Equitrans Midstream posts higher net income in Q2
Equitrans Midstream said it had net income of $68.9mn in Q2 2023, a modest increase from net income of $64.7mn in the comparable 2022 period.
Adjusted EBITDA fell to $234.7mn from $263.8mn, while free cash flow dropped to $150.7mn from $185.5mn, reflecting reduced net cash provided by operating activities and a slight increase in capital expenditures.
Capital expenditures on the long-delayed Mountain Valley Pipeline (MVP) in Virginia and West Virginia amounted to $36mn in Q2 and $70mn in the first half, Equitrans said, as it moves forward after a final judicial approval from the United States Supreme Court vacated lower court rulings which had stalled construction on a 3-mile segment of the pipeline in the Jefferson National Forest.
“We have resumed construction and are focused on the responsible completion of MVP’s remaining construction,” Equitrans CEO Thomas Karam said. “We continue to target completion of MVP by year-end 2023.”
Equitrans also expects to begin construction “imminently” on its Ohio Valley Connector Expansion (OVCX) following receipt July 27 of the last required permit from the US Army Corps of Engineers and a notice to proceed from the US Federal Energy Regulatory Commission (FERC) on July 31.
OVCX will increase deliverability on Equitrans Midstream’s Ohio Valley Connector pipeline by about 350mn ft3/day to meet growing demand in mid-Continent and US Gulf Coast markets. The project is targeted to be in-service in the first half next year.