Asset and Organic Growth Investments
Incremental Adjusted EBITDA
Investing ~$3.8 B in projects which will transport gas to key demand markets
Project
Estimated
Capital ($MM) (¹)
Estimated Annual Incremental
Adjusted EBITDA ($MM) (5)
~$220 (2)
MVP (3)
~$3,100 (2)
Hammerhead (4)
~$540
Equitrans Expansion Project (EEP) (4)
~$140
Total MVP and Related Projects
~$3,780
~$75
~$20
~$315
Projects are expected to add approximately $315 MM of annual incremental adjusted EBITDA (5)
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(1) Of the approximately $3,780 MM estimated capital expenditures and capital contributions, approximately $2,915 MM was spent through March 31, 2021.
(2) In Q4 2019, ConEd exercised an option to cap its investment in MVP. ETRN is funding shortfall capital contributions, which will increase ETRN's equity ownership from approximately 46.2% to approximately
47.8%, assuming the project's approximately $6.2 B total cost.
(3) Project is accounted for as an equity investment. The firm commitments will commence once MVP is placed in-service.
(4) ETRN believes Hammerhead was placed in-service effective August 1, 2020. EQT has asserted that it will have the ability to terminate its Hammerhead commitment (which represents approximately $64 MM of
annual incremental adjusted EBITDA) and take title to the Hammerhead assets in exchange for a reimbursement payment; ETRN disputes that assertion and the dispute is in arbitration. Hammerhead estimated
annual incremental adjusted EBITDA also includes ~200 MMcf/d of uncontracted capacity that ETRN expects to contract at or around MVP in-service. The firm commitments on EEP will commence once MVP is
placed in-service.
(5) See slide 28 for important disclosures regarding the non-GAAP financial measure adjusted EBITDA. See slide 27 for important information regarding forward-looking statements.
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