EQT Midstream Partners and Rice Midstream Partners announced that EQT Corporation, the corporate sponsor of each entity, is considering a simplified business structure for the midstream entities
under its control. The review includes the dropdown of EQT-owned midstream assets to EQM, as well as potential entity combinations. As a result of this review work, detailed midstream guidance for 2018 will not be provided at this time.
Based on standalone EQM, annual per unit distribution growth is expected to be 15% – 20% for several years, including 2018, while targeting a long-term coverage ratio of 1.1x. The corresponding annual per unit distribution growth target for standalone EQT GP Holdings, LP (NYSE: EQGP) is 30% – 40%.
Based on standalone RMP, annual per unit distribution growth is expected to be 15% – 20% for several years, including 2018, while targeting a long-term coverage ratio of 1.1x.
2018 EQM Investments:
EQM investments in organic projects, including capital contributions to Mountain Valley Pipeline, LLC, are expected to total approximately $1.4 – $1.6 billion in 2018. Ongoing maintenance capital expenditures are expected to be $35 – 40 million, net of expected reimbursements.
2018 RMP Investments:
RMP investments in organic projects are expected to total approximately $260 million in 2018; including $215 million for gathering and compression and $45 million for water infrastructure. Estimated maintenance capital expenditures are $22 million.
Year-end Earnings Information:
EQM and EQGP intend to release full-year 2017 earnings and host a live webcast for security analysts on February 15, 2018. The webcast will be available at www.eqtmidstreampartners.com and will begin at 11:30 a.m. ET.