Cover
Cover - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Apr. 30, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38629 | |
Entity Registrant Name | EQUITRANS MIDSTREAM CORPORATION | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 83-0516635 | |
Entity Address, Address Line One | 2200 Energy Drive | |
Entity Address, City or Town | Canonsburg | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15317 | |
City Area Code | 724 | |
Local Phone Number | 271-7600 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | ETRN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Small Business Entity | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 432,763 | |
Entity Central Index Key | 0001747009 | |
Amendment Flag | false | |
Current Fiscal Year End | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Income Statement [Abstract] | |||
Operating revenues | $ 342,146 | $ 379,996 | |
Operating expenses: | |||
Operating and maintenance | 32,834 | 34,099 | |
Selling, general and administrative | 28,126 | 35,494 | |
Depreciation | 67,043 | 68,618 | |
Amortization of intangible assets | 16,205 | 16,205 | |
Total operating expenses | 144,208 | 154,416 | |
Operating income | 197,938 | 225,580 | |
Equity income | [1] | 4 | 3 |
Other income, net | 6,348 | 7,599 | |
Loss on extinguishment of debt | 0 | (41,025) | |
Net interest expense | (93,121) | (95,144) | |
Income before income taxes | 111,169 | 97,013 | |
Income tax expense | 6,261 | 20,416 | |
Net income | 104,908 | 76,597 | |
Net income attributable to noncontrolling interests | 3,775 | 3,914 | |
Net income attributable to Equitrans Midstream | 101,133 | 72,683 | |
Preferred dividends | 14,628 | 14,628 | |
Net income attributable to Equitrans Midstream common shareholders | $ 86,505 | $ 58,055 | |
Earnings per share of common stock attributable to Equitrans Midstream common shareholders - basic (in dollars per share) | $ 0.20 | $ 0.13 | |
Earnings per share of common stock attributable to Equitrans Midstream common shareholders - diluted (in dollars per share) | $ 0.20 | $ 0.13 | |
Weighted average common shares outstanding - basic (in shares) | 433,318 | 432,983 | |
Weighted average common shares outstanding - diluted (in shares) | 433,913 | 433,158 | |
Statement of comprehensive income: | |||
Net income | $ 104,908 | $ 76,597 | |
Other comprehensive income, net of tax: | |||
Pension and other post-retirement benefits liability adjustment, net of tax expense of $12 and $12 | 34 | 34 | |
Other comprehensive income | 34 | 34 | |
Comprehensive income | 104,942 | 76,631 | |
Less: Comprehensive income attributable to noncontrolling interests | 3,775 | 3,914 | |
Less: Comprehensive income attributable to preferred dividends | 14,628 | 14,628 | |
Comprehensive income attributable to Equitrans Midstream common shareholders | $ 86,539 | $ 58,089 | |
Dividends declared per common share (in dollars per share) | $ 0.15 | $ 0.15 | |
[1] | Represents equity income from Mountain Valley Pipeline, LLC (the MVP Joint Venture). See Note 5. |
Statements of Consolidated Co_2
Statements of Consolidated Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Pension and other post-retirement benefits liability adjustments, tax expense | $ 12 | $ 12 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Cash flows from operating activities: | |||
Net income | $ 104,908 | $ 76,597 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 67,043 | 68,618 | |
Amortization of intangible assets | 16,205 | 16,205 | |
Deferred income taxes | 4,603 | 20,406 | |
Equity income | [1] | (4) | (3) |
Other income | (6,501) | (7,254) | |
Loss on extinguishment of debt | 0 | 41,025 | |
Non-cash long-term compensation expense | 2,990 | 4,445 | |
Changes in other assets and liabilities: | |||
Accounts receivable | 34,759 | 17,725 | |
Accounts payable | (7,679) | 1,337 | |
Accrued interest | (74,812) | (46,934) | |
Deferred revenue | 86,652 | 72,019 | |
Other assets and other liabilities | (42,218) | (34,634) | |
Net cash provided by operating activities | 185,946 | 229,552 | |
Cash flows from investing activities: | |||
Capital expenditures | (71,285) | (61,265) | |
Capital contributions to the MVP Joint Venture | (72,537) | (10,723) | |
Principal payments received on the Preferred Interest | 1,351 | 1,277 | |
Net cash used in investing activities | (142,471) | (70,711) | |
Cash flows from financing activities: | |||
Proceeds from revolving credit facility borrowings | 55,000 | 77,500 | |
Payments on revolving credit facility borrowings | (112,000) | (70,000) | |
Proceeds from the issuance of long-term debt | 0 | 1,900,000 | |
Debt discounts, debt issuance costs and credit facility arrangement fees | 0 | (24,204) | |
Payment for retirement of long-term debt | 0 | (1,936,250) | |
Dividends paid to holders of Equitrans Midstream Preferred Shares | (14,628) | (14,628) | |
Dividends paid to common shareholders | (64,901) | (64,871) | |
Distributions to noncontrolling interests | 0 | (2,500) | |
Net cash used in financing activities | (136,529) | (134,953) | |
Net change in cash and cash equivalents | (93,054) | 23,888 | |
Cash and cash equivalents at beginning of period | 134,661 | 208,023 | |
Cash and cash equivalents at end of period | 41,607 | 231,911 | |
Cash paid during the period for: | |||
Interest, net of amount capitalized | 165,631 | 140,199 | |
Cash paid for taxes | $ 815 | $ 0 | |
[1] | Represents equity income from Mountain Valley Pipeline, LLC (the MVP Joint Venture). See Note 5. |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 41,607 | $ 134,661 |
Accounts receivable (net of allowance for credit losses of $2,683 and $2,696 as of March 31, 2022 and December 31, 2021, respectively) | 231,985 | 252,301 |
Other current assets | 52,306 | 59,867 |
Total current assets | 325,898 | 446,829 |
Property, plant and equipment | 9,061,829 | 9,004,602 |
Less: accumulated depreciation | (1,278,247) | (1,217,099) |
Net property, plant and equipment | 7,783,582 | 7,787,503 |
Investment in unconsolidated entity | 1,278,992 | 1,239,039 |
Goodwill | 486,698 | 486,698 |
Net intangible assets | 635,567 | 651,771 |
Other assets | 307,965 | 308,924 |
Total assets | 10,818,702 | 10,920,764 |
Current liabilities: | ||
Accounts payable | 47,649 | 59,627 |
Capital contributions payable to the MVP Joint Venture | 39,159 | 72,188 |
Accrued interest | 77,097 | 151,909 |
Accrued liabilities | 43,814 | 83,852 |
Total current liabilities | 207,719 | 367,576 |
Long-term liabilities: | ||
Revolving credit facility borrowings | 448,000 | 505,000 |
Long-term debt | 6,437,703 | 6,434,945 |
Contract liability | 907,994 | 821,342 |
Regulatory and other long-term liabilities | 97,156 | 99,333 |
Total liabilities | 8,098,572 | 8,228,196 |
Mezzanine equity: | ||
Equitrans Midstream Preferred Shares, 30,018 shares issued and outstanding as of March 31, 2022 and December 31, 2021 | 681,842 | 681,842 |
Shareholders' equity: | ||
Common stock, no par value, 432,677 and 432,522 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 3,960,588 | 3,957,756 |
Retained deficit | (2,407,250) | (2,428,171) |
Accumulated other comprehensive loss | (2,020) | (2,054) |
Total common shareholders' equity | 1,551,318 | 1,527,531 |
Noncontrolling interests | 486,970 | 483,195 |
Total shareholders' equity | 2,038,288 | 2,010,726 |
Total liabilities, mezzanine equity and shareholders' equity | $ 10,818,702 | $ 10,920,764 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, for doubtful accounts | $ 2,683 | $ 2,696 |
Mezzanine equity, preferred shares outstanding (in shares) | 30,018 | 30,018 |
Mezzanine equity, preferred shares issued (in shares) | 30,018 | 30,018 |
Common stock, shares issued (in shares) | 432,677 | 432,522 |
Common stock, shares outstanding (in shares) | 432,677 | 432,522 |
Statements of Consolidated Shar
Statements of Consolidated Shareholders' Equity and Mezzanine Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Retained Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2020 | 432,470 | ||||
Beginning balance at Dec. 31, 2020 | $ 3,681,272 | $ 3,941,295 | $ (728,959) | $ (2,229) | $ 471,165 |
Increase (Decrease) in Partners' Capital | |||||
Net income | 61,969 | 58,055 | 3,914 | ||
Pension and other post-retirement benefits liability adjustment, net of tax expense | 34 | 34 | |||
Dividends on common shares | (64,984) | (64,984) | |||
Share-based compensation plans (in shares) | 28 | ||||
Share-based compensation plans, net | 4,662 | $ 4,662 | |||
Distributions paid to noncontrolling interest unitholders | (2,500) | (2,500) | |||
Ending balance (in shares) at Mar. 31, 2021 | 432,498 | ||||
Ending balance at Mar. 31, 2021 | 3,680,453 | $ 3,945,957 | (735,888) | (2,195) | 472,579 |
Mezzanine Equity, beginning balance at Dec. 31, 2020 | 681,842 | ||||
Mezzanine Equity | |||||
Mezzanine Equity, Net income (loss) | 14,628 | ||||
Dividends paid to holders of Equitrans Midstream Preferred Shares ($0.4873 per share) | (14,628) | ||||
Mezzanine Equity, ending balance at Mar. 31, 2021 | $ 681,842 | ||||
Beginning balance (in shares) at Dec. 31, 2021 | 432,522 | 432,522 | |||
Beginning balance at Dec. 31, 2021 | $ 2,010,726 | $ 3,957,756 | (2,428,171) | (2,054) | 483,195 |
Increase (Decrease) in Partners' Capital | |||||
Net income | 90,280 | 86,505 | 3,775 | ||
Pension and other post-retirement benefits liability adjustment, net of tax expense | 34 | 34 | |||
Dividends on common shares | (65,584) | (65,584) | |||
Share-based compensation plans (in shares) | 155 | ||||
Share-based compensation plans, net | $ 2,832 | $ 2,832 | |||
Ending balance (in shares) at Mar. 31, 2022 | 432,677 | 432,677 | |||
Ending balance at Mar. 31, 2022 | $ 2,038,288 | $ 3,960,588 | $ (2,407,250) | $ (2,020) | $ 486,970 |
Mezzanine Equity, beginning balance at Dec. 31, 2021 | 681,842 | ||||
Mezzanine Equity | |||||
Mezzanine Equity, Net income (loss) | 14,628 | ||||
Dividends paid to holders of Equitrans Midstream Preferred Shares ($0.4873 per share) | (14,628) | ||||
Mezzanine Equity, ending balance at Mar. 31, 2022 | $ 681,842 |
Statements of Consolidated Sh_2
Statements of Consolidated Shareholders' Equity and Mezzanine Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension and other post-retirement benefits liability adjustments, tax expense | $ 12 | $ 12 |
Dividends (in dollars per share) | $ 0.15 | $ 0.15 |
EQM Midstream Partners, LP | ||
Cash distributions declared (in dollars per unit) | $ 0.4873 | $ 0.4873 |
Financial Statements
Financial Statements | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statements | Financial Statements Nature of Business. The Company provides midstream services to its customers in Pennsylvania, West Virginia and Ohio through its three primary assets: the gathering system, which includes predominantly dry gas gathering systems of high-pressure gathering lines; the transmission system, which includes FERC-regulated interstate pipelines and storage systems; and the water network, which primarily consists of water pipelines and other facilities that support well completion activities and produced water handling activities. Basis of Presentation. References in these financial statements to Equitrans Midstream or the Company refer collectively to Equitrans Midstream Corporation and its consolidated subsidiaries for all periods presented, unless otherwise indicated. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) for interim financial information and with the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these unaudited consolidated financial statements include all adjustments (consisting of only normal, recurring adjustments, unless otherwise disclosed in this Quarterly Report on Form 10-Q) necessary for a fair presentation of the financial position of the Company as of March 31, 2022, the results of its operations, cash flows and equity for the three months ended March 31, 2022 and 2021. The consolidated balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. This Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2021, which includes all disclosures required by GAAP. Due to, among other things, the seasonal nature of the Company's utility customer contracts, as well as producers’ well completion activities and varying needs for fresh and produced water (which are primarily driven by horizontal lateral lengths and the number of completion stages per well), the interim statements for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. For further information, refer to the Company's annual consolidated financial statements and related notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, as well as Part I, "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" contained herein. Recently Issued Accounting Standards. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) , which provides practical expedients for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. This guidance is applicable for the Amended EQM Credit Facility and the 2021 Eureka Credit Facility (as defined in Note 6), as well as for each dividend following March 31, 2024 for the Equitrans Midstream Preferred Shares, which each use the London Inter-Bank Offered Rate (LIBOR) as a reference rate. The ASU was effective immediately but is only available through December 31, 2022. The Company is currently evaluating the potential impact of this standard on its financial statements and related disclosures. In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the amendments in the ASU 2020-06 also simplify the guidance in ASC Subtopic 815-40, Derivatives and Hedging: Contracts in Entity’s Own Equity , by removing certain criteria that must be satisfied in order to classify a contract as equity. Finally, the amendments revise the guidance on calculating earnings per share, requiring use of the if-converted method for all convertible instruments and rescinding an entity’s ability to rebut the presumption of share settlement for instruments that may be settled in cash or other assets. The amendments were effective for fiscal years beginning after December 15, 2021. The Company adopted this standard on January 1, 2022 with no significant effect on the Company's financial statements or related disclosures. |
Financial Information by Busine
Financial Information by Business Segment | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Financial Information by Business Segment | Financial Information by Business Segment The Company reports its operations in three segments that reflect its three lines of business of Gathering, Transmission and Water, which reflects the manner in which management evaluates the business for making operating decisions and assessing performance. Three Months Ended March 31, 2022 2021 (Thousands) Revenues from customers: Gathering $ 219,790 $ 250,076 Transmission 110,795 111,419 Water 11,561 18,501 Total operating revenues $ 342,146 $ 379,996 Operating income (loss): Gathering $ 115,621 $ 139,854 Transmission 84,562 81,488 Water (1,856) 4,477 Headquarters (a) (389) (239) Total operating income $ 197,938 $ 225,580 Reconciliation of operating income to net income: Equity income (b) $ 4 $ 3 Other income, net (c) 6,348 7,599 Loss on extinguishment of debt — (41,025) Net interest expense (93,121) (95,144) Income tax expense 6,261 20,416 Net income $ 104,908 $ 76,597 (a) Includes certain unallocated corporate expenses. (b) Equity income is included in the Transmission segment. (c) Includes unrealized gains on derivative instruments recorded in the Gathering segment. March 31, 2022 December 31, 2021 (Thousands) Segment assets: Gathering $ 7,610,869 $ 7,638,877 Transmission (a) 2,798,661 2,769,097 Water 148,875 151,151 Total operating segments 10,558,405 10,559,125 Headquarters, including cash 260,297 361,639 Total assets $ 10,818,702 $ 10,920,764 (a) The equity investment in the MVP Joint Venture is included in the Transmission segment. Three Months Ended March 31, 2022 2021 (Thousands) Depreciation: Gathering $ 48,255 $ 46,547 Transmission 13,894 13,800 Water 4,517 8,175 Headquarters 377 96 Total $ 67,043 $ 68,618 Capital expenditures: Gathering (a) $ 53,147 $ 48,113 Transmission (b) 4,226 3,505 Water 9,565 4,807 Headquarters 12 1,157 Total (c) $ 66,950 $ 57,582 (a) Includes capital expenditures related to the noncontrolling interest in Eureka Midstream Holdings, LLC (Eureka Midstream) of approximately $3.0 million and $1.7 million for the three months ended March 31, 2022 and 2021, respectively. (b) Transmission capital expenditures do not include aggregate capital contributions made to the MVP Joint Venture for the MVP and MVP Southgate projects of approximately $72.5 million and $10.7 million for the three months ended March 31, 2022 and 2021, respectively. (c) The Company accrues capital expenditures when the work has been completed but the associated bills have not yet been paid. Accrued capital expenditures are excluded from the statements of consolidated cash flows until they are paid. The net impact of non-cash capital expenditures, including the effect of accrued capital expenditures, transfers to/from inventory as assets are completed/assigned to a project and capitalized share-based compensation costs, was $4.3 million and $3.7 million for the three months ended March 31, 2022 and 2021, respectively. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customers | Revenue from Contracts with Customers For the three months ended March 31, 2022 and 2021, all revenues recognized on the Company's statements of consolidated comprehensive income are from contracts with customers. As of March 31, 2022 and December 31, 2021, all receivables recorded on the Company's consolidated balance sheets represented performance obligations that have been satisfied and for which an unconditional right to consideration exists. Summary of disaggregated revenues. The tables below provide disaggregated revenue information by business segment. Three Months Ended March 31, 2022 Gathering Transmission Water Total (Thousands) Firm reservation fee revenues (a) $ 132,597 $ 102,870 $ 5,752 $ 241,219 Volumetric-based fee revenues 87,193 7,925 5,809 100,927 Total operating revenues $ 219,790 $ 110,795 $ 11,561 $ 342,146 Three Months Ended March 31, 2021 Gathering Transmission Water Total (Thousands) Firm reservation fee revenues (a) $ 148,192 $ 101,389 $ 1,844 $ 251,425 Volumetric-based fee revenues (b) 101,884 10,030 16,657 128,571 Total operating revenues $ 250,076 $ 111,419 $ 18,501 $ 379,996 (a) For the three months ended March 31, 2022, firm reservation fee revenues associated with Gathering included approximately $2.7 million of MVC unbilled revenues. For the three months ended March 31, 2021, firm reservation fee revenues associated with Gathering and Water included approximately $3.2 million and $0.5 million of MVC unbilled revenue, respectively. (b) For the three months ended March 31, 2021, volumetric-based fee revenues associated with Gathering included approximately $6.2 million of unbilled revenues. Contract assets. The Company's contract assets related to the Company's future MVC deficiency payments are generally expected to be collected within the next twelve months and are primarily included in other current assets in the Company's consolidated balance sheets until such time as the MVC deficiency payments are invoiced to the customer. The following table presents changes in the Company's unbilled revenue balance during the three months ended March 31, 2022 and 2021: Unbilled Revenue 2022 2021 (Thousands) Balance as of beginning of period $ 16,772 $ 18,618 Revenue recognized in excess of amounts invoiced (a) 4,692 10,188 Minimum volume commitments invoiced (b) (14,884) (16,931) Amortization (c) (110) — Balance as of end of period $ 6,470 $ 11,875 (a) Primarily includes revenues associated with MVCs that are generally included in firm reservation fee revenues within the Gathering and Water segments. During the three months ended March 31, 2021, also includes other contractual commitments of approximately $6.2 million. (b) Unbilled revenues are transferred to accounts receivable once the Company has an unconditional right to consideration from the customer. (c) Amortization of capitalized contract costs paid to customers over the expected life of the agreement. Contract liabilities. The Company's contract liabilities consisted of deferred revenue primarily associated with the EQT Global GGA. Contract liabilities are classified as current or non-current according to when such amounts are expected to be recognized. As of March 31, 2022, total contract liabilities were $909.1 million, of which $1.1 million was classified as current and recorded in accrued liabilities and $908.0 million was classified as non-current and recorded in contract liability on the Company's consolidated balance sheet. As of December 31, 2021, total contract liabilities were $822.4 million, of which $1.1 million was classified as current and recorded in accrued liabilities and $821.3 million was classified as non-current and recorded in contract liability on the Company's consolidated balance sheet. The following table presents changes in the Company's contract liability balances during the three months ended March 31, 2022 and 2021: Contract Liability 2022 2021 (Thousands) Balance as of beginning of period $ 822,416 $ 398,750 Amounts recorded during the period (a) 86,920 72,019 Amounts transferred during the period (b) (268) $ — Balance as of end of period $ 909,068 $ 470,769 (a) Includes deferred billed revenue during the three months ended March 31, 2022 and 2021 primarily associated with the EQT Global GGA. (b) Deferred revenues are recognized as revenue upon satisfaction of the Company's performance obligation to the customer. Summary of remaining performance obligations. The following table summarizes the estimated transaction price allocated to the Company's remaining performance obligations under all contracts with firm reservation fees, MVCs and/or ARCs as of March 31, 2022 that the Company will invoice or transfer from contract liabilities and recognize in future periods. 2022 (a) 2023 2024 2025 2026 Thereafter Total (Thousands) Gathering firm reservation fees $ 65,980 $ 105,804 $ 157,621 $ 150,060 $ 141,227 $ 1,277,907 $ 1,898,599 Gathering revenues supported by MVCs 334,378 457,843 429,233 448,262 459,424 3,477,205 5,606,345 Transmission firm reservation fees 260,613 359,260 376,572 363,629 358,800 3,228,443 4,947,317 Water revenues supported by ARCs 28,125 37,500 37,500 37,500 37,500 193,750 371,875 Total (b) $ 689,096 $ 960,407 $ 1,000,926 $ 999,451 $ 996,951 $ 8,177,305 $ 12,824,136 (a) April 1, 2022 through December 31, 2022. (b) Includes assumptions regarding timing for placing certain project s in-service. Such assumptions may not be realized and d elays in the in-service dates for projects have substantially altered, and additional delays may further substantially alter, the remaining performance obligations for certain contracts with firm reservation fees, MVCs and/or ARCs. The MVP Joint Venture is accounted for as an equity investment and those amounts are not included in the table above. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions As of March 31, 2022, EQT was a related party of the Company due to its ownership of 22,796,026 shares of Equitrans Midstream common stock, which represented an approximately 5.3% ownership interest in the Company, excluding the impact of the Equitrans Midstream Preferred Shares. In the ordinary course of business, the Company engaged, and continues to engage, as applicable, in transactions with EQT and its affiliates, including, but not limited to, entering into new or amending existing gathering agreements, transportation service and precedent agreements, storage agreements and water services agreements. As of May 3, 2022, EQT is no longer a related party of the Company. The following table summarizes the Company's related party transactions. Three Months Ended March 31, 2022 2021 (Thousands) Operating revenues $ 198,386 $ 224,957 Equity income 4 3 Interest income from the Preferred Interest 1,395 1,469 Capital contributions to the MVP Joint Venture (72,537) (10,723) Principal payments received on the Preferred Interest 1,351 1,277 The following table summarizes the Company's related party receivables and payables. March 31, 2022 December 31, 2021 (Thousands) Accounts receivable $ 168,114 $ 190,410 Contract asset — 2,246 Investment in unconsolidated entity 1,278,992 1,239,039 Preferred Interest 98,487 99,838 Capital contributions payable to the MVP Joint Venture 39,159 72,188 Contract liability 905,578 818,658 |
Investments in Unconsolidated E
Investments in Unconsolidated Entity | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entity | Investment in Unconsolidated Entity The MVP Joint Venture is constructing the Mountain Valley Pipeline (MVP), an estimated 300-mile natural gas interstate pipeline that is designed to span from northern West Virginia to southern Virginia. The Company will operate the MVP and owned a 47.0% interest in the MVP project as of March 31, 2022. On November 4, 2019, Consolidated Edison, Inc. (Con Edison) exercised an option to cap its investment in the construction of the MVP project at approximately $530 million (excluding AFUDC). The Company and NextEra Energy, Inc. are obligated to, and RGC Resources, Inc., another member of the MVP Joint Venture owning an interest in the MVP project, has opted to, fund the shortfall in Con Edison's capital contributions, on a pro rata basis. Such funding by the Company and funding by other members has and will correspondingly increase the Company's and such other funding members' respective interests in the MVP project and decrease Con Edison's interest in the MVP project. As a result, based on the Company's targeted cost for the project of approximately $6.6 billion (excluding AFUDC), the Company's equity ownership in the MVP project will progressively increase from approximately 47.0% to approximately 48.1%. The MVP Joint Venture is a variable interest entity because it has insufficient equity to finance its activities during the construction stage of the project. The Company is not the primary beneficiary of the MVP Joint Venture because the Company does not have the power to direct the activities that most significantly affect the MVP Joint Venture's economic performance. Certain business decisions, such as decisions to make distributions of cash, require a greater than 66 2/3% ownership interest approval, and no one member owns more than a 66 2/3% interest. In April 2018, the MVP Joint Venture announced the MVP Southgate project, which is a proposed 75-mile interstate pipeline that is contemplated to extend from the MVP at Pittsylvania County, Virginia to new delivery points in Rockingham and Alamance Counties, North Carolina. The Company is expected to operate the MVP Southgate pipeline and owned a 47.2% interest in the MVP Southgate project as of March 31, 2022. The MVP Joint Venture continues to evaluate the MVP Southgate project, including engaging in discussions with the project shipper, Dominion Energy North Carolina, regarding options with respect to the project, including potentially refining the project’s design and timing in lieu of pursuing the project as originally contemplated. Dominion Energy North Carolina’s obligations under the precedent agreement in support of the original project are subject to certain conditions, including that the MVP Joint Venture complete construction of the project facilities by June 1, 2022, which deadline is subject to extension by virtue of previously declared events of force majeure. The Company is unable to predict the results of the discussions between the MVP Joint Venture and Dominion Energy North Carolina, including any potential modifications to the project, or ultimate undertaking or completion of the project. In the fourth quarter of 2021, the Company incurred an other-than-temporary decline in value in its equity investment in the MVP Joint Venture, primarily due to unfavorable decisions by the U.S. Fourth Circuit Court of Appeals that vacated and remanded key authorizations, that resulted in a pre-tax impairment charge of $1.9 billion. As a result of the impairment, the carrying value of the Company's equity investment in the MVP Joint Venture was reduced to $1.2 billion as of December 31, 2021. There is risk that the Company's equity investment in the MVP Joint Venture may be further impaired in the future due to ongoing (and potentially future) legal and regulatory matters, as well as potential macroeconomic factors, including market fluctuations, changes in interest rates, cost increases and other unanticipated events. In March 2022, the MVP Joint Venture issued a capital call notice for the funding of the MVP project to MVP Holdco, LLC (MVP Holdco), a wholly owned subsidiary of the Company, for $39.1 million, of which $18.2 million was paid in May 2022, and $20.9 million is expected to be paid in June 2022. The capital contributions payable and the corresponding increase to the investment balance are reflected on the consolidated balance sheet as of March 31, 2022. Pursuant to the MVP Joint Venture's limited liability company agreement, MVP Holdco is obligated to provide performance assurances, which may take the form of a guarantee from EQM (provided that EQM's debt is rated as investment grade in accordance with the requirements of the MVP Joint Venture's limited liability company agreement), a letter of credit or cash collateral, in favor of the MVP Joint Venture to provide assurance as to the funding of MVP Holdco's proportionate share of the construction budget for the MVP project. In addition, pursuant to the MVP Joint Venture's limited liability company agreement, MVP Holdco is obligated to provide performance assurances in respect of MVP Southgate, which performance assurances may take the form of a guarantee from EQM (provided that EQM's debt is rated as investment grade in accordance with the requirements of the MVP Joint Venture's limited liability company agreement), a letter of credit or cash collateral. Based on EQM’s credit rating levels, EQM has delivered replacement credit support to the MVP Joint Venture in the form of letters of credit, which, in the case of the MVP project is in the amount of approximately $219.7 million and, in the case of the MVP Southgate, is in the amount of approximately $14.2 million, in each case, as of March 31, 2022. The amount of each of the letters of credit is subject to adjustment based upon the applicable project's construction budget. Upon the FERC’s initial release to begin construction of the MVP Southgate project, the Company's then-current letter of credit to support MVP Southgate will be terminated, and the Company will be obligated to deliver a new letter of credit (or provide another allowable form of performance assurance) in an amount equal to 33% of MVP Holdco’s proportionate share of the remaining capital obligations for the MVP Southgate project under the applicable construction budget. The following tables summarize the unaudited condensed consolidated financial statements of the MVP Joint Venture in relation to the MVP project. Condensed Consolidated Balance Sheets March 31, 2022 December 31, 2021 (Thousands) Current assets $ 82,570 $ 148,820 Non-current assets 6,515,268 6,432,288 Total assets $ 6,597,838 $ 6,581,108 Current liabilities $ 146,148 $ 160,331 Equity 6,451,690 6,420,777 Total liabilities and equity $ 6,597,838 $ 6,581,108 Condensed Statements of Consolidated Operations Three Months Ended March 31, 2022 2021 (Thousands) Operating expenses $ (1) $ — Other income 10 6 Net income $ 9 $ 6 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Amended EQM Revolving Credit Facility. As of March 31, 2022, the Company had aggregate commitments available of $2.25 billion under the Amended EQM Credit Facility, which is set to mature in October 2023. As of March 31, 2022, EQM had approximately $180 million of borrowings and $234.9 million of letters of credit outstanding under the Amended EQM Credit Facility. As of December 31, 2021, EQM had approximately $225 million of borrowings and $234.9 million of letters of credit outstanding under the Amended EQM Credit Facility. During the three months ended March 31, 2022, the maximum outstanding borrowings at any time was approximately $280 million and the average daily balance was approximately $260 million. EQM incurred interest at a weighted average annual interest rate of approximately 2.8% for the three months ended March 31, 2022. During the three months ended March 31, 2021, the maximum outstanding borrowings at any time was approximately $525 million and the average daily balance was approximately $489 million. EQM incurred interest at a weighted average annual interest rate of approximately 2.5% for the three months ended March 31, 2021. For the three months ended March 31, 2022, commitment fees of $1.8 million were paid to maintain credit availability under the Amended EQM Credit Facility. For the three months ended March 31, 2021, commitment fees of $2.3 million were paid to maintain credit availability under the First Amended EQM Credit Facility. As of March 31, 2022, no term loans were outstanding under the Amended EQM Credit Facility. See Note 10 for discussion of the Third Amendment (as defined in Note 10) to the Amended EQM Credit Facility. Amended 2019 EQM Term Loan Agreement. On January 8, 2021, EQM (i) applied a portion of the proceeds from the issuance of the 2021 Senior Notes (as defined below) to prepay all principal, interest, fees and other obligations outstanding under the Amended 2019 EQM Term Loan Agreement and (ii) terminated the Amended 2019 EQM Term Loan Agreement and the loan documents associated therewith. EQM repaid outstanding term loans (the EQM Term Loans) with a principal amount of $1.4 billion in connection with the termination of the Amended 2019 EQM Term Loan Agreement. Prior to its termination in January 2021, the Amended 2019 EQM Term Loan Agreement would have matured in August 2022. During the period from January 1, 2021 through January 7, 2021, the weighted average annual interest rate was approximately 2.4%. Eureka Credit Facilities. On May 13, 2021, Eureka Midstream, LLC (Eureka), a wholly owned subsidiary of Eureka Midstream, repaid all outstanding principal borrowings plus accrued and unpaid interest under and terminated its credit facility with ABN AMRO Capital USA LLC, as administrative agent, the lenders party thereto from time to time and any other persons party thereto from time to time (the Former Eureka Credit Facility). In conjunction with the termination of, and to fund the repayment of all outstanding amounts under the Former Eureka Credit Facility, on May 13, 2021, Eureka entered into a $400 million senior secured revolving credit facility with Sumitomo Mitsui Banking Corporation, as administrative agent, the lenders party thereto from time to time and any other persons party thereto from time to time (the 2021 Eureka Credit Facility). As of March 31, 2022, and December 31, 2021, Eureka had approximately $268 million and $280 million, respectively, of borrowings outstanding under the 2021 Eureka Credit Facility. For the three months ended March 31, 2022, the maximum amount of outstanding borrowings under the 2021 Eureka Credit Facility at any time was approximately $280 million and the average daily balance was approximately $277 million and Eureka incurred interest at a weighted average annual interest rate of approximately 2.9%. For the three months ended March 31, 2022, commitment fees of $0.1 million were paid to maintain credit availability under the 2021 Eureka Credit Facility. For the three months ended March 31, 2021, the maximum amount of outstanding borrowings under the Former Eureka Credit Facility at any time was approximately $310 million, the average daily balance was approximately $305 million and Eureka incurred interest at a weighted average annual interest rate of approximately 2.4%. For the three months ended March 31, 2021, commitment fees of $0.1 million were paid to maintain credit availability under the Former Eureka Credit Facility. 2021 Senior Notes. During the first quarter of 2021, EQM issued, in a private offering, $800 million aggregate principal amount of new 4.50% senior notes due 2029 (the 2029 Notes) and $1,100 million aggregate principal amount of new 4.75% senior notes due 2031 (the 2031 Notes and, together with the 2029 Notes, the 2021 Senior Notes) and received net proceeds from the offering of approximately $1,876.5 million (excluding costs related to the Tender Offers discussed below), inclusive of a discount of $19 million and debt issuance costs of $4.5 million. EQM used the net proceeds from the offering of the 2021 Senior Notes and cash on hand to repay all outstanding borrowings under the Amended 2019 EQM Term Loan Agreement, to purchase an aggregate principal amount of $500 million of its outstanding 4.75% notes due 2023 (2023 Notes) pursuant to tender offers for certain of EQM's outstanding indebtedness (such tender offers, the Tender Offers), and for general partnership purposes. Tender Offers. On January 15, 2021 (the early tender deadline), the maximum principal amount for the Tender Offers was fully subscribed by the 2023 Notes tendered as of the early tender deadline and on January 20, 2021, EQM purchased an aggregate principal amount of $500 million of 2023 Notes at an aggregate cost of approximately $537 million (inclusive of the applicable early tender premium for the 2023 Notes described in that certain Offer to Purchase of EQM dated January 4, 2021, as amended, plus accrued interest). The Company incurred a loss on the extinguishment of debt of $41.0 million during the three months ended March 31, 2021 related to the payment of the Tender Offer premium and write off of unamortized discounts and financing costs related to the prepayment of the EQM Term Loans under, and termination of, the Amended 2019 EQM Term Loan Agreement and purchase of 2023 Notes in the Tender Offers. This amount is included in the loss on extinguishment of debt line on the statements of consolidated comprehensive income. As of March 31, 2022, EQM and Eureka were in compliance with all debt provisions and covenants. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets Measured at Fair Value on a Recurring Basis. The Company records derivative instruments at fair value on a gross basis in its consolidated balance sheets. The EQT Global GGA provides for potential cash bonus payments payable by EQT to the Company during the period beginning on the first day of the calendar quarter in which the MVP full in-service date occurs through the calendar quarter ending December 31, 2024 (the Henry Hub cash bonus payment provision). The potential cash bonus payments are conditioned upon the quarterly average of certain Henry Hub natural gas prices exceeding certain price thresholds. The Henry Hub cash bonus payment provision is accounted for as a derivative instrument and recorded at its estimated fair value using a Monte Carlo simulation model. Significant inputs used in the fair value measurement include NYMEX Henry Hub natural gas futures prices as of the date of valuation, the targeted in-service date for the MVP, risk-free interest rates based on U.S. Treasury rates, expected volatility of NYMEX Henry Hub natural gas futures prices and an estimated credit spread of EQT. The expected volatility of NYMEX Henry Hub natural gas futures prices used in the valuation methodology represents a significant unobservable input causing the Henry Hub cash bonus payment provision to be designated as a Level 3 fair value measurement. An expected average volatility of approximately 50% was utilized in the valuation model, which is based on market-quoted volatilities of relevant NYMEX Henry Hub natural gas forward prices. As of March 31, 2022 and December 31, 2021, the fair values of the Henry Hub cash bonus payment provision were $58.1 million and $51.6 million, respectively, which were recorded in other assets on the Company's consolidated balance sheets. During the three months ended March 31, 2022 and 2021, the Company recognized gains of $6.4 million and $7.1 million, respectively, representing the change in estimated fair value of the derivative instrument during the respective period. The gains are reflected in other income, net in the Company's statements of consolidated comprehensive income. Other Financial Instruments. The carrying values of cash and cash equivalents, accounts receivable, amounts due to/from related parties and accounts payable approximate fair value due to the short maturity of the instruments; as such, their fair values are Level 1 fair value measurements. The carrying values of borrowings under the Amended EQM Credit Facility, the Former Eureka Credit Facility (prior to its termination), the 2021 Eureka Credit Facility and the Amended 2019 EQM Term Loan Agreement (prior to its termination) approximate fair value as the interest rates are based on prevailing market rates; these are considered Level 1 fair value measurements. As EQM's borrowings under its senior notes are not actively traded, their fair values are estimated using an income approach model that applies a discount rate based on prevailing market rates for debt with similar remaining time-to-maturity and credit risk; as such, their fair values are Level 2 fair value measurements. As of March 31, 2022, and December 31, 2021, the estimated fair values of EQM's senior notes were approximately $6,425.6 million and $7,060.5 million, respectively. The fair value of the Preferred Interest is a Level 3 fair value measurement and is estimated using an income approach model that applies a market-based discount rate. As of March 31, 2022, and December 31, 2021, the estimated fair values of the Preferred Interest were approximately $107.6 million and $117.0 million, respectively, and the carrying values of the Preferred Interest were approximately $98.5 million and $100.0 million, respectively. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per ShareThe Company excluded 30,137 and 30,076 (in thousands) of weighted average anti-dilutive securities related to the Equitrans Midstream Preferred Shares and stock-based compensation awards from the computation of diluted weighted average common shares outstanding for the three months ended March 31, 2022 and 2021, respectively. The Company grants Equitrans Midstream phantom units to certain non-employee directors that will be paid in Equitrans Midstream common stock upon the director's termination of service on the Board. As there are no remaining service, performance or market conditions related to these awards, 642 and 486 (in thousands) Equitrans Midstream phantom units were included in the computation of basic and diluted weighted average common shares outstanding for the three months ended March 31, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate was 5.6% for the three months ended March 31, 2022, compared to 21.0% for the three months ended March 31, 2021. For the three months ended March 31, 2022 and 2021, the Company calculated the provision for income taxes for interim periods by applying an estimate of the annual effective tax rate for the full fiscal year to "ordinary" income or loss (pre-tax income or loss excluding unusual or infrequently occurring items) for the periods. The effective tax rate was lower for the three months ended March 31, 2022 compared to the three months ended March 31, 2021 primarily due to a reduction in the valuation allowances that limit tax benefits for the Company’s federal and state deferred tax assets, which valuation allowances were recorded by the Company at December 31, 2021. The effective tax rate for the three months ended March 31, 2022 was lower than the statutory rate primarily due to the reduction in the valuation allowances that limit tax benefits for the Company’s federal and state deferred tax assets. The effective tax rate for the three months ended March 31, 2021 was lower than the statutory rate primarily due to the impact of AFUDC - equity on the MVP project. For the three months ended March 31, 2022, the Company believes that it is more likely than not that the benefit from a portion of its federal and state net operating loss (NOL) carryforwards and deferred tax assets related to interest disallowance under Internal Revenue Code Section 163(j), net of offsetting deferred tax liabilities, will not be realized. For the three months ended March 31, 2022, the Company recorded a $23.1 million income tax benefit related to changes in valuation allowances because of decreases in federal and state deferred tax assets. As of March 31, 2022, the valuation allowances related to federal and state deferred tax assets that are not more likely than not to be realized were $74.5 million compared to the year ended December 31, 2021, of $97.6 million. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not (greater than 50%) that a tax benefit will not be realized. In evaluating the need for a valuation allowance, management considers available evidence, both positive and negative, including potential sources of taxable income, income available in carry-back periods, future reversals of taxable temporary differences, projections of taxable income and income from tax planning strategies. Positive evidence includes reversing temporary differences and projection of future profitability within the carry-forward period, including from tax planning strategies. Negative evidence includes historical pre-tax book losses and Pennsylvania NOL expirations. A review of positive and negative evidence regarding these tax benefits resulted in the conclusion that valuation allowances on the Company’s federal and state NOL carryforwards and deferred tax assets related to interest disallowance under Internal Revenue Code Section 163(j), net of offsetting deferred tax liabilities, were warranted as it was more likely than not that these assets will not be realized. Any determination to change the valuation allowance would impact the Company's income tax expense in the period in which such a determination is made. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 22, 2022 (the Amendment Date), EQM entered into an amendment (the Third Amendment) to the Amended EQM Credit Facility. The Third Amendment, among other things: • Replaced LIBOR with SOFR as the benchmark rate for borrowings, including a credit spread adjustment of 0.10% for all applicable interest periods as well as for daily swing line borrowings. • Extended the stated maturity date, with such extension only applicable for the lenders approving the Third Amendment, from October 31, 2023 (the Earlier Maturity Date) to April 30, 2025 (the Later Maturity Date). • Reduced the aggregate commitments available under the Amended EQM Credit Facility, as amended by the Third Amendment, on a non-pro rata basis to approximately $2.16 billion, with approximately $1.55 billion in aggregate commitments available under the Amended EQM Credit Facility, as amended by the Third Amendment, on and after the Earlier Maturity Date and prior to the Later Maturity Date. • Amended the definition of “Applicable Rate” to change the applicable percentages per annum set forth in the “Pricing Grid” for certain pricing levels, which continue to be determined on the basis of EQM’s then current credit ratings. As of the Amendment Date, (i) Base Rate Loans (as defined in the Amended EQM Credit Facility, as amended by the Third Amendment) bear interest at a base rate plus a margin of 1.750% per annum, (ii) SOFR Loans (as defined in the Amended EQM Credit Facility, as amended by the Third Amendment) bear interest at Adjusted Term SOFR (as defined in the Amended EQM Credit Facility, as amended by the Third Amendment) plus a margin of 2.750% per annum, (iii) Daily Simple Swing Line Loans (as defined in the Amended EQM Credit Facility, as amended by the Third Amendment) bear interest at Adjusted Daily Simple SOFR (as defined in the Amended EQM Credit Facility, as amended by the Third Amendment) plus a margin of 2.750% per annum, (iv) the letter of credit fee payable on the daily maximum amount available under each letter of credit is 2.750% per annum and (v) the commitment fee payable for unused commitments is 0.500% per annum. • Amended the financial covenant, such that the Consolidated Leverage Ratio (as defined in the Amended EQM Credit Facility, as amended by the Third Amendment) as at the end of each fiscal quarter of EQM ending on or after the Amendment Date cannot exceed 5.50 to 1.00; provided that, effective as of the MVP Mobilization Effective Date (as defined in the Amended EQM Credit Facility, as amended by the Third Amendment), the maximum Consolidated Leverage Ratio permitted with respect to the end of the fiscal quarter in which the MVP Mobilization Effective Date occurs and the end of each of the three consecutive fiscal quarters of EQM thereafter shall be 5.85 to 1.00. • Reduced each of the general lien and general subsidiary debt baskets based on Consolidated Net Tangible Assets (as defined in the Amended EQM Credit Facility, as amended by the Third Amendment) from 5.0% to 2.5% of Consolidated Net Tangible Assets. |
Financial Statements (Policies)
Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation. References in these financial statements to Equitrans Midstream or the Company refer collectively to Equitrans Midstream Corporation and its consolidated subsidiaries for all periods presented, unless otherwise indicated. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) for interim financial information and with the requirements of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these unaudited consolidated financial statements include all adjustments (consisting of only normal, recurring adjustments, unless otherwise disclosed in this Quarterly Report on Form 10-Q) necessary for a fair presentation of the financial position of the Company as of March 31, 2022, the results of its operations, cash flows and equity for the three months ended March 31, 2022 and 2021. The consolidated balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. This Quarterly Report on Form 10-Q should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2021, which includes all disclosures required by GAAP. Due to, among other things, the seasonal nature of the Company's utility customer contracts, as well as producers’ well completion activities and varying needs for fresh and produced water (which are primarily driven by horizontal lateral lengths and the number of completion stages per well), the interim statements for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. For further information, refer to the Company's annual consolidated financial statements and related notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, as well as Part I, "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" contained herein. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) , which provides practical expedients for contract modifications and certain hedging relationships associated with the transition from reference rates that are expected to be discontinued. This guidance is applicable for the Amended EQM Credit Facility and the 2021 Eureka Credit Facility (as defined in Note 6), as well as for each dividend following March 31, 2024 for the Equitrans Midstream Preferred Shares, which each use the London Inter-Bank Offered Rate (LIBOR) as a reference rate. The ASU was effective immediately but is only available through December 31, 2022. The Company is currently evaluating the potential impact of this standard on its financial statements and related disclosures. In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which simplifies the accounting for convertible debt and convertible preferred stock by removing the requirements to separately present certain conversion features in equity. In addition, the amendments in the ASU 2020-06 also simplify the guidance in ASC Subtopic 815-40, Derivatives and Hedging: Contracts in Entity’s Own Equity |
Financial Information by Busi_2
Financial Information by Business Segment (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Operating Income and Reconciliation to Net Income | Three Months Ended March 31, 2022 2021 (Thousands) Revenues from customers: Gathering $ 219,790 $ 250,076 Transmission 110,795 111,419 Water 11,561 18,501 Total operating revenues $ 342,146 $ 379,996 Operating income (loss): Gathering $ 115,621 $ 139,854 Transmission 84,562 81,488 Water (1,856) 4,477 Headquarters (a) (389) (239) Total operating income $ 197,938 $ 225,580 Reconciliation of operating income to net income: Equity income (b) $ 4 $ 3 Other income, net (c) 6,348 7,599 Loss on extinguishment of debt — (41,025) Net interest expense (93,121) (95,144) Income tax expense 6,261 20,416 Net income $ 104,908 $ 76,597 (a) Includes certain unallocated corporate expenses. (b) Equity income is included in the Transmission segment. |
Schedule of Segment Assets | March 31, 2022 December 31, 2021 (Thousands) Segment assets: Gathering $ 7,610,869 $ 7,638,877 Transmission (a) 2,798,661 2,769,097 Water 148,875 151,151 Total operating segments 10,558,405 10,559,125 Headquarters, including cash 260,297 361,639 Total assets $ 10,818,702 $ 10,920,764 |
Schedule of Depreciation and Amortization and Expenditures for Segment Assets | Three Months Ended March 31, 2022 2021 (Thousands) Depreciation: Gathering $ 48,255 $ 46,547 Transmission 13,894 13,800 Water 4,517 8,175 Headquarters 377 96 Total $ 67,043 $ 68,618 Capital expenditures: Gathering (a) $ 53,147 $ 48,113 Transmission (b) 4,226 3,505 Water 9,565 4,807 Headquarters 12 1,157 Total (c) $ 66,950 $ 57,582 (a) Includes capital expenditures related to the noncontrolling interest in Eureka Midstream Holdings, LLC (Eureka Midstream) of approximately $3.0 million and $1.7 million for the three months ended March 31, 2022 and 2021, respectively. (b) Transmission capital expenditures do not include aggregate capital contributions made to the MVP Joint Venture for the MVP and MVP Southgate projects of approximately $72.5 million and $10.7 million for the three months ended March 31, 2022 and 2021, respectively. (c) The Company accrues capital expenditures when the work has been completed but the associated bills have not yet been paid. Accrued capital expenditures are excluded from the statements of consolidated cash flows until they are paid. The net impact of non-cash capital expenditures, including the effect of accrued capital expenditures, transfers to/from inventory as assets are completed/assigned to a project and capitalized share-based compensation costs, was $4.3 million and $3.7 million for the three months ended March 31, 2022 and 2021, respectively. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenue Information, By Segment | The tables below provide disaggregated revenue information by business segment. Three Months Ended March 31, 2022 Gathering Transmission Water Total (Thousands) Firm reservation fee revenues (a) $ 132,597 $ 102,870 $ 5,752 $ 241,219 Volumetric-based fee revenues 87,193 7,925 5,809 100,927 Total operating revenues $ 219,790 $ 110,795 $ 11,561 $ 342,146 Three Months Ended March 31, 2021 Gathering Transmission Water Total (Thousands) Firm reservation fee revenues (a) $ 148,192 $ 101,389 $ 1,844 $ 251,425 Volumetric-based fee revenues (b) 101,884 10,030 16,657 128,571 Total operating revenues $ 250,076 $ 111,419 $ 18,501 $ 379,996 |
Contract with Customer, Asset and Liability | The following table presents changes in the Company's unbilled revenue balance during the three months ended March 31, 2022 and 2021: Unbilled Revenue 2022 2021 (Thousands) Balance as of beginning of period $ 16,772 $ 18,618 Revenue recognized in excess of amounts invoiced (a) 4,692 10,188 Minimum volume commitments invoiced (b) (14,884) (16,931) Amortization (c) (110) — Balance as of end of period $ 6,470 $ 11,875 (a) Primarily includes revenues associated with MVCs that are generally included in firm reservation fee revenues within the Gathering and Water segments. During the three months ended March 31, 2021, also includes other contractual commitments of approximately $6.2 million. (b) Unbilled revenues are transferred to accounts receivable once the Company has an unconditional right to consideration from the customer. (c) Amortization of capitalized contract costs paid to customers over the expected life of the agreement. The following table presents changes in the Company's contract liability balances during the three months ended March 31, 2022 and 2021: Contract Liability 2022 2021 (Thousands) Balance as of beginning of period $ 822,416 $ 398,750 Amounts recorded during the period (a) 86,920 72,019 Amounts transferred during the period (b) (268) $ — Balance as of end of period $ 909,068 $ 470,769 (a) Includes deferred billed revenue during the three months ended March 31, 2022 and 2021 primarily associated with the EQT Global GGA. (b) Deferred revenues are recognized as revenue upon satisfaction of the Company's performance obligation to the customer. |
Summary of Remaining Performance Obligations | The following table summarizes the estimated transaction price allocated to the Company's remaining performance obligations under all contracts with firm reservation fees, MVCs and/or ARCs as of March 31, 2022 that the Company will invoice or transfer from contract liabilities and recognize in future periods. 2022 (a) 2023 2024 2025 2026 Thereafter Total (Thousands) Gathering firm reservation fees $ 65,980 $ 105,804 $ 157,621 $ 150,060 $ 141,227 $ 1,277,907 $ 1,898,599 Gathering revenues supported by MVCs 334,378 457,843 429,233 448,262 459,424 3,477,205 5,606,345 Transmission firm reservation fees 260,613 359,260 376,572 363,629 358,800 3,228,443 4,947,317 Water revenues supported by ARCs 28,125 37,500 37,500 37,500 37,500 193,750 371,875 Total (b) $ 689,096 $ 960,407 $ 1,000,926 $ 999,451 $ 996,951 $ 8,177,305 $ 12,824,136 (a) April 1, 2022 through December 31, 2022. (b) Includes assumptions regarding timing for placing certain project s in-service. Such assumptions may not be realized and d elays in the in-service dates for projects have substantially altered, and additional delays may further substantially alter, the remaining performance obligations for certain contracts with firm reservation fees, MVCs and/or ARCs. The MVP Joint Venture is accounted for as an equity investment and those amounts are not included in the table above. |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table summarizes the Company's related party transactions. Three Months Ended March 31, 2022 2021 (Thousands) Operating revenues $ 198,386 $ 224,957 Equity income 4 3 Interest income from the Preferred Interest 1,395 1,469 Capital contributions to the MVP Joint Venture (72,537) (10,723) Principal payments received on the Preferred Interest 1,351 1,277 The following table summarizes the Company's related party receivables and payables. March 31, 2022 December 31, 2021 (Thousands) Accounts receivable $ 168,114 $ 190,410 Contract asset — 2,246 Investment in unconsolidated entity 1,278,992 1,239,039 Preferred Interest 98,487 99,838 Capital contributions payable to the MVP Joint Venture 39,159 72,188 Contract liability 905,578 818,658 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Unaudited Condensed Financial Statements for the Investment in Unconsolidated Equity | The following tables summarize the unaudited condensed consolidated financial statements of the MVP Joint Venture in relation to the MVP project. Condensed Consolidated Balance Sheets March 31, 2022 December 31, 2021 (Thousands) Current assets $ 82,570 $ 148,820 Non-current assets 6,515,268 6,432,288 Total assets $ 6,597,838 $ 6,581,108 Current liabilities $ 146,148 $ 160,331 Equity 6,451,690 6,420,777 Total liabilities and equity $ 6,597,838 $ 6,581,108 Condensed Statements of Consolidated Operations Three Months Ended March 31, 2022 2021 (Thousands) Operating expenses $ (1) $ — Other income 10 6 Net income $ 9 $ 6 |
Financial Information by Busi_3
Financial Information by Business Segment - Narrative (Details) | 3 Months Ended |
Mar. 31, 2022segmentlineOfBusiness | |
Segment Reporting [Abstract] | |
Number of operating segments | segment | 3 |
Number of lines of business | lineOfBusiness | 3 |
Financial Information by Busi_4
Financial Information by Business Segment - Schedule of Segment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Revenues from customers: | |||
Operating revenues | $ 342,146 | $ 379,996 | |
Operating income (loss): | |||
Total operating income | 197,938 | 225,580 | |
Reconciliation of operating income to net income: | |||
Equity income | [1] | 4 | 3 |
Other income, net | 6,348 | 7,599 | |
Loss on extinguishment of debt | 0 | (41,025) | |
Net interest expense | (93,121) | (95,144) | |
Income tax expense | 6,261 | 20,416 | |
Net income | 104,908 | 76,597 | |
Gathering | |||
Revenues from customers: | |||
Operating revenues | 219,790 | 250,076 | |
Transmission | |||
Revenues from customers: | |||
Operating revenues | 110,795 | 111,419 | |
Water | |||
Revenues from customers: | |||
Operating revenues | 11,561 | 18,501 | |
Operating segments | Gathering | |||
Revenues from customers: | |||
Operating revenues | 219,790 | 250,076 | |
Operating income (loss): | |||
Total operating income | 115,621 | 139,854 | |
Operating segments | Transmission | |||
Revenues from customers: | |||
Operating revenues | 110,795 | 111,419 | |
Operating income (loss): | |||
Total operating income | 84,562 | 81,488 | |
Operating segments | Water | |||
Revenues from customers: | |||
Operating revenues | 11,561 | 18,501 | |
Operating income (loss): | |||
Total operating income | (1,856) | 4,477 | |
Headquarters | |||
Operating income (loss): | |||
Total operating income | $ (389) | $ (239) | |
[1] | Represents equity income from Mountain Valley Pipeline, LLC (the MVP Joint Venture). See Note 5. |
Financial Information by Busi_5
Financial Information by Business Segment - Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Long-Lived Assets | ||
Total assets | $ 10,818,702 | $ 10,920,764 |
Operating segments | ||
Long-Lived Assets | ||
Total assets | 10,558,405 | 10,559,125 |
Operating segments | Gathering | ||
Long-Lived Assets | ||
Total assets | 7,610,869 | 7,638,877 |
Operating segments | Transmission | ||
Long-Lived Assets | ||
Total assets | 2,798,661 | 2,769,097 |
Operating segments | Water | ||
Long-Lived Assets | ||
Total assets | 148,875 | 151,151 |
Headquarters | ||
Long-Lived Assets | ||
Total assets | $ 260,297 | $ 361,639 |
Financial Information by Busi_6
Financial Information by Business Segment - Depreciation and Capital Expenditures for Segment Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Information | ||
Depreciation | $ 67,043 | $ 68,618 |
Capital expenditures for segment assets | 66,950 | 57,582 |
Capitalized share-based compensation cost | 4,300 | 3,700 |
Operating segments | Gathering | ||
Segment Information | ||
Depreciation | 48,255 | 46,547 |
Capital expenditures for segment assets | 53,147 | 48,113 |
Operating segments | Gathering | Eureka Midstream Holdings, LLC | ||
Segment Information | ||
Capital expenditures for segment assets | 3,000 | 1,700 |
Operating segments | Transmission | ||
Segment Information | ||
Depreciation | 13,894 | 13,800 |
Capital expenditures for segment assets | 4,226 | 3,505 |
Operating segments | Transmission | MVP Southgate Project | ||
Segment Information | ||
Capital expenditures for segment assets | 72,500 | 10,700 |
Operating segments | Water | ||
Segment Information | ||
Depreciation | 4,517 | 8,175 |
Capital expenditures for segment assets | 9,565 | 4,807 |
Headquarters | ||
Segment Information | ||
Depreciation | 377 | 96 |
Capital expenditures for segment assets | $ 12 | $ 1,157 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Disaggregated Revenue Information, by Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue | ||
Operating revenues | $ 342,146 | $ 379,996 |
Firm reservation fee revenues | ||
Disaggregation of Revenue | ||
Operating revenues | 241,219 | 251,425 |
Volumetric-based fee revenues | ||
Disaggregation of Revenue | ||
Operating revenues | 100,927 | 128,571 |
Gathering | ||
Disaggregation of Revenue | ||
Operating revenues | 219,790 | 250,076 |
Gathering | MVC | ||
Disaggregation of Revenue | ||
Operating revenues | 2,700 | 3,200 |
Gathering | Firm reservation fee revenues | ||
Disaggregation of Revenue | ||
Operating revenues | 132,597 | 148,192 |
Gathering | Volumetric-based fee revenues | ||
Disaggregation of Revenue | ||
Operating revenues | 87,193 | 101,884 |
Gathering | Volumetric-based fee revenues | MVC | ||
Disaggregation of Revenue | ||
Operating revenues | 6,200 | |
Transmission | ||
Disaggregation of Revenue | ||
Operating revenues | 110,795 | 111,419 |
Transmission | Firm reservation fee revenues | ||
Disaggregation of Revenue | ||
Operating revenues | 102,870 | 101,389 |
Transmission | Volumetric-based fee revenues | ||
Disaggregation of Revenue | ||
Operating revenues | 7,925 | 10,030 |
Water | ||
Disaggregation of Revenue | ||
Operating revenues | 11,561 | 18,501 |
Water | MVC | ||
Disaggregation of Revenue | ||
Operating revenues | 500 | |
Water | Firm reservation fee revenues | ||
Disaggregation of Revenue | ||
Operating revenues | 5,752 | 1,844 |
Water | Volumetric-based fee revenues | ||
Disaggregation of Revenue | ||
Operating revenues | $ 5,809 | $ 16,657 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Unbilled Revenue Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Movement in Deferred Revenue [Roll Forward] | ||
Balance as of beginning of period | $ 16,772 | $ 18,618 |
Revenue recognized in excess of amounts invoiced | 4,692 | 10,188 |
Minimum volume commitments invoiced | (14,884) | (16,931) |
Amortization | (110) | 0 |
Balance as of end of period | $ 6,470 | 11,875 |
Other contractual commitments | $ 6,200 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue | ||||
Contract liability | $ 909,068 | $ 822,416 | $ 470,769 | $ 398,750 |
Contract liability, current | 1,100 | 1,100 | ||
Contract liability, noncurrent | $ 907,994 | $ 821,342 | ||
Gathering | ||||
Disaggregation of Revenue | ||||
Weighted average remaining term | 14 years | |||
Transmission firm reservation fees | ||||
Disaggregation of Revenue | ||||
Weighted average remaining term | 13 years |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Deferred Revenue Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Change in Contract with Customer, Liability | ||
Balance as of beginning of period | $ 822,416 | $ 398,750 |
Amounts recorded during the period | 86,920 | 72,019 |
Amounts transferred during the period | (268) | 0 |
Balance as of end of period | $ 909,068 | $ 470,769 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Summary of Remaining Performance Obligations (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 12,824,136 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | 689,096 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | 960,407 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | 1,000,926 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | 999,451 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | 996,951 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | 8,177,305 |
Transmission firm reservation fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | 4,947,317 |
Transmission firm reservation fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 260,613 |
Remaining performance obligations, expected timing | 9 months |
Transmission firm reservation fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 359,260 |
Remaining performance obligations, expected timing | 1 year |
Transmission firm reservation fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 376,572 |
Remaining performance obligations, expected timing | 1 year |
Transmission firm reservation fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 363,629 |
Remaining performance obligations, expected timing | 1 year |
Transmission firm reservation fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 358,800 |
Remaining performance obligations, expected timing | 1 year |
Transmission firm reservation fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 3,228,443 |
Remaining performance obligations, expected timing | |
Water revenues supported by ARCs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 371,875 |
Water revenues supported by ARCs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 28,125 |
Remaining performance obligations, expected timing | 9 months |
Water revenues supported by ARCs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 37,500 |
Remaining performance obligations, expected timing | 1 year |
Water revenues supported by ARCs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 37,500 |
Remaining performance obligations, expected timing | 1 year |
Water revenues supported by ARCs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 37,500 |
Remaining performance obligations, expected timing | 1 year |
Water revenues supported by ARCs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 37,500 |
Remaining performance obligations, expected timing | 1 year |
Water revenues supported by ARCs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 193,750 |
Remaining performance obligations, expected timing | |
Gathering firm reservation fees | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 1,898,599 |
Gathering firm reservation fees | Gathering | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 65,980 |
Remaining performance obligations, expected timing | 9 months |
Gathering firm reservation fees | Gathering | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 105,804 |
Remaining performance obligations, expected timing | 1 year |
Gathering firm reservation fees | Gathering | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 157,621 |
Remaining performance obligations, expected timing | 1 year |
Gathering firm reservation fees | Gathering | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 150,060 |
Remaining performance obligations, expected timing | 1 year |
Gathering firm reservation fees | Gathering | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 141,227 |
Remaining performance obligations, expected timing | 1 year |
Gathering firm reservation fees | Gathering | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 1,277,907 |
Remaining performance obligations, expected timing | |
Gathering revenues supported by MVCs | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 5,606,345 |
Gathering revenues supported by MVCs | Gathering | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 334,378 |
Remaining performance obligations, expected timing | 9 months |
Gathering revenues supported by MVCs | Gathering | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 457,843 |
Remaining performance obligations, expected timing | 1 year |
Gathering revenues supported by MVCs | Gathering | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 429,233 |
Remaining performance obligations, expected timing | 1 year |
Gathering revenues supported by MVCs | Gathering | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 448,262 |
Remaining performance obligations, expected timing | 1 year |
Gathering revenues supported by MVCs | Gathering | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 459,424 |
Remaining performance obligations, expected timing | 1 year |
Gathering revenues supported by MVCs | Gathering | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 3,477,205 |
Remaining performance obligations, expected timing |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - shares | Mar. 31, 2022 | Dec. 31, 2021 |
Related Party Transaction | ||
Shares owned (in shares) | 432,677,000 | 432,522,000 |
EQT Corporation and Subsidiaries | Equitrans Midstream | ||
Related Party Transaction | ||
Shares owned (in shares) | 22,796,026 | |
Ownership interest | 5.30% |
Related Party Transactions - Su
Related Party Transactions - Summary of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Related Party Transaction | |||
Equity income | [1] | $ 4 | $ 3 |
Interest income from the Preferred Interest | 1,395 | 1,469 | |
Capital contributions to the MVP Joint Venture | (72,537) | (10,723) | |
Principal payments received on the Preferred Interest | 1,351 | 1,277 | |
EQT Corporation and Subsidiaries | |||
Related Party Transaction | |||
Operating revenues | $ 198,386 | $ 224,957 | |
[1] | Represents equity income from Mountain Valley Pipeline, LLC (the MVP Joint Venture). See Note 5. |
Related Party Transactions - _2
Related Party Transactions - Summary of Due To (From) Related Parties (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | ||
Accounts receivable | $ 168,114 | $ 190,410 |
Contract asset | 0 | 2,246 |
Investment in unconsolidated entity | 1,278,992 | 1,239,039 |
Preferred Interest | 98,487 | 99,838 |
Capital contributions payable to the MVP Joint Venture | 39,159 | 72,188 |
Contract liability | $ 905,578 | $ 818,658 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entity - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |||||||
Jun. 30, 2022USD ($) | May 31, 2022USD ($) | Mar. 31, 2022USD ($)mi | Mar. 31, 2022USD ($)mi | Dec. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2022 | Nov. 04, 2019USD ($) | Apr. 30, 2018mi | |
Schedule of Equity Method Investments | |||||||||
Capital contributions to the MVP Joint Venture | $ 72,537 | $ 10,723 | |||||||
Con Edison | Maximum | |||||||||
Schedule of Equity Method Investments | |||||||||
Investment cap | $ 530,000 | ||||||||
MVP Joint Venture | |||||||||
Schedule of Equity Method Investments | |||||||||
Reduction in investment | $ 1,200,000 | ||||||||
MVP Joint Venture | Beneficial Owner | |||||||||
Schedule of Equity Method Investments | |||||||||
Percentage of ownership interest | 66.67% | ||||||||
MVP Project | Con Edison | |||||||||
Schedule of Equity Method Investments | |||||||||
Project target cost | $ 6,600,000 | ||||||||
Variable Interest Entity, Not Primary Beneficiary | MVP Joint Venture | |||||||||
Schedule of Equity Method Investments | |||||||||
Pre-tax impairment charge | $ 1,900,000 | ||||||||
Variable Interest Entity, Not Primary Beneficiary | MVP Joint Venture | EQM | |||||||||
Schedule of Equity Method Investments | |||||||||
Ownership interest | 47.00% | 47.00% | |||||||
Variable Interest Entity, Not Primary Beneficiary | MVP Joint Venture | EQM | Scenario, Forecast | |||||||||
Schedule of Equity Method Investments | |||||||||
Ownership interest | 48.10% | ||||||||
Variable Interest Entity, Not Primary Beneficiary | MVP Southgate Project | |||||||||
Schedule of Equity Method Investments | |||||||||
Ownership interest | 47.20% | 47.20% | |||||||
Letter of credit outstanding | $ 14,200 | $ 14,200 | |||||||
Variable Interest Entity, Not Primary Beneficiary | MVP Project | |||||||||
Schedule of Equity Method Investments | |||||||||
Capital contribution payable to MVP Joint Venture | 39,100 | ||||||||
Letter of credit outstanding | $ 219,700 | $ 219,700 | |||||||
Variable Interest Entity, Not Primary Beneficiary | MVP Holdco Project | Subsequent Event | |||||||||
Schedule of Equity Method Investments | |||||||||
Capital contributions to the MVP Joint Venture | $ 18,200 | ||||||||
Variable Interest Entity, Not Primary Beneficiary | MVP Holdco Project | Scenario, Forecast | |||||||||
Schedule of Equity Method Investments | |||||||||
Capital contributions to the MVP Joint Venture | $ 20,900 | ||||||||
MVP | |||||||||
Schedule of Equity Method Investments | |||||||||
Length of pipeline (in miles) | mi | 300 | 300 | |||||||
MVP | Variable Interest Entity, Not Primary Beneficiary | |||||||||
Schedule of Equity Method Investments | |||||||||
Issuance of performance guarantee, remaining capital obligation, percentage | 33.00% | 33.00% | |||||||
MVP Southgate Project | |||||||||
Schedule of Equity Method Investments | |||||||||
Length of pipeline (in miles) | mi | 75 |
Investments in Unconsolidated_4
Investments in Unconsolidated Entity - Balance Sheet for the Investment in Unconsolidated Equity (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Condensed Consolidated Balance Sheets | ||||
Current assets | $ 325,898 | $ 446,829 | ||
Total assets | 10,818,702 | 10,920,764 | ||
Current liabilities | 207,719 | 367,576 | ||
Equity | 2,038,288 | 2,010,726 | $ 3,680,453 | $ 3,681,272 |
Total liabilities, mezzanine equity and shareholders' equity | 10,818,702 | 10,920,764 | ||
MVP Joint Venture | Variable Interest Entity, Not Primary Beneficiary | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Condensed Consolidated Balance Sheets | ||||
Current assets | 82,570 | 148,820 | ||
Non-current assets | 6,515,268 | 6,432,288 | ||
Total assets | 6,597,838 | 6,581,108 | ||
Current liabilities | 146,148 | 160,331 | ||
Equity | 6,451,690 | 6,420,777 | ||
Total liabilities, mezzanine equity and shareholders' equity | $ 6,597,838 | $ 6,581,108 |
Investments in Unconsolidated_5
Investments in Unconsolidated Entity - Income Statement for the Investment in Unconsolidated Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Equity Method Investments | ||
Net income | $ 104,908 | $ 76,597 |
MVP Joint Venture | ||
Schedule of Equity Method Investments | ||
Operating expenses | (1) | 0 |
Other income | 10 | 6 |
MVP Joint Venture | Variable Interest Entity, Not Primary Beneficiary | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments | ||
Net income | $ 9 | $ 6 |
Debt - Amended EQM Revolving Cr
Debt - Amended EQM Revolving Credit Facility and 2019 EQM Term Loan Agreement (Details) - USD ($) | Jan. 07, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Jan. 08, 2021 |
Debt Instrument | |||||
Letters of credit outstanding | $ 448,000,000 | $ 505,000,000 | |||
EQM Credit Facility | |||||
Debt Instrument | |||||
Maximum borrowing capacity | 2,250,000,000 | ||||
EQM | EQM Credit Facility | Revolving Credit Facility | |||||
Debt Instrument | |||||
Borrowings outstanding | 180,000,000 | 225,000,000 | |||
Letters of credit outstanding | $ 234,900,000 | $ 234,900,000 | |||
Weighted average annual interest rate | 2.80% | 2.50% | |||
EQM | Line of credit | EQM Credit Facility | |||||
Debt Instrument | |||||
Maximum amount of short term loans outstanding | $ 280,000,000 | $ 525,000,000 | |||
Average daily balance of short term loans outstanding | 260,000,000 | 489,000,000 | |||
Commitment fees | 1,800,000 | $ 2,300,000 | |||
EQM | Letter of credit | EQM Credit Facility | |||||
Debt Instrument | |||||
Maximum amount of short term loans outstanding | $ 0 | ||||
EQM | Unsecured Debt | 2019 Term Loan Facility | |||||
Debt Instrument | |||||
Weighted average annual interest rate | 2.40% | ||||
EQT Midstream Partners LP | 2019 EQM Term Loan Agreement | |||||
Debt Instrument | |||||
Principal | $ 1,400,000,000 |
Debt - Eureka Credit Facility (
Debt - Eureka Credit Facility (Details) - Eureka Midstream, LLC - Line of credit - Eureka Credit Facility - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | May 13, 2021 | |
Debt Instrument | ||||
Maximum borrowing capacity | $ 400 | |||
Borrowings outstanding | $ 268 | $ 280 | ||
Maximum amount of short term loans outstanding | 280 | $ 310 | ||
Average daily balance of short term loans outstanding | $ 277 | $ 305 | ||
Weighted average annual interest rate | 2.90% | 2.40% | ||
Payment commitment fees | $ 0.1 | $ 0.1 |
Debt - 2021 Senior Notes (Detai
Debt - 2021 Senior Notes (Details) - EQM Senior notes - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Jan. 15, 2021 | |
4.50% Senior Notes Due 2029 | ||
Debt Instrument | ||
Principal | $ 800,000,000 | |
Interest rate | 4.50% | |
4.75% Senior Notes Notes Due 2031 | ||
Debt Instrument | ||
Principal | $ 1,100,000,000 | |
Interest rate | 4.75% | |
2021 Senior Notes | ||
Debt Instrument | ||
Net proceeds from offering | $ 1,876,500,000 | |
Discount | 19,000,000 | |
Debt issuance costs | 4,500,000 | |
EQM 4.75% Senior Notes Due 2023 | EQT Midstream Partners LP | ||
Debt Instrument | ||
Principal | $ 500,000,000 | $ 500,000,000 |
Interest rate | 4.75% | |
Debt issuance costs | $ 537,000,000 |
Debt - Tender Offer (Details)
Debt - Tender Offer (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Jan. 15, 2021 | |
Debt Instrument | |||
Loss on extinguishment of debt | $ 0 | $ 41,025,000 | |
EQM Senior notes | EQM 4.75% Senior Notes Due 2023 | EQT Midstream Partners LP | |||
Debt Instrument | |||
Principal | 500,000,000 | $ 500,000,000 | |
Debt issuance costs | $ 537,000,000 | ||
Loss on extinguishment of debt | $ 41,000,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Gain on derivative instrument | $ 6.4 | $ 7.1 | |
EQM | Fair Value | Level 3 | EES | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Preferred interest | 107.6 | $ 117 | |
EQM | Carrying Value | Level 3 | EES | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Preferred interest | 98.5 | 100 | |
EQM Senior notes | EQM | Fair Value | Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Long-term debt | 6,425.6 | 7,060.5 | |
Henry Hub cash payment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative instrument, at fair value | $ 58.1 | $ 51.6 | |
Market quoted volatility | Volatility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Volatility rate | 0.50 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Class of Stock | ||
Potentially dilutive securities (in shares) | 30,137 | 30,076 |
Phantom Share Units (PSUs) | ||
Class of Stock | ||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 642 | 486 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 5.60% | 21.00% | |
Income tax benefit related to changes in valuation allowances | $ 23.1 | ||
Valuation allowance | $ 74.5 | $ 97.6 |
Subsequent Events (Details)
Subsequent Events (Details) - EQM Credit Facility $ in Millions | Apr. 22, 2022USD ($) | Apr. 21, 2022 | Mar. 31, 2022USD ($) |
Subsequent Event [Line Items] | |||
Maximum borrowing capacity | $ 2,250 | ||
Subsequent Event | Non-Pro Rata Line Of Credit | EQM Midstream Partners, LP | |||
Subsequent Event [Line Items] | |||
Maximum borrowing capacity | $ 2,160 | ||
Subsequent Event | Line of credit | EQM Midstream Partners, LP | |||
Subsequent Event [Line Items] | |||
Credit spread adjustment | 0.10% | ||
Maximum borrowing capacity | $ 1,550 | ||
Commitment fee payable percentage for unused commitments | 0.50% | ||
Consolidated net tangible assets ratio | 2.50% | 5.00% | |
Maximum percentage of borrowing capacity | 85.00% | ||
Subsequent Event | Line of credit | EQM Midstream Partners, LP | After June 30, 2021 and prior to September 30, 2022 | |||
Subsequent Event [Line Items] | |||
Consolidated leverage ratio | 5.50 | ||
Subsequent Event | Line of credit | EQM Midstream Partners, LP | Fiscal quarter ending December 31, 2022 | |||
Subsequent Event [Line Items] | |||
Consolidated leverage ratio | 5.85 | ||
Subsequent Event | Line of credit | EQM Midstream Partners, LP | Base Rate | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Subsequent Event | Line of credit | EQM Midstream Partners, LP | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Subsequent Event [Line Items] | |||
Basis spread on variable rate | 2.75% |