U.S. markets close in 2 hours 26 minutes

EQM Midstream Partners (EQM) Provides 2020 Capex Guidance

Zacks Equity Research

EQM Midstream Partners, LP EQM recently released 2020 total growth capital budget in the range of $1.2-$1.3 billion compared with projected capex of $1.7 billion for 2019. The company expects its ongoing maintenance capital expenditure to be around $55 million.

The company also provided 2020 forecast of adjusted EBITDA within $1.36-$1.41 billion compared with 2019 estimated range of $1.33-$1.35 billion. Net income attributable to the partnership for 2020 is estimated in the band of $1.05-$1.10 billion, much higher than 2019 expected range of $650-$670 million.

The partnership’s capital contribution to the Mountain Valley Pipeline (MVP) project for 2020 is estimated in the range of $650-$700 million. The 303-mile natural gas pipeline system will connect the prolific Marcellus and Utica shales to markets in the U.S. Mid- and South Atlantic regions. The 2-billion cubic feet per day pipeline’s entire capacity has been fully subscribed under 20-year contracts. The project is expected to come online by 2020-end.

EQM Midstream’s Gathering capital expenditure for 2020 is estimated in the $430-$460 million range. It includes around $60 million for its 60% stake in the Eureka Midstream Holdings. Notably, the partnership allocated 2020 capital budget of $100-$120 million for transmission operations. Of the total amount, around $50 million will be directed toward the MVP joint venture for the Southgate project. 

Markedly, the partnership expects to maintain quarterly distribution of $1.16 per common unit until the MVP project comes online. Moreover, Equitrans Midstream Corporation ETRN — which owns the majority stake in EQM Midstream — intends to maintain quarterly dividend of 45 cents per share during the same time frame.

Price Performance

EQM Midstream has lost 41.3% year to date against the 9% collective rise of the stocks belonging to the industry.

Zacks Rank & Stocks to Consider

Currently, EQM Midstream carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy sector include Antero Midstream Corporation AM and Frank's International N.V. FI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Midstream’s bottom line for the current quarter is expected to skyrocket 130% year over year.

Frank's International’s bottom line for 2019 is expected to rise 23.8% year over year.

Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

See 5 Stocks Set to Double>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Antero Midstrm (AM) : Free Stock Analysis Report
 
EQT Midstream Partners, LP (EQM) : Free Stock Analysis Report
 
Frank's International N.V. (FI) : Free Stock Analysis Report
 
Equitrans Midstream Corporation (ETRN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research