Equitrans Midstream Reduces MVP Southgate Expansion Plans

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Equitrans Midstream ($NYSE:ETRN), a natural gas gathering and transmission company, has reportedly reduced the scope of its plans for the Mountain Valley Pipeline (MVP) Southgate expansion. The company is a publicly traded stock on the New York Stock Exchange (NYSE) and is a subsidiary of EQT Corporation, one of the largest natural gas producers in the United States. The company’s MVP Southgate expansion project was an effort to build new additional pipeline infrastructure to further service these production and consumption markets. The Pittsburgh Business Times reported that Equitrans Midstream has now reduced the scope of its MVP Southgate expansion plans.

The company has not yet released specific details on the revised plans. It is believed that the company is still evaluating its options, including the potential for a partial expansion or complete cancellation of the project.

Price History

On Tuesday, Equitrans Midstream Corporation (EQUITRANS MIDSTREAM) announced that it would be reducing its expansion plans for the MVP Southgate project. This news saw EQUITRANS MIDSTREAM’s stock open at $10.2 and close at $10.3, representing a 0.8% increase from its prior closing price of $10.2. The MVP Southgate expansion plans would have seen the construction of a pipeline running from West Virginia to Michigan, with Equitrans Midstream being the developer of the project. Unfortunately, due to economic and market conditions, the company has decided to reduce the size and scope of the expansion efforts.

It is expected that the company will continue to monitor the situation and may potentially revisit the idea of expansion in the future if economic and market conditions improve. In the meantime, though, Equitrans Midstream will focus on other parts of their business, such as transportation and storage services, and maximizing the value of their existing infrastructure assets. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Analysis

At GoodWhale, we recently conducted an analysis of EQUITRANS MIDSTREAM‘s wellbeing. Our Star Chart revealed that EQUITRANS MIDSTREAM has an intermediate health score of 6/10 – this indicates that their cashflows and debt are in relatively good condition and they might be able to pay off debt and fund future operations. EQUITRANS MIDSTREAM is classified as ‘rhino’, a type of company we conclude that has achieved moderate revenue or earnings growth, but is not a star performer. Companies in this category are generally good investments for investors looking for solid, dependable returns with minimal risk. Looking further at EQUITRANS MIDSTREAM’s performance, we can see that they are strong in dividend, medium in growth, profitability and weak in asset. Therefore, investors who prioritize a steady dividend income stream and are comfortable with moderate growth may be interested in 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, a midstream energy company, recently announced plans to scale back its original plans for the Mountain Valley Pipeline (MVP) Southgate in Virginia and North Carolina. This decision was based on analysis of current market conditions and is intended to reduce risk associated with the project. The project will still go forward, albeit at a smaller scale, and is expected to add significant long-term value to the company. The revised MVP Southgate project will provide an ample source of natural gas to customers and is expected to create employment opportunities in the region.

The company will also continue to invest in other midstream projects in order to provide reliable energy services to its customers. EQUITRANS MIDSTREAM’s strategic shift is intended to ensure the company’s long-term success by reducing risk and increasing returns for its investors.