Equitrans Midstream Slumps 3.5% as Goldman Sachs Downgrades Units to Sell, Sets Street-Low Price Target of $6 in 2023.
February 3, 2023
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Equitrans Midstream ($NYSE:ETRN) is an energy company that owns, operates and develops natural gas gathering, transmission, storage and other midstream assets. It has a diverse portfolio of assets that are strategically located in the Appalachian Basin and other markets in the United States. On Wednesday, Goldman Sachs downgraded units of Equitrans Midstream to “Sell” from “Buy” and reduced its price target to $6, the lowest on Wall Street, from $9.50. This was due to continued delays to the Mountain Valley Pipeline project, which caused a 3.5% drop in trading. The Mountain Valley Pipeline project is a major pipeline project that will transport natural gas across West Virginia and Virginia.
However, due to various delays and legal challenges, the project has been pushed back and is now expected to be completed in 2023. In addition to the delays in the Mountain Valley Pipeline project, Equitrans Midstream has also been facing challenges due to the decline in natural gas prices, which has put pressure on its revenue. This has resulted in a decrease in its stock price and a decrease in its market capitalization. In light of the recent developments, investors are advised to exercise caution when considering investing in Equitrans Midstream’s units. With the continued delays in the Mountain Valley Pipeline project and the volatile natural gas prices, the future of Equitrans Midstream remains uncertain. Investors should consider all available information before making any decisions related to Equitrans Midstream’s units.
Stock Price
On Wednesday, EQUITRANS MIDSTREAM stock opened at $7.0 and closed at $7.1, down by 2.3% from last closing price of 7.2. Since then, media exposure about the stock has been mostly negative. The downgrade comes after a series of disappointing performances from the company in the past few weeks. Analysts at Goldman Sachs have cited an uncertain outlook for the company’s earnings potential as the reason for their bearishness. The company has also been facing issues related to their debt levels and their ability to finance future growth. Investors are concerned about the potential for EQUITRANS MIDSTREAM’s stock to move even lower in the near future.
The company is facing a number of headwinds that could further impact their stock price, including a weak macroeconomic environment, rising competition, and regulatory headwinds. Moreover, the company has recently had to restructure its debt and equity financing, which could put additional pressure on their stock price. The market’s reaction to Goldman Sachs’ downgrade and price target has been mostly negative. With so many factors weighing against EQUITRANS MIDSTREAM, investors have been cautious when it comes to investing in the company’s stock. It remains to be seen whether the stock will bounce back in the near future or if it will continue to slide even further. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Equitrans Midstream. More…
| Total Revenues | Net Income | Net Margin |
| 1.25k | -1.97k | 14.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Equitrans Midstream. More…
| Operations | Investing | Financing |
| 1.09k | -614.01 | -625.46 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Equitrans Midstream. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 10.39k | 8.26k | 5.15 |
Key Ratios Snapshot
Some of the financial key ratios for Equitrans Midstream are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -7.7% | -14.6% | -153.5% |
| FCF Margin | ROE | ROA |
| 59.0% | -61.9% | -11.5% |
Analysis
GoodWhale provides financial analysis services for EQUITRANS MIDSTREAM. Through our analysis, we have determined that the company is a medium risk investment in terms of financial and business aspects. Our risk rating system evaluates potential investments according to their financial and business attributes. Our analysis has also identified three risk warnings in the income sheet, balance sheet, and cashflow statement of EQUITRANS MIDSTREAM. These warnings provide an indication of potential risks associated with the company’s financials. By registering with GoodWhale, investors can gain access to the detailed information and analysis needed to make an informed decision about investing in this company. GoodWhale’s financial analysis helps investors identify areas of potential risk and ensure they are making the best decisions when it comes to investing in EQUITRANS MIDSTREAM. We are committed to providing investors with the most up-to-date financial insights and analysis to help them make smarter decisions about their investments. With our analysis, investors can be confident that they are making the right choices when it comes to investing in EQUITRANS MIDSTREAM. More…
Peers
The competition between Equitrans Midstream Corp and its competitors is fierce. Williams Companies Inc, EQT Corp, and Antero Midstream Corp are all major players in the industry, and each company is striving to be the best.
– Williams Companies Inc ($NYSE:WMB)
The Williams Companies, Inc. is an American energy company that engages in natural gas processing and transportation, as well as gathering and storing natural gas. The company operates through three segments: Williams Partners, Williams NGL, and Other. The Williams Partners segment provides natural gas transportation services to customers in the United States. The Williams NGL segment engages in the transportation, storage, fractionation, and marketing of natural gas liquids. The Other segment includes the company’s equity investments, and other activities. The Williams Companies was founded in 1908 and is headquartered in Tulsa, Oklahoma.
– EQT Corp ($NYSE:EQT)
EQT Corporation is a publicly traded natural gas company with a market capitalization of $13.99 billion as of 2022. The company has a return on equity of -5.33%. EQT Corporation is engaged in the exploration, development, and production of natural gas and oil in the United States. The company was founded in 1888 and is headquartered in Pittsburgh, Pennsylvania.
– Antero Midstream Corp ($NYSE:AM)
Antero Midstream Corporation is a publicly traded company with a market capitalization of $4.93 billion as of March 2022. The company focuses on the development and operation of midstream energy infrastructure assets in the Appalachian Basin. The company’s assets include natural gas gathering, natural gas processing, water handling and treatment, and crude oil gathering and logistics. Antero Midstream’s return on equity was 17.29% as of March 2022.
Summary
Equitrans Midstream has been the subject of a recent investment analysis downgrade by Goldman Sachs, who set a street-low price target of $6 for 2023. Analysts are bearish on the stock, predicting a 3.5% slump in its shares. This has been reflected in the media, where most coverage has been negative.
Investors should be aware of the risks associated with investing in this stock and should thoroughly research the company’s financials before making any decisions. It is important to remember that investing carries risk and investors should understand their own ability to bear losses before investing.
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