638
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,509
|
)
|
|
—
|
|
|
(1,509
|
)
|
||||||
Purchase of Strike Force Midstream LLC noncontrolling interests
|
1,818
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(176,818
|
)
|
|
(175,000
|
)
|
||||||
Net changes in ownership of consolidated entities
|
(159,255
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
214,924
|
|
|
55,669
|
|
||||||
Share-based compensation plans
|
340
|
|
|
2
|
|
|
2,897
|
|
|
—
|
|
|
—
|
|
|
953
|
|
|
4,190
|
|
||||||
Issuance of Equitrans Midstream common stock
|
—
|
|
|
254,269
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net distributions to EQT
|
(701,901
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(701,901
|
)
|
||||||
Separation-related adjustments
|
(469,237
|
)
|
|
—
|
|
|
469,237
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Distributions paid to noncontrolling interest unitholders ($4.295, $1.123 and $0.5966 per common unit for EQM, EQGP and RMP, respectively)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(380,651
|
)
|
|
(380,651
|
)
|
||||||
Purchase of EQGP common units
|
—
|
|
|
—
|
|
|
(46,764
|
)
|
|
—
|
|
|
—
|
|
|
(244,442
|
)
|
|
(291,206
|
)
|
||||||
Balance at December 31, 2018
|
$
|
—
|
|
|
254,271
|
|
|
$
|
425,370
|
|
|
$
|
33,932
|
|
|
$
|
(1,509
|
)
|
|
$
|
4,801,840
|
|
|
$
|
5,259,633
|
|
Other comprehensive income (net of tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net (loss) income
|
—
|
|
|
—
|
|
|
—
|
|
|
(203,743
|
)
|
|
—
|
|
|
138,784
|
|
|
(64,959
|
)
|
||||||
Pension and other post-retirement benefits liability adjustment, net of tax expense of $70
|
—
|
|
|
—
|
|
|
—
|
|
|
316
|
|
|
(517
|
)
|
|
—
|
|
|
(201
|
)
|
||||||
Dividends ($1.76 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(448,567
|
)
|
|
—
|
|
|
—
|
|
|
(448,567
|
)
|
||||||
Share-based compensation plans, net
|
—
|
|
|
474
|
|
|
2,531
|
|
|
—
|
|
|
—
|
|
|
255
|
|
|
2,786
|
|
||||||
Separation-related adjustments
|
—
|
|
|
—
|
|
|
(93,666
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(93,666
|
)
|
||||||
Distributions paid to noncontrolling interest unitholders ($4.595 per common unit for EQM)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(382,360
|
)
|
|
(382,360
|
)
|
||||||
Issuance of Series A Preferred Units, net of offering costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,158,313
|
|
|
1,158,313
|
|
||||||
Distributions paid to holders of EQM Series A Preferred Units ($1.9703 per unit)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48,480
|
)
|
|
(48,480
|
)
|
||||||
Bolt-on Acquisition (Note 2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
478,460
|
|
|
478,460
|
|
||||||
Purchase of EQGP common units
|
—
|
|
|
—
|
|
|
(38,648
|
)
|
|
—
|
|
|
—
|
|
|
(199,807
|
)
|
|
(238,455
|
)
|
||||||
Net changes in ownership of consolidated entities
|
—
|
|
|
—
|
|
|
997,217
|
|
|
—
|
|
|
—
|
|
|
(1,337,641
|
)
|
|
(340,424
|
)
|
||||||
Balance at December 31, 2019
|
$
|
—
|
|
|
254,745
|
|
|
$
|
1,292,804
|
|
|
$
|
(618,062
|
)
|
|
$
|
(2,026
|
)
|
|
$
|
4,609,364
|
|
|
$
|
5,282,080
|
|
(a)
|
Represents the estimated fair value of the Rice Midstream Holdings LLC net assets acquired by EQT and allocated to Equitrans Midstream Corporation as part of the Rice Merger. See Notes 1 and 2.
|
1.
|
Summary of Operations and Significant Accounting Policies
|
•
|
On April 25, 2018, EQM, RMP and certain of their affiliates entered into an agreement and plan of merger, pursuant to which EQM acquired RMP and the RMP General Partner (the EQM-RMP Mergers). The EQM-RMP Mergers closed on July 23, 2018.
|
•
|
On May 1, 2018, EQM acquired the remaining outstanding limited liability company interests in Strike Force Midstream from Gulfport Midstream Holdings, LLC (Gulfport Midstream), an affiliate of Gulfport Energy Corporation, in exchange for $175 million in cash (the Gulfport Transaction). As a result, EQM indirectly owns 100% of Strike Force Midstream.
|
•
|
On May 22, 2018, and effective May 1, 2018, EQM, through its wholly-owned subsidiary EQM Gathering Holdings, LLC (EQM Gathering), acquired all the outstanding limited liability company interests in each of EQM West Virginia, EQM Olympus and Strike Force Holdings (collectively the Drop-Down Entities), pursuant to the terms of a contribution and sale agreement dated as of April 25, 2018 by and among EQM, EQM Gathering, EQT and Rice Midstream Holdings, in exchange for an aggregate of 5,889,282 common units representing limited partner interests in EQM (EQM common units) and cash consideration of $1.15 billion, plus working capital adjustments (the Drop-Down Transaction). As a result of the closing of the Drop-Down Transaction, effective May 1, 2018, the Drop-Down Entities and Strike Force Midstream became indirect, wholly-owned subsidiaries of EQM.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Thousands)
|
||||||
Gathering assets (a)
|
$
|
6,512,601
|
|
|
$
|
4,387,908
|
|
Accumulated depreciation
|
(478,172
|
)
|
|
(247,720
|
)
|
||
Net gathering assets
|
6,034,429
|
|
|
4,140,188
|
|
||
Transmission and storage assets
|
1,844,859
|
|
|
1,785,157
|
|
||
Accumulated depreciation
|
(326,140
|
)
|
|
(286,693
|
)
|
||
Net transmission and storage assets
|
1,518,719
|
|
|
1,498,464
|
|
||
Water services assets
|
215,039
|
|
|
194,465
|
|
||
Accumulated depreciation
|
(53,065
|
)
|
|
(26,489
|
)
|
||
Net water services assets
|
161,974
|
|
|
167,976
|
|
||
Net other property, plant and equipment
|
8,845
|
|
|
61,019
|
|
||
Net property, plant and equipment
|
$
|
7,723,967
|
|
|
$
|
5,867,647
|
|
(a)
|
Includes approximately $1.2 billion for the year ended December 31, 2019 related to net property, plant and equipment acquired in the Bolt-on Acquisition that primarily supports EQM's gathering activities.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Thousands)
|
||||||
Intangible assets
|
$
|
934,200
|
|
|
$
|
623,200
|
|
Less: impairment of Hornet Midstream-related intangible assets (a)
|
(36,405
|
)
|
|
—
|
|
||
Less: accumulated amortization
|
(100,356
|
)
|
|
(47,087
|
)
|
||
Intangible assets, net
|
$
|
797,439
|
|
|
$
|
576,113
|
|
(a)
|
See Note 3 for disclosure regarding impairments of long-lived assets.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Thousands)
|
||||||
AROs at beginning of period
|
$
|
11,935
|
|
|
$
|
9,321
|
|
Liabilities incurred
|
—
|
|
|
231
|
|
||
Revisions to estimated liabilities (a)
|
(201
|
)
|
|
1,928
|
|
||
Accretion expense
|
567
|
|
|
455
|
|
||
AROs at end of period
|
$
|
12,301
|
|
|
$
|
11,935
|
|
(a)
|
Revisions to estimated liabilities reflect changes in retirement cost assumptions and to the estimated timing of liability settlement.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Thousands)
|
||||||
Regulatory assets:
|
|
|
|
||||
Deferred taxes (a)
|
$
|
43,515
|
|
|
$
|
22,252
|
|
Other recoverable costs (b)
|
4,550
|
|
|
4,312
|
|
||
Total regulatory assets
|
$
|
48,065
|
|
|
$
|
26,564
|
|
Regulatory liabilities:
|
|
|
|
||||
Deferred taxes (a)
|
$
|
10,522
|
|
|
$
|
10,920
|
|
On-going post-retirement benefits other than pension (c)
|
11,225
|
|
|
10,132
|
|
||
Other reimbursable costs
|
(721
|
)
|
|
(328
|
)
|
||
Total regulatory liabilities
|
$
|
21,026
|
|
|
$
|
20,724
|
|
(a)
|
The regulatory asset from deferred taxes is primarily related to a historical deferred income tax position and taxes on the equity component of AFUDC. The regulatory liability from deferred taxes relates to the revaluation of a historical difference between the regulatory and tax bases of regulated property, plant and equipment. Equitrans, L.P. expects to recover the amortization of the
|
(b)
|
The regulatory asset from other recoverable costs is primarily related to the costs associated with the Legacy Retirement Plan (defined below).
|
(c)
|
Equitrans, L.P. defers expenses for on-going post-retirement benefits other than pensions, which are subject to recovery in approved rates. The regulatory liability reflects lower cumulative actuarial expenses than the amounts recovered through rates.
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Thousands)
|
||||||||||
Operating revenues
|
$
|
396,847
|
|
|
$
|
393,911
|
|
|
$
|
383,309
|
|
Operating expenses
|
210,861
|
|
|
140,832
|
|
|
143,614
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Thousands)
|
||||||
Property, plant and equipment
|
$
|
1,955,519
|
|
|
$
|
1,900,411
|
|
Accumulated depreciation
|
(436,275
|
)
|
|
(317,988
|
)
|
||
Net property, plant and equipment
|
$
|
1,519,244
|
|
|
$
|
1,582,423
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Thousands)
|
||||||||||
Cash paid during the period for:
|
|
|
|
|
|
|
|
||||
Interest, net of amount capitalized
|
$
|
257,065
|
|
|
$
|
54,089
|
|
|
$
|
43,797
|
|
|
|
|
|
|
|
||||||
Non-cash activity during the period for:
|
|
|
|
|
|
||||||
Acquisition of Rice Midstream Holdings LLC
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,846,240
|
|
Settlement of separation and other transaction costs with EQT
|
—
|
|
|
133,286
|
|
|
—
|
|
|||
Net settlement of current income taxes payable with EQT
|
—
|
|
|
54,033
|
|
|
115,819
|
|
|||
Separation-related adjustments
|
93,666
|
|
|
228,357
|
|
|
—
|
|
|||
Revision to estimated asset retirement obligations
|
—
|
|
|
1,928
|
|
|
—
|
|
2.
|
Acquisitions, Mergers and Divestitures
|
(in thousands)
|
|
Preliminary Purchase Price Allocation (As initially reported)
|
|
Measurement Period Adjustments (a)
|
|
Purchase Price Allocation (As adjusted)
|
||||||
Consideration given:
|
|
|
|
|
|
|
||||||
Cash consideration (b)
|
|
$
|
861,250
|
|
|
$
|
(11,404
|
)
|
|
$
|
849,846
|
|
Buyout of portion of Eureka Midstream Class B units and incentive compensation
|
|
2,530
|
|
|
—
|
|
|
2,530
|
|
|||
Total consideration
|
|
863,780
|
|
|
(11,404
|
)
|
|
852,376
|
|
|||
|
|
|
|
|
|
|
||||||
Fair value of liabilities assumed:
|
|
|
|
|
|
|
||||||
Current liabilities
|
|
52,458
|
|
|
(9,857
|
)
|
|
42,601
|
|
|||
Long-term debt
|
|
300,825
|
|
|
—
|
|
|
300,825
|
|
|||
Other long-term liabilities
|
|
10,203
|
|
|
—
|
|
|
10,203
|
|
|||
Amount attributable to liabilities assumed
|
|
363,486
|
|
|
(9,857
|
)
|
|
353,629
|
|
|||
|
|
|
|
|
|
|
||||||
Fair value of assets acquired:
|
|
|
|
|
|
|
||||||
Cash
|
|
15,145
|
|
|
—
|
|
|
15,145
|
|
|||
Accounts receivable
|
|
16,817
|
|
|
—
|
|
|
16,817
|
|
|||
Inventory
|
|
12,991
|
|
|
(26
|
)
|
|
12,965
|
|
|||
Other current assets
|
|
882
|
|
|
—
|
|
|
882
|
|
|||
Net property, plant and equipment
|
|
1,222,284
|
|
|
(8,906
|
)
|
|
1,213,378
|
|
|||
Intangible assets (c)
|
|
317,000
|
|
|
(6,000
|
)
|
|
311,000
|
|
|||
Deferred tax asset
|
|
5,773
|
|
|
(5,268
|
)
|
|
505
|
|
|||
Other assets
|
|
14,567
|
|
|
—
|
|
|
14,567
|
|
|||
Amount attributable to assets acquired
|
|
1,605,459
|
|
|
(20,200
|
)
|
|
1,585,259
|
|
|||
|
|
|
|
|
|
|
||||||
Noncontrolling interests
|
|
(486,062
|
)
|
|
7,602
|
|
|
(478,460
|
)
|
|||
|
|
|
|
|
|
|
||||||
Goodwill as of April 10, 2019
|
|
$
|
107,869
|
|
|
$
|
(8,663
|
)
|
|
$
|
99,206
|
|
Impairment of goodwill (d)
|
|
|
|
|
|
(99,206
|
)
|
|||||
Goodwill as of December 31, 2019
|
|
|
|
|
|
$
|
—
|
|
(a)
|
The Company recorded measurement period adjustments to its preliminary acquisition date fair values due to the refinement of its valuation models, assumptions and inputs. The measurement period adjustments were based upon information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the measurement of the amounts recognized at that date.
|
(b)
|
The cash consideration for the Bolt-on Acquisition was adjusted by approximately $11.4 million related to working capital adjustments and the release of all escrowed indemnification funds to EQM.
|
(c)
|
After considering the refinements to the valuation models, the Company estimated the fair value of the customer-related intangible assets acquired as part of the Bolt-on Acquisition to be $311.0 million. As a result, the fair value of the customer-related intangible assets was decreased by $6.0 million on September 30, 2019 with a corresponding increase to goodwill. In addition, the change to the provisional amount resulted in a decrease in amortization expense and accumulated amortization of approximately $0.4 million.
|
(d)
|
During the third quarter of 2019, the Company identified impairment indicators that suggested the fair value of its goodwill was more likely than not below its carrying amount. As such, the Company performed an interim goodwill impairment assessment, which resulted in the Company recognizing impairment to goodwill of approximately $268.1 million, of which $99.2 million was associated with its Eureka/Hornet reporting unit, bringing the reporting unit's goodwill balance to zero. See Note 3 for further detail.
|
(in thousands)
|
|
As of December 31, 2019
|
||
Intangible assets
|
|
$
|
311,000
|
|
Less: impairment of Hornet Midstream-related intangible assets (a)
|
|
36,405
|
|
|
Less: accumulated amortization
|
|
11,711
|
|
|
Intangible assets, net
|
|
$
|
262,884
|
|
(a)
|
See Note 3 for disclosure regarding impairments of long-lived assets.
|
(in thousands)
|
|
April 10, 2019 through December 31, 2019
|
||
Operating revenues
|
|
$
|
97,123
|
|
Operating loss attributable to Equitrans Midstream
|
|
$
|
(94,551
|
)
|
Net loss attributable to noncontrolling interests
|
|
$
|
(21,291
|
)
|
Net loss attributable to Equitrans Midstream
|
|
$
|
(80,631
|
)
|
|
|
Years Ended December 31,
|
||||||||||
(in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Pro forma operating revenues
|
|
$
|
1,661,822
|
|
|
$
|
1,616,821
|
|
|
$
|
987,735
|
|
Pro forma net (loss) income
|
|
$
|
(44,167
|
)
|
|
$
|
552,291
|
|
|
$
|
321,151
|
|
Pro forma net income attributable to noncontrolling interests
|
|
$
|
126,558
|
|
|
$
|
357,264
|
|
|
$
|
317,468
|
|
Pro forma net (loss) income attributable to Equitrans Midstream
|
|
$
|
(170,725
|
)
|
|
$
|
195,027
|
|
|
$
|
3,683
|
|
Pro forma (loss) income per share (basic)
|
|
$
|
(0.67
|
)
|
|
$
|
0.77
|
|
|
$
|
0.01
|
|
Pro forma (loss) income per share (diluted)
|
|
$
|
(0.67
|
)
|
|
$
|
0.77
|
|
|
$
|
0.01
|
|
|
Rice Merger
|
||
|
Purchase Price Allocation
|
||
|
and Goodwill
|
||
|
(Thousands)
|
||
Enterprise value (a)
|
$
|
3,846,240
|
|
Fair value of assets acquired and liabilities assumed:
|
|
||
Current assets
|
141,410
|
|
|
Property, plant and equipment
|
2,265,924
|
|
|
Intangible assets
|
623,200
|
|
|
Other assets
|
118
|
|
|
Current liabilities
|
(107,101
|
)
|
|
RMP $850 Million Facility (defined in Note 11)
|
(266,000
|
)
|
|
Due to EQT (b)
|
(187,742
|
)
|
|
Deferred income taxes
|
(115,456
|
)
|
|
Other long-term liabilities
|
(9,323
|
)
|
|
Total fair value of assets acquired and liabilities assumed
|
2,345,030
|
|
|
Goodwill as November 13, 2017 (c)
|
1,501,210
|
|
|
Impairment of goodwill (d)
|
261,941
|
|
|
Goodwill as of December 31, 2018
|
1,239,269
|
|
|
Impairment of goodwill (d)
|
752,571
|
|
|
Goodwill as of December 31, 2019
|
$
|
486,698
|
|
(a)
|
Includes the fair value of noncontrolling interests assumed of $1.5 billion and $0.2 billion for RMP and Strike Force Midstream, respectively.
|
(b)
|
At the time of the Rice Merger, EQT repaid $187.5 million of outstanding principal and $0.2 million in accrued interest under Rice Midstream Holdings' revolving credit facility. Following repayment, EQT terminated the Rice Midstream Holdings revolving credit facility agreement. As of December 31, 2017, the $187.7 million was included in accounts payable on the Company's consolidated balance sheet. The Company reimbursed EQT for this amount in 2018.
|
(c)
|
Reflected the value of perceived growth opportunities, synergies and operating leverage anticipated through the acquisition and ownership of the acquired gathering assets as of November 13, 2017.
|
(d)
|
See Note 3 for further detail.
|
|
Year Ended December 31, 2017
|
||
(in thousands)
|
|
||
Pro forma operating revenues
|
$
|
1,264,704
|
|
Pro forma net income
|
549,567
|
|
|
Pro forma net income attributable to noncontrolling interests
|
445,576
|
|
|
Pro forma net income attributable to Equitrans Midstream
|
103,991
|
|
3.
|
Impairments of Long-Lived Assets
|
|
RMP PA Gas Gathering
|
|
Rice Retained Midstream
|
|
Eureka/Hornet
|
|
Total
|
||||||||
|
(Thousands)
|
||||||||||||||
Goodwill as of January 1, 2018
|
$
|
1,346,918
|
|
|
$
|
37,954
|
|
|
$
|
—
|
|
|
$
|
1,384,872
|
|
Add: transfer of goodwill from EQT
|
3,803
|
|
|
112,535
|
|
|
—
|
|
|
116,338
|
|
||||
Less: impairment of goodwill
|
(261,941
|
)
|
|
—
|
|
|
—
|
|
|
(261,941
|
)
|
||||
Goodwill as of December 31, 2018
|
1,088,780
|
|
|
150,489
|
|
|
—
|
|
|
1,239,269
|
|
||||
Add: goodwill associated with Bolt-on Acquisition
|
—
|
|
|
—
|
|
|
99,206
|
|
|
99,206
|
|
||||
Less: impairment of goodwill
|
(602,082
|
)
|
|
(150,489
|
)
|
|
(99,206
|
)
|
|
(851,777
|
)
|
||||
Goodwill as of December 31, 2019
|
$
|
486,698
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
486,698
|
|
4.
|
Revenue from Contracts with Customers
|
|
Year Ended December 31, 2019
|
||||||||||||||
|
Gathering
|
|
Transmission
|
|
Water
|
|
Total
|
||||||||
|
(Thousands)
|
||||||||||||||
Firm reservation fee revenues
|
$
|
581,118
|
|
|
$
|
356,569
|
|
|
$
|
—
|
|
|
$
|
937,687
|
|
Volumetric-based fee revenues
|
578,813
|
|
|
33,951
|
|
|
—
|
|
|
612,764
|
|
||||
Water service revenues
|
—
|
|
|
—
|
|
|
79,791
|
|
|
79,791
|
|
||||
Total operating revenues
|
$
|
1,159,931
|
|
|
$
|
390,520
|
|
|
$
|
79,791
|
|
|
$
|
1,630,242
|
|
|
Year Ended December 31, 2018
|
||||||||||||||
|
Gathering
|
|
Transmission
|
|
Water
|
|
Total
|
||||||||
|
(Thousands)
|
||||||||||||||
Firm reservation fee revenues
|
$
|
447,360
|
|
|
$
|
356,725
|
|
|
$
|
—
|
|
|
$
|
804,085
|
|
Volumetric-based fee revenues
|
549,710
|
|
|
30,076
|
|
|
—
|
|
|
579,786
|
|
||||
Water service revenues
|
—
|
|
|
—
|
|
|
111,227
|
|
|
111,227
|
|
||||
Total operating revenues
|
$
|
997,070
|
|
|
$
|
386,801
|
|
|
$
|
111,227
|
|
|
$
|
1,495,098
|
|
|
Year Ended December 31, 2017
|
||||||||||||||
|
Gathering
|
|
Transmission
|
|
Water
|
|
Total
|
||||||||
|
(Thousands)
|
||||||||||||||
Firm reservation fee revenues
|
$
|
407,355
|
|
|
$
|
348,193
|
|
|
$
|
—
|
|
|
$
|
755,548
|
|
Volumetric-based fee revenues
|
102,612
|
|
|
23,793
|
|
|
—
|
|
|
126,405
|
|
||||
Water service revenues
|
—
|
|
|
—
|
|
|
13,605
|
|
|
13,605
|
|
||||
Total operating revenues
|
$
|
509,967
|
|
|
$
|
371,986
|
|
|
$
|
13,605
|
|
|
$
|
895,558
|
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024
|
|
Thereafter
|
|
Total
|
||||||||||||||
|
(Thousands)
|
||||||||||||||||||||||||||
Gathering firm reservation fees
|
$
|
517,406
|
|
|
$
|
590,056
|
|
|
$
|
592,324
|
|
|
$
|
590,342
|
|
|
$
|
552,598
|
|
|
$
|
1,576,827
|
|
|
$
|
4,419,553
|
|
Gathering revenues supported by MVCs
|
133,969
|
|
|
153,065
|
|
|
153,065
|
|
|
152,242
|
|
|
145,930
|
|
|
463,086
|
|
|
1,201,357
|
|
|||||||
Transmission firm reservation fees
|
354,363
|
|
|
375,020
|
|
|
370,273
|
|
|
332,404
|
|
|
273,257
|
|
|
2,489,864
|
|
|
4,195,181
|
|
|||||||
Water revenues supported by MVCs
|
35,536
|
|
|
2,000
|
|
|
2,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39,536
|
|
|||||||
Total
|
$
|
1,041,274
|
|
|
$
|
1,120,141
|
|
|
$
|
1,117,662
|
|
|
$
|
1,074,988
|
|
|
$
|
971,785
|
|
|
$
|
4,529,777
|
|
|
$
|
9,855,627
|
|
5.
|
Leases
|
|
Year Ended December 31, 2019
|
||
|
(Thousands)
|
||
Operating lease cost
|
$
|
12,858
|
|
Short-term lease cost
|
4,642
|
|
|
Variable lease cost
|
321
|
|
|
Sublease (income)
|
(445
|
)
|
|
Total lease cost
|
$
|
17,376
|
|
|
December 31, 2019
|
||
|
(Thousands)
|
||
2020
|
$
|
14,675
|
|
2021
|
12,334
|
|
|
2022
|
10,086
|
|
|
2023
|
7,747
|
|
|
2024
|
5,978
|
|
|
Thereafter
|
30,663
|
|
|
Total
|
81,483
|
|
|
Less: imputed interest
|
16,828
|
|
|
Present value of operating lease liability
|
$
|
64,655
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Thousands)
|
||||||||||
Revenues from customers:
|
|
|
|
|
|
|
|||||
Gathering
|
$
|
1,159,931
|
|
|
$
|
997,070
|
|
|
$
|
509,967
|
|
Transmission
|
390,520
|
|
|
386,801
|
|
|
371,986
|
|
|||
Water
|
79,791
|
|
|
111,227
|
|
|
13,605
|
|
|||
Total operating revenues
|
$
|
1,630,242
|
|
|
$
|
1,495,098
|
|
|
$
|
895,558
|
|
Operating (loss) income:
|
|
|
|
|
|
|
|||||
Gathering (a)
|
$
|
(88,850
|
)
|
|
$
|
423,407
|
|
|
$
|
369,093
|
|
Transmission
|
277,731
|
|
|
265,579
|
|
|
247,467
|
|
|||
Water
|
15,305
|
|
|
37,667
|
|
|
4,145
|
|
|||
Other (b)
|
(128,186
|
)
|
|
(83,569
|
)
|
|
(77,655
|
)
|
|||
Total operating (loss) income
|
$
|
76,000
|
|
|
$
|
643,084
|
|
|
$
|
543,050
|
|
|
|
|
|
|
|
||||||
Reconciliation of operating income to net income:
|
|
|
|
|
|
||||||
Equity income (c)
|
$
|
163,279
|
|
|
$
|
61,778
|
|
|
$
|
22,171
|
|
Other income
|
2,661
|
|
|
5,011
|
|
|
4,439
|
|
|||
Net interest expense
|
256,195
|
|
|
115,454
|
|
|
34,801
|
|
|||
Income tax expense
|
50,704
|
|
|
83,142
|
|
|
212,402
|
|
|||
Net income
|
$
|
(64,959
|
)
|
|
$
|
511,277
|
|
|
$
|
322,457
|
|
(a)
|
Impairments of long-lived assets of $854.3 million and $261.9 million for the years ended December 31, 2019 and 2018, respectively, were included in Gathering operating income. See Note 3 for further information.
|
(b)
|
Other operating loss includes separation and other transaction costs and other operating expenses incurred by the Company separate from and in addition to similar costs incurred by EQM.
|
(c)
|
Equity income is included in the Transmission segment.
|
|
December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Thousands)
|
||||||||||
Segment assets:
|
|
|
|
|
|
|
|
||||
Gathering
|
$
|
7,572,911
|
|
|
$
|
6,011,654
|
|
|
$
|
5,656,094
|
|
Transmission (a)
|
3,903,707
|
|
|
3,066,659
|
|
|
1,947,566
|
|
|||
Water
|
202,440
|
|
|
237,602
|
|
|
208,273
|
|
|||
Total operating segments
|
11,679,058
|
|
|
9,315,915
|
|
|
7,811,933
|
|
|||
Headquarters, including cash
|
362,651
|
|
|
1,207,920
|
|
|
516,863
|
|
|||
Total assets
|
$
|
12,041,709
|
|
|
$
|
10,523,835
|
|
|
$
|
8,328,796
|
|
(a)
|
The equity investment in the MVP Joint Venture is included in the Transmission segment.
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Thousands)
|
||||||||||
Depreciation:
|
|
|
|
|
|
|
|||||
Gathering
|
$
|
144,310
|
|
|
$
|
98,678
|
|
|
$
|
44,957
|
|
Transmission
|
51,935
|
|
|
49,723
|
|
|
58,689
|
|
|||
Water
|
26,915
|
|
|
23,513
|
|
|
3,515
|
|
|||
Other (a)
|
4,204
|
|
|
3,907
|
|
|
(10,487
|
)
|
|||
Total
|
$
|
227,364
|
|
|
$
|
175,821
|
|
|
$
|
96,674
|
|
Expenditures for segment assets:
|
|
|
|
|
|
||||||
Gathering (b)
|
$
|
834,712
|
|
|
$
|
717,251
|
|
|
$
|
254,522
|
|
Transmission (c)
|
59,313
|
|
|
114,450
|
|
|
111,102
|
|
|||
Water
|
37,457
|
|
|
23,537
|
|
|
6,233
|
|
|||
Other
|
9,779
|
|
|
29,336
|
|
|
—
|
|
|||
Total (d)
|
$
|
941,261
|
|
|
$
|
884,574
|
|
|
$
|
371,857
|
|
(a)
|
Depreciation within the Transmission segment for the year ended December 31, 2017 includes a non-cash charge of $10.5 million related to the revaluation of differences between the regulatory and tax bases in Equitrans, L.P.'s regulated property, plant and equipment. For purposes of the Company's consolidated reporting, the $10.5 million is reported in income tax expense with a corresponding reduction to depreciation.
|
(b)
|
Includes approximately $25.9 million of capital expenditures related to noncontrolling interests in Eureka Midstream for the year ended December 31, 2019.
|
(c)
|
Transmission capital expenditures do not include capital contributions made to the MVP Joint Venture for the MVP and MVP Southgate projects of approximately $774.6 million, $913.2 million and $159.6 million for the years ended December 31, 2019, 2018 and 2017, respectively.
|
(d)
|
The Company accrues capital expenditures when the capital work has been completed but the associated bills have not been paid. Accrued capital expenditures are excluded from the statements of consolidated cash flows until they are paid. Accrued capital expenditures were approximately $92.0 million, $109.3 million, $90.7 million and $26.7 million at December 31, 2019, 2018, 2017 and 2016, respectively. At the Rice Merger Date, the Company assumed $72.3 million of Rice Midstream Holdings accrued capital expenditures. On April 10, 2019, as a result of the Bolt-on Acquisition, EQM assumed $8.8 million of Eureka Midstream accrued capital expenditures.
|
7.
|
Investments in Consolidated, Non-Wholly-Owned Entities
|
|
Year Ended December 31, 2018
|
||
|
(Millions)
|
||
Net changes in parent net investment
|
|
||
Drop-Down Transaction
|
$
|
16
|
|
RMP IDR Transaction
|
(35
|
)
|
|
EQM-RMP Mergers
|
(140
|
)
|
|
Net decrease in parent net investment
|
(159
|
)
|
|
Net decrease in deferred tax liability
|
56
|
|
|
Net increase in noncontrolling interest in consolidated subsidiaries
|
$
|
215
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Thousands)
|
||||||
Current assets
|
$
|
102,638
|
|
|
$
|
615,927
|
|
Noncurrent assets
|
4,951,521
|
|
|
3,202,505
|
|
||
Total assets
|
$
|
5,054,159
|
|
|
$
|
3,818,432
|
|
|
|
|
|
||||
Current liabilities
|
$
|
223,645
|
|
|
$
|
606,366
|
|
Equity
|
4,830,514
|
|
|
3,212,066
|
|
||
Total liabilities and equity
|
$
|
5,054,159
|
|
|
$
|
3,818,432
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Thousands)
|
||||||||||
Environmental remediation
|
$
|
(2,416
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Other income
|
6,243
|
|
|
5,762
|
|
|
528
|
|
|||
AFUDC – equity
|
245,890
|
|
|
90,791
|
|
|
32,054
|
|
|||
Net interest income
|
105,382
|
|
|
38,911
|
|
|
16,146
|
|
|||
Net income
|
$
|
355,099
|
|
|
$
|
135,464
|
|
|
$
|
48,728
|
|
9.
|
Related Party Transactions
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Thousands)
|
||||||||||
Operating revenues
|
$
|
1,122,626
|
|
|
$
|
1,111,289
|
|
|
$
|
665,939
|
|
Operating and maintenance expense (a)
|
—
|
|
|
49,778
|
|
|
40,601
|
|
|||
Selling, general and administrative expense (a)
|
—
|
|
|
85,081
|
|
|
75,610
|
|
|||
Separation and other transaction costs (a)(b)
|
(1,440
|
)
|
|
53,272
|
|
|
85,124
|
|
|||
Equity income (c)
|
163,279
|
|
|
61,778
|
|
|
22,171
|
|
|||
Interest income from the Preferred Interest
|
6,324
|
|
|
6,578
|
|
|
6,818
|
|
|||
Net interest expense (b)
|
—
|
|
|
—
|
|
|
(2,120
|
)
|
|||
Net (payments on) proceeds from EQGP's working capital loan with EQT
|
—
|
|
|
(168
|
)
|
|
84
|
|
|||
Capital contributions to the MVP Joint Venture (c)
|
(774,593
|
)
|
|
(913,195
|
)
|
|
(159,550
|
)
|
|||
Principal payments received on the Preferred Interest
|
4,661
|
|
|
4,406
|
|
|
4,166
|
|
|||
Net distributions to EQT
|
(93,666
|
)
|
|
(701,901
|
)
|
|
(893,682
|
)
|
(a)
|
Reimbursements to EQT may not necessarily reflect the actual expenses that the Company would have incurred on a standalone basis.
|
(b)
|
For the years ended December 31, 2018 and 2017, separation and other transaction costs included charges related to the Rice Merger from EQT of $13.7 million and $85.1 million, respectively. In addition, in 2017, the Company recorded $2.9 million in interest expense related to EQT's financing of the Rice Merger that was allocated to the Company from EQT. The basis for allocation of both the Rice Merger transaction costs and interest expense was the relative fair value of Rice Midstream Holdings' net assets acquired by EQT and distributed to the Company in the Rice Merger. See Note 2.
|
(c)
|
Associated with EQM's ownership in the MVP Joint Venture. See Note 8 for further detail.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Thousands)
|
||||||
Accounts receivable – related parties
|
$
|
175,153
|
|
|
$
|
175,869
|
|
Investment in unconsolidated entity
|
2,324,108
|
|
|
1,510,289
|
|
||
Preferred Interest
|
110,059
|
|
|
114,720
|
|
||
Accounts payable – related parties
|
—
|
|
|
34,071
|
|
||
Capital contribution payable to the MVP Joint Venture
|
45,150
|
|
|
169,202
|
|
10.
|
Share-based Compensation Plans
|
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Thousands)
|
|
|
||||
2016 Incentive PSU Program
|
$
|
—
|
|
|
$
|
956
|
|
2017 Incentive PSU Program
|
(893
|
)
|
|
1,642
|
|
||
2018 Incentive PSU Program
|
(360
|
)
|
|
906
|
|
||
2019 Equitrans Midstream PSU Program
|
—
|
|
|
—
|
|
||
2017 EQT Value Driver Performance Share Unit Award Program
|
—
|
|
|
255
|
|
||
2018 EQT Value Driver Performance Share Unit Award Program
|
637
|
|
|
2,890
|
|
||
Restricted stock awards
|
5,197
|
|
|
1,048
|
|
||
Other programs, including non-employee director awards
|
1,833
|
|
|
2,879
|
|
||
Total share-based compensation expense
|
$
|
6,414
|
|
|
$
|
10,576
|
|
•
|
the 2016 EQT Incentive Performance Share Unit Program (2016 Incentive PSU Program);
|
•
|
the 2017 EQT Incentive Performance Share Unit Program (2017 Incentive PSU Program); and
|
•
|
the 2018 EQT Incentive Performance Share Unit Program (2018 Incentive PSU Program).
|
•
|
the level of EQT total shareholder return relative to a predefined peer group; and
|
•
|
the cumulative EQT total sales volume growth, in each case, over the performance period.
|
•
|
the level of EQT total shareholder return relative to a predefined peer group;
|
•
|
the level of EQT operating and development cost improvement; and
|
•
|
EQT return on capital employed.
|
•
|
the level of EQT total shareholder return relative to a predefined peer group;
|
•
|
the level of EQT operating and development cost improvements; and
|
•
|
EQT return on capital employed.
|
•
|
the level of Equitrans Midstream total shareholder return relative to a predefined peer group; and
|
•
|
the cumulative Equitrans Midstream total shareholder return.
|
•
|
the level of Equitrans Midstream total shareholder return relative to a predefined peer group: and
|
•
|
the cumulative Equitrans Midstream total shareholder return.
|
Incentive PSU Program
|
|
Settled In
|
|
Accounting Treatment
|
|
Fair Value (a)
|
|
Risk Free Rate
|
|
Vested/ Payment Date
|
|
Awards Paid
|
|
Value
(Millions)
|
|
Unvested/ Expected Payment Date
|
|
Awards Outstanding as of December 31, 2019 (b)
|
|||||||
2016
|
|
Stock
|
|
Equity
|
|
$
|
109.30
|
|
|
1.31
|
%
|
|
February 2019
|
|
569,290
|
|
|
$
|
62.2
|
|
|
N/A
|
|
N/A
|
|
2017
|
|
Stock
|
|
Equity
|
|
$
|
120.60
|
|
|
1.47
|
%
|
|
N/A
|
|
N/A
|
|
|
N/A
|
|
|
First Quarter of 2020
|
|
35,728
|
|
|
2017
|
|
Cash
|
|
Liability
|
|
$
|
13.36
|
|
|
N/A
|
|
|
N/A
|
|
N/A
|
|
|
N/A
|
|
|
First Quarter of 2020
|
|
77,623
|
|
|
2018
|
|
Stock
|
|
Equity
|
|
$
|
76.53
|
|
|
1.97
|
%
|
|
N/A
|
|
N/A
|
|
|
N/A
|
|
|
First Quarter of 2021
|
|
85,872
|
|
|
2018T1
|
|
Cash
|
|
Liability
|
|
$
|
9.71
|
|
|
1.58
|
%
|
|
N/A
|
|
N/A
|
|
|
N/A
|
|
|
First Quarter of 2021
|
|
30,324
|
|
|
2018T2
|
|
Cash
|
|
Liability
|
|
$
|
5.32
|
|
|
1.58
|
%
|
|
N/A
|
|
N/A
|
|
|
N/A
|
|
|
First Quarter of 2021
|
|
60,647
|
|
|
2019
|
|
Stock
|
|
Equity
|
|
$
|
15.03
|
|
|
2.54
|
%
|
|
N/A
|
|
N/A
|
|
|
N/A
|
|
|
First Quarter of 2022
|
|
505,609
|
|
|
2019
|
|
Cash
|
|
Liability
|
|
$
|
3.67
|
|
|
1.63
|
%
|
|
N/A
|
|
N/A
|
|
|
N/A
|
|
|
First Quarter of 2022
|
|
225,416
|
|
(a)
|
Grant date fair value was determined using a Monte Carlo simulation for equity awards. Fair value was determined using a Monte Carlo simulation as of the measurement date for liability awards. For unvested Incentive PSU Programs, the grant date fair value for equity awards and the measurement date fair value for liability awards is as of December 31, 2019. The Company recorded compensation expense as of December 31, 2019 using the grant date fair value for equity awards and the measurement date fair value for liability awards, each computed for the outcome that management estimates to be most probable.
|
(b)
|
Represents the number of outstanding units as of December 31, 2019, adjusted for forfeitures to be settled in stock or cash.
|
|
For Incentive PSU Programs Issued During the Years Ended December 31,
|
|||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||
Accounting Treatment
|
Liability (a)
|
|
Equity
|
|
Liability (a)
|
|
Equity
|
|
Equity
|
|||||
Risk-free rate
|
1.63
|
%
|
|
2.54
|
%
|
|
1.58
|
%
|
|
1.97
|
%
|
|
1.47
|
%
|
Dividend yield (b)
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
Volatility factor
|
27.0
|
%
|
|
30.0
|
%
|
|
36.1
|
%
|
|
32.6
|
%
|
|
32.3
|
%
|
Expected term
|
2 Years
|
|
|
3 Years
|
|
|
1 Year
|
|
|
3 Years
|
|
|
3 Years
|
|
(a)
|
Information shown for the valuation of the liability plan is as of the measurement date.
|
(b)
|
With respect to the EQT Incentive PSU Programs, dividends paid from the beginning of the performance period will be cumulatively added as additional shares of common stock.
|
EQT VDPSU Program
|
|
Settled In
|
|
Accounting Treatment
|
|
Fair Value per Unit (a)
|
|
Vested/ Payment Date
|
|
Cash Paid
(Millions)
|
|
Unvested/ Expected Payment Date
|
|
Awards Outstanding (Including Accrued Dividends) as of December 31, 2019 (b)
|
|||||
2017
|
|
Cash
|
|
Liability
|
|
$
|
20.02
|
|
|
February 2019
|
|
$
|
3.3
|
|
|
N/A
|
|
N/A
|
|
2018
|
|
Cash
|
|
Liability
|
|
$
|
20.02
|
|
|
February 2019
|
|
$
|
4.1
|
|
|
N/A
|
|
N/A
|
|
|
|
Cash
|
|
Liability
|
|
$
|
13.36
|
|
|
N/A
|
|
N/A
|
|
|
Second Tranche First Quarter of 2020
|
|
169,503
|
|
(a)
|
The fair value per unit is based on the Company's common stock price on the measurement date.
|
(b)
|
Represents the number of outstanding units as of December 31, 2019 adjusted for forfeitures.
|
|
Non-vested Shares (a)
|
|
Weighted Average Fair Value
|
|
Aggregate Fair Value
|
|||||
Outstanding at January 1, 2019
|
147,372
|
|
|
$
|
59.71
|
|
|
$
|
8,799,885
|
|
Granted
|
344,796
|
|
|
17.78
|
|
|
6,132,036
|
|
||
Vested
|
(83,571
|
)
|
|
57.10
|
|
|
(4,771,492
|
)
|
||
Forfeited
|
(11,480
|
)
|
|
33.21
|
|
|
(381,211
|
)
|
||
Outstanding at December 31, 2019
|
397,117
|
|
|
$
|
24.63
|
|
|
$
|
9,779,218
|
|
(a)
|
Non-vested shares outstanding at December 31, 2019 will be settled by the Company once vested, assuming continued service through such date.
|
|
Years Ended December 31,
|
|||||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||
|
Grants
|
|
Weighted Average Fair Value
|
|
Compensation Costs (Millions)
|
|
Grants
|
|
Weighted Average Fair Value
|
|
Compensation Costs (Millions)
|
|
Grants
|
|
Weighted Average Fair Value
|
|
Compensation Costs (Millions)
|
|||||||||||||||
Equitrans Midstream Phantom Units
|
45,000
|
|
|
$
|
20.02
|
|
|
$
|
0.9
|
|
|
41,880
|
|
|
$
|
21.51
|
|
|
$
|
0.9
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
EQGP Phantom Units (a)
|
8,500
|
|
|
$
|
20.00
|
|
|
$
|
0.2
|
|
|
10,560
|
|
|
$
|
26.28
|
|
|
$
|
0.3
|
|
|
8,940
|
|
|
$
|
25.21
|
|
|
$
|
0.3
|
|
EQM Phantom Units
|
5,910
|
|
|
$
|
43.25
|
|
|
$
|
0.3
|
|
|
5,100
|
|
|
$
|
68.66
|
|
|
$
|
0.4
|
|
|
2,940
|
|
|
$
|
76.68
|
|
|
$
|
0.2
|
|
RMP Phantom Units (b)
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
0.9
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(a)
|
In connection with the completion of the EQGP Buyout, the non-employee directors of the EQGP general partner were paid the Purchase Price for each EQGP phantom unit that they held. See Note 7.
|
(b)
|
On July 23, 2018, in connection with the EQM-RMP Mergers, the 36,220 outstanding RMP phantom units fully vested and converted into 12,024 EQM common units based on the exchange ratio of 0.3319, less applicable tax withholding.
|
11.
|
Debt
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Principal
|
|
Carrying Value(a)
|
|
Fair Value(b)
|
|
Principal
|
|
Carrying Value(a)
|
|
Fair Value(b)
|
||||||||||||
|
(Thousands)
|
||||||||||||||||||||||
Equitrans Midstream Credit Facility
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,500
|
|
|
$
|
16,500
|
|
|
$
|
16,500
|
|
EQM Credit Facility
|
610,000
|
|
|
610,000
|
|
|
610,000
|
|
|
625,000
|
|
|
625,000
|
|
|
625,000
|
|
||||||
Eureka Credit Facility
|
292,500
|
|
|
292,500
|
|
|
292,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total credit facility borrowings
|
$
|
902,500
|
|
|
$
|
902,500
|
|
|
$
|
902,500
|
|
|
$
|
641,500
|
|
|
$
|
641,500
|
|
|
$
|
641,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
ETRN Term Loan Credit Agreement
|
$
|
600,000
|
|
|
$
|
568,484
|
|
|
$
|
594,743
|
|
|
$
|
600,000
|
|
|
$
|
568,105
|
|
|
$
|
589,500
|
|
2019 EQM Term Loan Agreement
|
1,400,000
|
|
|
1,397,491
|
|
|
1,400,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
EQM 4.00% Senior Notes due 2024
|
500,000
|
|
|
496,476
|
|
|
486,905
|
|
|
500,000
|
|
|
495,708
|
|
|
479,950
|
|
||||||
EQM 4.125% Senior Notes due 2026
|
500,000
|
|
|
494,115
|
|
|
471,770
|
|
|
500,000
|
|
|
493,264
|
|
|
454,200
|
|
||||||
EQM 4.75% Senior Notes due 2023
|
1,100,000
|
|
|
1,091,988
|
|
|
1,104,961
|
|
|
1,100,000
|
|
|
1,089,742
|
|
|
1,099,890
|
|
||||||
EQM 5.50% Senior Notes due 2028
|
850,000
|
|
|
840,420
|
|
|
839,035
|
|
|
850,000
|
|
|
839,302
|
|
|
841,526
|
|
||||||
EQM 6.50% Senior Notes due 2048
|
550,000
|
|
|
539,009
|
|
|
518,678
|
|
|
550,000
|
|
|
538,623
|
|
|
549,566
|
|
||||||
Total debt
|
5,500,000
|
|
|
5,427,983
|
|
|
5,416,092
|
|
|
4,100,000
|
|
|
4,024,744
|
|
|
4,014,632
|
|
||||||
Less current portion of debt
|
6,000
|
|
|
6,000
|
|
|
6,000
|
|
|
6,000
|
|
|
6,000
|
|
|
6,000
|
|
||||||
Total long-term debt
|
$
|
5,494,000
|
|
|
$
|
5,421,983
|
|
|
$
|
5,410,092
|
|
|
$
|
4,094,000
|
|
|
$
|
4,018,744
|
|
|
$
|
4,008,632
|
|
(a)
|
Carrying value of the senior notes and term loans represents principal amount less unamortized debt issuance costs and debt discounts.
|
(b)
|
See Note 1 for a discussion of fair value measurements.
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Thousands)
|
||||||||||
Current income tax expense:
|
|
|
|
|
|
||||||
Federal
|
$
|
—
|
|
|
$
|
41,788
|
|
|
$
|
43,794
|
|
State
|
—
|
|
|
16,108
|
|
|
10,239
|
|
|||
Total current income tax expense
|
—
|
|
|
57,896
|
|
|
54,033
|
|
|||
Deferred income tax expense (benefit):
|
|
|
|
|
|
||||||
Federal
|
30,975
|
|
|
96,499
|
|
|
148,623
|
|
|||
State
|
19,729
|
|
|
(71,253
|
)
|
|
9,746
|
|
|||
Total deferred income tax expense
|
50,704
|
|
|
25,246
|
|
|
158,369
|
|
|||
Total income tax expense
|
$
|
50,704
|
|
|
$
|
83,142
|
|
|
$
|
212,402
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
|
(Thousands)
|
||||||||||
Income tax (benefit) expense at statutory rate
|
$
|
(2,993
|
)
|
|
$
|
124,828
|
|
|
$
|
187,201
|
|
Tax Cuts and Jobs Act
|
—
|
|
|
7,443
|
|
|
129,266
|
|
|||
State income tax expense
|
15,587
|
|
|
21,827
|
|
|
12,710
|
|
|||
Noncontrolling interests' share of earnings
|
(29,145
|
)
|
|
(61,505
|
)
|
|
(116,539
|
)
|
|||
Impairment of goodwill
|
78,177
|
|
|
16,535
|
|
|
—
|
|
|||
Rice Midstream Holdings income not subject to tax
|
—
|
|
|
(26,538
|
)
|
|
(13,460
|
)
|
|||
Regulatory (asset) liability
|
(369
|
)
|
|
(368
|
)
|
|
10,488
|
|
|||
AFUDC - equity
|
(14,127
|
)
|
|
(2,696
|
)
|
|
(1,683
|
)
|
|||
Other
|
3,574
|
|
|
3,616
|
|
|
4,419
|
|
|||
Income tax expense
|
$
|
50,704
|
|
|
$
|
83,142
|
|
|
$
|
212,402
|
|
Effective tax rate
|
(355.7
|
)%
|
|
14.0
|
%
|
|
39.7
|
%
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Thousands)
|
||||||
Total deferred income tax asset / (liability):
|
|
|
|
||||
Net operating loss carryforwards
|
$
|
49,388
|
|
|
$
|
36,202
|
|
Investment in partnerships
|
42,232
|
|
|
559,858
|
|
||
Other
|
(1,023
|
)
|
|
1,261
|
|
||
Total net deferred income tax asset
|
$
|
90,597
|
|
|
$
|
597,321
|
|
13.
|
Concentrations of Credit Risk
|
14.
|
Commitments and Contingencies
|
|
Three Months Ended
|
||||||||||||||
|
March 31
|
|
June 30 (a)
|
|
September 30 (a)(b)
|
|
December 31 (a)(b)
|
||||||||
|
(Thousands, except per share amounts)
|
||||||||||||||
2019
|
|
|
|
|
|
|
|
||||||||
Operating revenues
|
$
|
389,782
|
|
|
$
|
406,167
|
|
|
$
|
408,434
|
|
|
$
|
425,859
|
|
Operating income (loss)
|
260,041
|
|
|
166,175
|
|
|
(38,453
|
)
|
|
(311,763
|
)
|
||||
Net income (loss)
|
199,566
|
|
|
130,480
|
|
|
(61,489
|
)
|
|
(333,516
|
)
|
||||
Net income (loss) attributable to Equitrans Midstream
|
56,299
|
|
|
74,521
|
|
|
(65,825
|
)
|
|
(268,738
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share of common stock attributable to Equitrans Midstream
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Weighted average common stock outstanding
|
254,776
|
|
|
254,917
|
|
|
254,915
|
|
|
254,940
|
|
||||
Net income (loss)
|
$
|
0.22
|
|
|
$
|
0.29
|
|
|
$
|
(0.26
|
)
|
|
$
|
(1.05
|
)
|
Diluted:
|
|
|
|
|
|
|
|
||||||||
Weighted average common stock outstanding
|
254,827
|
|
|
254,967
|
|
|
254,915
|
|
|
254,940
|
|
||||
Net income (loss)
|
$
|
0.22
|
|
|
$
|
0.29
|
|
|
$
|
(0.26
|
)
|
|
$
|
(1.05
|
)
|
|
Three Months Ended
|
||||||||||||||
|
March 31 (c)
|
|
June 30 (c)
|
|
September 30 (c)
|
|
December 31 (a)(b)
|
||||||||
|
(Thousands, except per share amounts)
|
||||||||||||||
2018
|
|
|
|
|
|
|
|
||||||||
Operating revenues
|
$
|
371,026
|
|
|
$
|
374,697
|
|
|
$
|
364,584
|
|
|
$
|
384,791
|
|
Operating income (loss)
|
249,340
|
|
|
234,868
|
|
|
218,322
|
|
|
(59,446
|
)
|
||||
Net income (loss)
|
223,744
|
|
|
219,607
|
|
|
185,966
|
|
|
(118,040
|
)
|
||||
Net income (loss) attributable to Equitrans Midstream
|
82,729
|
|
|
101,067
|
|
|
82,825
|
|
|
(48,223
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share of common stock attributable to Equitrans Midstream
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Weighted average common stock outstanding
|
254,432
|
|
|
254,432
|
|
|
254,432
|
|
|
254,432
|
|
||||
Net income (loss)
|
$
|
0.33
|
|
|
$
|
0.40
|
|
|
$
|
0.33
|
|
|
$
|
(0.19
|
)
|
Diluted:
|
|
|
|
|
|
|
|
||||||||
Weighted average common stock outstanding
|
255,033
|
|
|
255,033
|
|
|
255,033
|
|
|
254,432
|
|
||||
Net income (loss)
|
$
|
0.32
|
|
|
$
|
0.40
|
|
|
$
|
0.32
|
|
|
$
|
(0.19
|
)
|
(a)
|
See Note 3 for disclosure regarding impairments of long-lived assets.
|
(b)
|
For the quarters ended September 30, 2019, December 31, 2019 and December 31, 2018, because the Company generated a net loss, the Company's computation of loss per share excluded potentially dilutive securities; as such, basic and diluted average common stock outstanding were the same for the quarters ended September 30, 2019, December 31, 2019 and December 31, 2018.
|
(c)
|
For periods prior to the Separation Date, EPS was calculated based on the shares of Equitrans Midstream common stock distributed in connection with the Separation and Distribution and is considered pro forma in nature. Prior to the Separation Date, the Company did not have any issued or outstanding common stock (other than shares owned by EQT).
|
17.
|
Consolidated Variable Interest Entities
|
•
|
The Company's only cash-generating assets are its partnership interests in EQM; as such, the Company's cash flow is dependent on EQM cash distributions.
|
•
|
Given EQM's expectation that it will derive a substantial majority of its revenues from EQT for the foreseeable future, any event, whether in EQM's areas of operations or otherwise, that adversely affects EQT's production, financial condition, leverage, results of operations or cash flows may adversely affect EQM's ability to sustain or increase cash distributions to its unitholders, including the Company;
|
•
|
Gathering, transmission and water services are subject to extensive regulation, environmental and otherwise, by federal, state and local authorities, which may expose EQM to significant costs and liabilities;
|
•
|
Expanding EQM's business through construction of midstream assets subjects EQM to risks. If EQM does not complete its planned expansion projects on schedule, at the budgeted cost or at all, its business, financial condition, results of operations, liquidity and ability to make quarterly cash distributions to its unitholders, including the Company, may be adversely affected and the Company's and EQM's future growth may be limited;
|
•
|
EQM is subject to hazards and operational risks, including, but not limited to, ruptures, fires, explosions and leaks to pipelines, facilities, equipment and surrounding properties caused by natural disasters, adverse weather, acts of sabotage and terrorism and inadvertent error; and
|
•
|
Certain services EQM provides on its transmission and storage system are subject to long-term, fixed-price negotiated rate contracts that are not subject to adjustment, regardless of whether EQM's cost to perform such a service exceeds the revenues received; as a result, EQM's costs could exceed the revenues received.
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(Thousands)
|
||||||
ASSETS
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
15,760
|
|
|
$
|
17,515
|
|
Accounts receivable (a)
|
254,109
|
|
|
254,390
|
|
||
Other current assets
|
25,004
|
|
|
14,909
|
|
||
Net property, plant and equipment (b)
|
7,715,122
|
|
|
5,806,628
|
|
||
Investment in unconsolidated entity
|
2,324,108
|
|
|
1,510,289
|
|
||
Goodwill
|
486,698
|
|
|
1,123,813
|
|
||
Net intangible assets
|
797,439
|
|
|
576,113
|
|
||
Other assets
|
196,779
|
|
|
152,464
|
|
||
LIABILITIES
|
|
|
|
||||
Accounts payable (a)
|
$
|
126,786
|
|
|
$
|
207,877
|
|
Capital contribution payable to the MVP Joint Venture
|
45,150
|
|
|
169,202
|
|
||
Accrued interest
|
73,366
|
|
|
80,199
|
|
||
Accrued liabilities
|
31,550
|
|
|
20,672
|
|
||
Credit facility borrowings
|
902,500
|
|
|
625,000
|
|
||
EQM long-term debt
|
4,859,499
|
|
|
3,456,639
|
|
||
Regulatory and other long-term liabilities
|
78,397
|
|
|
38,724
|
|
(a)
|
Accounts receivable as of December 31, 2019 and 2018 included $175.2 million and $174.8 million, respectively, of receivables due from EQT. Accounts payable as of December 31, 2018 included approximately $34.0 million of related party accounts payable to EQT. There was no related party balance with EQT included in accounts payable as of December 31, 2019.
|
(b)
|
Includes approximately $59.1 million conveyed to EQM in the Shared Assets Transaction primarily consisting of IT infrastructure, office equipment, vehicles and office leases. See Note 7.
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017 (a)
|
||||||
|
(Thousands)
|
||||||||||
Operating revenues
|
$
|
1,630,242
|
|
|
$
|
1,495,098
|
|
|
$
|
826,522
|
|
Operating expenses
|
1,426,056
|
|
|
768,445
|
|
|
245,032
|
|
|||
Other expenses
|
(42,104
|
)
|
|
(55,305
|
)
|
|
(9,586
|
)
|
|||
Net income
|
$
|
162,082
|
|
|
$
|
671,348
|
|
|
$
|
571,904
|
|
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
$
|
1,049,407
|
|
|
$
|
1,187,239
|
|
|
$
|
650,550
|
|
Net cash used in investing activities
|
(2,629,633
|
)
|
|
(2,950,254
|
)
|
|
(456,968
|
)
|
|||
Net cash provided by (used in) financing activities
|
1,578,471
|
|
|
1,725,930
|
|
|
(251,393
|
)
|
(a)
|
Amounts for the year ended December 31, 2017 have not been recast to include the results of the EQM-RMP Mergers and Drop-Down Transaction.
|
1
|
|
Financial Statements
|
Page
Reference
|
|
Statements of Consolidated Comprehensive Income for the Years Ended December 31, 2019, 2018 and 2017
|
||
|
Statements of Consolidated Cash Flows for the Years Ended December 31, 2019, 2018 and 2017
|
||
|
Consolidated Balance Sheets as of December 31, 2019 and 2018
|
||
|
Statements of Consolidated Equity for the Years Ended December 31, 2019, 2018 and 2017
|
||
|
Notes to Consolidated Financial Statements
|
||
|
|
|
|
2
|
|
Financial Statement Schedules
|
|
|
All schedules are omitted since the subject matter thereof is either not present or is not present in amounts sufficient to require submission of the schedules.
|
|
|
|
The financial statements of the MVP Joint Venture, Series A are included in this filing as Exhibit 99.1 pursuant to Rule 3-09 of Regulation S-X.
|
|
|
|
|
|
|
3
|
|
Exhibits
|
|
|
The exhibits referenced below are filed (or, as applicable, furnished) as part of this Annual Report on Form 10-K.
|
|
Exhibit No.
|
|
|
Document Description
|
|
Method of Filing
|
|
|
Separation and Distribution Agreement, dated as of November 12, 2018, by and among EQT Corporation, Equitrans Midstream Corporation and, solely for certain limited purposes therein, EQT Production Company.
|
|
Incorporated herein by reference to Exhibit 2.1 to Form 8-K (#001-38629) filed on November 13, 2018.
|
|
|
|
Transition Services Agreement, dated as of November 12, 2018, by and between EQT Corporation and Equitrans Midstream Corporation.
|
|
Incorporated herein by reference to Exhibit 2.2 to Form 8-K (#001-38629) filed on November 13, 2018.
|
|
|
|
Tax Matters Agreement, dated as of November 12, 2018, by and between EQT Corporation and Equitrans Midstream Corporation.
|
|
Incorporated herein by reference to Exhibit 2.3 to Form 8-K (#001-38629) filed on November 13, 2018.
|
|
|
|
Employee Matters Agreement, dated as of November 12, 2018, by and between EQT Corporation and Equitrans Midstream Corporation.
|
|
Incorporated herein by reference to Exhibit 2.4 to Form 8-K (#001-38629) filed on November 13, 2018.
|
|
|
Agreement and Plan of Merger, dated as of April 25, 2018, by and among EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP), EQM Midstream Services, LLC (formerly known as EQT Midstream Services, LLC), EQM Acquisition Sub, LLC, EQM GP Acquisition Sub, LLC, RM Partners LP (formerly known as Rice Midstream Partners LP), EQM Midstream Management LLC (formerly known as Rice Midstream Management LLC) and, solely for purposes of certain provisions therein, EQT Corporation. EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP) will furnish supplementally a copy of any omitted schedule and similar attachment to the SEC upon request.
|
|
Incorporated herein by reference to Exhibit 2.1 to EQGP Holdings, LP's Form 8-K (#001-37380) filed on April 26, 2018.
|
|
|
|
Incentive Distribution Rights Purchase and Sale Agreement, dated as of April 25, 2018, by and among EQGP Holdings, LP (formerly known as EQT GP Holdings, LP), Rice Midstream GP Holdings LP and EQT Corporation.
|
|
Incorporated herein by reference to Exhibit 2.3 to EQGP Holdings, LP's Form 8-K (#001-37380) filed on April 26, 2018.
|
|
|
|
Contribution and Sale Agreement, dated as of April 25, 2018, by and among EQT Corporation, Rice Midstream Holdings LLC, EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP) and EQM Gathering Holdings, LLC. EQM Midstream Partners, LP will furnish supplementally a copy of any omitted schedule and similar attachment to the SEC upon request.
|
|
Incorporated herein by reference to Exhibit 2.2 to EQGP Holdings, LP's Form 8-K (#001-37380) filed on April 26, 2018.
|
|
|
|
Contribution and Sale Agreement, dated as of March 10, 2015, by and among EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP), EQM Midstream Services, LLC (formerly known as EQT Midstream Services, LLC), EQM Gathering Opco, LLC, EQT Corporation, EQT Gathering, LLC, EQT Energy Supply Holdings, LP, and EQT Energy, LLC. EQT GP Holdings, LP will furnish supplementally a copy of any omitted schedule and similar attachment to the SEC upon request.
|
|
Incorporated herein by reference to Exhibit 2.1 to EQM Midstream Partners, LP's Form 8-K (#001-35574) filed on March 10, 2015.
|
|
|
|
Amendment No. 1 to Contribution and Sale Agreement, dated as of March 30, 2017, by and among EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP), EQM Midstream Services, LLC (formerly known as EQT Midstream Services, LLC), EQM Gathering Opco, LLC, EQT Corporation, EQT Gathering, LLC, EQT Energy Supply Holdings, LP, and EQT Energy, LLC.
|
|
Incorporated herein by reference to Exhibit 2.1 to EQM Midstream Partners, LP's Form 10-Q (#001-35574) for the quarterly period ended March 31, 2017.
|
|
|
|
Purchase and Sale Agreement, dated as of October 13, 2016, by and among EQT Corporation, EQT Gathering Holdings, LLC, EQT Gathering, LLC, EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP), Equitrans Investments, LLC, Equitrans, L.P. and EQM Gathering Opco, LLC. EQT GP Holdings, LP will furnish supplementally a copy of any omitted schedule and similar attachment to the SEC upon request.
|
|
Incorporated herein by reference to Exhibit 2.1 to EQM Midstream Partners, LP's Form
8-K (#001-35574) filed on October 13, 2016.
|
|
|
|
Agreement and Plan of Merger, dated February 13, 2019, by and among Equitrans Midstream Corporation, EQM Midstream Services, LLC, EQM Midstream Partners, LP, EQGP Services, LLC, EQGP Holdings, LP and the other parties thereto. Equitrans Midstream Corporation will furnish supplementally a copy of any omitted schedule and similar attachment to the SEC upon request.
|
|
Incorporated herein by reference to Exhibit 2.1 to Form 8-K (#001-38629) filed on February 14, 2019.
|
|
|
|
Purchase and Sale Agreement, dated as of March 13, 2019, by and between EQM Midstream Partners, LP and North Haven Infrastructure Partners II Buffalo Holdings, LLC. Equitrans Midstream Corporation will furnish supplementally a copy of any omitted schedule and similar attachment to the SEC upon request.
|
|
Incorporated herein by reference to Exhibit 2.1 to Form 8-K (#001-38629) filed on March 15, 2019.
|
|
|
|
Amended and Restated Articles of Incorporation of Equitrans Midstream Corporation.
|
|
Incorporated herein by reference to Exhibit 3.1 to Form 8-K (#001-38629) filed on November 13, 2018.
|
|
|
|
Second Amended and Restated Bylaws of Equitrans Midstream Corporation.
|
|
Incorporated herein by reference to Exhibit 3.1 to Form 8-K (#001-38629) filed on October 10, 2019.
|
|
|
Statement with Respect to Shares of Series A Junior Participating Preferred Stock.
|
|
Incorporated herein by reference to Exhibit 3.3 to Form 8-K (#001-38629) filed on November 13, 2018.
|
|
|
|
Certificate of Formation of EQGP Services, LLC (formerly known as EQT GP Services, LLC).
|
|
Incorporated herein by reference to Exhibit 3.3 to EQT GP Holdings, LP's Form S-1 Registration Statement (#333-202053) filed on February 12, 2015.
|
|
|
|
Certificate of Amendment to Certificate of Formation of EQGP Services, LLC (formerly known as EQT GP Services, LLC), dated as of October 12, 2018.
|
|
Incorporated herein by reference to Exhibit 3.2 to EQGP Holdings, LP's Form 8-K (#001-37380) filed on October 15, 2018.
|
|
|
|
Second Amended and Restated Limited Liability Company Agreement of EQGP Services, LLC, dated as of October 12, 2018.
|
|
Incorporated herein by reference to Exhibit 3.4 to EQGP Holdings, LP's Form 8-K (#001-37380) filed on October 15, 2018.
|
|
|
|
First Amendment to Second Amended and Restated Agreement of Limited Partnership of EQM Midstream Partners, LP, dated as of February 22, 2019.
|
|
Incorporated herein by reference to Exhibit 3.1 to EQM Midstream Partners, LP’s Form 8-K (#001-35574) filed on February 22, 2019.
|
|
|
|
Second Amendment to Second Amended and Restated Limited Liability Company Agreement of EQGP Services, LLC, dated as of October 9, 2019.
|
|
Incorporated herein by reference to Exhibit 3.3 to EQM Midstream Partners, LP’s Form 8-K (#001-35574) filed on October 10, 2019.
|
|
|
|
Amended and Restated Certificate of Limited Partnership of EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP), dated as of October 9, 2019.
|
|
Incorporated herein by reference to Exhibit 3.2 to EQM Midstream Partners, LP’s Form 8-K (#001-35574) filed on October 10, 2019.
|
|
|
|
Fourth Amended and Restated Agreement of Limited Partnership of EQM Midstream Partners, LP, dated as of April 10, 2019.
|
|
Incorporated herein by reference to Exhibit 3.1 to EQM Midstream Partners, LP’s Form 8-K (#001-35574) filed on April 10, 2019.
|
|
|
|
First Amendment to Fourth Amended and Restated Agreement of Limited Partnership of EQM Midstream Partners, LP, dated as of October 9, 2019.
|
|
Incorporated herein by reference to Exhibit 3.1 to EQM Midstream Partners, LP’s Form 8-K (#001-35574) filed on October 10, 2019.
|
|
|
|
Indenture, dated as of August 1, 2014, by and among EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP), as issuer, the subsidiaries of EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP) party thereto, and The Bank of New York Mellon Trust Company, N.A., as trustee.
|
|
Incorporated herein by reference to Exhibit 4.1 to EQM Midstream Partners, LP's Form 8-K (#001-35574) filed on August 1, 2014.
|
|
|
|
First Supplemental Indenture, dated as of August 1, 2014, by and among EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP), as issuer, the subsidiaries of EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP) party thereto, and The Bank of New York Mellon Trust Company, N.A., as trustee.
|
|
Incorporated herein by reference to Exhibit 4.2 to EQM Midstream Partners, LP's Form 8-K (#001-35574) filed on August 1, 2014.
|
|
|
|
Second Supplemental Indenture, dated as of November 4, 2016, by and between EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP), as issuer, and The Bank of New York Mellon Trust Company, N.A., as trustee.
|
|
Incorporated herein by reference to Exhibit 4.2 to EQM Midstream Partners, LP's Form 8-K (#001-35574) filed on November 4, 2016.
|
|
|
Third Supplemental Indenture, dated as of June 25, 2018, by and between EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP), as issuer, and The Bank of New York Mellon Trust Company, N.A., as trustee.
|
|
Incorporated herein by reference to Exhibit 4.2 to EQM Midstream Partners, LP's Form 8-K (#001-35574) filed on June 25, 2018.
|
|
|
|
Fourth Supplemental Indenture, dated as of June 25, 2018, by and between EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP), as issuer, and The Bank of New York Mellon Trust Company, N.A., as trustee.
|
|
Incorporated herein by reference to Exhibit 4.4 to EQM Midstream Partners, LP's Form 8-K (#001-35574) filed on June 25, 2018.
|
|
|
|
Fifth Supplemental Indenture, dated as of June 25, 2018, by and between EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP), as issuer, and The Bank of New York Mellon Trust Company, N.A., as trustee.
|
|
Incorporated herein by reference to Exhibit 4.6 to EQM Midstream Partners, LP's Form 8-K (#001-35574) filed on June 25, 2018.
|
|
|
|
Shareholder and Registration Rights Agreement, dated as of November 12, 2018, by and between EQT Corporation and Equitrans Midstream Corporation.
|
|
Incorporated herein by reference to Exhibit 4.1 to Form 8-K (#001-38629) filed on November 13, 2018.
|
|
|
|
Description of Certain of Registrants' Securities.
|
|
Filed herewith as Exhibit 4.8.
|
|
|
|
Form of EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP) Phantom Unit Award Agreement.
|
|
Incorporated herein by reference to Exhibit 10.6 to Amendment No. 2 to EQM Midstream Partners, LP's Form S-1 Registration Statement (#333-179487) filed on May 10, 2012.
|
|
|
|
Form of EQM Midstream Services, LLC (formerly known as EQT Midstream Services, LLC) Director and/or Executive Officer Indemnification Agreement.
|
|
Incorporated herein by reference to Exhibit 10.15 to Amendment No. 3 to EQM Midstream Partners, LP's Form S-1 Registration Statement (#333-179487) filed on June 5, 2012.
|
|
|
|
EQGP Services, LLC (formerly known as EQT GP Services, LLC) 2015 Long-Term Incentive Plan, dated as of May 15, 2015.
|
|
Incorporated herein by reference to Exhibit 10.3 to EQGP Holdings, LP's Form 8-K (#001-37380) filed on May 15, 2015.
|
|
|
|
Form of EQGP Services, LLC (formerly known as EQT GP Services, LLC) Director and/or Executive Officer Indemnification Agreement.
|
|
Incorporated herein by reference to Exhibit 10.3 to Amendment No. 1 to EQGP Holdings, LP's Form S-1/A Registration Statement (#333-202053) filed on April 1, 2015.
|
|
|
|
Revolving Credit Agreement, dated as of October 31, 2018, by and among Equitrans Midstream Corporation, PNC Bank, National Association, as Administrative Agent, Swing Line Lender and an L/C Issuer, and the other lenders party thereto.
|
|
Incorporated herein by reference to Exhibit 10.1 to Form 8-K (#001-38629) filed on October 31, 2018.
|
|
|
|
First Amendment to Credit Agreement, dated as of December 31, 2018, by and among Equitrans Midstream Corporation, the lender parties thereto, and PNC Bank, National Association, as Administrative Agent.
|
|
Incorporated herein by reference to Exhibit 10.2 to Form 8-K (#001-38629) filed on December 31, 2018.
|
|
10.6
|
|
|
Credit Agreement, dated as of December 31, 2018, by and among Equitrans Midstream Corporation, Goldman Sachs Bank USA, as Administrative Agent and Initial Lender, PNC Bank, National Association, as Collateral Agent, and the other lenders from time to time party thereto.
|
|
Incorporated herein by reference to Exhibit 10.1 Form 8-K (#001-38629) filed on December 31, 2018.
|
|
|
Third Amended and Restated Credit Agreement, dated as of October 31, 2018, by and among EQM Midstream Partners, LP, Wells Fargo Bank, National Association, as Administrative Agent, Swing Line Lender and an L/C Issuer, and the other lenders party thereto.
|
|
Incorporated herein by reference to Exhibit 10.1 to EQM Midstream Partners, LP's Form 8-K (#001-35574) filed on October 31, 2018.
|
|
|
Amendment No. 1 to Credit Agreement, dated May 7, 2019, by and among Equitrans Midstream Corporation, Goldman Sachs Bank USA, as administrative agent, and PNC Bank, National Association, as collateral agent.
|
|
Incorporated herein by reference to Exhibit 10.1 to Form 10-Q (#001-38629) for the quarterly period ended June 30, 2019.
|
|
|
|
Term Loan Agreement, dated as of August 16, 2019, by and among EQM Midstream Partners, LP, as borrower, Toronto Dominion (Texas) LLC, as administrative agent, and the lenders party thereto.
|
|
Incorporated herein by reference to Exhibit 10.1 to EQM Midstream Partners, LP’s Form 8-K (#001-35574) filed on August 19, 2019.
|
|
|
|
Sublease Agreement, effective as of March 1, 2011, by and between Equitrans, L.P. and EQT Production Company.
|
|
Incorporated herein by reference to Exhibit 10.12 to Amendment No. 2 to EQM Midstream Partners, LP's Form S-1/A Registration Statement (#333-179487) filed on May 10, 2012.
|
|
|
|
Amendment of Sublease Agreement, dated as of April 5, 2012, by and between Equitrans, L.P. and EQT Production Company.
|
|
Incorporated herein by reference to Exhibit 10.13 to Amendment No. 2 to EQM Midstream Partners, LP's Form S-1/A Registration Statement (#333-179487) filed on May 10, 2012.
|
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10.12
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Transportation Service Agreement Applicable to Firm Transportation Service Under Rate Schedule FTS, Contract No. CW2250463-1296, dated as of January 8, 2016, as amended through December 20, 2017, by and between Equitrans, L.P. and EQT Energy, LLC.
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Incorporated herein by reference to Exhibit 10.13 to EQM Midstream Partners, LP's Form 10-K (#001-35574) for the year ended December 31, 2017.
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Jupiter Gas Gathering Agreement, effective as of May 1, 2014, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC (as assignee of EQT Gathering, LLC), on the other hand. Specific items in this exhibit have been redacted, as marked by three asterisks [***], because confidential treatment for those items has been granted by the SEC. The redacted material has been separately filed with the SEC.
|
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Incorporated herein by reference to Exhibit 10.1 to EQM Midstream Partners, LP's Form 10-Q (#001-35574) for the quarterly period ended June 30, 2014.
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Amendment No. 1 to Jupiter Gas Gathering Agreement, dated as of December 17, 2014, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC, on the other hand.
|
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Incorporated herein by reference to Exhibit 10.24(b) to EQM Midstream Partners, LP's Form 10-K (#001-35574) for the year ended December 31, 2015.
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Amendment No. 2 to Jupiter Gas Gathering Agreement, dated as of October 26, 2015, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC, on the other hand. Specific items in this exhibit have been redacted, as marked by three asterisks [***], because confidential treatment for those items has been granted by the SEC. The redacted material has been separately filed with the SEC.
|
|
Incorporated herein by reference to Exhibit 10.24(c) to EQM Midstream Partners, LP's Form 10-K (#001-35574) for the year ended December 31, 2015.
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Amendment No. 3 to Jupiter Gas Gathering Agreement, dated as of August 1, 2016, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC, on the other hand. Specific items in this exhibit have been redacted, as marked by three asterisks [***], because confidential treatment for those items has been granted by the SEC. The redacted material has been separately filed with the SEC.
|
|
Incorporated herein by reference to Exhibit 10.2 to EQM Midstream Partners, LP's Form 10-Q (#001-35574) for the quarterly period ended September 30, 2016.
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Amendment No. 4 to Jupiter Gas Gathering Agreement, dated as of June 1, 2017, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC, on the other hand.
|
|
Incorporated herein by reference to Exhibit 10.2 to EQM Midstream Partners, LP's Form 10-Q (#001-35574) for the quarterly period ended June 30, 2017.
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Amendment No. 5 to Jupiter Gas Gathering Agreement, dated as of October 1, 2017, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC, on the other hand. Specific items in this exhibit have been redacted, as marked by three asterisks [***], because confidential treatment for those items has been granted by the SEC. The redacted material has been separately filed with the SEC.
|
|
Incorporated herein by reference to Exhibit 10.14(f) to EQM Midstream Partners, LP's Form 10-K (#001-35574) for the year ended December 31, 2017.
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Amendment No. 6 to Jupiter Gas Gathering Agreement, dated as of March 1, 2019, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC, on the other hand. Specific items in this exhibit have been redacted, as marked by three asterisks [***].
|
|
Incorporated herein by reference to Exhibit 10.14 to Form 10-Q (#001-38629) for the quarterly period ended March 31, 2019.
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Gas Gathering Agreement for the Mercury, Pandora, Pluto and Saturn Gas Gathering Systems, effective as of March 1, 2015, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC (as assignee of EQT Gathering, LLC), on the other hand. Specific items in this exhibit have been redacted, as marked by three asterisks [***], because confidential treatment for those items has been granted by the SEC. The redacted material has been separately filed with the SEC.
|
|
Incorporated herein by reference to Exhibit 10.2 to EQM Midstream Partners, LP's Form 8-K (#001-35574) filed on March 31, 2015.
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Amendment No. 1 to Gas Gathering Agreement for the Mercury, Pandora, Pluto and Saturn Gas Gathering Systems, dated as of September 18, 2015, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC, on the other hand.
|
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Incorporated herein by reference to Exhibit 10.25(b) to EQM Midstream Partners, LP's Form 10-K (#001-35574) for the year ended December 31, 2015.
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Amendment No. 2 to Gas Gathering Agreement for the Mercury, Pandora, Pluto and Saturn Gas Gathering Systems, dated as of March 30, 2017, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC, on the other hand. Specific items in this exhibit have been redacted, as marked by three asterisks [***], because confidential treatment for those items has been granted by the SEC. The redacted material has been separately filed with the SEC.
|
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Incorporated herein by reference to Exhibit 10.1 to EQM Midstream Partners, LP's Form 10-Q (#001-35574) for the quarterly period ended March 31, 2017.
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Amendment No. 3 to Gas Gathering Agreement for the Mercury, Pandora, Pluto and Saturn Gas Gathering Systems, dated June 1, 2019, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC, on the other hand. Specific items in this exhibit have been redacted, as marked by [***].
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|
Incorporated herein by reference to Exhibit 10.3 to Form 10-Q (#001-38629) for the quarterly period ended on June 30, 2019.
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Gas Gathering Agreement for the WG-100 Gas Gathering System, effective as of March 1, 2015, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC (as assignee of EQT Gathering, LLC), on the other hand. Specific items in this exhibit have been redacted, as marked by three asterisks [***], because confidential treatment for those items has been granted by the SEC. The redacted material has been separately filed with the SEC.
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Incorporated herein by reference to Exhibit 10.3 to EQM Midstream Partners, LP's Form 8-K (#001-35574) filed on March 31, 2015.
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Amendment No. 1 to Gas Gathering Agreement for the WG-100 Gas Gathering System, dated as of April 1, 2017, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC, on the other hand.
|
|
Incorporated herein by reference to Exhibit 10.1 to EQM Midstream Partners, LP's Form 10-Q (#001-35574) for the quarterly period ended June 30, 2017.
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Amendment No. 2 to Gas Gathering Agreement for the WG-100 Gas Gathering System, dated June 1, 2019, by and among EQT Production Company and EQT Energy, LLC, on the one hand, and EQM Gathering Opco, LLC, on the other hand. Specific items in this exhibit have been redacted, as marked by [***].
|
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Incorporated herein by reference to Exhibit 10.2 to Form 10-Q (#001-38629) for the quarterly period ended June 30, 2019.
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Gas Gathering and Compression Agreement, dated as of December 22, 2014, by and among Rice Drilling B LLC, RM Partners LP (formerly known as Rice Midstream Partners LP) and Alpha Shale Resources LP.
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Incorporated herein by reference to Exhibit 10.3 to Rice Midstream Partners LP's Form 8-K (#001-36789) filed on December 22, 2014.
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First Amendment to Gas Gathering and Compression Agreement, effective as of October 19, 2016, by and among Rice Drilling B LLC, Alpha Shale Resources LP and RM Partners LP (formerly known as Rice Midstream Partners LP). Specific items in this exhibit have been redacted, as marked by three asterisks [***], because confidential treatment for those items has been granted by the SEC. The redacted material has been separately filed with the SEC.
|
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Incorporated herein by reference to Exhibit 10.50 to Registration Statement on Form 10-12B/A (#001-38629) filed on September 25, 2018.
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Second Amendment to Gas Gathering and Compression Agreement, dated June 1, 2019, by and among Rice Drilling B LLC, Alpha Shale Resources LP and RM Partners, LP. Specific items in this exhibit have been redacted, as marked by [***].
|
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Incorporated herein by reference to Exhibit 10.4 to Form 10-Q (#001-38629) for the quarterly period ended June 30, 2019.
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Sixth Amended and Restated Cracker Jack Gas Gathering Agreement, dated as of February 28, 2017, by and among EQM Poseidon Midstream LLC (formerly known as Rice Poseidon Midstream LLC), EQT Energy, LLC and EQT Production Company. Specific items in this exhibit have been redacted, as marked by three asterisks [***], because confidential treatment for those items has been granted by the SEC. The redacted material has been separately filed with the SEC.
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Incorporated herein by reference to Exhibit 10.14 to Rice Midstream Partners LP 's Form 10-K (#001-36789) for the year ended December 31, 2017.
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Second Amended and Restated Gas Gathering and Compression Agreement, dated as of March 31, 2017, by and between Rice Drilling D LLC and EQM Olympus Midstream LLC (formerly known as Rice Olympus Midstream LLC). Specific items in this exhibit have been redacted, as marked by three asterisks [***], because confidential treatment for those items has been granted by the SEC. The redacted material has been separately filed with the SEC.
|
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Incorporated herein by reference to Exhibit 10.3 to EQM Midstream Partners, LP's Form 10-Q (#001-35574) for the quarterly period ended June 30, 2018.
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Amended and Restated Water Services Agreement, dated as of November 4, 2015, by and between Rice Drilling D LLC and Rice Water Services (PA) LLC.
|
|
Incorporated herein by reference to Exhibit 10.2 to Rice Midstream Partners LP's Form 8-K (#001-36789) filed on November 5, 2015.
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Amended and Restated Water Services Agreement, dated as of November 4, 2015, by and between Rice Drilling B LLC and Rice Water Services (OH) LLC.
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Incorporated herein by reference to Exhibit 10.3 to Rice Midstream Partners, LP's Form 8-K (#001-36789) filed on November 5, 2015.
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Third Amended and Restated Limited Liability Company Agreement of Mountain Valley Pipeline, LLC, dated as of April 6, 2018, by and among MVP Holdco, LLC, US Marcellus Gas Infrastructure, LLC, WGL Midstream, Inc., Con Edison Gas Pipeline and Storage, LLC, RGC Midstream, LLC and Mountain Valley Pipeline, LLC. Specific items in this exhibit have been redacted, as marked by three asterisks [***], because confidential treatment for those items has been granted by the SEC. The redacted material has been separately filed with the SEC.
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Incorporated herein by reference to Exhibit 10.1 to EQM Midstream Partners, LP's Form 10-Q/A (#001-35574) for the quarterly period ended March 31, 2018.
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First Amendment to Third Amended and Restated Limited Liability Company Agreement of Mountain Valley Pipeline, LLC, dated as of February 5, 2020, by and among MVP Holdco, LLC, US Marcellus Gas Infrastructure, LLC, WGL Midstream, Inc., Con Edison Gas Pipeline and Storage, LLC, RGC Midstream, LLC and Mountain Valley Pipeline, LLC. Specific items in this exhibit have been redacted, as marked by three asterisks [***], because confidential treatment for those items has been granted by the SEC. The redacted material has been separately filed with the SEC.
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Filed herewith as Exhibit 10.21(b).
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Assignment and Assumption Agreement, dated as of March 30, 2015, by and among Equitrans Gathering, LLC (formerly known as EQT Gathering, LLC), EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP) and MVP Holdco, LLC.
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Incorporated herein by reference to Exhibit 10.3 to EQM Midstream Partners, LP's Form 10-Q (#001-35574) for the quarterly period ended March 31, 2015.
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Letter Agreement, dated as of March 1, 2019, among RM Partners LP, Equitrans, L.P., Rice Drilling B LLC, EQM Gathering OPCO, LLC and Alpha Shale Resources LP. Specific items in this exhibit have been redacted, as marked by three asterisks [***].
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Incorporated herein by reference to Exhibit 10.15 to Form 10-Q (#001-38629) for the quarterly period ended March 31, 2019.
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Omnibus Agreement, dated as of May 15, 2015, by and among EQGP Holdings, LP (formerly known as EQT GP Holdings, LP), EQGP Services, LLC (formerly known as EQT GP Services, LLC) and EQT Corporation.
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Incorporated herein by reference to Exhibit 10.1 to EQGP Holdings, LP's Form 8-K (#001-37380) filed on May 15, 2015.
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Amended and Restated Omnibus Agreement, dated November 13, 2018, among EQT Corporation, EQM Midstream Partners, LP and EQM Midstream Services, LLC.
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Incorporated herein by reference to Exhibit 10.1 to EQM Midstream Partners, LP's Form 8-K (#001-35574) filed on November 13, 2018.
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Second Amended and Restated Omnibus Agreement, dated November 13, 2018, among EQT Corporation, RM Partners LP, EQM Midstream Management LLC, and EQM Poseidon Midstream LLC.
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|
Incorporated herein by reference to Exhibit 10.2 to EQM Midstream Partners, LP's Form 8-K (#001-35574) filed on November 13, 2018.
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Secondment Agreement, dated as of November 13, 2018, by and among Equitrans Midstream Corporation, EQM Midstream Partners, LP and EQM Midstream Services, LLC.
|
|
Incorporated herein by reference to Exhibit 10.3 to Form 8-K (#001-38629) filed on November 13, 2018.
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Amended and Restated Omnibus Agreement, dated as of March 31, 2019, by and among Equitrans Midstream Corporation, EQM Midstream Partners, LP, EQGP Services, LLC and, for limited purposes, EQM Midstream Services, LLC.
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|
Incorporated herein by reference to Exhibit 10.6 to Form 10-Q (#001-38629) for the quarterly period ended March 31, 2019.
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Joinder Agreement, dated as of March 18, 2019, by and between EQM Midstream Partners, LP and Kayne Anderson MLP/Midstream Investment Company.
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Incorporated herein by reference to Exhibit 10.1 to Form 8-K (#001-38629) filed on March 19, 2019.
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Joinder Agreement, dated as of March 18, 2019, by and between EQM Midstream Partners, LP and Kayne Anderson Midstream/Energy Fund, Inc.
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Incorporated herein by reference to Exhibit 10.2 to Form 8-K (#001-38629) filed on March 19, 2019.
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Joinder Agreement, dated as of March 18, 2019, by and between EQM Midstream Partners, LP and Centaurus Capital LP.
|
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Incorporated herein by reference to Exhibit 10.3 to Form 8-K (#001-38629) filed on March 19, 2019.
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Joinder Agreement, dated as of March 18, 2019, by and between EQM Midstream Partners, LP and MTP Energy Opportunities Fund II LLC.
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|
Incorporated herein by reference to Exhibit 10.4 to Form 8-K (#001-38629) filed on March 19, 2019.
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Joinder Agreement, dated as of March 18, 2019, by and between EQM Midstream Partners, LP and MTP Energy Master Fund LLC.
|
|
Incorporated herein by reference to Exhibit 10.5 to Form 8-K (#001-38629) filed on March 19, 2019.
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Joinder Agreement, dated as of March 18, 2019, by and between EQM Midstream Partners, LP and Tortoise Direct Opportunities Fund II, LP.
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|
Incorporated herein by reference to Exhibit 10.6 to Form 8-K (#001-38629) filed on March 19, 2019.
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Joinder Agreement, dated as of March 18, 2019, by and between EQM Midstream Partners, LP and Portcullis Partners, LP.
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Incorporated herein by reference to Exhibit 10.7 to Form 8-K (#001-38629) filed on March 19, 2019.
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Registration Rights Agreement, dated as of April 10, 2019, by and among EQM Midstream Partners, LP and the Purchasers party thereto. Equitrans Midstream Corporation will furnish supplementally a copy of any omitted schedule and similar attachment to the SEC upon request.
|
|
Incorporated herein by reference to Exhibit 4.1 to EQM Midstream Partners, LP’s Form 8-K (#001-35574) filed on April 10, 2019.
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Transportation Service Agreement Applicable to Firm Transportation Service Under Rate Schedule FTS, Contract No. EQTR 20242-852, dated as of September 24, 2014 and amended through April 1, 2019, by and between Equitrans, L.P. and EQT Energy, LLC.
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|
Incorporated herein by reference to Exhibit 10.5 to Form 10-Q (#001-38629) for the quarterly period ended June 30, 2019.
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Transportation Service Agreement Applicable to Firm Transportation Service Under Rate Schedule FTS, Contract No. EQTR19837-1296, dated as of January 8, 2016 and amended through January 9, 2020, by and between Equitrans, L.P. and EQT Energy, LLC.
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|
Filed herewith as Exhibit 10.37.
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Amended and Restated EQGP Services, LLC 2012 Long-Term Incentive Plan, dated as of February 22, 2019.
|
|
Incorporated herein by reference to Exhibit 10.1 to EQM Midstream Partners, LP's Form 8-K (#001-35574) filed on February 22, 2019.
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Equitrans Midstream Corporation Directors' Deferred Compensation Plan.
|
|
Incorporated herein by reference to Exhibit 4.3 to Registration Statement on Form S-8 (File No. 333-228340) filed on November 9, 2018.
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Equitrans Midstream Corporation 2018 Long-Term Incentive Plan.
|
|
Incorporated herein by reference to Exhibit 4.3 to Registration Statement on Form S-8 (File No. 333-228337) filed on November 9, 2018.
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Equitrans Midstream Corporation Executive Short-Term Incentive Plan.
|
|
Incorporated herein by reference to Exhibit 10.7 to Form 8-K (#001-38629) filed on November 13, 2018.
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Equitrans Midstream Corporation 2018 Payroll Deduction and Contribution Program.
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Incorporated herein by reference to Exhibit 10.8 to Form 8-K (#001-38629) filed on November 13, 2018.
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Letter Agreement, dated as of August 9, 2018, with Thomas F. Karam.
|
|
Incorporated herein by reference to Exhibit 10.57 to Registration Statement on Form 10-12B/A (#001-38629) filed on October 18, 2018.
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Letter Agreement, dated as of September 4, 2018, with Kirk R. Oliver.
|
|
Incorporated herein by reference to Exhibit 10.58 to Registration Statement on Form 10-12B/A (#001-38629) filed on October 18, 2018.
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Amended and Restated Confidentiality, Non-Solicitation and Non-Competition Agreement, dated as of January 15, 2019, with Diana M. Charletta
|
|
Incorporated herein by reference to Exhibit 10.1 to Form 8-K (#001-38629) filed on January 22, 2019.
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Amended and Restated Confidentiality, Non-Solicitation and Non-Competition Agreement, dated as of July 29, 2015, with Charlene Petrelli.
|
|
Incorporated herein by reference to Exhibit 10.64 to Registration Statement on Form 10-12B/A (#001-38629) filed on October 18, 2018.
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Transition Agreement and General Release, dated as of January 3, 2019, with Charlene Petrelli.
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|
Incorporated herein by reference to Exhibit 10.44(b) to Form 10-K (#001-38629) filed on February 14, 2019.
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Amended and Restated Confidentiality, Non-Solicitation and Non-Competition Agreement, dated as of July 29, 2015, with Robert C. Williams.
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|
Incorporated herein by reference to Exhibit 10.65 to Registration Statement on Form 10/A (#001-38629) filed on October 18, 2018.
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Confidentiality, Non-Solicitation and Non-Competition Agreement, dated as of September 8, 2008, with Phillip D. Swisher.
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|
Incorporated herein by reference to Exhibit 10.66 to Registration Statement on Form 10-12B/A (#001-38629) filed on October 18, 2018.
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Amendment to Confidentiality, Non-Solicitation and Non-Competition Agreement, dated as of January 1, 2014, with Phillip D. Swisher.
|
|
Incorporated herein by reference to Exhibit 10.67 to Registration Statement on Form 10-12B/A (#001-38629) filed on October 18, 2018.
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Second Amendment to Confidentiality, Non-Solicitation and Non-Competition Agreement, dated as of January 1, 2015, with Phillip D. Swisher.
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|
Incorporated herein by reference to Exhibit 10.68 to Registration Statement on Form 10-12B/A (#001-38629) filed on October 18, 2018.
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Amended and Restated Confidentiality, Non-Solicitation and Non-Competition Agreement, dated as of November 13, 2018, by and between Equitrans Midstream Corporation and Thomas F. Karam.
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|
Incorporated herein by reference to Exhibit 10.9 to Form 8-K (#001-38629) filed on November 13, 2018.
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Amended and Restated Confidentiality, Non-Solicitation and Non-Competition Agreement, dated as of November 13, 2018, by and between Equitrans Midstream Corporation and Kirk R. Oliver.
|
|
Incorporated herein by reference to Exhibit 10.10 to Form 8-K (#001-38629) filed on November 13, 2018.
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Separation Agreement and General Release, dated as of April 1, 2019, by and between Equitrans Midstream Corporation and Robert C. Williams.
|
|
Incorporated herein by reference to Exhibit 10.1 to Form 8-K (#001-38629) filed on April 1, 2019.
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Letter Agreement, dated April 2, 2019, with Stephen M. Moore.
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Incorporated herein by reference to Exhibit 10.12 to Form 10-Q (#001-38629) for the quarterly period ended March 31, 2019.
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Confidentiality, Non-Solicitation and Non-Competition Agreement, dated April 15, 2019, with Stephen M. Moore.
|
|
Incorporated herein by reference to Exhibit 10.13 to Form 10-Q (#001-38629) for the quarterly period ended March 31, 2019.
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Form of Agreement of Assignment of Confidentiality, Non-Solicitation and Non-Competition Agreement.
|
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Incorporated herein by reference to Exhibit 10.11 to Form 8-K (#001-38629) filed on November 13, 2018.
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Confidentiality, Non-Solicitation and Non-Competition Agreement, dated as of March 7, 2013, between EQT Corporation and Brian Pietrandrea.
|
|
Incorporated herein by reference to Exhibit 10.2 to Form 10-Q (#001-38629) for the quarterly period ended September 30, 2019.
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Amendment to Confidentiality, Non-Solicitation and Non-Competition Agreement, effective as of January 1, 2014, between EQT Corporation and Brian P. Pietrandrea.
|
|
Incorporated herein by reference to Exhibit 10.3 to Form 10-Q (#001-38629) for the quarterly period ended September 30, 2019.
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Second Amendment to Confidentiality, Non-Solicitation and Non-Competition Agreement, effective as of January 1, 2015, between EQT Corporation and Brian P. Pietrandrea.
|
|
Incorporated herein by reference to Exhibit 10.4 to Form 10-Q (#001-38629) for the quarterly period ended September 30, 2019.
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Third Amendment to Confidentiality, Non-Solicitation and Non-Competition Agreement, effective as of August 20, 2019, between Equitrans Midstream Corporation and Brian P. Pietrandrea.
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Incorporated herein by reference to Exhibit 10.5 to Form 10-Q (#001-38629) for the quarterly period ended September 30, 2019.
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Form of Equitrans Midstream Corporation Director and/or Executive Officer Indemnification Agreement.
|
|
Incorporated herein by reference to Exhibit 10.16 to Registration Statement on Form 10-12B/A (#001-38629) filed on October 18, 2018.
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Convertible Preferred Unit Purchase Agreement, dated as of March 13, 2019, by and among EQM Midstream Partners, LP and the Purchasers party thereto. Equitrans Midstream Corporation will furnish supplementally a copy of any omitted schedule and similar attachment to the SEC upon request.
|
|
Incorporated herein by reference to Exhibit 10.1 to Form 8-K (#001-38629) filed on March 15, 2019.
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Equitrans Midstream Corporation 2019 Performance Share Unit Program.
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Incorporated herein by reference to Exhibit 10.7(a) to Form 10-Q (#001-38629) for the quarterly period ended March 31, 2019.
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Form of Equitrans Midstream Corporation Restricted Stock Award Agreement (Standard) under 2018 Long-Term Incentive Plan (2019 grants).
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Incorporated herein by reference to Exhibit 10.7(b) to Form 10-Q (#001-38629) for the quarterly period ended March 31, 2019.
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Form of Participant Award Agreement under the 2019 Performance Share Unit Program.
|
|
Incorporated herein by reference to Exhibit 10.7(c) to Form 10-Q (#001-38629) for the quarterly period ended March 31, 2019.
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Amendment to 2018 EQT Incentive Performance Share Unit Program
|
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Incorporated herein by reference to Exhibit 10.8 to Form 10-Q (#001-38629) for the quarterly period ended March 31, 2019.
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2019 Short-Term Incentive Plan
|
|
Incorporated herein by reference to Exhibit 10.9 to Form 10-Q (#001-38629) for the quarterly period ended March 31, 2019.
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Form of Equitrans Midstream Corporation Director Participant Award Agreement
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|
Incorporated herein by reference to Exhibit 10.10 to Form 10-Q (#001-38629) for the quarterly period ended March 31, 2019.
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Schedule of Subsidiaries.
|
|
Filed herewith as Exhibit 21.1.
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Consent of Independent Registered Public Accounting Firm.
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|
Filed herewith as Exhibit 23.1.
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Consent of Independent Registered Public Accounting Firm (Mountain Valley Pipeline, LLC - Series A).
|
|
Filed herewith as Exhibit 23.2.
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Rule 13(a)-14(a) Certification of Principal Executive Officer.
|
|
Filed herewith as Exhibit 31.1.
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Rule 13(a)-14(a) Certification of Principal Financial Officer.
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|
Filed herewith as Exhibit 31.2.
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Section 1350 Certification of Principal Executive Officer and Principal Financial Officer.
|
|
Furnished herewith as Exhibit 32.
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Mountain Valley Pipeline, LLC (Series A) financial statements.
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|
Filed herewith as Exhibit 99.1.
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|
101
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|
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Inline Interactive Data File.
|
|
Filed herewith as Exhibit 101.
|
104
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Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
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|
Filed herewith as Exhibit 104.
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Equitrans Midstream Corporation
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(Registrant)
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By:
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/s/ KIRK R. OLIVER
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Kirk R. Oliver
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|
|
Senior Vice President and Chief Financial Officer
|
|
|
February 27, 2020
|
/s/ THOMAS F. KARAM
|
|
Chief Executive
|
|
February 27, 2020
|
Thomas F. Karam
|
|
Officer and Chairman
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
|
|
/s/ KIRK R. OLIVER
|
|
Senior Vice President and Chief
|
|
February 27, 2020
|
Kirk R. Oliver
|
|
Financial Officer
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
|
|
|
/s/ BRIAN P. PIETRANDREA
|
|
Vice President and Chief
|
|
February 27, 2020
|
Brian P. Pietrandrea
|
|
Accounting Officer
|
|
|
(Principal Accounting Officer)
|
|
|
|
|
|
|
|
|
|
/s/ VICKY A. BAILEY
|
|
Director
|
|
February 27, 2020
|
Vicky A. Bailey
|
|
|
|
|
|
|
|
|
|
/s/ SARAH M. BARPOULIS
|
|
Director
|
|
February 27, 2020
|
Sarah M. Barpoulis
|
|
|
|
|
|
|
|
|
|
/s/ KENNETH M. BURKE
|
|
Director
|
|
February 27, 2020
|
Kenneth M. Burke
|
|
|
|
|
|
|
|
|
|
/s/ MARGARET K. DORMAN
|
|
Director
|
|
February 27, 2020
|
Margaret K. Dorman
|
|
|
|
|
|
|
|
|
|
/s/ D. MARK LELAND
|
|
Director
|
|
February 27, 2020
|
D. Mark Leland
|
|
|
|
|
|
|
|
|
|
/s/ NORMAN J. SZYDLOWSKI
|
|
Director
|
|
February 27, 2020
|
Norman J. Szydlowski
|
|
|
|
|
|
|
|
|
|
/s/ ROBERT F. VAGT
|
|
Director
|
|
February 27, 2020
|
Robert F. Vagt
|
|
|
|
|
•
|
the distinctive serial designation of such series;
|
•
|
the annual dividend rate for such series, if any, and the date or dates from which dividends shall commence to accrue;
|
•
|
the redemption price or prices, if any, for shares of such series and the terms and conditions on which such shares may be redeemed;
|
•
|
the provisions for a sinking, purchase or similar fund, if any, for the redemption or purchase of shares of such series;
|
•
|
the preferential amount or amounts payable upon shares of such series in the event of the Company's voluntary or involuntary liquidation;
|
•
|
the voting rights, if any, of shares of such series;
|
•
|
the terms and conditions, if any, upon which shares of such series may be converted and the class or classes or series of the Company's securities into which such shares may be converted;
|
•
|
the relative seniority, parity or junior rank of such series with respect to other series of preferred stock then or thereafter to be issued; and
|
•
|
any other specific terms, preferences, rights, privileges, limitations or restrictions of such series.
|
___
|
This Agreement supersedes, terminates, and cancels Contract No. _____, dated _____________. The superseded contract is no longer in effect.
|
6.
|
The Receipt and Delivery Points are stated in Exhibit A to this Agreement.
|
CUSTOMER:
|
|
EQUITRANS, L.P.:
|
By /s/ Paul Kress 1/8/2016
|
|
By /s/ David Gray 1/8/2016
|
Title Vice President
|
|
Title Senior Vice President
|
|
X
|
|
Mainline System (includes the Sunrise Transmission System and the Ohio
|
|
|
|
Valley Connector)
|
|
|
|
|
|
|
|
Allegheny Valley Connector
|
|
|
|
|
|
Base MDQ (Dth)
|
|
Winter MDQ (Dth)
|
|
Effective Date
|
|
650,000
|
|
650,000
|
|
1/9/2020
|
Primary Receipt Point(s)**
|
|
Base
|
|
Winter
|
Effective
|
(Meter No. and/or Meter Name)
|
|
MDQ Allocation
|
|
MDQ Allocation
|
Date
|
24605 – Mobley
|
|
310,000 Dth
|
|
310,000 Dth
|
1/9/2020
|
M5259543 – McIntosh
|
|
200,000 Dth
|
|
200,000 Dth
|
1/9/2020
|
M5237075 – Taurus
|
|
70,000 Dth
|
|
70,000 Dth
|
1/9/2020
|
17172 – Hopewell Ridge
|
|
30,000 Dth
|
|
30,000 Dth
|
1/9/2020
|
24490 – Pluto
|
|
40,000 Dth
|
|
40,000 Dth
|
1/9/2020
|
|
|
|
|
|
|
Primary Delivery Point(s)
|
|
Base
|
|
Winter
|
Effective
|
(Meter No. and/or Meter Name)
|
|
MDQ Allocation
|
|
MDQ Allocation
|
Date
|
60062D – REX Isaly
|
|
500,000 Dth
|
|
500,000 Dth
|
1/9/2020
|
70007D – Rover Traveler
|
|
150,000 Dth
|
|
150,000 Dth
|
1/9/2020
|
|
|
|
|
|
|
|
|
|
|
|
|
CUSTOMER:
|
|
EQUITRANS, L.P.:
|
By /s/ Nathaniel MacAdams 1/8/2020 |
|
By /s/ Andrew L. Murphy 1/8/2020
|
(Date)
|
|
(Date)
|
Title VP Structured Products |
|
Title Vice President |
|
|
|
|
|
|
CUSTOMER:
|
|
EQUITRANS, L.P.:
|
By /s/ Nathaniel MacAdams 1/8/2020 |
|
By /s/ Andrew L. Murphy 1/8/2020
|
(Date)
|
|
(Date)
|
Title VP Structured Products |
|
Title Vice President |
|
|
|
Entity
|
|
Jurisdiction
|
EQGP Holdings, LP
|
|
Delaware
|
EQGP Services, LLC
|
|
Delaware
|
EQM Gathering Holdings, LLC
|
|
Delaware
|
EQM Gathering Opco, LLC
|
|
Delaware
|
EQM GP Corporation
|
|
Delaware
|
EQM Midstream Finance Corporation
|
|
Delaware
|
EQM Midstream Management LLC
|
|
Delaware
|
EQM Midstream Partners, LP
|
|
Delaware
|
EQM Midstream Services, LLC
|
|
Delaware
|
EQM Olympus Midstream LLC
|
|
Delaware
|
EQM Poseidon Midstream LLC
|
|
Delaware
|
EQM West Virginia Midstream LLC
|
|
Delaware
|
EQM VE II Access, LLC
|
|
Delaware
|
EQM VG, LLC
|
|
Delaware
|
Eureka Midstream Holdings, LLC
|
|
Delaware
|
Eureka Land, LLC
|
|
Delaware
|
Eureka Midstream, LLC
|
|
Delaware
|
Eureka Services Intermediate, LLC
|
|
Delaware
|
Eureka Services, LLC
|
|
Delaware
|
Hornet Midstream Holdings, LLC
|
|
Delaware
|
Hornet Midstream Pipeline, LLC
|
|
Delaware
|
Equitrans Gathering Holdings, LLC
|
|
Delaware
|
Equitrans Investments, LLC
|
|
Delaware
|
Equitrans Midstream Holdings, LLC
|
|
Delaware
|
Equitrans Services, LLC
|
|
Delaware
|
Equitrans, L.P.
|
|
Pennsylvania
|
Equitrans Transaction Sub GP, LLC
|
|
Delaware
|
Equitrans Water Services (PA), LLC
|
|
Delaware
|
Equitrans Water Services (OH), LLC
|
|
Delaware
|
MVP Holdco, LLC
|
|
Delaware
|
Rager Mountain Storage Company LLC
|
|
Delaware
|
RM Partners LP
|
|
Delaware
|
RM Operating LLC
|
|
Delaware
|
Strike Force Midstream Holdings LLC
|
|
Delaware
|
Strike Force Midstream LLC
|
|
Delaware
|
Strike Force East LLC
|
|
Delaware
|
Strike Force South LLC
|
|
Delaware
|
•
|
Registration Statement (Form S-8 No. 333-231258) pertaining to the Equitrans Midstream Corporation Employee Savings Plan,
|
•
|
Registration Statement (Form S-8 No. 333-228338) pertaining to the Equitrans Midstream Corporation Employee Savings Plan,
|
•
|
Registration Statement (Form S-3 No. 333-234522) pertaining to the registration of Common stock, Preferred stock, Debt securities and Common Stock Offered by the Selling Shareholders;
|
•
|
Registration Statement (Form S-1 No. 333-228126) pertaining to the Equitrans Midstream Corporation 2018 Dividend Reinvestment and Stock Purchase Plan,
|
•
|
Registration Statement (Form S-1 No. 333-228129) pertaining to the registration of common stock of Equitrans Midstream Corporation,
|
•
|
Registration Statement (Form S-8 No. 333-228337) pertaining to the Equitrans Midstream Corporation 2018 Long-Term Incentive Plan, and
|
•
|
Registration Statement (Form S-8 No. 333-228340) pertaining to the Equitrans Midstream Corporation Directors’ Deferred Compensation Plan.
|
•
|
Registration Statement (Form S-8 No. 333-231258) pertaining to the Equitrans Midstream Corporation Employee Savings Plan,
|
•
|
Registration Statement (Form S-8 No. 333-228338) pertaining to the Equitrans Midstream Corporation Employee Savings Plan,
|
•
|
Registration Statement (Form S-3 No. 333-234522) pertaining to the registration of Common stock, Preferred stock, Debt securities and Common Stock Offered by the Selling Shareholders;
|
•
|
Registration Statement (Form S-1 No. 333-228126) pertaining to the Equitrans Midstream Corporation 2018 Dividend Reinvestment and Stock Purchase Plan,
|
•
|
Registration Statement (Form S-1 No. 333-228129) pertaining to the registration of common stock of Equitrans Midstream Corporation,
|
•
|
Registration Statement (Form S-8 No. 333-228337) pertaining to the Equitrans Midstream Corporation 2018 Long-Term Incentive Plan, and
|
•
|
Registration Statement (Form S-8 No. 333-228340) pertaining to the Equitrans Midstream Corporation Directors’ Deferred Compensation Plan.
|
|
|
|
|
|
/s/ Thomas F. Karam
|
|
Thomas F. Karam
|
|
Chief Executive Officer
|
|
|
|
|
|
/s/ Kirk R. Oliver
|
|
Kirk R. Oliver
|
|
Senior Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Equitrans Midstream Corporation.
|
/s/ Thomas F. Karam
|
|
|
February 27, 2020
|
Thomas F. Karam
Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
/s/ Kirk R. Oliver
|
|
|
February 27, 2020
|
Kirk R. Oliver
Senior Vice President and Chief Financial Officer
|
|
|
($ in thousands)
|
2019
|
|
2018
|
||||||
|
|
|
|
||||||
ASSETS
|
|
|
|
||||||
Current assets:
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
89,819
|
|
|
$
|
301,714
|
|
||
Capital contributions due from members
|
12,749
|
|
|
314,203
|
|
||||
Other current assets
|
70
|
|
|
9
|
|
||||
Total current assets
|
102,638
|
|
|
615,926
|
|
||||
|
|
|
|
||||||
Property, plant and equipment:
|
|
|
|
||||||
Construction work in process
|
4,941,598
|
|
|
3,185,957
|
|
||||
|
|
|
|
||||||
Other assets
|
9,923
|
|
|
16,549
|
|
||||
|
|
|
|
||||||
Total assets
|
$
|
5,054,159
|
|
|
$
|
3,818,432
|
|
||
|
|
|
|
||||||
LIABILITIES AND MEMBERS’ EQUITY
|
|
|
|
||||||
|
|
|
|
||||||
Current liabilities:
|
|
|
|
||||||
Accounts payable
|
$
|
222,326
|
|
|
$
|
605,644
|
|
||
Due to related parties
|
1,319
|
|
|
722
|
|
||||
Total current liabilities
|
223,645
|
|
|
606,366
|
|
||||
|
|
|
|
||||||
Members’ equity
|
4,830,514
|
|
|
3,212,066
|
|
||||
|
|
|
|
||||||
Total liabilities and members’ equity
|
$
|
5,054,159
|
|
|
$
|
3,818,432
|
|
($ in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||||
|
|
|
|
|
|
||||||||
Environmental expense
|
$
|
2,416
|
|
|
$
|
—
|
|
|
$
|
—
|
|
||
Allowance for equity funds used during construction
|
245,890
|
|
|
90,791
|
|
|
32,054
|
|
|||||
|
|
|
|
|
|
||||||||
Interest income:
|
|
|
|
|
|
||||||||
Allowance for borrowed funds used during construction
|
105,382
|
|
|
38,911
|
|
|
16,146
|
|
|||||
Other interest
|
6,243
|
|
|
5,762
|
|
|
528
|
|
|||||
Total interest income
|
111,625
|
|
|
44,673
|
|
|
16,674
|
|
|||||
|
|
|
|
|
|
||||||||
Net income
|
$
|
355,099
|
|
|
$
|
135,464
|
|
|
$
|
48,728
|
|
($ in thousands)
|
MVP Holdco, LLC
|
|
US Marcellus Gas Infrastructure, LLC
|
|
Con Edison Gas Pipeline and Storage, LLC
|
|
WGL Midstream, Inc.
|
|
RGC Midstream, LLC
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at January 1, 2017
|
$
|
185,072
|
|
|
$
|
125,961
|
|
|
$
|
50,028
|
|
|
$
|
40,536
|
|
|
$
|
4,033
|
|
|
$
|
405,630
|
|
Capital contributions and changes in ownership interest(a)
|
253,813
|
|
|
172,927
|
|
|
69,729
|
|
|
55,783
|
|
|
5,578
|
|
|
557,830
|
|
||||||
Net income
|
22,171
|
|
|
15,106
|
|
|
6,091
|
|
|
4,873
|
|
|
487
|
|
|
48,728
|
|
||||||
Balance at December 31, 2017
|
$
|
461,056
|
|
|
$
|
313,994
|
|
|
$
|
125,848
|
|
|
$
|
101,192
|
|
|
$
|
10,098
|
|
|
$
|
1,012,188
|
|
Capital contributions and changes in ownership interest(a)
|
939,308
|
|
|
639,969
|
|
|
258,052
|
|
|
206,442
|
|
|
20,643
|
|
|
2,064,414
|
|
||||||
Net income
|
61,636
|
|
|
41,994
|
|
|
16,933
|
|
|
13,546
|
|
|
1,355
|
|
|
135,464
|
|
||||||
Balance at December 31, 2018
|
$
|
1,462,000
|
|
|
$
|
995,957
|
|
|
$
|
400,833
|
|
|
$
|
321,180
|
|
|
$
|
32,096
|
|
|
$
|
3,212,066
|
|
Capital contributions and changes in ownership interest(a)
|
610,257
|
|
|
415,779
|
|
|
155,214
|
|
|
132,740
|
|
|
13,413
|
|
|
1,327,403
|
|
||||||
Less: Capital contributions due from members(b)
|
(33,845
|
)
|
|
(23,060
|
)
|
|
—
|
|
|
(6,405
|
)
|
|
(744
|
)
|
|
(64,054
|
)
|
||||||
Net income
|
161,576
|
|
|
110,085
|
|
|
44,377
|
|
|
35,510
|
|
|
3,551
|
|
|
355,099
|
|
||||||
Balance at December 31, 2019
|
$
|
2,199,988
|
|
|
$
|
1,498,761
|
|
|
$
|
600,424
|
|
|
$
|
483,025
|
|
|
$
|
48,316
|
|
|
$
|
4,830,514
|
|
(a)
|
Includes capital contributions due from members for a total amount of $76,803, $314,203 and $232,382 as of December 31, 2019, 2018 and 2017, respectively. As of the date of issuance, contributions due from members totaling $12,749 have been paid.
|
(b)
|
Includes capital contributions due from members as of December 31, 2019 that were unpaid as of the date of issuance.
|
($ in thousands)
|
2019
|
|
2018
|
|
2017
|
|||||||
|
|
|
|
|
|
|||||||
Cash flows from operating activities:
|
|
|
|
|
|
|||||||
Net income
|
$
|
355,099
|
|
|
$
|
135,464
|
|
|
$
|
48,728
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|||||||
Allowance for funds used during construction
|
(351,272)
|
|
|
(129,702)
|
|
|
(48,200)
|
|
||||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|||||||
Other assets
|
(61)
|
|
|
(8)
|
|
|
(416)
|
|
||||
Net cash provided by operating activities
|
3,766
|
|
|
5,754
|
|
|
112
|
|
||||
|
|
|
|
|
|
|||||||
Cash flows from investing activities:
|
|
|
|
|
|
|||||||
Capital expenditures
|
(1,780,466)
|
|
|
(1,784,521)
|
|
|
(281,552)
|
|
||||
Net cash used in investing activities
|
(1,780,466)
|
|
|
(1,784,521)
|
|
|
(281,552)
|
|
||||
|
|
|
|
|
|
|||||||
Cash flows from financing activities:
|
|
|
|
|
|
|||||||
Capital contributions from members
|
1,564,805
|
|
|
1,982,592
|
|
|
350,658
|
|
||||
Net cash provided by financing activities
|
1,564,805
|
|
|
1,982,592
|
|
|
350,658
|
|
||||
|
|
|
|
|
|
|||||||
Net change in cash and cash equivalents
|
(211,895)
|
|
|
203,825
|
|
|
69,218
|
|
||||
Cash and cash equivalents at beginning of year
|
301,714
|
|
|
97,889
|
|
|
28,671
|
|
||||
Cash and cash equivalents at end of year
|
$
|
89,819
|
|
|
$
|
301,714
|
|
|
$
|
97,889
|
|