Rice Midstream Partners LP (NYSE:RMP) and EQT Midstream Partners LP (NYSE:EQM) reported that EQT Corp (NYSE:EQT) is looking for a simplified business arrangement for the midstream firms under its control. The assessment comprises the dropdown of company-owned midstream assets to EQT Midstream Partners, as well as prospective entity combinations. As an outcome of this assessment work, detailed midstream projection for 2018 will not be offered at this time.
The details
Depending on standalone EQM, yearly a unit distribution growth is projected to be 15%- 20% for numerous years, including next year, while pursuing a coverage ratio of 1.1x for long-term. The corresponding yearly a unit supply growth target for EQT GP Holdings LP (NYSE:EQGP) is 30% to 40%. Depending on standalone RMP, yearly per unit distribution growth is projected to be 15% to 20% for numerous years, including 2018, while looking for a coverage ratio of 1.1x for long-term.
EQT Midstream investments in organic projects, counting funds contributions to Mountain Valley Pipeline, LLC are projected to total around $1.4 billion to $1.6 billion in 2018. Underway maintenance capital expenditures are projected to be $35 million to $40 million, net of anticipated reimbursements.
RMP investments in organic projects are projected to total around $260 million in 2018; counting $215 million for compression and gathering and $45 million for water infrastructure. Projected maintenance capital expenditures stands at $22 million. EQGP and EQM plan to issue full-year 2017 earnings and schedule a live webcast for market experts on February 15, 2018.
EQT Midstream Partners marks as a growth-oriented limited association established by EQT Corporation to operate, buy, develop and own midstream resources in the Appalachian Basin. The association offers midstream services to third-party companies and EQT Corporation through its strategically based transmission, gathering and storage systems that service the Utica and Marcellus regions. This association owns around 950 miles of FERC-controlled interstate pipelines; and also has around 1,800 miles of low and high pressure gathering lines.
