Midstream (EQTNP) 30 Jul 192019 Q2 Earnings call transcript

Company Profile

Participants

Nate Tetlow	Vice President, Investor Relations
Tom Karam	Chairman and CEO
Diana Charletta	President and Chief Operating Officer
Kirk Oliver	Senior Vice President and Chief Financial Officer
Jeremy Tonet	JPMorgan
Holly Stewart	Scotia Howard Weil
Spiro Dounis	Credit Suisse
Derek Walker	Bank of America
Chris Sighinolfi	Jefferies
Ross Payne	Wells Fargo Securities
Tim Howard	Stifel
Becca Followill	US Capital Advisors
Sunil Sibal	Seaport Global Securities

Call transcript

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Operator

Good morning, my name is Mariyama [ph] and I will be your conference operator today. At this time, I would like to welcome everyone to the ETRN and EQM Q2, 2019 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. to Investor call your Relations; like Tetlow, to conference. now President, Vice you would turn over the Nate I may begin

Nate Tetlow

for XXXX beginning replay of Thank that the contain call will Midstream events the and are is which morning financial news XXXX, ID for under this The EQM in release the subsequent news for refer filed both regarding are risk is ended Earnings XX most phone also these available Quarter and call Factors ETRNs for XX-Qs. December days please any may and reconciliations XXX-XXX-XXXX A and to financial to the certain comparable updated call future presentation both you. to and investor measures, by in our Equitrans the evening. Call from Partners. GAAP as morning's welcome XX non-GAAP conference SEC Form measure. Midstream be this important measures, for cause this Good results Second Form and including forward-looking and replay Today's listed contain such to of actual related the today's factors year may Today's statements materially the to with XX-Ks could expectations. and XXXXXXX. number disclosures EQMs differ statements release forward-looking

Senior and our Oliver, Tom will and After Diana CEO. we the Kirk and President Financial are Operating Chairman call to Karam, open me today Officer the questions. remarks, Joining on Charletta, President and prepared Chief call Officer. Vice Chief

to turn I'll that, With over Tom. it

Tom Karam

coming will results details quarter solid and EQM our on the guidance. morning results Kirk This reported provide everyone. morning, of Good with EBITDA adjusted ahead Nate. second in shortly. financial Thanks, ETRN

in an or last discussed operating we're resulting no longer for we As natural even production gas prices environment of growth. low in lower quarter,

our capital includes must focus with investment being To environment, controlling our cost basin. in the This this the succeed and service remaining provider costs. of low our in continue disciplined we midstream decisions

and quarter producer with It creative highlight means partner manage want more to O&M this being EQT. customers SG&A address opportunity expenses. recent related at capital our to take our by controlling work be look explore be more to a as second to ways The for also alongside to results change I ability ways to our of a costs to few them, to efficient. too factors they the control, willing

management we've First, really members team. good had of new dialogue with the

transition ensure In communication fact, each formed of and has organizations seamless teams to continuity. our operational

value management in and long-term the that allow combo implement. Second, plans maximize EQT's will future gathering as for to handling process fully well as build These services. coordinated outs strategy we significant water opportunity rigorous planning drilling see us development efficiencies in new for intends capital to large-scale

believe their for negotiations outcome relationship look and respect our lockstep to in team And the gas on working EQT’s a new water can provide contract both we we with contract management forward growing and structure development lastly, with and simplifying that mutually plans. beneficial to

provide then over the and remarks. will come for closing turn and back to call some finance Kirk our then operations an I'll update that, for Diana update With I'll Kirk?

Kirk Oliver

morning, Thanks, Good Tom. everyone.

Before items. accounting want two you discussing financial remind the I to of results,

came Partners, have XX% XXXX gathering XXXX. been the to First, in results include late common system, the recast Rice of Force gathering results all under quarter Strike the EQM second Midstream of and which control system Olympus of

accounting JV Hornet the EQM and in EQM of statements acquisition consolidated the Equitrans for Eureka XX, purposes. financial Eureka on Second, XXXX. closed and April has

million. to second reported million EQM adjusted EQM results, EBITDA distributable million, of the of income quarter for XXXX $XXX net and cash $XXX flow $XXX attributable Now of

gathering value. down EQM impairment, no will The assets. of results This to book $XX an million low system by related assets income $XX and Equitrans of Equitrans write impairment gather the pressure carry after shallow charge impacted vertical and million. wells, reported legacy for the the net both non-core largely were FERC-regulated

XXXX, For gathering related prior higher of of increase Eureka by operating were quarter. and the capacities. water increase was of second million year firm $XX to and quarter assets revenue. revenues The The contracted recently was an partially EQM primarily $XXX addition Hornet lower the versus acquired the million, offset services

highlight second gathering remains Stable cash the approximately business revenue XX% fees of and from flow XX% the of generated of firm profile approximately quarter. consistent a as revenue transmission reservation EQM during

impairment expenses pressure million the the EQM Eureka year of associated and million, an $XXX accounted million Hornet of and for costs million the the the $XXX acquisition quarter. prior majority of accounted the were increase. operating assets non-recurring low make transaction $XX gathering with increase up second from Two $XX of increase, the quarter items for

remaining placed to assets additional The systems the addition business. the in Hornet is and higher service, related of in system primarily Eureka increase as growth well consistent with as the the throughput and was which

of business XXXX, be distribution per of X. holders common which the on unit August of will a on paid to pay quarter $X.XX XX quarterly second record at August close the In EQM will cash of unit,

to EQM. distribution continue target a We X% growth at rate

to moving second will XXXX. quarter receive on for of Equitrans its cash in in $XXX the EQM. Now, ownership from million Equitrans

share on August of per We record at on business dividend XX. pay be to August will the a of will XX of second for paid which shareholders close the $X.XX quarter,

to balance the annual share, in an a of per rate XXXX, to continue $X.XX dividend X%. $X.XX resulting of share, Equitrans expects of dividend growth dividend annual target pay For of quarterly an per

of terms quarter, our of position growth to had projects. credit strong fund remain drawn we EQM billion $X.X a the in $X organic second end about liquidity, at so In on billion its the facility

of $X.XX now million XXXX The expected attributable our volumes. updated adjusted reflects we variations $XXX reduction income this in XXXX full EBITDA our and forecasting morning. net modest water Lastly, EQM to revised and gathered guidance billion We're billion. $XXX $X.XX to million year to a EBITDA outlook in of

to updating going we at Given our are long-term time. this EQT, at defer the change guidance of control

of plans couple next on We expect EQT's months. the over more development to have clarity

However, and transactions. gathering our EBITDA by growth Equitrans remains clearly trajectory with defined million firm associated Expansion, Hammerhead, of various the MVP, incremental $XXX base firm Southgate

Diana turn now over operations the to for update. I'll call the

Diana Charletta

good Thanks, everyone. Kirk morning and

second was quarter systems and begin new day, successful team. an of managed a Hornet expenses gathered Bcf and efficiently. the We which The average is our ETRN quarter to per safely record for and Eureka X.X another operate continue integrating

progress are making on projects. We our growth large

and Let's diligently are work remaining complete start MVP. issues. the project we regulatory projects to XX% Total more and with is working legal than resolve

a overall targeting billion. cost are at would fund date mid-XXXX billion of EQM of which $X.X $X.X in-service project We billion estimate to approximately $X full an

other to on Moving projects.

through as Equitrans with interruptible offer as million to and portion project early a per of will Expansion TETCO, day interconnects We will Project tomorrow. expect and TCO. The to commence several the operations on service XXX DTI access feet of provide markets cubic

day which in end operational until year. which the day As service. backed XXX Expansion commitments, of per from by Hammerhead firm project will MVP's million A service. also backed of commence be reminder, a Hammerhead Bcf MVP is commences in a ultimately service by is Project this to interruptible provide provide by with is will Equitrans is our service. portion per the with commitment X.X project the delivery The in will MVP expected EQT Such firm fully MVP. of project

expected XX MVP On Impact a final Statement Statement and terms is December In Southgate, Environmental in issued FERC Draft Impact the Environmental for of XXXX. July the project

MVP project Carolina fourth in XXX to XXXX. is a from gas The of date PFMC transport points will Southgate North the backed from a targeted and day million quarter in-service a commitment by Energy. has during

Today, services lowered water moving we $XX on to guidance EBITDA business. to the Now, XXXX water our million.

we of expected number water remainder have of Over modified of in of a provided fresh lower securing acknowledge for second that business. the gas experienced last the which based impacts the for forecast completion on natural EQM. primarily year couple This by the schedule service was their prices. We earlier timing delivery year response this previous was well our customers months, new of optimistic, to half the XXXX, momentum the

we our EQT. On best serve customers, to the are approach water side, the particularly evaluating produced

our few landscape months. solutions the As we've customers, studied evolved last the with has and thinking discuss over

concentrated greater opportunity at than a whole basin. we the process the type We're capital in make system that in as this see every still progress less updated touching centered in aimed can out areas build currently the This system. development planning returns be We much pod you a intensive provide around will area. approach will and header keep utilize and we'll

I now the turn Tom. will call back to

Tom Karam

Thanks, Diana.

act to and her to pleased quite experience your Her we business has the President. is well-earned that the promotion to I'd moving to recent like on of questions, acknowledge to promotion Before ETRN. EQM congratulate a XX and Board the to election to is continue. Diana's years on been resoundingly and successful a and Diana in and President moment her expect take name

So line with questions. the we'll that, open for

Operator

Jeremy Your Tonet comes first question Instructions] JPMorgan. [Operator from with

open. is line Your

Jeremy Tonet

morning. good Hi,

wanted but just not touch see what for permit there, XX. sure wanted I there. on and tracking that base were was your to to August if still Just that expectations nationwide I'm missed if

Diana Charletta

are Yes, the to late summer. we waiting get on agencies. it We're just expecting here

Jeremy Tonet

EBITDA wondering just up the the of the shows just the your to retaining the ticking agencies and-- how it's to here And with project, wanted thanks. this leverage, with before level grade in comfort up turn investment how sheet helpful, most communications That's point? with balance recent at spend the and of in kind were advance

Kirk Oliver

Oliver. Kirk this is Yes,

Obviously, it's are rating in are status the for that them critical watching the closely, and agencies We they aware constant of it comfortable dialogue but of MVP. and now. they're on right with the timing we're with

Jeremy Tonet

Okay, Thank That's great. me. you. it from

Operator

Stewart Weil. next comes Holly Your from with Howard question Scotia

Your is open. line

Holly Stewart

Diana. gentlemen. morning, good And

Diana Charletta

Morning.

Tom Karam

Morning

Holly Stewart

a from a first, and seems around, in on maybe away the Maybe options on to the of kind penalty been-- There's to lot we be just touch paying Tom, contracts. can walk their of just EQT MVP. marketplace chatter

just your could you on perspective If us that? give

Tom Karam

and that rumor are about Blue would we've Good the call, a promulgating dispelling of come is bothered learn there massive a penalty. talking and to What completely question. week EQT's it's be thought one us. I unfounded on morning, great or that did Jenkins just Last rumor that for about really Holly. job firms Thanks two what

shipper have order from provides significant untenable. walk paid, in a check pay to they of above of even penalty of write billion just that EQT have is which is where us premium given if the they The costs fact for matter to we the from plus to order contemplate contract are $X the the would that that a contract in the north to

just are it's is would And spreading something to well bed rumors. So, people this those put I a just hope that non-starter. who

the you thank question. So for

Holly Stewart

has that EQT How impact kind Sure, below been EQM? line, grade? the investment pricing all EQT can still absolutely. just you Maybe through gas should downgraded obviously very is does get talk along -- the – Should weak. of

Tom Karam

largest to the the We having they us we've the been were toward don't customers. worthiness them largest EQT the But from always strengthening through customer. feel still given agencies about our team your credit very the sheet, we know new that taking moving approach Clearly, said management the There's with they've decouple which balance and is of having towards look trajectory doing. their good certainty. as

Holly Stewart

Sure.

then by the Okay. being give And Dania terms That's you could mentioned, end maybe in you Any of one a service those great. look us sense like? minutia can Hammerhead in volumes of year. just partial what detail. the

Diana Charletta

It's service. really going to be more of interruptible an

a couple deals I on couple give of now. things, working can't they're So, right firm but you a in anything of

Holly Stewart

Okay.

there kind just for some Okay. project? of optimization just of Any the in final the shut one associated systems. you out CapEx about talked to That's And can integration maybe on then related one throw me sorry, okay. with volumes this and numbers – previously that's you one

Diana Charletta

some trying So, where to hanging they for the reduce were small doing year. low are pressures We're this created. numbers fruit,

We for without next hand-in-hand. have it's year, development hard plan are new plans -- but to really they ETQ's some

the get to we'll couple in we idea integration able what a like. next you of once give So that that be looks better months

Holly Stewart

great. guys. That's Thanks Okay.

Tom Karam

to really in on our the could consistent broader husband EQT's is been with by planning really dialogue have price teams environment team, to entirely our because to that they're development. desire be We've new Holly, if slightly the our -- this their I that low a with do management just having way encouraged with CapEx perspective. follow-up been commodity

rolled So, bullish create over gets ability where to runway lower a production we will to a a not -- be out, operating our mitigant we're more capital next plan will be environment. we're which years the several in much as about tremendous efficient very this

Holly Stewart

Tom. Thanks, Great.

Operator

Spiro question next from Your Dounis Credit with Suisse. comes

Your line open. is

Spiro Dounis

in new cost just not maybe It and would current table. guess would come two lot be part negotiations. the could everyone. EQT. imply But EQT that gathering the new on some hoping from later sounded on Was maybe the Hey, would the comments maybe I The a morning specifically management like be of call question fees it around touched gathering water to you that the good week rates here at clarify business. benefit last first, gathering seemed

for clarity gains, XXX to is million the of guys efficiency XXX And then been guiding looking on Just capital to just capital incremental also have there? to? million you that the

Diana Charletta

all efficiencies it's could plan. the to XXX. XXX the we will -- thought in the that additions number; be existing So gain with Those same we that are the

So give number able when. on once to drilled we'll is then the a where on be we see what are better really plan the that. you and It depends wells new

Spiro Dounis

Okay.

Tom Karam

Spiro, this is Tom.

are with the EQT are highlight management negotiations. have each other productive. these new I value, for of at think the We're what in been so starting team conversations far desired areas expectations very to

value than that each be beneficial trade rather details to So us of than I want looking is into and forward here to mutually the to any are getting sooner don't to more run the had later. conversations a there say front of

Spiro Dounis

Okay. Fair enough.

you I the are guys of negotiations. understand middle Now in obviously

So I respect that.

you pose lengths one General companies be say swap you Just mentioned get that get substantial guess just able with Interior how more sync highlight was your these pipeline questions the And through address And Department swap that does feel to built, in but go feel the comfortable? Solicitor and land do they the curious really MVP, you'll is land do extraordinary like to I have view? some did -- to in of actually a second like had I'm there questions. ACP just to the and like on seemed point petition the

Tom Karam

well believe is firmly the Interior. discretion within We Department of the land of exchange that the

we us. legal Solicitor General's with But of now, this right that so that. conversations is announcement Our way I'd and feel this timely still them depth viable thinking of be made have we the leave my speak when that confirmed for report, the out the to I'll a for to did initial alone. solution

Spiro Dounis

until of for the line. think right we're what pursuing that you how suspect just me maybe level. ways you still and terms mean he from MLP if deploy loan I in one off cash proceeds? sort to But seem on Last putting I to to Understood. about work leverage and probably value gets how of a JV those you there at metrics

Kirk Oliver

Yes. Kirk. This is

XX proceeds service And once a will I pay will equity think we the would partnership XX the in level. of be put at about able be use that to debt, the place at down we to in EQM. and get project debt

Spiro Dounis

Perfect. Thanks for the call everyone.

Operator

of Your next question comes from Derek Walker with America. Bank

open. Your line is

Derek Walker

Hi. Good morning guys.

going the side Should well of that also begin to at to XXXX? as of waiting is side Just we spill what you're high resolution sense a a you plan expect out. point, around that sort for produce I couple we to on should just can me. of development but the as expect level that watering for kind things, plan of you announcement when sort give around negotiations? the roll know EQT of into maybe Or contract

Diana Charletta

still in that together our tying discussions. We're

about is in capital determine them understand meeting going on how going But a gas, we that planning viable But it the and from conversations to in their them. to do the I for drilling be together are way think as world. as perspective we're helpful plan So if will in they're seem to that very in need far bit focused They're to having do talked we order really to our water. a project well would XX as efficient about which focused first us advance a that drill and that use to an laying area will our tying water now. efficiencies and be be. us combo and disciplined in drilling what very months about on the for be give permitting They will over they with in more talking planning be also efficiencies in us pipelines. plan be

Derek Walker

anyway. Diana. And ask I'll the it, side on guess then tied probably but I it's just to all it Thanks know capital I

I guidance on think spent. capital there with was a kind multi-year Eureka the of

for year. gave water updated You this

how kind the CapEx about update So think XXXX we that development should of or spend to for kind about in of we just plan that? wait rethink

Diana Charletta

Yes.

working we're a right So drilling customers. that have with plans Their bit. now through changed

want to we'll time. sure and we next we what have for that set their year make it one all So are at plans

Derek Walker

Thank Got it. you.

Operator

Sighinolfi comes question from next Chris Your Jefferies. with

is line open. Your

Chris Sighinolfi

June us Appalachian you give it's Thanks land your perhaps more you new how -- what in the call in Obviously, on exchange work are last detail morning. novel outlined good just to Hey but mentioned options where you legal you're on through a a quick advancing for remaining time. I'm perhaps today's mentioned and challenges. had the release wondering front. the approach several But from resolution just the Tom, a continues rundown proposal could stand each? alternatives to in was MVP a the get on to if bit Trail you resolve

Tom Karam

the Chris, the avenues pursuing. we're there that suggest are in release statement any wasn't that to new intended

include continue We last delegation the over the the Court about action we've so the year that talked Supreme ones or DOI. supporting pursue action at the clearly to would that activity repeatedly at and legislative

So that we those remain to continue pursue with land avenues in the exchange. concert the

Chris Sighinolfi

the what's timing, land And estimates was June Okay. understanding? at predicated update the the point. from correct Is of this exchange and the that that's time sort cost driving on

Tom Karam

time about period we land think and we driving the nine date. XX said the talked I when that's exchange to month end what's

Chris Sighinolfi

If Okay. perhaps business change would the bit term. could to about Thanks I year longer think just the and switch year next for it little on in into this gears should for the and I guidance how we water like window back a that. circle a

lower if-- reduced don't the But a curious pull what magnitude to think year, know that responding of was like, into we to gas in bit color go outlook, just-- optimistic that, the just I to you second half this guess natural if that through the that the transitions or obviously but it get if about EQT's speak guess seen how mentioned it updates, but XXXX? of name materialize want back I'm little you if an producers what of we producers, sort with producer. and it come were we of You've you a I'm just activities. customer on, I more I that it's update as magnitude should so reference didn't terms prices If change didn't-- didn't changed there we on

Diana Charletta

of producers on -- is they there that come that things, were producers the a telling to contracted. that yes, going So were it's but were there were also one that couple were us there drill,

So we to they tied when changed move drilling, water, had contracts that. still the to the it's but

So out, you're water the didn't we There some and of year that in thinking half about moved the were the EQT movement correct, of things but in the theirs as had some much. so second we some thing EQT, change is what the planned went gas the ones and people we're were actually that were we away water necessarily, plan. but really there the seeing their went contracts really what moving they that and that aren't just is and was customers we moving away, were with that deals

their don't of side. we two, water impact most slowing it really weren't you price. but because because planning So though moving gas, because an even and that some gas we the have as One, big gas of of see just of their on on MVCs

Chris Sighinolfi

need they of have that activity with provide where somebody reservation contracted for there water of for that it, sort you terms you has need contracts, if and and a charge And no such they those of this you the nature Okay. you...? earn are in is fee, a

Diana Charletta

timing. more it's Correct,

they When committed. for well like but us the gas contract. it's water, a they're the to drilled not using committed they're So

reservation. don't same you the have of So kind

Chris Sighinolfi

Okay.

go excitement earlier the in the okay, – ahead. So

Diana Charletta

that's half but secure little place the contracts where can the we year, If more a to it that to we for the that to that, us continue we negotiate for something get weren't. that's try and we'll different, do have of

Chris Sighinolfi

Okay.

would had then for just I earlier a you in that signed you excitement were schedule be have these just, changed. the And up understand, so, so but this parties, the was that positively sorry so then they impacted new year to and that year telling this,

the necessarily would change them? And element of so biggest not we by something that's maybe and seen reported have

Diana Charletta

Correct.

Chris Sighinolfi

Okay, understood.

longer, Okay, for final me for thanks now then, I regard for to impairment, just some prompted that with and anything on think done is the no on I asset that. is guess kind, sit Kirk, of it one is to asset we that it anything-- just to or suitable realize potentially what there? for is carried but is be curious, And there value then expect just flowing any should or repurposement I that

Kirk Oliver

think of is it's, we zero. modest you on wrote think should some there flow I down it-- it, to but Yes, it

prompted as the value had had the asset So there stand-alone out us looking And asset. is in part and at it impair it around, that is, before. at a looking we XXX transmission this what broke we we no a filing business to But time looked book it. the at of so had we

Chris Sighinolfi

Okay, a guys. Thanks great. lot

Operator

comes Fargo Ross Payne question with from next Wells Securities. Your

Your line is open .

Ross Payne

swap. Hi. you the is I land How on first guess my guys? question doing

of that further get will get put hurdles swap done, front number have in delays? the you seems foresee you of at can you mean to environmentalist environmentalist If front the put of anything that different in cause been if to is you do I junctures. able pipelines land there the like the done,

Tom Karam

Ross, this Tom. is

I the how would vociferous think we've opponents long to ago given be. predict up trying

the environmentally would is completion, one our path eliminate approach land the the it think because is degradation Jefferson that, it any to National not constructive but only to Forest. move exchange it a most of further is I also

optimistic are manage actually cautiously able by to opposition. we issues the any be raised or would conversations So that we

Ross Payne

impacts positive also on And those Thank bit and you. Eureka detail little a Hornet, just on you of Thanks. Okay. of acquisitions? go can then the into

Tom Karam

map, the our infrastructure those with there our could able clearly benefits. operational as to natural. of well producer the leverage customers a that the we that was that part to let at higher assets little by level to a eventually tell Diana bit impacts in the then footprint business a existing talk and part additional as of-- that Simply to of connectivity our footprint. positive adding But the start existing long-term. serve I'll water looking about positive It's be you to would I'll

We are basis as and basin. down deal, has throughout dramatically the points, has gone slowed has strip is and business But the we in And assets. for since acknowledge natural so Eureka the signed it long the like the the have there with to we for and to XX operationally? level term. the activity to long that we add reality fit reality the Diana, that gas and anything construct XX own term, the really is Hornet operate of assets you to want

Diana Charletta

offer So, gives markets was operationally, the great customer diversify the gives us to It it a geographically, to It base. producers. obviously for fit. the opportunity us our opportunity different

I think asset, good and the where rock timing we the slowing to the are. of it's drilling have is right just and rock now that is ultimately the it's

Tom Karam

in we Yes. have more and and we weather people And this their to commodity more is when a be respect commodity that we with are production low horns have and and disciplined low price this pull to will. discipline cyclical business, period and prices that CapEx ourselves know

Ross Payne

given the are note, to negative are Okay. guys the the it markets Marcellus what next right moving start do price expectations that needed of to given in On you the is the of commodity Utica think year? or growth your slowing direction? biggest balance what And you the growth in in the back for business,

Tom Karam

Derham very directionally I Kyle were made call. that on the Toby comments on. spot Rice they the thought, to listened and EQT I And So,

as particularly lot were size basin. XX over of months there's a and months activity needs slow think anticipate XX We Basin any Haynesville the of they the Appalachian the that in well. the in talking growth next about to production in to I don't

activity be going planning zero we good we'll on get some all positive level benefit I very, and to extent the near and that, the basin. do OpEx movement very we prices natural prepared to now up predicated in that is move would right from think growth catalyst but then our planning in around that term modest in the we're don't a see of to our of gas SG&A that to the

Ross Payne

crystal at Do there in just ball of the rebound of are other a country? you terms pricing in on your a be when out generally thoughts, think will what of gas you parts associated have and all

Tom Karam

Yes.

ball up I have think go when necessarily go I crystal will prices a date. prices says don't my that up.

think than As I they we're better said, over guess mine. moderate is I When? will cyclical your business, far it's-- Ross, probably time. in a

Looking at level at the to be and focus the of growth. expect best, period the in there either the hedge or discipline, or, very books we looking production basin at and activity different production modest of capital growth no recent a

Ross Payne

I Thanks appreciate guys. it.

Tom Karam

but mean And company. something Ross, our I I the of said be don't that to benefit that long-term detrimental like-- to as that's

particularly flow have this benefit efficiency. our to we're customer being plan, our One and to our to in of free going the largest now more capital is, by environment disciplined trade-offs have very with to that able cash in a disciplined that be concentrated development we will

be next lower months. mitigants So this there production us with over meaningful XX to the will XX for environment

Ross Payne

a thanks Great, lot.

Operator

Howard comes with question Tim from next Your Stifel.

Your line is open.

Tim Howard

question. my Hi. Thanks taking for

transition team initiatives transparency technology going EQT? I'm So, at as and EQT there at cultural. around there are number or ETRN new given evolution talk, new a the all at the any interested under just the in just teams management on the in of EQM initiatives changes are

Diana Charletta

in we've they do have are their So, it. we the platforms, company one in to a very particular being use real They're couple seeing talking communicate. people like time. us been schedule to of just changes -- in interested been Their them,

the that the integrate some we now are and ways there scheduling. we their workflows use think I can systems right for that So project with management

good. it think I be So will

Tim Howard

costs there that with that meaningful? are any associated are then And

Diana Charletta

No, really there shouldn't be.

Tim Howard

the.. then and Okay, on

Tom Karam

think I the team the the a dividends. from is either will that virtual of will pay embedding EQT. of development That our planning relationship us aspects meaningful or standpoint new team with The be the actual at to

Diana Charletta

just We have them they the use use. systems a now. We little differently that

think So integration, it configuration it. we start that but in use and whether we're system different or are dump do excited of can I a it's and and their way, we about truly ours into there really we to that it's things out things

Tom Karam

as The out course for plan the provide for changes efficient them possible. formulate efficiencies will as for the capital over on over what a their and us EQT changes execute to opportunity to as predicated we're us when in of as couple be those that rolls few stick with with the That period plan, greatest will with That's trying final will now, to the foundation possible. on be that right development to be as concert opportunity then capital few plan of years the possible. them

Tim Howard

then And of flat think about as XX there that should months, next kind then, as as gathering environment, not in efficiency as -- the the is pretty we that capital helpful. of volume flow cash cash we no the I has the over just assets-- those of of first the about half next kind And progress or relatively previous think ramp the we kind months investment been well? year, XX think robust aware talk as up. in of just so the Eureka you conversation flow the we gathering and about pivoting know as about growth flat? relatively MVCs to the That's to about as

Kirk Oliver

then flat if ramp flat, do the to there pretty I general, staying gathering MVC cash the the see assets, up is we're Eureka the think going some. The in flow But Yes. business. in growth

Tom Karam

so we focus we with then, efficiency And going we're cost we better, our not out Yes. be squeeze to to cash that and free as if have relatively -- have if can, good, can flow. flat has every come capital revenues, to

Kirk Oliver

Right.

impact the impact as in people their plans, the CapEx. adjust EBITDA, I growth will it but it think also will

Tim Howard

Okay. Thank you.

Operator

Followill Becca next Advisors. Your from with question Capital comes US

open. is line Your

Becca Followill

next the on process filed? the morning. step in this exchange some get is what timing on land exchange, Good is To publicly clarity and the

Diana Charletta

what have the So, right we've file—it's given that so them actually, on a we're us we request. so now information and with but, on right is to docket for all just them it now did for response. back really waiting We their filed publicly waiting come to a

Becca Followill

they respond, with there? they And happens need they or more when respond what from comments, information that more

Diana Charletta

Yes, I will what happen. think that's

them. our it they'll really will think happen So come to of that-- what because with the I all is, information was back proposal

they will what is And know biggest they'll which see. the be complete. with back the of to come need one things we'll we EIS need that So

is we that, what So will us... give like, feel

Tom Karam

get so Yes. And and exercise execute to list allow transaction is to Diana talking has certain not think to filed we'll in point. DOI be the that are as prerequisites their estate I real to what is process regulatory to exchange is discretion that complete the The of required about land is a it. prerequisites that it to need a that much order a that will get laundry

Becca Followill

filed being forths a series be with will time that's back So each FERC? of and with

Diana Charletta

think it the don't to time. has filed with each I FERC be

to to back think and really and to the need going itself. things I comfortable they the a it's of they all that things need, get forth the assessments be all exchange getting them that do

Kirk Oliver

a our study that, aware other not terms environmental that major again, parcel and parcel appraisal. impact talking things one the assessment federal of aspects three So, about of on depth getting I'm on in outside and and environmental is legal

Diana Charletta

channels. their through go to has It Yes.

Kirk Oliver

their through go to has channels, Becca. It

to we off deliverables regulatory So it's you opposed could but more that, for have this transaction more you that's to detailed as to why we're lawyers. questions with saying pass the the extent process, a

Becca Followill

think a XX-day No, then that to about guidance by and Very that's outlook. XX put obviously us with that. then to want your you then to end low new hydraulicity or in I management really I going high is, year this in to last earnest. the changed was period in was their with plan their to view begin you've negotiations give they're team. to got be That's great. and of going that before were the And EQT They've question supposed Thank system, do year this the other you. got don't the helpful.

or year timing you is by hopefully So the is that, negotiations? Is no that? timeline this of it, the end or on what's for the thought what it-- on

Tom Karam

later. sooner than hope rather Our is

to I have involved think are very conversations and us as of coordination meetings been with said, we anxious team plan. the consultation in They've process. open that that Diana EQT and in in we're and -- and development now their

for are buttons for We have assessment to as have what order willing their begun bones as their them global and a is will an them, we are informed they to in meat to They plan conversation more need that. exactly on to to what to want negotiation to do have say put little as to the this bit we.

don't So, into if so. year. about next it think slide you're I will talking

Becca Followill

you thank great, guys. Okay,

Operator

Sibal question Seaport [Operator Instructions] Sunil Your next Securities. comes from with Global

is line open. Your

Sunil Sibal

just morning, on call. on good liability EQT, the I walk clarity meet certain hi, to occur for Yes, the liability regard plays guys for what was I does if and said thanks that contractual out follow-up has on had MVP wanted that MVP. . a previously or from to are requirements away clarify, to that or to there EQM just how to with

Tom Karam

no. is answer short The

Sunil Sibal

So as met part trigger. you far EQT Correct? all concerned obligations the on as liability that for of to you're

Tom Karam

Correct.

Sunil Sibal

pipeline And on that's other similar the with shippers too? contract

Tom Karam

Correct

Sunil Sibal

I got Okay, all that's had. Thanks, it.

Operator

Berry next investor. Your with private Warren from question comes

open. is line Your

Warren Berry

I going wanted that one-time long-lived and you the or see if to of? you about of you. be talk continued had a assets, if new expense impairment could that's listing to that comprised of what Thank and

Kirk Oliver

Virginia. a system just and It's in one-time gathering West expense a it's

Diana Charletta

pressure, a system. low It's old vertical old gathering wells,

Warren Berry

Thank you.

Operator

call at will the to no are now I questions There turn further time, the back over this presenters.

Tom Karam

you today us we to of all much speaking Have again joining for a you soon. Thank day. forward with and look great very

Operator

concludes This conference. today’s

You disconnect. may now

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