Cover
Cover - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Apr. 29, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | 433,661 | |
Entity Central Index Key | 0001747009 | |
Amendment Flag | false | |
Current Fiscal Year End | --12-31 | |
Document Fiscal Year Focus | 2024 | |
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, 2024 | Mar. 31, 2023 | ||
Income Statement [Abstract] | |||
Operating revenues | $ 364,274 | $ 376,337 | |
Operating expenses: | |||
Operating and maintenance | 45,228 | 42,862 | |
Selling, general and administrative | 44,329 | 32,622 | |
Transaction costs | 5,684 | 0 | |
Depreciation | 71,672 | 69,404 | |
Amortization of intangible assets | 16,205 | 16,205 | |
Total operating expenses | 183,118 | 161,093 | |
Operating income | 181,156 | 215,244 | |
Equity income | [1],[2] | 73,005 | 122 |
Other (expense) income, net | (3,976) | (8,102) | |
Net interest expense | (118,896) | (104,957) | |
Income before income taxes | 131,289 | 102,307 | |
Income tax expense (benefit) | 19,400 | (3,784) | |
Net income | 111,889 | 106,091 | |
Net income attributable to noncontrolling interest | 2,890 | 4,409 | |
Net income attributable to Equitrans Midstream | 108,999 | 101,682 | |
Preferred dividends | 14,628 | 14,628 | |
Net income attributable to Equitrans Midstream common shareholders | $ 94,371 | $ 87,054 | |
Earnings per share of common stock attributable to Equitrans Midstream common shareholders - basic (in dollars per share) | $ 0.22 | $ 0.20 | |
Earnings per share of common stock attributable to Equitrans Midstream common shareholders - diluted (in dollars per share) | $ 0.21 | $ 0.20 | |
Weighted average common shares outstanding - basic (in shares) | 434,497 | 433,707 | |
Weighted average common shares outstanding - diluted (in shares) | 440,561 | 434,254 | |
Statement of comprehensive income: | |||
Net income | $ 111,889 | $ 106,091 | |
Other comprehensive income, net of tax: | |||
Pension and other post-retirement benefits liability adjustment, net of tax expense of $6 and $7 | 20 | 22 | |
Other comprehensive income | 20 | 22 | |
Comprehensive income | 111,909 | 106,113 | |
Less: Comprehensive income attributable to noncontrolling interest | 2,890 | 4,409 | |
Less: Comprehensive income attributable to preferred dividends | 14,628 | 14,628 | |
Comprehensive income attributable to Equitrans Midstream common shareholders | $ 94,391 | $ 87,076 | |
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. Represents equity income from 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, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Pension and other post-retirement benefits liability adjustments, net of tax expense | $ 6 | $ 7 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Cash flows from operating activities: | |||
Net income | $ 111,889 | $ 106,091 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 71,672 | 69,404 | |
Amortization of intangible assets | 16,205 | 16,205 | |
Deferred income tax expense (benefit) | 17,160 | (5,260) | |
Equity income | [1],[2] | (73,005) | (122) |
Other expense (income), net | 4,234 | 8,288 | |
Non-cash long-term compensation expense | 4,904 | 3,468 | |
Changes in other assets and liabilities: | |||
Accounts receivable | 24,019 | 44,422 | |
Accounts payable | (8,545) | (18,419) | |
Accrued interest | (39,130) | (43,597) | |
Deferred revenue | 60,965 | 76,317 | |
Other assets and other liabilities | (12,877) | (32,077) | |
Net cash provided by operating activities | 177,491 | 224,720 | |
Cash flows from investing activities: | |||
Capital expenditures | (84,944) | (75,640) | |
Capital contributions to the MVP Joint Venture | (422,985) | (34,513) | |
Principal payments received on the Preferred Interest (defined in Note 7) | 1,529 | 1,429 | |
Net cash used in investing activities | (506,400) | (108,724) | |
Cash flows from financing activities: | |||
Proceeds from revolving credit facility borrowings | 280,000 | 137,500 | |
Payments on revolving credit facility borrowings | (660,000) | (180,000) | |
Proceeds from the issuance of long-term debt | 600,000 | 0 | |
Debt discounts, debt issuance costs and credit facility arrangement fees | (10,206) | 0 | |
Dividends paid to common shareholders | (65,050) | (64,964) | |
Dividends paid to holders of Equitrans Midstream Preferred Shares | (14,628) | (14,628) | |
Distributions paid to noncontrolling interest | (8,000) | (8,000) | |
Other items | (797) | (1,306) | |
Net cash provided by (used in) financing activities | 121,319 | (131,398) | |
Net change in cash and cash equivalents | (207,590) | (15,402) | |
Cash and cash equivalents at beginning of period | 258,877 | 67,898 | |
Cash and cash equivalents at end of period | 51,287 | 52,496 | |
Cash paid during the period for: | |||
Interest, net of amount capitalized | 156,092 | 146,828 | |
Income taxes, net | $ 2,049 | $ 0 | |
[1] Represents equity income from Mountain Valley Pipeline, LLC (the MVP Joint Venture). See Note 5. Represents equity income from the MVP Joint Venture. See Note 5. |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | |
Current assets: | |||
Cash and cash equivalents | $ 51,287 | $ 258,877 | |
Accounts receivable (net of allowance for credit losses of $7,752 and $6,429 as of March 31, 2024 and December 31, 2023, respectively) | 242,017 | 258,264 | |
Other current assets | 68,693 | 78,356 | |
Total current assets | 361,997 | 595,497 | |
Property, plant and equipment | 9,831,728 | 9,745,298 | |
Less: accumulated depreciation | (1,823,590) | (1,752,914) | |
Net property, plant and equipment | 8,008,138 | 7,992,384 | |
Investment in unconsolidated entity | [1] | 2,194,117 | 1,832,282 |
Goodwill | 486,698 | 486,698 | |
Net intangible assets | 505,928 | 522,133 | |
Other assets | 291,963 | 280,432 | |
Total assets | 11,848,841 | 11,709,426 | |
Current liabilities: | |||
Current portion of long-term debt | 299,846 | 299,731 | |
Accounts payable | 51,872 | 60,884 | |
Capital contributions payable to the MVP Joint Venture | 46,835 | 181,051 | |
Accrued interest | 95,200 | 134,330 | |
Accrued liabilities | 82,457 | 106,870 | |
Total current liabilities | 576,210 | 782,866 | |
Long-term liabilities: | |||
Revolving credit facility borrowings | 850,000 | 1,230,000 | |
Long-term debt | 6,640,152 | 6,046,709 | |
Contract liability | 1,358,238 | 1,296,039 | |
Deferred income taxes | 26,254 | 4,718 | |
Regulatory and other long-term liabilities | 181,820 | 160,977 | |
Total liabilities | 9,632,674 | 9,521,309 | |
Mezzanine equity: | |||
Equitrans Midstream Preferred Shares, 30,018 shares issued and outstanding as of March 31, 2024 and December 31, 2023 | 681,842 | 681,842 | |
Shareholders' equity: | |||
Common stock, no par value, 433,661 and 433,505 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | 3,982,574 | 3,977,149 | |
Retained deficit | (2,904,491) | (2,932,206) | |
Accumulated other comprehensive loss | (1,252) | (1,272) | |
Total common shareholders' equity | 1,076,831 | 1,043,671 | |
Noncontrolling interest | 457,494 | 462,604 | |
Total shareholders' equity | 1,534,325 | 1,506,275 | |
Total liabilities, mezzanine equity and shareholders' equity | $ 11,848,841 | $ 11,709,426 | |
[1] Represents investment in the MVP Joint Venture. See Note 5. |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit losses | $ 7,752 | $ 6,429 |
Mezzanine equity, preferred shares issued (in shares) | 30,018 | 30,018 |
Mezzanine equity, preferred shares outstanding (in shares) | 30,018 | 30,018 |
Common stock, shares issued (in shares) | 433,661 | 433,505 |
Common stock, shares outstanding (in shares) | 433,661 | 433,505 |
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 Interest |
Beginning balance (in shares) at Dec. 31, 2022 | 432,781 | ||||
Beginning balance at Dec. 31, 2022 | $ 1,398,604 | $ 3,974,127 | $ (3,053,590) | $ (1,332) | $ 479,399 |
Increase (Decrease) in Partners' Capital | |||||
Net income | 91,463 | 87,054 | 4,409 | ||
Pension and other post-retirement benefits liability adjustment, net of tax expense | 22 | 22 | |||
Dividends on common shares | (65,121) | (65,121) | |||
Share-based compensation plans, net (in shares) | 402 | ||||
Share-based compensation plans, net | 3,050 | $ 3,050 | |||
Distributions paid to noncontrolling interest in Eureka Midstream Holdings, LLC | (8,000) | (8,000) | |||
Ending balance (in shares) at Mar. 31, 2023 | 433,183 | ||||
Ending balance at Mar. 31, 2023 | 1,420,018 | $ 3,977,177 | (3,031,657) | (1,310) | 475,808 |
Mezzanine Equity, beginning balance at Dec. 31, 2022 | 681,842 | ||||
Mezzanine Equity | |||||
Mezzanine Equity, Net income | 14,628 | ||||
Dividends paid to holders of Equitrans Midstream Preferred Shares | (14,628) | ||||
Mezzanine Equity, ending balance at Mar. 31, 2023 | $ 681,842 | ||||
Beginning balance (in shares) at Dec. 31, 2023 | 433,505 | 433,505 | |||
Beginning balance at Dec. 31, 2023 | $ 1,506,275 | $ 3,977,149 | (2,932,206) | (1,272) | 462,604 |
Increase (Decrease) in Partners' Capital | |||||
Net income | 97,261 | 94,371 | 2,890 | ||
Pension and other post-retirement benefits liability adjustment, net of tax expense | 20 | 20 | |||
Dividends on common shares | (66,656) | (66,656) | |||
Share-based compensation plans, net (in shares) | 156 | ||||
Share-based compensation plans, net | 5,425 | $ 5,425 | |||
Distributions paid to noncontrolling interest in Eureka Midstream Holdings, LLC | $ (8,000) | (8,000) | |||
Ending balance (in shares) at Mar. 31, 2024 | 433,661 | 433,661 | |||
Ending balance at Mar. 31, 2024 | $ 1,534,325 | $ 3,982,574 | $ (2,904,491) | $ (1,252) | $ 457,494 |
Mezzanine Equity, beginning balance at Dec. 31, 2023 | 681,842 | ||||
Mezzanine Equity | |||||
Mezzanine Equity, Net income | 14,628 | ||||
Dividends paid to holders of Equitrans Midstream Preferred Shares | (14,628) | ||||
Mezzanine Equity, ending balance at Mar. 31, 2024 | $ 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, 2024 | Mar. 31, 2023 | |
Pension and other post-retirement benefits liability adjustments, net of tax expense | $ 6 | $ 7 |
Dividends on common shares (in dollars per share) | $ 0.15 | $ 0.15 |
EQM Midstream Partners, LP | ||
Dividends paid to holders of Equitrans Midstream Preferred Shares (in dollars per share) | $ 0.4873 | $ 0.4873 |
Financial Statements
Financial Statements | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statements | Financial Statements Nature of Business. The Company's operating subsidiaries provide midstream services to the Company's customers in Pennsylvania, West Virginia and Ohio through 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, 2024, the results of its operations, cash flows and equity for the three months ended March 31, 2024 and 2023. The consolidated balance sheet at December 31, 2023 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, 2023, 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, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. For further information, refer to the Company's consolidated financial statements and related notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, 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 November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which provides improvements to reportable segment disclosures and is intended to enhance the disclosures regarding significant segment expenses. The guidance is applicable to all public entities that are required to report segment information in accordance with Topic 280 and is to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the potential impact of adopting this standard on its financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures , which provides improvements to income tax disclosures and is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is applicable to all public entities required to report income taxes in accordance with ASC 740 and should be applied prospectively, but retrospective application is permitted. The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation, information on income taxes paid, and various other disclosure changes. The Company is currently evaluating the potential impact of adopting this standard on its financial statements and related disclosures. |
Proposed EQT Transaction
Proposed EQT Transaction | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Proposed EQT Transaction | Proposed EQT Transaction Proposed EQT Transaction. On March 10, 2024, the Company, EQT Corporation (Parent), Humpty Merger Sub Inc., an indirect wholly owned subsidiary of Parent (Merger Sub), and Humpty Merger Sub LLC, an indirect wholly owned subsidiary of Parent (LLC Sub), entered into an Agreement and Plan of Merger (the Merger Agreement), pursuant to which, among other things, Merger Sub will merge with and into the Company (the First Merger), with the Company surviving the First Merger as an indirect wholly owned subsidiary of Parent (the First Step Surviving Corporation) and, as the second step in a single integrated transaction, the First Step Surviving Corporation will merge with and into LLC Sub (the Second Merger and, together with the First Merger, the Mergers), with LLC Sub surviving the Second Merger as an indirect wholly owned subsidiary of Parent (the transactions contemplated by the Merger Agreement, the EQT Transaction). Under the terms of the Merger Agreement, and subject to the satisfaction or waiver of certain conditions therein, at the effective time of the First Merger (the Effective Time), (i) each share of common stock, no par value per share, of Equitrans Midstream Corporation (Equitrans Midstream common stock) issued and outstanding immediately prior to the Effective Time (excluding any excluded shares) will be converted automatically at the Effective Time into the right to receive 0.3504 (the Exchange Ratio) fully-paid and nonassessable shares of common stock of Parent, no par value per share (EQT Shares) and (ii) each Equitrans Midstream Corporation Series A Perpetual Convertible Preferred Share, no par value (Equitrans Midstream Preferred Share), issued and outstanding immediately prior to the Effective Time will be treated in accordance with Section 8 of the Company’s Second Amended and Restated Articles of Incorporation and the procedures set forth in Section 2.5 of the Merger Agreement. The EQT Transaction is expected to close during the fourth quarter of 2024. The completion of the First Merger is subject to the satisfaction or waiver of certain closing conditions, including, among others: (i) approval of the Merger Agreement and the Mergers by holders of a majority of the outstanding shares of Equitrans Midstream common stock and Equitrans Midstream Preferred Shares, with such Equitrans Midstream Preferred Shares treated as Equitrans Midstream common stock on an as-converted basis, voting together as a single class, (ii) approval of the issuance of EQT Shares in connection with the Mergers by a majority of votes cast at a special meeting of holders of EQT Shares, (iii) expiration or termination of (a) all waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the HSR Act) and (b) any commitment to, or agreement with, any governmental entity to delay the consummation of, or not to consummate the transactions contemplated by the Merger Agreement, and (iv) the MVP Joint Venture receiving authorization of the Federal Energy Regulatory Commission (FERC) to place the Mountain Valley Pipeline (MVP) in-service. The Merger Agreement contains representations and warranties from the parties, and each party has agreed to certain covenants, including, among others, covenants relating to (i) the conduct of business during the interim period between the execution of the Merger Agreement and the Effective Time and (ii) the obligation to use reasonable best efforts to cause the Mergers to be consummated. Upon termination of the Merger Agreement under certain circumstances, the Company will be obligated to pay Parent a termination fee equal to $191 million. Upon termination of the Merger Agreement under certain circumstances, Parent will be obligated to pay the Company (i) a termination fee equal to $545 million or (ii) a special termination fee equal to $176 million. The Company recorded approximately $5.7 million in expenses related to the EQT Transaction during the three months ended March 31, 2024 primarily related to advisor, legal and other transaction-related fees, which are included in transaction costs in the statements of consolidated comprehensive income. |
Financial Information by Busine
Financial Information by Business Segment | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 (Thousands) Revenues from customers: Gathering (a) $ 224,640 $ 210,752 Transmission (a) 116,894 138,906 Water 22,740 26,679 Total operating revenues $ 364,274 $ 376,337 Operating income: Gathering $ 105,059 $ 104,294 Transmission 77,082 98,922 Water 4,988 12,373 Headquarters (b) (5,973) (345) Total operating income $ 181,156 $ 215,244 Reconciliation of operating income to net income: Equity income (c) $ 73,005 $ 122 Other (expense) income, net (d) (3,976) (8,102) Net interest expense (118,896) (104,957) Income tax expense (benefit) 19,400 (3,784) Net income $ 111,889 $ 106,091 (a) For the three months ended March 31, 2023, volumetric-based fee revenues associated with Gathering and Transmission included one-time contract buyouts by a customer for approximately $5.0 million and $23.8 million, respectively. (b) Includes transaction costs and other certain unallocated corporate expenses. (c) Equity income is included in the Transmission segment. (d) Includes unrealized loss on derivative instruments recorded in the Gathering segment. March 31, 2024 December 31, 2023 (Thousands) Segment assets: Gathering $ 7,573,577 $ 7,612,820 Transmission (a) 3,731,064 3,369,718 Water 245,270 217,225 Total operating segments 11,549,911 11,199,763 Headquarters, including cash 298,930 509,663 Total assets $ 11,848,841 $ 11,709,426 (a) The equity method investment in the MVP Joint Venture is included in the Transmission segment. Three Months Ended March 31, 2024 2023 (Thousands) Depreciation: Gathering $ 50,152 $ 49,349 Transmission 14,383 13,888 Water 7,034 5,863 Headquarters 103 304 Total $ 71,672 $ 69,404 Capital expenditures: Gathering (a) $ 54,256 $ 59,713 Transmission (b) 17,704 9,189 Water 10,047 11,076 Total (c) $ 82,007 $ 79,978 (a) Includes capital expenditures related to the noncontrolling interest in Eureka Midstream Holdings, LLC (Eureka Midstream) of approximately $5.0 million and $3.2 million for the three months ended March 31, 2024 and 2023, respectively. (b) Transmission capital expenditures do not include aggregate capital contributions made to the MVP Joint Venture of approximately $423.0 million and $34.5 million for the three months ended March 31, 2024 and 2023, 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 $2.9 million and $(4.3) million for the three months ended March 31, 2024 and 2023, respectively. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers For the three months ended March 31, 2024 and 2023, substantially all revenues recognized on the Company's statements of consolidated comprehensive income were from contracts with customers. As of March 31, 2024 and December 31, 2023, 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, 2024 Gathering Transmission Water Total (Thousands) Firm reservation fee revenues (a) $ 135,676 $ 100,323 $ 9,375 $ 245,374 Volumetric-based fee revenues 88,964 16,571 13,365 118,900 Total operating revenues $ 224,640 $ 116,894 $ 22,740 $ 364,274 Three Months Ended March 31, 2023 Gathering Transmission Water Total (Thousands) Firm reservation fee revenues (a) $ 140,071 $ 101,722 $ 9,375 $ 251,168 Volumetric-based fee revenues (b) 70,681 37,184 17,304 125,169 Total operating revenues $ 210,752 $ 138,906 $ 26,679 $ 376,337 (a) Firm reservation fee revenues associated with Gathering included MVC unbilled revenues of approximately $5.9 million and $3.3 million for the three months ended March 31, 2024 and 2023, respectively. (b) For the three months ended March 31, 2023, volumetric-based fee revenues associated with Gathering and Transmission included one-time contract buyouts by a customer for approximately $5.0 million and $23.8 million, respectively. 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 contract assets balance: Three Months Ended March 31, 2024 2023 (Thousands) Balance as of beginning of period $ 11,123 $ 27,493 Revenue recognized in excess of amounts invoiced (a) 5,903 3,262 Minimum volume commitments invoiced (b) (7,833) (23,558) Amortization (c) (165) (165) Balance as of end of period $ 9,028 $ 7,032 (a) Primarily includes revenues associated with MVCs that are included in revenues within the Gathering and Water segments. (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 consist 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. The following table presents changes in the Company's contract liability balances: Three Months Ended March 31, 2024 2023 (Thousands) Balance as of beginning of period $ 1,301,100 $ 973,087 Amounts recorded during the period (a) 62,456 81,930 Change in estimated variable consideration (b) — (3,392) Amounts transferred during the period (c) (1,491) (2,221) Balance as of end of period $ 1,362,065 $ 1,049,404 (a) Includes deferred billed revenue during the three months ended March 31, 2024 and 2023 primarily associated with the EQT Global GGA. (b) For the three months ended March 31, 2023, the change in estimated variable consideration represents the decrease in total deferred revenue due to changes in MVP timing assumptions. (c) 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, 2024 that the Company will invoice or transfer from contract liabilities and recognize in future periods. 2024 (a) 2025 2026 2027 2028 Thereafter Total (Thousands) Gathering firm reservation fees $ 128,764 $ 176,822 $ 167,220 $ 160,435 $ 156,743 $ 1,553,481 $ 2,343,465 Gathering revenues supported by MVCs 333,494 458,745 490,982 488,944 486,306 2,690,099 4,948,570 Transmission firm reservation fees 291,127 400,381 400,511 399,762 397,081 2,771,121 4,659,983 Water revenues supported by ARCs/MVCs 36,331 48,441 45,159 44,065 45,706 120,938 340,640 Total (b) $ 789,716 $ 1,084,389 $ 1,103,872 $ 1,093,206 $ 1,085,836 $ 7,135,639 $ 12,292,658 (a) April 1, 2024 through December 31, 2024. (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 any future 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 method investment and those amounts are not included in the table above. |
Investment in Unconsolidated En
Investment in Unconsolidated Entity | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Entity | Investment in Unconsolidated Entity The MVP Joint Venture. The Company has an equity method investment in the MVP Joint Venture. The MVP Joint Venture is constructing the Mountain Valley Pipeline and is developing the MVP Southgate project, each discussed in more detail below. The Company maintains separate ownership interests in and is expected to operate the two MVP Joint Venture projects. Mountain Valley Pipeline. The MVP Joint Venture is constructing the Mountain Valley Pipeline (MVP), a 303-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 48.9% interest in the MVP project as of March 31, 2024. In April 2024, the MVP Joint Venture filed its in-service authorization request for the MVP project with the FERC. As of the filing of this Quarterly Report on Form 10-Q, the MVP Joint Venture has continued to make substantial progress on completing the MVP and construction, together with commissioning activity and certain pre-MVP in-service restoration on the MVP is ongoing. The Company expects to complete construction and final commissioning of the pipeline on or about May 31, 2024 and is targeting a total project cost of approximately $7.85 billion (including contingency and excluding allowance for funds used during construction (AFUDC)). MVP and MVP-related long-term firm capacity will begin on the first day of the month immediately following the date MVP receives FERC authorization to commence service and is able to provide the applicable service level (with certain MVC step ups and more significant gathering MVC fee declines under the EQT Global GGA commencing effective the first day of the calendar quarter in which the MVP long-term firm capacity obligations commence). The targeted completion timing, and accordingly the commencement of MVP and MVP-related long-term firm capacity contractual obligations, as well as the estimated total project cost, are subject to many ongoing factors. If construction and final commissioning were to be completed on or about May 31, 2024 and the project completed at a total project cost of approximately $7.85 billion (including contingency and excluding AFUDC), the Company expects its equity ownership in the MVP project would progressively increase from approximately 48.9% to approximately 49.2%. 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. Upon completion of the MVP project, the Company expects the MVP Joint Venture to no longer be a variable interest entity because it will have sufficient equity to finance its activities, including accessing capital markets and returning a portion of invested capital to its owners. In March 2024, 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 $46.8 million, which was paid in April 2024. The capital contributions payable and the corresponding increase to the investment balance are reflected on the consolidated balance sheet as of March 31, 2024. Pursuant to the MVP Joint Venture's limited liability company agreement, MVP Holdco is obligated to provide performance assurances in respect of the MVP project, 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. As of March 31, 2024, the letter of credit with respect to the MVP project was in the amount of approximately $104.7 million. The letter of credit with respect to the MVP project is expected to be further reduced as the Company contributes capital to fund MVP Holdco's remaining proportionate share of the construction budget, subject to a minimum-required level to be maintained through in-service of the MVP project. The Company's ownership interest in the MVP Joint Venture related to the MVP project is significant for the three months ended March 31, 2024 as defined by the SEC's Regulation S-X Rule 1-02(w). Accordingly, as required by Regulation S-X Rule 3-09, the following tables summarize the condensed financial statements of the MVP Joint Venture in relation to the MVP project. Condensed Balance Sheets March 31, 2024 December 31, 2023 (Unaudited) (Thousands) Current assets $ 228,562 $ 349,417 Non-current assets 9,099,814 8,480,539 Total assets $ 9,328,376 $ 8,829,956 Current liabilities $ 238,888 $ 371,508 Equity 9,089,488 8,458,448 Total liabilities and equity $ 9,328,376 $ 8,829,956 Condensed Statements of Operations Three Months Ended March 31, 2024 2023 (Unaudited) (Thousands) Operating (expense) income $ (34) $ — Other income 3,270 257 AFUDC - debt 43,960 — AFUDC - equity 102,579 — Net income $ 149,775 $ 257 MVP Southgate Project. In April 2018, the MVP Joint Venture announced the MVP Southgate project (MVP Southgate) as a contemplated interstate pipeline that was approved by the United States FERC and designed to extend approximately 75 miles from the MVP in Pittsylvania County, Virginia to new delivery points in Rockingham and Alamance Counties, North Carolina using 24-inch and 16-inch diameter pipe. In late December 2023, following completion of its negotiations with each of Public Service Company of North Carolina, Inc. (PSNC) and Duke Energy Carolinas, LLC (Duke), the MVP Joint Venture entered into precedent agreements with each of PSNC and Duke. The precedent agreements contemplate an amended project (in lieu of the original project) and, among other things, describe certain conditions precedent to the parties' respective obligations regarding MVP Southgate. The amended project would extend approximately 31 miles from the terminus of the MVP in Pittsylvania County, Virginia to planned new delivery points in Rockingham County, North Carolina using 30-inch diameter pipe. 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, 2024. The targeted completion timing for the project is June 2028. 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. On April 6, 2023, EQM’s $14.2 million letter of credit with respect to the MVP Southgate project was terminated, following the determination to temporarily defer partners’ obligations to post performance assurances with respect to the MVP Southgate project, which may be reinstated upon further developments. Upon the FERC’s initial release to begin construction of the MVP Southgate project, the Company will be obligated to deliver an allowable form of performance assurance in an amount equal to 33% of MVP Holdco’s proportionate share of the remaining capital obligations under the applicable construction budget. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Amended EQM Credit Facility. On February 15, 2024 (the Fifth Amendment Date), EQM entered into an amendment (the Fifth Amendment) to the Third Amended and Restated Credit Agreement, dated as of October 31, 2018 (as amended, supplemented or otherwise modified, the Amended EQM Credit Facility), among EQM, as borrower, Wells Fargo Bank, National Association, as the administrative agent, swing line lender and an L/C issuer, the lenders party thereto from time to time and any other persons party thereto from time to time. The Fifth Amendment, among other things, amended the financial covenant, such that the Consolidated Leverage Ratio (as defined in the Amended EQM Credit Facility) (i) as of March 31, 2024, could not exceed 6.00 to 1.00, (ii) as of June 30, 2024, cannot exceed 6.25 to 1.00, (iii) as of September 30, 2024, cannot exceed 5.85 to 1.00 and (iv) as of the end of each fiscal quarter thereafter, cannot exceed 5.50 to 1.00. EQM has or, as applicable, will have aggregate commitments available under the Amended EQM Credit Facility of approximately $1.55 billion prior to April 30, 2025, and approximately $1.45 billion on and after April 30, 2025 and prior to April 30, 2026. For the avoidance of doubt, any reference to the Amended EQM Credit Facility as of any particular date shall mean the Amended EQM Credit Facility as in effect on such date. As of March 31, 2024, EQM had $520 million of borrowings and approximately $105.8 million of letters of credit outstanding under the Amended EQM Credit Facility. Taking into account the maximum Consolidated Leverage Ratio applicable under the Amended EQM Credit Facility that, as of March 31, 2024, could not exceed 6.00 to 1.00, EQM had the ability to borrow approximately $0.2 billion under the Amended EQM Credit Facility as of March 31, 2024. As of December 31, 2023, EQM had $915 million of borrowings and approximately $105.8 million of letters of credit outstanding under the Amended EQM Credit Facility. During the three months ended March 31, 2024 and 2023, the maximum outstanding borrowings at any time were approximately $1,055 million and $315 million, respectively, the average daily balances were approximately $834 million and $262 million, respectively, and the weighted average annual interest rates were approximately 8.3% and 7.5%, respectively. For the three months ended March 31, 2024 and 2023, commitment fees of $0.7 million and $2.1 million, respectively, were paid to maintain credit availability under the Amended EQM Credit Facility. As of March 31, 2024, no term loans were outstanding under the Amended EQM Credit Facility. The Amended EQM Facility contains negative covenants that, among other things, limit restricted payments, the incurrence of debt, dispositions, mergers and other fundamental changes, and transactions with affiliates, in each case and as applicable, subject to certain specified exceptions. In addition, the Amended EQM Credit Facility contains certain specified events of default such as insolvency, nonpayment of scheduled principal or interest obligations, change of control and cross-default related to the acceleration or default of certain other financial obligations. Eureka Credit Facility. Eureka has 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) that matures in November 2025. As of March 31, 2024, and December 31, 2023, Eureka had $330 million and $315 million, respectively, of borrowings outstanding under the 2021 Eureka Credit Facility. For the three months ended March 31, 2024 and 2023, the maximum amount of outstanding borrowings under the 2021 Eureka Credit Facility at any time were approximately $330 million and $303 million, respectively, the average daily balances were approximately $323 million and $299 million, respectively, and Eureka incurred interest at weighted average annual interest rates of approximately 8.3% and 7.1%, respectively. For the three months ended March 31, 2024 and 2023, commitment fees of $0.1 million and $0.1 million, respectively, were paid to maintain credit availability under the 2021 Eureka Credit Facility. The 2021 Eureka Credit Facility contains negative covenants that, among other things, limit restricted payments, the incurrence of debt, dispositions, mergers and other fundamental changes, and transactions with affiliates, in each case and as applicable, subject to certain specified exceptions. In addition, the 2021 Eureka Credit Facility contains certain specified events of default such as insolvency, nonpayment of scheduled principal or interest obligations, loss and failure to replace certain material contracts, change of control and cross-default related to the acceleration or default of certain other financial obligations. 2024 Senior Notes. On February 26, 2024, EQM completed a private offering of $600 million in aggregate principal amount of new 6.375% senior notes due 2029 (the 2024 Senior Notes) and received net proceeds from the offering of approximately $590.6 million inclusive of a discount of approximately $7.5 million and debt issuance costs of approximately $1.9 million. EQM used the net proceeds from the 2024 Senior Notes offering to repay certain outstanding indebtedness, including borrowings under the Amended EQM Credit Facility, and for general partnership purposes. The 2024 Senior Notes were issued under and are governed by an indenture, dated February 26, 2024 (the 2024 Indenture), between EQM and U.S. Bank Trust Company, National Association, as trustee (the Trustee). The 2024 Indenture contains covenants that limit EQM’s ability to, among other things, incur certain liens securing indebtedness, engage in certain sale and leaseback transactions, and enter into certain consolidations, mergers, conveyances, transfers or leases of all or substantially all of EQM’s assets. The 2024 Senior Notes will mature on April 1, 2029 and interest on the 2024 Senior Notes is payable semi-annually in arrears on April 1 and October 1 of each year, commencing on October 1, 2024. The 2024 Senior Notes are unsecured and rank equally in right of payment with all of EQM’s existing and future senior indebtedness. The 2024 Senior Notes are senior in right of payment to any of EQM’s future indebtedness that are, by their terms, expressly subordinated in right of payment to the 2024 Senior Notes. The 2024 Senior Notes are effectively subordinated to EQM’s future secured indebtedness, if any, to the extent of the value of the assets securing such indebtedness, and structurally subordinated to all existing and future obligations, including trade payables, of EQM’s subsidiaries, other than any subsidiaries that may guarantee the Notes in the future. EQM may, at its option, redeem some or all of the 2024 Senior Notes, in whole or in part, at any time prior to their maturity at the applicable redemption price as set forth in the Indenture. Upon the occurrence of a Change of Control Triggering Event (as defined in the 2024 Indenture), EQM may be required to offer to purchase the 2024 Senior Notes at a purchase price equal to 101% of the aggregate principal amount of the 2024 Senior Notes repurchased, plus accrued and unpaid interest, if any, on the 2024 Senior Notes repurchased, to, but excluding, the date of settlement, subject to the right of holders of record on the relevant record date to receive interest due on an interest payment date that is on or prior to the date of settlement. The 2024 Indenture contains certain events of default (each an Event of Default), including the following: (1) default in the payment of interest on such 2024 Senior Notes when due that continues for 30 days; (2) default in the payment of principal of or premium, if any, on any such 2024 Senior Notes when due, whether at its stated maturity, upon redemption or otherwise; (3) failure by EQM or any subsidiary guarantor, if any, to comply for 90 days with the other agreements with respect to such 2024 Senior Notes contained in the 2024 Indenture after written notice by the Trustee or by the holders of at least 25% in principal amount of the outstanding 2024 Senior Notes; (4) certain events of bankruptcy, insolvency or reorganization of EQM or any subsidiary guarantor, if any, that is one of EQM’s Significant Subsidiaries (as defined in the 2024 Indenture); and (5) if such 2024 Senior Notes are guaranteed by a subsidiary guarantor that is one of EQM’s Significant Subsidiaries, (a) the guarantee of that subsidiary guarantor ceases to be in full force and effect, except as otherwise provided in the 2024 Indenture; (b) the guarantee of that subsidiary guarantor is declared null and void in a judicial proceeding; or (c) such subsidiary guarantor denies or disaffirms its obligations under the 2024 Indenture or its guarantee. If an Event of Default occurs and is continuing, the Trustee or the holders of at least 25% in aggregate principal amount of the outstanding 2024 Senior Notes may declare the principal of and all accrued and unpaid interest on such 2024 Senior Notes to be immediately due and payable. If an Event of Default relating to certain events of bankruptcy, insolvency or reorganization occurs, the principal of and interest on the 2024 Senior Notes will become immediately due and payable without any action on the part of the Trustee or any holders of the 2024 Senior Notes. As of March 31, 2024, EQM and Eureka were in compliance with all debt provisions and covenants. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 long-term firm capacity obligations commence 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, probability-weighted assumptions regarding MVP project completion, 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 probability-weighted assumptions regarding MVP project completion utilizing internally developed methodologies, and the expected volatility of NYMEX Henry Hub natural gas futures prices, used in the valuation methodology represent significant unobservable inputs causing the Henry Hub cash bonus payment provision to be designated as a Level 3 fair value measurement. An expected average volatility of approximately 45.0% 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, 2024 and December 31, 2023, the fair values of the Henry Hub cash bonus payment provision were $19.8 million and $24.5 million, respectively, which were recorded in other current assets sheets. During the three months ended March 31, 2024 and 2023, the Company recognized losses of $4.7 million and $8.5 million, respectively, representing the change in estimated fair value of the derivative instrument during the respective periods and are recorded in other (expense) income Other Financial Instruments. The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short maturity of the instruments. The carrying values of borrowings under the Amended EQM Credit Facility and the 2021 Eureka Credit Facility approximate fair value as the interest rates are based on prevailing market rates. 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, 2024 and December 31, 2023, the estimated fair values of EQM's senior notes were approximately $6,901.2 million and $6,334.3 million, respectively, and the carrying values of EQM's senior notes were approximately $6,940.0 million and $6,346.4 million, respectively. The fair value of the preferred interest that the Company has in EQT Energy Supply, LLC (EES), a subsidiary of EQT (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, 2024, and December 31, 2023, the estimated fair values of the Preferred Interest were approximately $88.2 million and $90.7 million, respectively, and the carrying values of the Preferred Interest were approximately $87.0 million and $88.5 million, respectively. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company excluded 30,018 (in thousands) of weighted average anti-dilutive securities related to the Equitrans Midstream Preferred Shares from the computation of diluted weighted average common shares outstanding for the three months ended March 31, 2024. The Company excluded 30,136 (in thousands) of weighted average anti-dilutive securities related to the Equitrans Midstream Preferred Shares and stock-based compensation awards from the computation of diluted weighted average common shares outstanding for the three months ended March 31, 2023. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate was 14.8% for the three months ended March 31, 2024 compared to (3.7)% for the three months ended March 31, 2023. The Company calculates the provision for income taxes for interim periods by applying an estimate of the annual effective tax rate for the full fiscal year to "ordinary" income or loss (income (loss) before income taxes excluding unusual or infrequently occurring items) for the periods. The effective tax rate was higher for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 primarily due to the impact of changes in the valuation allowance that limit tax benefits for the Company's federal and state deferred tax assets and the impact of projected AFUDC - equity from the MVP project. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) Attributable to Parent | $ 108,999 | $ 101,682 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Financial Statements (Policies)
Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024, the results of its operations, cash flows and equity for the three months ended March 31, 2024 and 2023. The consolidated balance sheet at December 31, 2023 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, 2023, 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, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. For further information, refer to the Company's consolidated financial statements and related notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, 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 November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures , which provides improvements to reportable segment disclosures and is intended to enhance the disclosures regarding significant segment expenses. The guidance is applicable to all public entities that are required to report segment information in accordance with Topic 280 and is to be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the potential impact of adopting this standard on its financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes: Improvements to Income Tax Disclosures , which provides improvements to income tax disclosures and is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. The guidance is applicable to all public entities required to report income taxes in accordance with ASC 740 and should be applied prospectively, but retrospective application is permitted. The standard requires disaggregated information about a reporting entity’s effective tax rate reconciliation, information on income taxes paid, and various other disclosure changes. The Company is currently evaluating the potential impact of adopting this standard on its financial statements and related disclosures. |
Financial Information by Busi_2
Financial Information by Business Segment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Operating Income and Reconciliation to Net Income | Three Months Ended March 31, 2024 2023 (Thousands) Revenues from customers: Gathering (a) $ 224,640 $ 210,752 Transmission (a) 116,894 138,906 Water 22,740 26,679 Total operating revenues $ 364,274 $ 376,337 Operating income: Gathering $ 105,059 $ 104,294 Transmission 77,082 98,922 Water 4,988 12,373 Headquarters (b) (5,973) (345) Total operating income $ 181,156 $ 215,244 Reconciliation of operating income to net income: Equity income (c) $ 73,005 $ 122 Other (expense) income, net (d) (3,976) (8,102) Net interest expense (118,896) (104,957) Income tax expense (benefit) 19,400 (3,784) Net income $ 111,889 $ 106,091 (a) For the three months ended March 31, 2023, volumetric-based fee revenues associated with Gathering and Transmission included one-time contract buyouts by a customer for approximately $5.0 million and $23.8 million, respectively. (b) Includes transaction costs and other certain unallocated corporate expenses. (c) Equity income is included in the Transmission segment. (d) Includes unrealized loss on derivative instruments recorded in the Gathering segment. |
Schedule of Segment Assets | March 31, 2024 December 31, 2023 (Thousands) Segment assets: Gathering $ 7,573,577 $ 7,612,820 Transmission (a) 3,731,064 3,369,718 Water 245,270 217,225 Total operating segments 11,549,911 11,199,763 Headquarters, including cash 298,930 509,663 Total assets $ 11,848,841 $ 11,709,426 (a) The equity method investment in the MVP Joint Venture is included in the Transmission segment. |
Schedule of Depreciation and Amortization and Expenditures for Segment Assets | Three Months Ended March 31, 2024 2023 (Thousands) Depreciation: Gathering $ 50,152 $ 49,349 Transmission 14,383 13,888 Water 7,034 5,863 Headquarters 103 304 Total $ 71,672 $ 69,404 Capital expenditures: Gathering (a) $ 54,256 $ 59,713 Transmission (b) 17,704 9,189 Water 10,047 11,076 Total (c) $ 82,007 $ 79,978 (a) Includes capital expenditures related to the noncontrolling interest in Eureka Midstream Holdings, LLC (Eureka Midstream) of approximately $5.0 million and $3.2 million for the three months ended March 31, 2024 and 2023, respectively. (b) Transmission capital expenditures do not include aggregate capital contributions made to the MVP Joint Venture of approximately $423.0 million and $34.5 million for the three months ended March 31, 2024 and 2023, 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 $2.9 million and $(4.3) million for the three months ended March 31, 2024 and 2023, respectively. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 Gathering Transmission Water Total (Thousands) Firm reservation fee revenues (a) $ 135,676 $ 100,323 $ 9,375 $ 245,374 Volumetric-based fee revenues 88,964 16,571 13,365 118,900 Total operating revenues $ 224,640 $ 116,894 $ 22,740 $ 364,274 Three Months Ended March 31, 2023 Gathering Transmission Water Total (Thousands) Firm reservation fee revenues (a) $ 140,071 $ 101,722 $ 9,375 $ 251,168 Volumetric-based fee revenues (b) 70,681 37,184 17,304 125,169 Total operating revenues $ 210,752 $ 138,906 $ 26,679 $ 376,337 (a) Firm reservation fee revenues associated with Gathering included MVC unbilled revenues of approximately $5.9 million and $3.3 million for the three months ended March 31, 2024 and 2023, respectively. (b) For the three months ended March 31, 2023, volumetric-based fee revenues associated with Gathering and Transmission included one-time contract buyouts by a customer for approximately $5.0 million and $23.8 million, respectively. |
Schedule of Contract with Customer, Asset and Liability | The following table presents changes in the Company's contract assets balance: Three Months Ended March 31, 2024 2023 (Thousands) Balance as of beginning of period $ 11,123 $ 27,493 Revenue recognized in excess of amounts invoiced (a) 5,903 3,262 Minimum volume commitments invoiced (b) (7,833) (23,558) Amortization (c) (165) (165) Balance as of end of period $ 9,028 $ 7,032 (a) Primarily includes revenues associated with MVCs that are included in revenues within the Gathering and Water segments. (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: Three Months Ended March 31, 2024 2023 (Thousands) Balance as of beginning of period $ 1,301,100 $ 973,087 Amounts recorded during the period (a) 62,456 81,930 Change in estimated variable consideration (b) — (3,392) Amounts transferred during the period (c) (1,491) (2,221) Balance as of end of period $ 1,362,065 $ 1,049,404 (a) Includes deferred billed revenue during the three months ended March 31, 2024 and 2023 primarily associated with the EQT Global GGA. (b) For the three months ended March 31, 2023, the change in estimated variable consideration represents the decrease in total deferred revenue due to changes in MVP timing assumptions. (c) Deferred revenues are recognized as revenue upon satisfaction of the Company's performance obligation to the customer. |
Schedule 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, 2024 that the Company will invoice or transfer from contract liabilities and recognize in future periods. 2024 (a) 2025 2026 2027 2028 Thereafter Total (Thousands) Gathering firm reservation fees $ 128,764 $ 176,822 $ 167,220 $ 160,435 $ 156,743 $ 1,553,481 $ 2,343,465 Gathering revenues supported by MVCs 333,494 458,745 490,982 488,944 486,306 2,690,099 4,948,570 Transmission firm reservation fees 291,127 400,381 400,511 399,762 397,081 2,771,121 4,659,983 Water revenues supported by ARCs/MVCs 36,331 48,441 45,159 44,065 45,706 120,938 340,640 Total (b) $ 789,716 $ 1,084,389 $ 1,103,872 $ 1,093,206 $ 1,085,836 $ 7,135,639 $ 12,292,658 (a) April 1, 2024 through December 31, 2024. (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 any future 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 method investment and those amounts are not included in the table above. |
Investments in Unconsolidated E
Investments in Unconsolidated Entity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Unaudited Condensed Financial Statements for the Investment in Unconsolidated Equity | Condensed Balance Sheets March 31, 2024 December 31, 2023 (Unaudited) (Thousands) Current assets $ 228,562 $ 349,417 Non-current assets 9,099,814 8,480,539 Total assets $ 9,328,376 $ 8,829,956 Current liabilities $ 238,888 $ 371,508 Equity 9,089,488 8,458,448 Total liabilities and equity $ 9,328,376 $ 8,829,956 Condensed Statements of Operations Three Months Ended March 31, 2024 2023 (Unaudited) (Thousands) Operating (expense) income $ (34) $ — Other income 3,270 257 AFUDC - debt 43,960 — AFUDC - equity 102,579 — Net income $ 149,775 $ 257 |
Financial Statements - Narrativ
Financial Statements - Narrative (Details) | Mar. 31, 2024 primaryAsset |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of primary assets through which services are provided | 3 |
Proposed EQT Transaction - Narr
Proposed EQT Transaction - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 10, 2024 | |
Business Acquisition | |||
Transaction costs | $ 5,684 | $ 0 | |
EQT Merger | |||
Business Acquisition | |||
Common stock conversion ratio | 35.04% | ||
Transaction costs | $ 5,700 | ||
EQT Merger | Equitrans Midstream Corporation | |||
Business Acquisition | |||
Termination fee | $ 191,000 | ||
EQT Merger | EQT Corporation | |||
Business Acquisition | |||
Termination fee | 545,000 | ||
Special termination fee | $ 176,000 |
Financial Information by Busi_3
Financial Information by Business Segment - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment lineOfBusiness | |
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, 2024 | Mar. 31, 2023 | ||
Revenues from customers: | |||
Total operating revenues | $ 364,274 | $ 376,337 | |
Operating income: | |||
Total operating income | 181,156 | 215,244 | |
Reconciliation of operating income to net income: | |||
Equity income | [1],[2] | 73,005 | 122 |
Other (expense) income, net | (3,976) | (8,102) | |
Net interest expense | (118,896) | (104,957) | |
Income tax expense (benefit) | 19,400 | (3,784) | |
Net income | 111,889 | 106,091 | |
Gathering | |||
Revenues from customers: | |||
Total operating revenues | 224,640 | 210,752 | |
Gathering | Contract Buyouts | |||
Revenues from customers: | |||
Total operating revenues | 5,000 | ||
Transmission | |||
Revenues from customers: | |||
Total operating revenues | 116,894 | 138,906 | |
Transmission | Contract Buyouts | |||
Revenues from customers: | |||
Total operating revenues | 23,800 | ||
Water | |||
Revenues from customers: | |||
Total operating revenues | 22,740 | 26,679 | |
Operating Segments | Gathering | |||
Revenues from customers: | |||
Total operating revenues | 224,640 | 210,752 | |
Operating income: | |||
Total operating income | 105,059 | 104,294 | |
Operating Segments | Transmission | |||
Revenues from customers: | |||
Total operating revenues | 116,894 | 138,906 | |
Operating income: | |||
Total operating income | 77,082 | 98,922 | |
Operating Segments | Water | |||
Revenues from customers: | |||
Total operating revenues | 22,740 | 26,679 | |
Operating income: | |||
Total operating income | 4,988 | 12,373 | |
Headquarters | |||
Operating income: | |||
Total operating income | $ (5,973) | $ (345) | |
[1] Represents equity income from Mountain Valley Pipeline, LLC (the MVP Joint Venture). See Note 5. Represents equity income from the MVP Joint Venture. See Note 5. |
Financial Information by Busi_5
Financial Information by Business Segment - Schedule of Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Long-Lived Assets | ||
Total assets | $ 11,848,841 | $ 11,709,426 |
Operating Segments | ||
Long-Lived Assets | ||
Total assets | 11,549,911 | 11,199,763 |
Operating Segments | Gathering | ||
Long-Lived Assets | ||
Total assets | 7,573,577 | 7,612,820 |
Operating Segments | Transmission | ||
Long-Lived Assets | ||
Total assets | 3,731,064 | 3,369,718 |
Operating Segments | Water | ||
Long-Lived Assets | ||
Total assets | 245,270 | 217,225 |
Headquarters | ||
Long-Lived Assets | ||
Total assets | $ 298,930 | $ 509,663 |
Financial Information by Busi_6
Financial Information by Business Segment - Schedule of Depreciation and Capital Expenditures for Segment Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Information | ||
Depreciation | $ 71,672 | $ 69,404 |
Capital expenditures | 82,007 | 79,978 |
Capitalized share-based compensation cost | 2,900 | (4,300) |
Operating Segments | Gathering | ||
Segment Information | ||
Depreciation | 50,152 | 49,349 |
Capital expenditures | 54,256 | 59,713 |
Operating Segments | Gathering | Eureka Midstream Holdings, LLC | ||
Segment Information | ||
Capital expenditures | 5,000 | 3,200 |
Operating Segments | Transmission | ||
Segment Information | ||
Depreciation | 14,383 | 13,888 |
Capital expenditures | 17,704 | 9,189 |
Operating Segments | Transmission | MVP Southgate Project | ||
Segment Information | ||
Capital expenditures | 423,000 | 34,500 |
Operating Segments | Water | ||
Segment Information | ||
Depreciation | 7,034 | 5,863 |
Capital expenditures | 10,047 | 11,076 |
Headquarters | ||
Segment Information | ||
Depreciation | $ 103 | $ 304 |
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, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue | ||
Total operating revenues | $ 364,274 | $ 376,337 |
Gathering | ||
Disaggregation of Revenue | ||
Total operating revenues | 224,640 | 210,752 |
Gathering | Contract Buyouts | ||
Disaggregation of Revenue | ||
Total operating revenues | 5,000 | |
Transmission | ||
Disaggregation of Revenue | ||
Total operating revenues | 116,894 | 138,906 |
Transmission | Contract Buyouts | ||
Disaggregation of Revenue | ||
Total operating revenues | 23,800 | |
Water | ||
Disaggregation of Revenue | ||
Total operating revenues | 22,740 | 26,679 |
Firm reservation fee revenues | ||
Disaggregation of Revenue | ||
Total operating revenues | 245,374 | 251,168 |
Firm reservation fee revenues | Gathering | ||
Disaggregation of Revenue | ||
Total operating revenues | 135,676 | 140,071 |
Firm reservation fee revenues | Gathering | MVC | ||
Disaggregation of Revenue | ||
Total operating revenues | 5,900 | 3,300 |
Firm reservation fee revenues | Transmission | ||
Disaggregation of Revenue | ||
Total operating revenues | 100,323 | 101,722 |
Firm reservation fee revenues | Water | ||
Disaggregation of Revenue | ||
Total operating revenues | 9,375 | 9,375 |
Volumetric-based fee revenues | ||
Disaggregation of Revenue | ||
Total operating revenues | 118,900 | 125,169 |
Volumetric-based fee revenues | Gathering | ||
Disaggregation of Revenue | ||
Total operating revenues | 88,964 | 70,681 |
Volumetric-based fee revenues | Transmission | ||
Disaggregation of Revenue | ||
Total operating revenues | 16,571 | 37,184 |
Volumetric-based fee revenues | Water | ||
Disaggregation of Revenue | ||
Total operating revenues | $ 13,365 | $ 17,304 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Unbilled Revenue Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement in Deferred Revenue [Roll Forward] | ||
Balance as of beginning of period | $ 11,123 | $ 27,493 |
Revenue recognized in excess of amounts invoiced | 5,903 | 3,262 |
Minimum volume commitments invoiced | (7,833) | (23,558) |
Amortization | (165) | (165) |
Balance as of end of period | $ 9,028 | $ 7,032 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Deferred Revenue Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Change in Contract with Customer, Liability | ||
Balance as of beginning of period | $ 1,301,100 | $ 973,087 |
Amounts recorded during the period | 62,456 | 81,930 |
Change in estimated variable consideration | 0 | (3,392) |
Amounts transferred during the period | (1,491) | (2,221) |
Balance as of end of period | $ 1,362,065 | $ 1,049,404 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Schedule of Remaining Performance Obligations (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 12,292,658 |
Transmission firm reservation fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | 4,659,983 |
Water revenues supported by ARCs/MVCs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | 340,640 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | 789,716 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Transmission firm reservation fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 291,127 |
Remaining performance obligations, expected timing | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Water revenues supported by ARCs/MVCs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 36,331 |
Remaining performance obligations, expected timing | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 1,084,389 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Transmission firm reservation fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 400,381 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Water revenues supported by ARCs/MVCs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 48,441 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 1,103,872 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Transmission firm reservation fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 400,511 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Water revenues supported by ARCs/MVCs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 45,159 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 1,093,206 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Transmission firm reservation fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 399,762 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Water revenues supported by ARCs/MVCs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 44,065 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 1,085,836 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Transmission firm reservation fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 397,081 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Water revenues supported by ARCs/MVCs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 45,706 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 7,135,639 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | Transmission firm reservation fees | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 2,771,121 |
Remaining performance obligations, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | Water revenues supported by ARCs/MVCs | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 120,938 |
Remaining performance obligations, expected timing | 1 year |
Gathering firm reservation fees | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 2,343,465 |
Gathering firm reservation fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 128,764 |
Remaining performance obligations, expected timing | 9 months |
Gathering firm reservation fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 176,822 |
Remaining performance obligations, expected timing | 1 year |
Gathering firm reservation fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 167,220 |
Remaining performance obligations, expected timing | 1 year |
Gathering firm reservation fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 160,435 |
Remaining performance obligations, expected timing | 1 year |
Gathering firm reservation fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 156,743 |
Remaining performance obligations, expected timing | 1 year |
Gathering firm reservation fees | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 1,553,481 |
Remaining performance obligations, expected timing | 1 year |
Gathering revenues supported by MVCs | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 4,948,570 |
Gathering revenues supported by MVCs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 333,494 |
Remaining performance obligations, expected timing | 9 months |
Gathering revenues supported by MVCs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 458,745 |
Remaining performance obligations, expected timing | 1 year |
Gathering revenues supported by MVCs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 490,982 |
Remaining performance obligations, expected timing | 1 year |
Gathering revenues supported by MVCs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 488,944 |
Remaining performance obligations, expected timing | 1 year |
Gathering revenues supported by MVCs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 486,306 |
Remaining performance obligations, expected timing | 1 year |
Gathering revenues supported by MVCs | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | Gathering | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Total | $ 2,690,099 |
Remaining performance obligations, expected timing | 1 year |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Gathering | |
Disaggregation of Revenue | |
Weighted average remaining term (in years) | 13 years |
Transmission firm reservation fees | |
Disaggregation of Revenue | |
Weighted average remaining term (in years) | 11 years |
Investments in Unconsolidated_2
Investments in Unconsolidated Entity - Narrative (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||||
May 31, 2024 USD ($) | Mar. 31, 2024 USD ($) mi | Mar. 31, 2024 USD ($) mi | Dec. 31, 2023 mi | Apr. 06, 2023 USD ($) | Apr. 30, 2018 mi | |
MVP Joint Venture | Beneficial Owner | ||||||
Schedule of Equity Method Investments | ||||||
Percentage of ownership interest | 66.67% | |||||
MVP Project | Con Edison | Maximum | Scenario, Forecast | ||||||
Schedule of Equity Method Investments | ||||||
Project target cost | $ 7,850 | |||||
MVP Southgate Project | ||||||
Schedule of Equity Method Investments | ||||||
Length of pipeline | mi | 31 | |||||
Gas and oil, length of natural gas pipeline | mi | 75 | |||||
Variable Interest Entity, Not Primary Beneficiary | MVP Joint Venture | EQM Midstream Partners, LP | ||||||
Schedule of Equity Method Investments | ||||||
Ownership interest (as a percent) | 48.90% | 48.90% | ||||
Variable Interest Entity, Not Primary Beneficiary | MVP Joint Venture | EQM Midstream Partners, LP | Scenario, Forecast | ||||||
Schedule of Equity Method Investments | ||||||
Ownership interest (as a percent) | 49.20% | |||||
Variable Interest Entity, Not Primary Beneficiary | MVP Project | ||||||
Schedule of Equity Method Investments | ||||||
Capital contribution payable to MVP Joint Venture | $ 46.8 | |||||
Letter of credit outstanding | $ 104.7 | $ 104.7 | ||||
Variable Interest Entity, Not Primary Beneficiary | MVP Southgate Project | ||||||
Schedule of Equity Method Investments | ||||||
Ownership interest (as a percent) | 47.20% | 47.20% | ||||
Letter of credit outstanding | $ 14.2 | |||||
Variable Interest Entity, Not Primary Beneficiary | MVP | ||||||
Schedule of Equity Method Investments | ||||||
Length of pipeline | mi | 303 | 303 | ||||
Issuance of performance guarantee, remaining capital obligation (as a percent) | 33% | 33% |
Investments in Unconsolidated_3
Investments in Unconsolidated Entity - Balance Sheet for the Investment in Unconsolidated Equity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Condensed Balance Sheets | ||||
Current assets | $ 361,997 | $ 595,497 | ||
Total assets | 11,848,841 | 11,709,426 | ||
Current liabilities | 576,210 | 782,866 | ||
Equity | 1,534,325 | 1,506,275 | $ 1,420,018 | $ 1,398,604 |
Total liabilities, mezzanine equity and shareholders' equity | 11,848,841 | 11,709,426 | ||
Variable Interest Entity, Not Primary Beneficiary | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Condensed Balance Sheets | ||||
Current assets | 228,562 | 349,417 | ||
Non-current assets | 9,099,814 | 8,480,539 | ||
Total assets | 9,328,376 | 8,829,956 | ||
Current liabilities | 238,888 | 371,508 | ||
Equity | 9,089,488 | 8,458,448 | ||
Total liabilities, mezzanine equity and shareholders' equity | $ 9,328,376 | $ 8,829,956 |
Investments in Unconsolidated_4
Investments in Unconsolidated Entity - Income Statement for the Investment in Unconsolidated Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Equity Method Investments | ||
Net income | $ 111,889 | $ 106,091 |
Variable Interest Entity, Not Primary Beneficiary | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments | ||
Operating (expense) income | (34) | 0 |
Other income | 3,270 | 257 |
AFUDC - debt | 43,960 | 0 |
AFUDC - equity | 102,579 | 0 |
Net income | $ 149,775 | $ 257 |
Debt - Amended Credit Facility
Debt - Amended Credit Facility (Details) | 3 Months Ended | |||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Feb. 15, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument | ||||
Revolving credit facility borrowings | $ 850,000,000 | $ 1,230,000,000 | ||
EQM Credit Facility | EQM Midstream Partners, LP | Revolving Credit Facility | ||||
Debt Instrument | ||||
Borrowings outstanding | 520,000,000 | $ 1,450,000,000 | 915,000,000 | |
Revolving credit facility borrowings | 105,800,000 | $ 105,800,000 | ||
EQM Credit Facility | Line of Credit | ||||
Debt Instrument | ||||
Maximum borrowing capacity | $ 200,000,000 | $ 1,550,000,000 | ||
EQM Credit Facility | Line of Credit | EQM Midstream Partners, LP | ||||
Debt Instrument | ||||
Consolidated leverage ratio | 6 | |||
Maximum amount of short term loans outstanding | $ 1,055,000,000 | $ 315,000,000 | ||
Average daily balance of short term loans outstanding | 834,000,000 | 262,000,000 | ||
Commitment fees | $ 700,000 | $ 2,100,000 | ||
EQM Credit Facility | Line of Credit | EQM Midstream Partners, LP | Debt Covenant Period One | ||||
Debt Instrument | ||||
Consolidated leverage ratio | 6 | |||
EQM Credit Facility | Line of Credit | EQM Midstream Partners, LP | Debt Covenant Period Two | ||||
Debt Instrument | ||||
Consolidated leverage ratio | 6.25 | |||
EQM Credit Facility | Line of Credit | EQM Midstream Partners, LP | Debt Covenant Period Three | ||||
Debt Instrument | ||||
Consolidated leverage ratio | 5.85 | |||
EQM Credit Facility | Line of Credit | EQM Midstream Partners, LP | Debt Covenant Period Four | ||||
Debt Instrument | ||||
Consolidated leverage ratio | 5.50 | |||
EQM Credit Facility | Line of Credit | EQT Midstream Partners LP | ||||
Debt Instrument | ||||
Weighted average annual interest rate (as a percent) | 8.30% | 7.50% | ||
EQM Credit Facility | Letter of Credit | EQM Midstream Partners, LP | ||||
Debt Instrument | ||||
Maximum amount of short term loans outstanding | $ 0 |
Debt - Eureka Credit Facility (
Debt - Eureka Credit Facility (Details) - Eureka Credit Facility - Line of Credit - Eureka Midstream, LLC - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | May 13, 2021 | |
Debt Instrument | ||||
Maximum borrowing capacity | $ 400,000,000 | |||
Borrowings outstanding | $ 330,000,000 | $ 315,000,000 | ||
Maximum amount of short term loans outstanding | 330,000,000 | $ 303,000,000 | ||
Average daily balance of short term loans outstanding | $ 323,000,000 | $ 299,000,000 | ||
Weighted average annual interest rate (as a percent) | 8.30% | 7.10% | ||
Payment commitment fees | $ 100,000 | $ 100,000 |
Debt - 2024 Senior Notes (Detai
Debt - 2024 Senior Notes (Details) - Senior Notes - USD ($) | Feb. 26, 2024 | Mar. 31, 2024 |
7.50% Senior Notes Due 2027 | ||
Debt Instrument | ||
Principal | $ 600,000,000 | |
Interest rate (as a percent) | 6.375% | |
2021 Senior Notes | ||
Debt Instrument | ||
Net proceeds from offering | $ 590,600,000 | |
Discount | 7,500,000 | |
Debt issuance costs | $ 1,900,000 | |
Redemption percentage rate | 101% |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Other current assets | Other current assets | |
Gain (loss) on derivative instrument | $ 4.7 | $ 8.5 | |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other (expense) income, net | Other (expense) income, net | |
Level 2 | Fair Value | EQM Midstream Partners, LP | Senior Notes | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Long-term debt | $ 6,901.2 | $ 6,334.3 | |
Level 2 | Carrying Value | EQM Midstream Partners, LP | Senior Notes | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Long-term debt | 6,940 | 6,346.4 | |
Level 3 | Fair Value | EES | EQM Midstream Partners, LP | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Preferred interest | 88.2 | 90.7 | |
Level 3 | Carrying Value | EES | EQM Midstream Partners, LP | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Preferred interest | 87 | 88.5 | |
Henry Hub Cash Payment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Derivative asset, current | $ 19.8 | $ 24.5 | |
Volatility | Market Quoted Volatility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Volatility rate (as a percent) | 0.450 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Class of Stock | ||
Potentially dilutive securities (in shares) | 30,018 | 30,136 |
Phantom Share Units (PSUs) | ||
Class of Stock | ||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 840 | 603 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate (as a percent) | 14.80% | (3.70%) | |
Income tax expense related to changes in valuation allowances | $ 10.4 | ||
Valuation allowance | $ 46.4 | $ 56.8 |