Executive Summary

Q1 delivered steady fundamentals amid major corporate and project milestones: Net income $111.9M, diluted EPS $0.21, adjusted EBITDA $271.8M; operating cash flow $177.5M, with free cash flow negative due to heavy MVP funding .
Company withdrew full-year financial guidance following the announced all‑stock merger with EQT (0.3504 EQT shares per ETRN share); only capex/outlay ranges were updated, notably a higher MVP spend .
MVP construction and commissioning targeted “on or about May 31, 2024,” with FERC in‑service authorization requested April 22; total MVP cost target raised to ~$7.85B on cost inflation and productivity factors .
Near‑term headwind: EQT curtailments (~1 Bcf/d) weighed on gathered volumes late Q1 and expected through May; dividend held at $0.15/share; EQM raised $600M notes to refinance revolver borrowings .

What Went Well and What Went Wrong

What Went Well
- MVP execution neared the finish line: “less than one mile of pipeline to install,” compressor stations commissioned, in‑service request filed; management reiterated late‑May mechanical completion/commissioning target .
- Resilient profitability despite curtailment impact: adjusted EBITDA of $271.8M; adjusted EPS $0.23; 67% of total operating revenue from firm reservation fees supporting cash flows .
- OVCX ramp: began firm interim service on April 1; full in‑service expected May 1, with ~330 MMcf/d long‑term commitments, supporting mid‑continent and Gulf Coast interconnectivity .
What Went Wrong
- MVP all‑in cost increased to ~$7.85B (ex‑AFUDC) driven by slower workforce draw‑down, challenging terrain/boring issues, pipeline cleaning, weather, and updated restoration assumptions .
- YoY operating revenue declined $12.1M due to lapping a $28.8M one‑time 2023 contract buyout; OpEx rose $22.0M on higher SG&A, M&O, depreciation, and transaction costs tied to the EQT deal .
- EQT curtailments (~1 Bcf/d announced in March) negatively affected Q1 volumes and revenue, and were expected to continue through May with risk of further curtailments if market conditions warrant .

Financial Results

Metric	Q1 2023 (oldest)	Q4 2023	Q1 2024 (newest)
Operating Revenues ($M)	$376.3	$360.6	$364.3
Net Income ($M)	$106.1	$150.0	$111.9
Diluted EPS ($)	$0.20	$0.31	$0.21
Adjusted EPS ($)	$0.22	$0.32	$0.23
Adjusted EBITDA ($M)	$299.6	$272.0	$271.8
Adj EBITDA Margin % (calc)	79.6% (derived from )	75.4% (derived from )	74.6% (derived from )
Cash from Operations ($M)	$224.7	$291.2	$177.5
Free Cash Flow ($M)	$94.2	$(240.6)	$(346.5)
Consensus (S&P Global)	—	—	Unavailable (S&P Global mapping not available via tool)

Notes: Margins are calculated from cited figures. S&P Global consensus was unavailable via our estimates tool at this time; therefore, no beat/miss assessment is provided.

Segment performance (YoY within Q1):

Gathering: Revenues $224.6M vs $210.8M; Operating income $105.1M vs $104.3M; gathered volumes flat at 7,380 BBtu/d .
Transmission: Revenues $116.9M vs $138.9M; Operating income $77.1M vs $98.9M; throughput 3,419 vs 3,348 BBtu/d .
Water: Revenues $22.7M vs $26.7M; Operating income $5.0M vs $12.4M; total volumes 409 vs 459 MMgal .

Segment (Q1)	2023 Revenues ($M)	2024 Revenues ($M)	2023 Op Inc ($M)	2024 Op Inc ($M)	2023 KPI	2024 KPI
Gathering	210.8	224.6	104.3	105.1	Total vols 7,380 BBtu/d	Total vols 7,380 BBtu/d
Transmission	138.9	116.9	98.9	77.1	Throughput 3,348 BBtu/d	Throughput 3,419 BBtu/d
Water	26.7	22.7	12.4	5.0	Volumes 459 MMgal	Volumes 409 MMgal

Additional KPIs and cash/capex:

67% of total operating revenue from firm reservation fees in Q1 .
Q1 total capex and MVP contributions $500M; FY24 capex outlook raised (see guidance table) .
Dividend: $0.15/share payable May 15 to holders of record May 7 .
Debt/liquidity (3/31/24): $6.9B consolidated debt; $520M borrowings and $105.8M LCs under EQM revolver; $330M Eureka revolver; $51.3M cash .

Guidance Changes

Metric	Period	Previous Guidance (2/20/24)	Current (4/30/24)	Change
Net Income	FY 2024	$375–$455M	Guidance withdrawn due to pending EQT merger	Withdrawn
Adjusted EBITDA	FY 2024	$1,235–$1,315M	Guidance withdrawn	Withdrawn
Deferred Revenue	FY 2024	$145M	Guidance withdrawn	Withdrawn
Free Cash Flow	FY 2024	$(145)–$(65)M	Guidance withdrawn	Withdrawn
Retained FCF	FY 2024	$(405)–$(325)M	Guidance withdrawn	Withdrawn
Capex – MVP	FY 2024	$540–$575M	~$700M (assumes 5/31 completion)	Raised
Capex – Gathering	FY 2024	$210–$260M (ex‑Eureka NCI)	$220–$270M (ex‑Eureka NCI)	Raised (narrowly)
Capex – Transmission	FY 2024	$75–$85M	$70–$80M	Slightly lower
Capex – Water	FY 2024	$25–$35M	$25–$35M	Maintained
Total Capex	FY 2024	$850–$955M	$1,015–$1,085M	Raised

Related project cost trajectory:

MVP total project cost target raised from ~$7.57–$7.63B (Q4) to ~$7.85B (Q1), excluding AFUDC .

Earnings Call Themes & Trends

Note: No ETRN Q1 2024 earnings call transcript was available in our document catalog; commentary reflects press releases and filings. We searched for “earnings‑call‑transcript” for ETRN in April–May 2024 and found none. [ListDocuments returned 0]

Topic	Previous Mentions (Q3 2023)	Previous Mentions (Q4 2023)	Current Period (Q1 2024)	Trend
MVP timing & cost	Target Q1’24 in‑service; ~$7.2B total cost	Target Q2’24; cost $7.57–$7.63B	Completion/commissioning “on/about” 5/31/24; FERC in‑service requested 4/22; cost ~$7.85B	Schedule clarity improving; costs up
Strategic/Corporate	—	Board strategic process ongoing	Definitive EQT all‑stock merger announced; 0.3504 exchange ratio; closing subject to approvals (incl. MVP in‑service)	Escalated to definitive deal
Producer curtailments	—	—	EQT ~1 Bcf/d curtailments impacting Q1 and expected through May	Emerging headwind
OVCX	Began construction; H1’24 in‑service target	—	Firm interim service 4/1; full in‑service 5/1	Execution milestone
Capital/Leverage	—	Revolver covenant amendments at EQM	$600M 6.375% 2029 notes issued; revolver repayment	Proactive financing
Dividend	$0.15 declared for Q3’23	$0.15 paid for Q4’23	$0.15 declared for Q1’24	Stable

Management Commentary

“We are nearing completion of MVP’s forward construction activities… we expect to complete construction and final commissioning activities on or about May 31, 2024… MVP’s total project cost estimated at approximately $7.85 billion.” — Diana M. Charletta, President & CEO .
“MVP JV filed… in‑service authorization request [with FERC]… remaining forward construction includes tying in a completed bore, installing pipe on a steep slope, and tying final segments after testing/commissioning.” .
On Q1 drivers: Equity income ($73.0M) was primarily AFUDC from resumed MVP construction; one‑time transaction expenses ($5.7M) and an unrealized derivative loss ($4.7M) impacted results; 67% revenue from firm fees .

Q&A Highlights

No Q1 2024 ETRN earnings call transcript was available in our document repository or via company events during the April–May 2024 window. Accordingly, no Q&A themes can be provided. We confirmed the 8‑K/press release and investor presentation as primary sources for the quarter .

Estimates Context

Wall Street consensus (S&P Global) for ETRN Q1 2024 EPS/Revenue was unavailable via our S&P Global interface at time of analysis; we could not determine beat/miss vs. consensus. Therefore, all comparisons are vs. prior periods rather than analyst estimates.

Key Takeaways for Investors

MVP is the near‑term catalyst: late‑May mechanical completion/commissioning targeted with FERC in‑service requested; cost increased to ~$7.85B but schedule visibility improved .
Core earnings resilient: adjusted EBITDA of ~$272M with two‑thirds of revenues from firm reservation fees anchoring cash flows despite curtailments .
Sequential stability, mixed YoY: Operating revenue down YoY due to lapping 2023 contract buyouts; OpEx higher on transaction and operating costs; adjusted EBITDA down YoY but roughly flat sequentially .
Capital intensity elevated into MVP commissioning: Q1 capex/MVP contributions of $500M; full‑year capex raised to $1.02–$1.09B, largely on MVP .
Dividend maintained at $0.15/share; balance sheet actions include $600M notes for revolver paydown, supporting liquidity during MVP completion .
EQT merger is the medium‑term thesis driver: all‑stock 0.3504 exchange; closing conditions include MVP in‑service; withdrawal of FY guidance reflects pending transaction .
Watch for: MVP in‑service and tariff commencement timing; curtailment duration/extent; capex normalization post‑MVP; regulatory and shareholder approvals for the EQT transaction .

Source Documents

Q1 2024 8‑K & earnings press release (EX‑99.1): financials, segment performance, MVP update, guidance withdrawal .
Q4 2023 8‑K & press release: prior quarter comps, FY24 guidance (now withdrawn), MVP cost/timing, covenant amendments .
Q3 2023 8‑K & press release: prior‑year comps, MVP timing/cost, OVCX update .
EQT merger 8‑K: terms and closing conditions (incl. MVP in‑service) .

Citations:

All bracketed references [doc_id:chunk] correspond to the SEC filings and company documents retrieved above.

Equitrans Midstream Corp (ETRN)·Q1 2024 Earnings Summary