EQT Midstream Partners (EQM) Updates on FY15 CapEx, Distributions Outllook

EQT Midstream Partners, LP (NYSE: EQM), an EQT Corporation (NYSE: EQT) company, announced its 2015 financial and capital expenditure (CAPEX) forecast. Adjusted EBITDA is expected to be $330 - $345 million and distributable cash flow is expected to be $280 - $295 million. The adjusted EBITDA, distributable cash flow and CAPEX forecasts do not include impacts of potential acquisitions.

Distributions:

EQT Midstream Partners, LP (Partnership) forecasts quarterly distribution increases of a minimum of $0.03 per unit per quarter through at least the end of 2016. The 2015 distribution per unit is expected to be at least 22% higher than the 2014 distribution per unit.

Capital Expenditures & Contributions:

The Partnership forecasts 2015 growth CAPEX and capital contributions to Mountain Valley Pipeline, LLC, to be approximately $380 - $410 million and ongoing maintenance CAPEX to be approximately $30 million.

2015 Growth Projects

Ohio Valley Connector ($120 - $130 million CAPEX in 2015)

The Ohio Valley Connector (OVC) is a 36-mile pipeline that will extend the Partnership’s transmission and storage system from northern West Virginia to Clarington, Ohio – at which point it will interconnect with the Rockies Express Pipeline and the Texas Eastern Pipeline. Construction is scheduled to begin in Q3 2015 and the pipeline is expected to be in-service by mid-year 2016. The OVC will provide approximately 1.0 Bcf per day of transmission capacity and is estimated to cost $300 million in total. The Partnership has entered into a 20-year precedent agreement with EQT Corporation for a total of 650 MMcf per day of firm transmission capacity on the OVC.

Mountain Valley Pipeline ($75 - $85 million capital contribution in 2015)

As previously announced, the Partnership will assume EQT Corporation’s interest in Mountain Valley Pipeline, LLC, a joint venture with an affiliate of NextEra Energy, Inc. The 300-mile Mountain Valley Pipeline (MVP) will extend from the Partnership’s existing transmission and storage system in Wetzel County, West Virginia to Pittsylvania County, Virginia. The Partnership expects to own a majority interest in the joint venture and will operate the MVP – which is estimated to cost a total of $2.5 – $3.5 billion, with the Partnership funding its proportionate share through capital contributions made to the joint venture. The 2015 capital is primarily related to environmental and land assessments, design work, and materials.

The joint venture has secured a total of 2 Bcf per day of firm capacity commitments at 20-year terms, and is currently in negotiation with additional shippers who have expressed interest in the MVP project. As a result, the final project scope, including pipe diameter and total capacity, has not yet been determined; however, the voluntary pre-filing process with the Federal Energy Regulatory Commission (FERC) began in October 2014. The pipeline, which is subject to FERC approval, is expected to be in-service during the fourth quarter of 2018.

Equitrans Transmission Expansion Projects ($50 million CAPEX in 2015)

The Partnership will invest approximately $25 million in 2015 to complete the East Side Expansion project for Antero Resources. The expansion will add 100 MMcf per day of transmission capacity by mid-2015.

In 2015, the Partnership will also begin several multi-year transmission expansion projects to support the continued growth of the Marcellus and Utica development. The projects include pipeline looping, compression installation, and new pipeline segments, which combined are expected to increase transmission capacity by at least 1.0 Bcf per day. The Partnership expects to invest a total of $400 million, with approximately $25 million expected during 2015. Approximately 400 MMcf per day of capacity is planned to be in-service during 2016, with the remaining capacity coming online by year-end 2017. Upon completion of the expansion projects, the Equitrans transmission capacity will exceed 4.0 Bcf per day.

Gathering Projects ($135 - $145 million CAPEX in 2015)

The Partnership will install approximately 30 miles of pipeline and 200 MMcf per day of compression capacity in the Jupiter Gathering System (Jupiter). Jupiter is supported by a gathering agreement with EQT Corporation that includes 10-year firm capacity reservation commitments on the available compression capacity. Jupiter compression capacity is expected to be 575 MMcf per day by year end 2014 and will grow to 775 MMcf per day in the fourth quarter of 2015. The Partnership expects Jupiter-related CAPEX of approximately $100 million in 2015.

In 2015, the Partnership will also invest approximately $40 million in gathering infrastructure for third-party producers. The gathering infrastructure will primarily support Range Resources’ production development in eastern Washington County, Pennsylvania.

Liquidity:

As of November 30, 2014, the Partnership had $125 million of cash and $750 million available under its revolving credit facility.

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