Energy Company Equitrans Midstream Reports 2% Revenue Growth In Q3, Breezes Past Expectations

Equitrans Midstream Corp ETRN reported third-quarter FY23 operating revenue growth of 2% year-over-year to $338.51 million, beating the estimate of $326.44 million.

The company attributes revenue growth to increased transmission usage volumes and higher water volumes, partially offset by lower gathering revenue.

Adjusted EPS was $0.28, up from $0.09 in 3Q22, beating the estimate of $0.11.

Operating income declined by 13.5% Y/Y to $154.29 million, and the margin contracted 818 bps to 45.6%. Adjusted EBITDA for the quarter was $249.88 million (-3.6% Y/Y).

Net cash provided by operating activities totaled $201.58 million, compared to $209.56 million in 3Q22. Retained free cash flow was negative $197.9 million.

Dividend: The company will pay a quarterly cash dividend of $0.15 per common share on November 14, 2023, to ETRN common shareholders of record at the close of business on November 3, 2023.

As of September 30, 2023, ETRN reported $6.3 billion of consolidated debt and $180.6 million of cash.

ETRN achieved 12% transmission pipeline throughput growth versus the same quarter last year.

"Looking ahead, we anticipate several years of mid-single digit annual volume growth, which is based primarily on possessing the direct connections to MVP, having currently available capacity provided by our gathering and transmission assets, and the world-class resource base that sits under our assets,” commented Diana M. Charletta, president and chief operating officer for Equitrans Midstream.

As previously announced, Diana M. Charletta will succeed Thomas F. Karam as chief executive officer, effective January 1, 2024. At that time, Karam will become ETRN's executive chairman.

FY23 Outlook: ETRN currently expects net income of $425 million - $445 million; Adjusted EBITDA of $1.02 billion - $1.04 billion; Deferred Revenue of $325 million - $330 million; and Free cash flow of $(200) million - $(180) million.

Price Action: ETRN shares are trading higher by 1.20% at $8.89 on the last check Tuesday.