Asset and Organic Growth Investments
Gas Gathering Agreement with EQT
Deal creates meaningful value for ETRN
Increase in MVCs to drive predictable
revenues
Long-term contract
Contract structure provides capital
protections
Increased from ~2.0 Bcf/d to 3.0 Bcf/d
Incremental step-up in MVC upon MVP in-service(1)
15-year contract provides long-term stability
Provides mileage limitations on obligations to build
•
Rate relief under GGA limited to three years ($125MM, $140MM and $35 MM)
Rate relief coincides with MVP in-service
•
Rate relief tied to share repurchase limited to two years ($145 MM and $90 MM) (2)
Single MVC allows EQT to optimize its
development plans
Improves customer relationship
€
•
Improves midstream capital efficiency through better planning and optimal system designs
Over 100,000 core WV acres dedicated for gathering services
•
Reduced credit assurance thresholds enhance EQT liquidity
(1) See slide 26 for additional information regarding the MVC profile.
(2) EQT has the option to forgo the rate relief tied to the share repurchase in exchange for a cash payment of approximately $196 MM in the event that MVP is not in-service by January 1, 2022.
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