Eqgp Holdings, Lp (EQGP) 10-Q Quarterly Report July 2018

Pittsburgh, PA (July 26, 2018) – EQT Midstream Partners, LP (NYSE: EQM) today announced second quarter 2018 results, including net income attributable to EQM of $172.6 million, adjusted EBITDA of $209.5 million, net cash provided by operating activities of $220.2 million, and distributable cash flow of $174.7 million. EQM operating income was $182.3 million, which was 29% higher than last year. The Non-GAAP Disclosures section of this news release provides reconciliations of non-GAAP financial measures to their most comparable GAAP financial measure as well as important disclosures regarding projected adjusted EBITDA and projected distributable cash flow.

EQT GP Holdings, LP (NYSE: EQGP) today announced net income attributable to EQGP of $103.3 million for the second quarter 2018.

EQM HIGHLIGHTS:


•	Closed acquisition of Rice Midstream Partners LP on July 23rd


•	Completed acquisition of Olympus and Strike Force gathering systems from EQT and Gulfport


•	Issued $2.5 billion of senior notes


•	Increased EQM per unit distribution by 17% and EQGP by 46% compared to Q2 2017


•	Generated 72% of operating revenue from firm reservation fees

In the second quarter EQM closed the acquisition of the Olympus gathering system and 75% interest in the Strike Force gathering system from EQT Corporation (EQT) for $1.15 billion in cash and 5.9 million EQM common units (May 2018 Acquisition). EQM also completed the purchase of the remaining 25% interest in the Strike Force gathering system from Gulfport Energy for $175 million in cash. The acquisitions were effective May 1, 2018.

On May 22, 2018, EQGP purchased the Rice Midstream Partners LP (RMP) Incentive Distribution Rights from EQT for 36.3 million EQGP common units.

EQM's financial statements have been retrospectively recast to include the pre-acquisition results of the May 2018 Acquisition from the time common control began on November 13, 2017 as a result of EQT's acquisition of Rice Energy. EQM's second quarter operating revenue increased $72.9 million, a 37% increase compared to the same quarter last year. The May 2018 Acquisition accounted for $55.3 million of the operating revenue increase, with the remaining increase due to higher contracted firm transmission and gathering capacity. During the quarter, 72% of operating revenue was generated by firm reservation fees. Operating expenses increased $32.0 million versus the second quarter of 2017, with approximately $30.1 million of the increase due to the May 2018 Acquisition assets, including $3.4 million in transaction costs. The remaining operating expense increase is consistent with higher system throughput and additional assets placed in service, consistent with the growth in the business.

The following information was filed by Eqgp Holdings, Lp (EQGP) on Thursday, July 26, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Eqgp Holdings, Lp's 10-Q Quarterly Report:

Financial - Expense Highlight
The increase in net interest expense of $12.0 million for the three months ended June 30, 2018 compared to the three months ended June 30, 2017 and $14.8 million for the six months ended June 30, 2018 compared to the six months ended June 30, 2017 was primarily due to increased interest of $7.6 million and $9.9 million, respectively, on higher borrowings on EQMs credit facilities, deferred issuance costs expensed in the second quarter of 2018 associated with the termination of the EQM Term Loan and interest incurred on the 2018 Senior Notes.

M & A - Other Highlight
Given the time it takes to obtain pertinent information to finalize the allocation of the purchase price to the acquired net assets, the purchase price allocation may remain preliminary for a period of time before EQT is able to finalize the required fair value estimates.
Financial - Cash Flow Highlight
EQMs net cash provided by operating activities, the GAAP financial measure most directly comparable to distributable cash flow, increased by $121.3 million for the six months ended June 30, 2018 compared to the six months ended June 30, 2017.
Financial - Cash Flow Highlight
Additionally, because adjusted EBITDA and distributable cash flow may be defined differently by other companies in its industry, EQMs adjusted EBITDA and distributable cash flow may not be comparable to similarly titled measures of other companies, thereby diminishing the utility of the measures.
Financial - Income Highlight
30, 2018 compared to the three months ended June 30, 2017 and $80.0 million for the six months ended June 30, 2018 compared to the six months ended June 30, 2017 primarily as a result of higher operating income on increased revenues driven by production development in the Marcellus Shale.
Financial - Expense
Additional expenses, net increased for...Read more
Financial - Earnings
The fair values of the...Read more
Financial - Cash Flow
The following table presents a...Read more
Financial - Shares / Equity
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Other - Other
Any new accounting policies or...Read more
Financial - Expense
The fair value estimation process...Read more
Revenue - Product
The increase primarily resulted from...Read more
Other - Other
EQMs adjusted EBITDA increased by...Read more
Financial - Cash Flow
Adjusted EBITDA and distributable cash...Read more
Financial - Cash Flow
EQM believes that adjusted EBITDA...Read more
Revenue - Product
Usage fees under firm contracts...Read more
Other - Other
On February 21, 2018, EQT...Read more
Revenue - Product
Gathering revenues increased by $68.5...Read more
Revenue - Product
Gathering revenues increased by $145.8...Read more
M & A - Other
Includes the pre-acquisition results of...Read more
Revenue - Product
The increase in usage fees...Read more
Revenue - Product
The increase in usage fees...Read more
Revenue - Product
Transmission and storage revenues increased...Read more
Revenue - Product
Transmission and storage revenues increased...Read more
Financial - Cash Flow
Adjusted EBITDA and distributable cash...Read more
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Equity income increased $10.4 million...Read more
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Usage fees under interruptible contracts...Read more
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Usage fees under interruptible contracts...Read more
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Financial - Expense
Operating expenses increased by $30.3...Read more
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Operating expenses increased by $50.4...Read more
Other - Other
EQMs principal business objective is...Read more
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EQMs intangible assets are comprised...Read more
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EQM plans to invest approximately...Read more
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Adjusted EBITDA and distributable cash...Read more
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EQM has established reserves it...Read more
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Usage fees under firm contracts...Read more
Revenue - Product
Usage fees under firm contracts...Read more
Other - Other
EQM believes that it is...Read more
Financial - Shares / Equity
Expansion capital expenditures increased by...Read more
M & A - Other
Amortization of intangible assets relates...Read more
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Amortization of intangible assets relates...Read more
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, respectively, plus amortization of...Read more
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EQGP has presented each segments...Read more
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Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Eqgp Holdings, Lp provided additional information to their SEC Filing as exhibits

Exhibit 10.3: Material Contract

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32: Section 1350 Certification

Ticker: EQGP
CIK: 1632933
Form Type: 10-Q Quarterly Report
Accession Number: 0001632933-18-000022
Submitted to the SEC: Thu Jul 26 2018 4:19:34 PM EST
Accepted by the SEC: Thu Jul 26 2018
Period: Saturday, June 30, 2018
Industry: Natural Gas Transmission