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Investor Presentation – Equitrans Midstream Corp.

Equitrans Midstream Corp. · Nov 9, 2018 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Investor Presentation – Equitrans Midstream Corp. – slide 1
    Investor Roadshow Presentation October/November 2018 1
  2. Investor Presentation – Equitrans Midstream Corp. – slide 2
    Cautionary Statement Disclosures in this presentation contain certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as…
  3. Investor Presentation – Equitrans Midstream Corp. – slide 3
    EQM Midstream Partners, LP Non-GAAP Measures For the purposes of this presentation, all references to EBITDA refer to EQMs EBITDA. EQM adjusted EBITDA means net income attributable to EQM plus net interest expense, depreciation,…
  4. Investor Presentation – Equitrans Midstream Corp. – slide 4
    EQM Midstream Partners, LP Non-GAAP Measures Continued Projected firm project EBITDA means the projected earnings before interest, taxes and depreciation of EQMs firm capacity gathering and transmission projects, including the Hammerhead,…
  5. Investor Presentation – Equitrans Midstream Corp. – slide 5
    EQM Midstream Partners, LP Non-GAAP Measures Continued ETRN is unable to provide a reconciliation of its projected adjusted EBITDA or run rate adjusted EBITDA to projected net income, the most comparable financial measure calculated in…
  6. Investor Presentation – Equitrans Midstream Corp. – slide 6
    Todays Agenda 1. Introduction to Equitrans Midstream Corporation (E-Train) 2. E-Train Investment Highlights 3. Operations Summary 4. Financial Summary 5. Q&A 6
  7. Investor Presentation – Equitrans Midstream Corp. – slide 7
    Post-Spinoff Structure NYSE: ETRN Structured as Corporation No long-term debt Targeting 8% - 10% dividend 276.0 MM LP units 100% payout of available cash 91.3% ownership growth 8.7% 15.4 MM LP units ownership NYSE: EQGP 12.7%…
  8. Investor Presentation – Equitrans Midstream Corp. – slide 8
    Equitrans Midstream Corporation E-Train Basics E-Train cash flows generated solely from ownership of EQGP units and EQM units Direct ownership of 276 MM EQGP units and 15.4 MM EQM units Operating assets held at EQM E-Train is a…
  9. Investor Presentation – Equitrans Midstream Corp. – slide 9
    Separation Timeline Distribution date is November 12, 2018 Each EQT share will receive 0.80 shares of Equitrans Midstream Corporation (NYSE: ETRN) When-issued trading from October 31, 2018 to November 12, 2018 under the ticker ETRN WI…
  10. Investor Presentation – Equitrans Midstream Corp. – slide 10
    Key Investment Highlights Premier asset footprint in the Appalachian Basin Leading footprint in lowest cost natural gas Gathering dedication includes 286K acres in core Marcellus and 166K acres in core OH Utica* basin in the U.S.…
  11. Investor Presentation – Equitrans Midstream Corp. – slide 11
    Senior Management Driving a culture of creativity, innovation and entrepreneurial spirit Industry ETRN Experience Experience Roadshow Team Senior executive and entrepreneur in the midstream sector for Thomas F. Karam President and…
  12. Investor Presentation – Equitrans Midstream Corp. – slide 12
    Compelling Investment Opportunity Unmatched financial and operating characteristics of Companies S&P 500 + ETRN 506 Dividend Growth 8% 2018E-2020E 147 2017 Net Debt / EBITDA 4.0x* 136 2017 ROCE 10%* 84 2017 Operating…
  13. Investor Presentation – Equitrans Midstream Corp. – slide 13
    2019 Action Items First Stop for E-Train Project execution MVP, Hammerhead and MVP Southgate Solidify MVP expansion and additional MVP Southgate opportunities Evaluate midstream IDR structure Optimize and integrate the Pennsylvania…
  14. Investor Presentation – Equitrans Midstream Corp. – slide 14
    Near Term Growth Driven by Firm Projects Backlog includes 3.27 B of investments in projects backed by firm commitments Expected EQM Capital Estimated Annual Firm Project MM In-Service Date (MM) Project EBITDA (MM)*** Run Rate…
  15. Investor Presentation – Equitrans Midstream Corp. – slide 15
    E-Train Valuation Units Owned Share Price Value Yield Compression Impact (MM) (/Share)* (B) 2019E Implied Share EQGP 276.0 16.99 4.7 Yield Price (/Share)** 8.5% 21 EQM 15.4 46.76 0.7 7.5% 24 ETRN Market Implied Value 5.4 6.5% 28…
  16. Investor Presentation – Equitrans Midstream Corp. – slide 16
    Gathering Assets Integrated asset footprint across core Marcellus & Utica development areas OH Utica Gathering 150 miles of high pressure pipeline 31,000 HP compression 5-year Minimum Volume Commitment PA Marcellus Gathering from…
  17. Investor Presentation – Equitrans Midstream Corp. – slide 17
    Transmission and Storage Assets System aggregates supply and exports to the Strategically Located Assets interstate pipeline system 4.4 Bcf per day current capacity 950-mile FERC-regulated interstate pipeline 18 storage pools with…
  18. Investor Presentation – Equitrans Midstream Corp. – slide 18
    Connecting A-Basin Supply to Markets Equitrans Transmission System offers optionality to diverse set of markets Market Takeaway Pipelines Northeast TETCO, TCO, DTI, TGP, NFG Gathering 6.6 Bcf per day* Midwest Gulf REX, ET Rover…
  19. Investor Presentation – Equitrans Midstream Corp. – slide 19
    Water Assets Complementary service with significant growth potential Provides full service sourcing and hauling for drilling and completion activities Approximately 140 miles of fresh water pipelines* Fresh water access via major…
  20. Investor Presentation – Equitrans Midstream Corp. – slide 20
    Mountain Valley Pipeline Long-haul pipeline will be main takeaway artery out of A-basin Strategic 50+ year pipeline asset Delivering supply to the growing natural gas demand market in southeast U.S. 300-mile, 42 diameter FERC-regulated…
  21. Investor Presentation – Equitrans Midstream Corp. – slide 21
    Hammerhead Gathering Pipeline Outlet for southwestern PA development to access southeast U.S. demand market (via MVP) Natural gas gathering header pipeline 64-mile pipeline Aggregate gas from several gathering systems 1.6 Bcf per…
  22. Investor Presentation – Equitrans Midstream Corp. – slide 22
    MVP Southgate Project driven by demand pull from the tailgate of MVP 70-mile extension into North Carolina PSNC Energy is anchor shipper with 300 MMcf per day firm capacity commitment Estimated capacity of 0.5 Bcf per day with expansion…
  23. Investor Presentation – Equitrans Midstream Corp. – slide 23
    Gathering System Optimization and Integration Near-term project to improve long-term capital efficiency EQM acquired Rice Midstream Partners (RMP) in July 2018 Geographic fit between EQM / RMP assets provides opportunity to integrate…
  24. Investor Presentation – Equitrans Midstream Corp. – slide 24
    E-Train Financial Overview Strong balance sheet Ample liquidity Projects constructed at EQM with no equity E-Train Financial Policy required to fund project backlog 8% - 10% dividend growth target Stable cash flow profile 1.0x…
  25. Investor Presentation – Equitrans Midstream Corp. – slide 25
    Stable Cash Flow Profile Underpinning sustainable EBITDA growth 54% of revenue from firm reservation charges (take or pay) 2.4 Bcf per day firm gathering capacity commitments Minimum volume commitment (MVC) in Utica shale play in…
  26. Investor Presentation – Equitrans Midstream Corp. – slide 26
    Operating Margin Significant track record of operating in EQM Operating Margin 80% the A-Basin 75% Focused operating discipline drives 71% 72% consistently strong operating margins 70% 68% 69% 67% Commitment to providing cost…
  27. Investor Presentation – Equitrans Midstream Corp. – slide 27
    E-Train Dividend Profile Dividend growth fueled by underlying EQM Adjusted EBITDA growth EQM Adjusted EBITDA Forecast (B)* E-Train Dividend Forecast (/Share) 2.5 2.40 2.20 2.0 1.8 1.7 2.00 1.5 1.3 1.80 1.0 1.60 1.0 1.40…
  28. Investor Presentation – Equitrans Midstream Corp. – slide 28
    Funding the Growth at EQM 3.0 B EQM revolving credit facility* 3.0x current Net Debt/Run Rate Adjusted EBITDA** Agency EQM Rating Outlook 3.5x 4.0x long-term Debt/EBITDA target S&P BBB- Stable 1.2x 1.3x long-term coverage ratio…
  29. Investor Presentation – Equitrans Midstream Corp. – slide 29
    Key Investment Highlights Premier asset footprint in the Appalachian Basin Leading footprint in lowest cost natural gas Gathering dedication includes 286K acres in core Marcellus and 166K acres in core OH Utica* basin in the U.S.…
  30. Investor Presentation – Equitrans Midstream Corp. – slide 30
    Appendix 30
  31. Investor Presentation – Equitrans Midstream Corp. – slide 31
    U.S. Natural Gas Supply and Demand 41 17 18 35 Regional gas 24 15 12 16 18 19 balances 13 10 12 12 11 13 11 9 creating 2017 2020 2023 opportunity to 2017 2020 2023 move gas from 2017 2020 2023 Northeast to growing 13…
  32. Investor Presentation – Equitrans Midstream Corp. – slide 32
    ESG Standards & Practices E-Train is Committed to Ethical, Responsible and Sustainable Business Practices Governance Community Outreach 71% independent BOD Support and engage with the communities Committees ensure best practices and…
  33. Investor Presentation – Equitrans Midstream Corp. – slide 33
    Natural Gas Benefits the Economy and Environment Economy Environment The U.S. is the worlds top natural gas producing country, Natural gas is the cleanest burning hydrocarbon surpassing Russia Has become a backbone of electric…
  34. Investor Presentation – Equitrans Midstream Corp. – slide 34
    EQM Adjusted EBITDA EQM Adjusted EBITDA * ( in thousands) Net income attributable to EQM 209,927 Add: Net interest expense 41,005 Depreciation 43,567 Amortization of intangible assets 10,387 Preferred Interest payments 2,746…
  35. Investor Presentation – Equitrans Midstream Corp. – slide 35
    35

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