ETRN - Equitrans Midstream Corporation

NYSE - NYSE Delayed Price. Currency in USD
-0.53 (-4.28%)
At close: 4:03PM EST
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Previous Close12.37
Bid11.25 x 900
Ask11.81 x 1800
Day's Range11.73 - 12.44
52 Week Range9.17 - 22.29
Avg. Volume3,566,237
Market Cap2.887B
Beta (5Y Monthly)N/A
PE Ratio (TTM)197.33
Earnings DateN/A
Forward Dividend & Yield1.80 (15.20%)
Ex-Dividend DateFeb 08, 2020
1y Target EstN/A
  • 3 Buy-Rated Energy Stocks with Stellar Dividend Yield

    3 Buy-Rated Energy Stocks with Stellar Dividend Yield

    Markets ended 2019 with an overall gain of 29% on the S&P 500. It was a fine cap to end the year, but will it last? Not so sure; Wall Street is predicting a far more modest run in 2020, with the end-year targets averaging just a 2% gain.The outlook reflects relative risk assessment, rather than depression. With tensions rising in the Middle East, a US Presidential election just nine months away, 2020 is starting out with plenty of uncertainty on the horizon.That uncertainty has investors worried, and when investors get worried they look for a safety net in their investment strategy. It’s a draw that naturally pulls them to dividend stocks. Dividend stocks don’t offer the same high share appreciation as growth stocks, but they do offer a steady income stream. And when markets a volatile, a steady income stream is a hot commodity.Savita Subramanian, Bank of America’s head of US equity and quantitative strategy, put this way in her ‘year ahead’ outlook: “How to hedge against things going wrong? We now prefer utilities (pure domestic, stable earnings) over staples as a way to generate high dividend.”Utilities – electricity, water, and the like – are strong option for dividends – their reliable cash flows make it easy for them to maintain the payouts. But you can drill down further, to a more basic level, because the utilities won’t run without commodities. And that brings us to the energy companies.The energy industry has the hallmarks of a recession-proof stock, perfect for periods of volatility. It operates in an essential economic niche, so it will always find a customer base, and it generates high cash flows, which it uses to fund operations and pay out dividends.We’ve used the TipRanks Stock Screener tool to sort through over 6,500 stocks, looking for great bargains in the energy industry. Setting the filers to show us small- and mid-cap stocks, with upside potentials and dividend payouts exceeding 5%, and Buy ratings from the Wall Street analyst corps, we’ve cut that list to a manageable 68. Here are three that should interest you.Falcon Minerals Corporation (FLMN)We’ll get started with Falcon, a small oil and gas company operating in the South Texas Eagle Ford shale formation. The Eagle Ford is smaller than the great headline-grabbing Permian Basin to its west, but a University of Texas study last year predicted that the formation can support up to 5,000 new wells this year, giving it a $20 billion economic impact on its local region. Falcon’s drilling leases are in prime territory.In the company’s most recent reported quarter, Q3 of last year, EPS missed the estimates by 25%, coming in at 6 cents. Revenue also missed, by 10.8%, and came in at $15.9 million. Despite the misses, FLMN shares rose in the last two months of 2019; the company’s strong dividend position helped to buoy the stock.Falcon returned $11.6 million, an impressive 72.9% of its total Q3 revenues back to investors through its quarterly dividend. The payment, 13.5 cents per share, annualizes to 54 cents and shows a robust yield of 7.83%. That yield is almost 4 times the average return among S&P listed stocks – and fives times higher than a typical Treasury bond yield. Falcon has a commitment to paying out its dividend, and has a history of adjusting the payment to ensure that it remains sustainable.Reviewing FLMN for institutional brokerage firm JonesTrading, 4-star analyst Eduardo Seda sees the company as a growth prospect, and singles out the dividend for praise. He wrote, “We still believe FLMN is well positioned to continue benefitting from expanding the breadth of its asset base… we continue to project strong free cash flows of $53.7 million in 2020, and $63.8 million in 2021… the company’s dividend policy of paying out substantially all of its free cash flow in the form of a regular quarterly dividend is intact, and, positioned for continued growth based on current fundamentals.”Seda adds that FLMN’s is variable, as the company “pay[s] out substantially all (roughly 90%+) of its free cash flow in the form of a regular quarterly dividend.”In his review, Seda rates FLMN a Buy, and puts a $10 price target on the stock. This target suggests room for 44% growth to the upside this year. (To watch Seda’s track record, click here)All in all, Falcon Minerals gets a Strong Buy from the analyst consensus, with 5 Buy reviews against a single Hold. The stock sells for a bargain price, just $6.82, and the average price target of $8.38 indicates a 23% upside potential. (See Falcon stock analysis at TipRanks)Berry Petroleum Corporation (BRY)Our second stock, Berry, is another small-cap oil producer in the American West. Berry has operations in Colorado, Utah, and California, with combined reserves comprising 86% crude oil. Berry has identified over 5,600 drilling locations, and operates over 3,000 producing wells. The company’s current production mix is 81% oil, 17% natural gas, and 2% natural gas liquids, with 72% of total production coming from the California operations.Strong oil operations makes for strong earnings, and Berry beat the estimates in Q3 2019. Revenues came in at $194.7 million, 21% over the forecast and up 3.6% year-over-year. The EPS beat was more modest – the 40-cent figure was a penny higher than the 39-cent estimate. It was the first time in a year that Berry had beaten the expectations.Berry went public in the summer of 2018, and since then has maintained a reliable dividend. The payment started at 9 cents quarterly, but has been held at 12 cents for the past 5 quarters. The annual payment of 60 cents gives a yield of 5.76%. The payout ratio, a comparison of the dividend to quarterly earnings, is a low 30%, indicating that the payment is easily sustainable for the company.Kashy Harrison, from Piper Sandler, reviewed BRY and came away impressed by the company’s ability to cope with a changing regulatory environment in California. He wrote in his comments, “The more near-term consideration was the double-edged nature of operating in California. Specifically… BRY possesses a differentiated business model when compared to tight oil development (i.e. low base declines, decades of historical data, robust operating margins after maintenance capital, minimal competition, etc.). However, those advantages come with a significantly more adverse regulatory environment that operators in Texas generally don't have to deal with…” Harrison sees California’s regulatory regime as forcing BRY into a more competitive configuration than producers in less-regulated Texas.Harrison gives this stock a Buy rating, and backs it with a $12 price target. His target implies an upside potential of 44%. (To watch Harrison’s track record, click here)Overall, Berry gets a Moderate Buy consensus rating, based on mixed reviews. The recent ratings behind the consensus include 3 Buys, 4 Holds, and 1 Sell. Like Falcon, the stock sell for a bargain – just $8.33 per share. The average price target of $10.57 suggests room for a 26% upside. (See Berry Petroleum's price targets and analyst ratings on TipRanks)Equitrans Midstream Corporation (ETRN)Not every energy player actually extracts the oil and gas. The midstreaming sector – that is moving the operation of oil and gas transport, pipeline, and storage networks – is huge and growing, as extraction companies have to get their product to markets and to customers. There has been a trend in recent years for large energy conglomerates to spin off midstream operations onto subsidiaries and limited partnerships, allowing exploration/extraction operators and midstream companies each to specialize. Equitrans in the midstream spin-off of EQT, and has operated independently since the middle of 2018.Volatile oil prices in 2019 took a toll on Equitrans in the second half. The company’s Q3 earnings – the most recent released – were disappointing. Revenues came in at $408.43 million, below the $417.39 million expected. EPS was worse, with a net loss of 26 cents per share. The company was able to compensate by drawing $136 million cash from its ownership interest in EQM.The rough quarter did not stop Equitrans from paying out its dividend. The company started the quarterly payments in February 2019, and has paid consistently since. The current 45 cent quarterly payment annualizes to $1.80 per share, or a most impressive yield of 13.45%. That’s nearly seven times the S&P average, and qualifies Equitrans as a dividend champion.Wolfe Research analyst Alex Kania is not worried about the recent quarterly miss, writing, “Via its ownership stake in EQM, Equitrans Midstream has significant cash flow growth potential over the next several years as key contracted growth assets go into service, including Mountain Valley Pipeline and create a platform for future growth. We see Equitrans' high yield with visible dividend growth as compelling at current levels, and a simplified structure should help the story over time.”Kania sets a $21 price target on the stock, suggesting a 56% upside to support his Buy rating. (To watch Kania’s track record, click here)Cautious optimism circles this midstream player, as TipRanks analytics exhibit Equitrans as a Moderate Buy. Out of 6 analysts tracked in the last 3 months, 3 are bullish on ETRN stock, 2 remain sidelined, and 1 is bearish. With a return potential of nearly 9%, the stock’s consensus target price stands at $14.50. (See Equitrans' stock-price forecast on TipRanks)

  • Business Wire

    Equitrans Midstream Announces Quarterly Dividend

    Equitrans Midstream Corporation (NYSE: ETRN), today, declared a quarterly cash dividend of $0.45 per share for the fourth quarter of 2019. The dividend will be paid on February 21, 2020 to all ETRN shareholders of record at the close of business on February 11, 2020.

  • Can Equitrans Midstream Corporation (ETRN) Keep the Earnings Surprise Streak Alive?

    Can Equitrans Midstream Corporation (ETRN) Keep the Earnings Surprise Streak Alive?

    Equitrans Midstream Corporation (ETRN) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.

  • The Equitrans Midstream (NYSE:ETRN) Share Price Is Down 35% So Some Shareholders Are Getting Worried
    Simply Wall St.

    The Equitrans Midstream (NYSE:ETRN) Share Price Is Down 35% So Some Shareholders Are Getting Worried

    Over the last month the Equitrans Midstream Corporation (NYSE:ETRN) has been much stronger than before, rebounding by...

  • Equitrans Midstream Corporation (ETRN): Hedge Fund Sentiment Still At All Time Low
    Insider Monkey

    Equitrans Midstream Corporation (ETRN): Hedge Fund Sentiment Still At All Time Low

    Is Equitrans Midstream Corporation (NYSE:ETRN) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 payment structure, hedge funds have more incentives and resources than the average investor. The funds […]

  • Equitrans hopes fair deal with EQT coming over contract renegotiation
    American City Business Journals

    Equitrans hopes fair deal with EQT coming over contract renegotiation

    Equitrans this week also said it would spend between $1.2 billion and $1.3 billion on capital projects in 2020.

  • EQM Midstream Partners (EQM) Provides 2020 Capex Guidance

    EQM Midstream Partners (EQM) Provides 2020 Capex Guidance

    EQM Midstream Partners (EQM) expects the Mountain Valley Pipeline project to come online by 2020-end.

  • Business Wire

    Equitrans Midstream and EQM Midstream Partners Provide 2020 Financial and Capital Expenditure Guidance

    Equitrans Midstream Corporation (NYSE: ETRN) and EQM Midstream Partners, LP (NYSE: EQM) today announced 2020 financial and capital expenditure guidance.

  • Hedge Funds Are Selling Equitrans Midstream Corporation (ETRN)
    Insider Monkey

    Hedge Funds Are Selling Equitrans Midstream Corporation (ETRN)

    The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as […]

  • Equitrans Midstream (ETRN) Catches Eye: Stock Jumps 5.5%

    Equitrans Midstream (ETRN) Catches Eye: Stock Jumps 5.5%

    Equitrans Midstream (ETRN) saw a big move last session, as its shares jumped more than 5% on the day, amid huge volumes.

  • Business Wire

    David Porges to Step Down From Equitrans Midstream Board of Directors

    Equitrans Midstream Corporation (ETRN) (Company) today announced that David L. Porges will be stepping down from the Company’s Board of Directors, effective December 31, 2019. Upon the launch of Equitrans Midstream as an independent company in November 2018, Mr. Porges was appointed Chairman of the Board of Directors and served in this role until July 2019, at which time Thomas F. Karam was appointed as Chairman.

  • Trade Alert: The Independent Director Of Equitrans Midstream Corporation (NYSE:ETRN), Margaret Dorman, Has Just Spent US$86k Buying Shares
    Simply Wall St.

    Trade Alert: The Independent Director Of Equitrans Midstream Corporation (NYSE:ETRN), Margaret Dorman, Has Just Spent US$86k Buying Shares

    Whilst it may not be a huge deal, we thought it was good to see that the Equitrans Midstream Corporation (NYSE:ETRN...

  • Is Equitrans Midstream Corporation (ETRN) a Great Value Stock Right Now?

    Is Equitrans Midstream Corporation (ETRN) a Great Value Stock Right Now?

    Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

  • EQT, Equitrans inch closer to a renegotiation of its business relationship
    American City Business Journals

    EQT, Equitrans inch closer to a renegotiation of its business relationship

    The Pittsburgh-based companies, which are now separately owned and managed, work to get to know one another.

  • 3 Buy-Rated Stocks with Over 11% Dividend Yield

    3 Buy-Rated Stocks with Over 11% Dividend Yield

    Income-minded investors are naturally drawn to dividends. These payouts from companies to shareholders are a natural way to share income with full ownership of the company, as well as a way to induce more investors to become shareholders. A strong dividend – one that is reliable, with a high yield – is steady source of return on a stock investment.We’ve used TipRanks’ Stock Screener tool to search the market for Buy-rated investments with reliable high-yield dividend payouts. All three companies are in the energy sector, exploiting the rich oil and gas reserves which the American fracking boom has unlocked. We’ll look at each of them to see how their dividends measure up, and if the payout appears sustainable.Black Stone Minerals (BSM)With Black Stone, we get into Texas. Everything about Texas is big, including the oil industry. Houston-based Black Stone operates in the oil- and gas-rich Eagle Ford Shale, as well as across the Southeast, in the Dakota’s Bakken formation, and in the gas regions of Appalachia. Overall, the company controls production sites in 60 basins in 40 states.BSM reported Q3 earnings after market on November 4, and showed an EPS of 32 cents, a 10% beat of the 29-cent estimate. Revenues just missed expectations, however, coming in at $137.4 million against the forecast of $139.5 million. Investors didn’t seem worried by the revenue miss, however, as shares gained 1.68% that same day.While the earnings beat was welcome news, investors are also interested in the dividend. BSM pays out a yield of 11.3%, and has been growing that dividend for the last three years. The current quarterly payment is 37 cents.A careful reader will note that the current dividend payment is higher than the EPS, and correctly point out that this implies an unsustainable payout ratio. However, as Piper Jaffray analyst Pearce Hammond points out, “BSM remains very disciplined on acquiring minerals. The higher distribution yield and resulting higher cost of capital make it more challenging on getting deals done relative to peers with a lower distribution yield… BSM has a solid balance sheet with a leverage ratio of 1.1x.”Strong acquisition and low leverage lead Hammond to give a $21 price target, indicating confidence in a 57% upside – that would easily make the dividend sustainable. (To watch Hammond's track record, click here)4-star analyst Eduardo Seda, of Jones Trading, agrees that BSM has a rosy mid- to long-term outlook for growth. He writes, “BSM is One of the Largest Owners and Managers of Crude Oil and Natural Gas Mineral and Royalty Interests in the U.S… We note that BSM had recently raised its production guidance for full-year 2019 to a range of 47.5 MBoe/d to 50.5 MBoe/d, a 5% increase midpoint to midpoint from prior guidance…” Seda’s $22 price target suggests a 65% upside potential.Overall, BSM holds a Strong Buy from the analyst consensus. In the last three months, 3 analysts have given the stock Buy ratings, against 1 who has set a Hold. Shares are currently trading for $12.69, so the $19.50 average price target implies an upside of 52%. (See Black Stone stock analysis on TipRanks)EQM Midstream Partners (EQM)EQM bills itself as the low-cost service provider to the natural gas industry in the Appalachian basin, one of the richest natural gas regions in the United States. The company owns and operates natural gas pipeline and storage facilities across the basin, in western Pennsylvania, West Virginia, and Ohio. In addition, EQM operates water services, providing water supply and waste-water disposal for the fracking industry.An essential niche in a profitable industry should equal a cash-flush company, but EQM has been facing serious headwinds. Earnings are forecast to drop this quarter on a year-over-year basis as capital expenditures shown a heavy increase in the last 15 months. In addition, the company’s major project, the MVP pipeline, is not yet complete and faces delays from legal and regulatory issues. Management has not been forthcoming on a timeline for resolution. Finally, EQM is heavily leveraged – long-term debt has increased 41% over the past hear, to $4.88 billion, and the company has $1 billion outstanding on its short-term credit facility of $3 billion.All of this points to a company that is using debt to finance current projects on faith in future profits. While this is not unusual, 2020 is an election year, and most of the Democratic candidates are promising to shut down the fracking industry and curtail fossil fuels generally. With both the business and political fronts growing cloudy, what will bring in investors?Income. EQM pays out a 15% dividend yield, and even after the shares’ recent depreciation, the quarterly payment is still $1.16. Compare this to the S&P average yield of just 2%, and you immediately see the appeal. The company has been increasing the dividend steadily for the last seven years; in November 2012, the quarterly payment stood at 35 cents. Finding reliable payments and steady increase are the keys to successful dividend-based income investing.There is a cloudy spot – the payout ratio, the comparison of the dividend payout to the earnings per share – is 103%. Normally, this would not be sustainable, but the number is based on previous earnings, not forward estimates. A look at EQM’s most recent Buy rating, from UBS 4-star analyst Shneur Gershuni, shows why the high payout ratio may not be a deciding factor.Gershuni says, “Given EQM's 10% decline since early August, we are upgrading EQM to Buy from Neutral. We believe the scenario of MVP being cancelled is adequately reflected at these levels and believe the base business is priced at a discount with MVP in-service providing upside to our current price target. In the current volatile market conditions within energy, we favour midstream companies … that connect well-head to end markets.” In other words, all the headwinds mentioned above are baked into the stock price, which has bottomed out.Gershuni sees EQM rising in the mid-term, and his $36 price target, implying 17% upside, reflects that. (To watch Gershuni's track record, click here)Overall, EQM gets a Moderate Buy from the analyst consensus. Shares are selling for $30, and the average price target of $39 suggests an upside of 31%. (See EQM stock analysis on TipRanks)Equitrans Midstream (ETRN)A spin-off of the natural gas producer EQT, Equitrans Midstream took on the parent company’s pipeline and services operations. As the name implies, Equitrans now handles the midstream operations while parent EQT focuses on drilling. ETRN has been operating independently since mid-2018. It has beaten earnings estimates, substantially, in two of the three quarters it has reported so far.Equitrans operates natural gas gathering and transmission services in the Appalachian basin, as well as water services. In this respect, it is much like EQM above. In fact, like EQM, Equitrans is also a partner in the MVP pipeline project, and faces similar regulatory headwinds and delays – issues that have pushed the stock price down in recent weeks.These are not the only similarities between the two companies. ETRN is another high-yield dividend payer, offering 12.7% annualized, for a quarterly payment of 45 cents per share. And again, the payout ratio of 117%, at first glance, shows cause for concern.That concern, however, may be short lived. ETRN is to release earnings November 5, and predictions now are for an EPS of 35 cents – up 34% from previous estimates. In the last quarter, ETRN beat the forecast by 50%.UBS' Shneur Gershuni, linked above, sees this stock as another buying proposition, and for similar reasons to EQM. He writes of ETRN, “Given ETRN's 12% decline since early August, we are upgrading ETRN to Buy from Neutral… Our upside scenario reflects full MVP in-service, 10% gathering volume growth, and no negative restructuring of gathering contracts implying a valuation of $25.”Gershuni sets a $15 price target, which is conservative given his comments. It suggests a modest upside of 3.5% for the stock.ETRN has a Moderate Buy consensus rating, and a 21% upside potential, based on an average price target of $17 and a current share price of $14.50. (See ETRN stock analysis on TipRanks)

  • Mountain Valley co-owner puts cap on investment in pipeline
    American City Business Journals

    Mountain Valley co-owner puts cap on investment in pipeline

    Con Edison, the large New York-based utility company, is scaling back its investment in the troubled Mountain Valley Pipeline. Con Edison (NYSE: ED) revealed in a U.S. Securities and Exchange Commission filing Monday that its subsidiary CET Gas will cap its investment in MVP, the 300-mile pipeline that has been mired in legal cases on the state and federal level, to $530 million. Con Edison has already spent about $488 million.

  • Business Wire

    ETRN and EQM Announce Third Quarter 2019 Results

    Equitrans Midstream Corporation and EQM Midstream Partners, LP , today, announced financial and operational results for the third quarter 2019.

  • Zacks

    Energy Stock Earnings Lineup for Nov 5: FANG, DVN & More

    Lower oil and gas prices are expected to have hurt hurt Q3 earnings of energy companies.

  • EQT outlines how it will reduce debt
    American City Business Journals

    EQT outlines how it will reduce debt

    EQT Corp. executives gave investors a wider look at its plans for the next year and beyond, with a commitment to generate $1.5 billion to take a bite out of the driller's debt with the sale of its equity stake in Equitrans Midstream Corp. and noncore assets out of its vast inventory. EQT (NYSE: EQT) said in its third-quarter conference call it would reduce its overall corporate debt by 30 percent by the middle of 2020 through the strategy that will help it maintain investment-grade rating. The biggest stake would come from the sale of its remaining stock in Equitrans Midstream (NYSE: ETRN), the Pittsburgh-based pipeline company that had been spun out of EQT in 2018.

  • Should You Avoid Equitrans Midstream Corporation (ETRN) Like Hedge Funds Did?
    Insider Monkey

    Should You Avoid Equitrans Midstream Corporation (ETRN) Like Hedge Funds Did?

    Billionaire hedge fund managers such as David Abrams, Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the nearly unlimited research abilities of […]

  • Calculating The Intrinsic Value Of Equitrans Midstream Corporation (NYSE:ETRN)
    Simply Wall St.

    Calculating The Intrinsic Value Of Equitrans Midstream Corporation (NYSE:ETRN)

    Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Equitrans Midstream...

  • Ferrellgas Partners to Gain on Acquisitions & Customer Growth

    Ferrellgas Partners to Gain on Acquisitions & Customer Growth

    Expansion of Blue Rhino business will boost Ferrellgas Partners' (FGP) performance.

  • Should Value Investors Buy Equitrans Midstream Corporation (ETRN) Stock?

    Should Value Investors Buy Equitrans Midstream Corporation (ETRN) Stock?

    Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

  • New Strong Buy Stocks for October 17th

    New Strong Buy Stocks for October 17th

    New Strong Buy Stocks for October 17th