Equitrans delays Mountain Valley Pipeline project as costs rise to $6.6B
Equitrans Midstream (NYSE:ETRN) -3% pre-market Tuesday after saying it will delay the start-up of the Mountain Valley Pipeline to H2 2023 at a cost of $6.6B, up from a previous forecast of $6.2B.
Equitrans said it will seek to secure new permits for the project after the Fourth U.S. Circuit Court of Appeals earlier this year tossed the U.S. government’s approval for Mountain Valley to go through Jefferson National Forest in Virginia.
“After engaging with the federal agencies and evaluating all options, we believe the best path forward for MVP’s completion is to pursue new permits,” the company said. “To reflect the time required for permit re-issuance and to ensure safe, responsible project construction, we have revised our MVP in-service target to the second half of 2023.”
Equitrans owns 48% of the project and has funded $2.6B on the project with expectations to spend $3.4B; partners include NextEra Energy (NEE), Consolidated Edison (ED), AltaGas (OTCPK:ATGFF) and RGC Resources (RGCO).
The announcement was part of Equitrans’ Q1 earnings report that showed adjusted EPS missed analyst consensus while operating revenues fell 10% Y/Y to $342M.
For FY 2022, Equitrans issues guidance for net income of $250M-$330M, adjusted EBITDA of $970M-$1.05B, deferred Revenue of $355M, and free cash flow of $280M-$360M.
Equitrans Midstream’s price return shows a 24% YTD loss and a 4% decline during the past year.