EQT Midstream Partners, LP Enters into Unsecured $750,000,000 Revolving Credit Agreement
Feb 18 14
On February 18, 2014, EQT Midstream Partners, LP entered into an unsecured $750,000,000 revolving credit agreement with Wells Fargo Bank, National Association, as administrative agent, and a syndicate of lenders. The revolving credit agreement replaced the existing revolving credit agreement dated as of July 2, 2012 among the Partnership, Wells Fargo Bank, as administrative agent, and the lenders and agents parties thereto, which agreement was scheduled to expire on July 2, 2017 and was terminated simultaneously with the closing of the Revolving Credit Agreement. The terms and conditions of the Revolving credit agreement are substantially the same as the Prior Revolving Credit Agreement. The revolving credit agreement will mature on February 18, 2019 and is available to fund working capital requirements and capital expenditures, to purchase assets, to pay distributions and repurchase units and for general partnership purposes. The Revolving credit agreement has an accordion feature that will allow the Partnership to increase the available revolving borrowings under the facility by up to an additional $250 million, subject to the Partnership’s receipt of increased commitments from existing lenders or new commitments from new lenders and the satisfaction of certain other conditions. In addition, the credit facility includes a sublimit up to $75 million for same-day swing line advances and a sublimit up to $150 million for letters of credit. Further, the Partnership has the ability to request that one or more lenders make term loans to it under the credit facility subject to the satisfaction of certain conditions, which term loans will be secured by cash and qualifying investment grade securities. The partnership’s obligations under the revolving portion of the credit facility are unsecured. The credit facility contains various covenants and restrictive provisions and also requires maintenance of a consolidated leverage ratio of not more than 5.00 to 1.00 (or, after the Partnership obtains an investment grade rating, not more than 5.50 to 1.00 for certain measurement periods following the consummation of certain acquisitions). Loans under the credit facility (other than swing line loans) will bear interest at the Partnership’s option at either: a base rate, which will be the high of (i) the federal funds rate in effect on such day plus 0.50%, (ii) the administrative agent’s prime rate in effect on such day and (iii) one-month LIBOR plus 1.0%, in each case, plus an applicable margin; or a Fixed Period Eurodollar Rate plus an applicable margin. Swing line loans will bear interest at (i) the Base Rate plus an applicable margin or (ii) a Daily Floating Eurodollar Rate plus an applicable margin. Prior to the Partnership obtaining an investment grade rating, the applicable margin will vary based upon the Partnership’s consolidated leverage ratio and, upon obtaining an investment grade rating, the applicable margin will vary based upon the Partnership’s long term unsecured senior, non-credit enhanced debt rating. The unused portion of the credit facility will be subject to a commitment fee ranging from (i) 0.25% to 0.35% per annum before the Partnership obtains an investment grade rating and (ii) 0.15% to 0.35% upon obtaining an investment grade rating.
EQT Midstream Partners to Provide Midstream Services to Range Resources; Provides Capital Expenditure Guidance for 2014
Feb 18 14
EQT Midstream Partners, LP announced that it has entered into definitive agreements with a subsidiary of Range Resources Corporation to provide gathering, compression, and transmission services in eastern Washington County, Pennsylvania. In 2014, EQT Midstream Partners will invest approximately $30 million in gathering infrastructure and $25 million in a transmission expansion project in conjunction with the agreements. The transmission expansion will add approximately 100 BBtu per day of capacity to the Partnership's transmission system in southwestern Pennsylvania and is expected to be in service by November 1, 2014. The agreements include a fee-based, 10-year minimum volume commitment for gathering and transmission services, and provide Range with the opportunity to expand their capacity to 300 BBtu per day and above. Range has a substantial acreage position in eastern Washington County, Pennsylvania, and the Partnership anticipates many years of development in the area.
The company now forecasts total capital expenditures to be approximately $135 million to $140 million in 2014. This includes approximately $105 million to $110 million of expansion capital expenditures. The Partnership now expects to increase its transmission capacity by 750 BBtu per day in 2014, which will bring the total transmission capacity to 3.0 TBtu per day.
EQT Midstream Partners, LP Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2013; Provides Earnings Guidance for the Fiscal Quarter of 2014; Reiterates Earnings Guidance for the Fiscal 2014
Feb 13 14
EQT Midstream Partners, LP announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2013. For the quarter, the company reported total operating Revenue was $50,807,000 compared to $41,790,000 for the same period of last year. Operating income was $31,414,000 compared to $26,299,000 for the same period of last year. Income before income taxes was $30,752,000 compared to $26,498,000 for the same period of last year. Limited partner interest in net income was $29,551,000 compared to $21,990,000 for the same period of last year. Diluted net income per limited partner unit was $0.62 compared to $0.63 for the same period of last year. Net income was $30,752,000 compared to $24,402,000 for the same period of last year. Expansion capital expenditures was $15,115,000 against $11,280,000 a year ago. Total maintenance capital expenditures were $11,481,000 compared to $13,942,000 for the same period of last year. Total capital expenditures were $26,596,000 compared to $25,222,000 for the same period of last year. Adjusted EBITDA was $36.3 million. Adjusted operating income was $30.8 million, or 17% higher than the same quarter last year. Net cash provided by operating activities was $33,723,000
For the full year, the company reported total operating Revenue was $185,891,000 compared to $136,910,000 for the same period of last year. Operating income was $114,250,000 compared to $75,151,000 for the same period of last year. Income before income taxes was $113,820,000 compared to $80,435,000 for the same period of last year. Limited partner interest in net income was $100,651,000 compared to $35,768,000 for the same period of last year. Diluted net income per limited partner unit was $2.46 compared to $1.03 for the same period of last year. Net income was $109,767,000 compared to $63,122,000 for the same period of last year. Expansion capital expenditures were $50,595,000 against $162,574,000 a year ago. Total maintenance capital expenditures were $32,425,000 compared to $30,948,000 for the same period of last year. Total capital expenditures were $83,020,000 compared to $193,522,000 for the same period of last year. Adjusted EBITDA was $119.5 million. Net cash provided by operating activities was $121,335,000.
The company forecasts first quarter 2014 adjusted EBITDA to be $36 - $39 million.
The company reiterates its full-year 2014 forecasted adjusted EBITDA of $170 - $175 million and distributable cash flow of $148 - $153 million.