EQM Midstream Partners LP increased its adjusted EBITDA guidance for 2020 to be in the range of $1.36 billion to $1.41 billion, from the $1.3 billion it forecast for 2019.
EQM Midstream also raised its expected net income attributable to the company for 2020 to a range of $1.05 billion to $1.10 billion, compared to $950 million in the previous year, according to a Dec. 16 news release.
In addition, the partnership lowered its guidance for 2020 growth capital expenditures and contributions to Mountain Valley Pipeline LLC to a range of $1.2 billion to $1.3 billion, a drop from the previous year's budgeted $2.0 billion. Ongoing maintenance capital expenditure guidance decreased to approximately $55 million, $5 million less than the 2019 capital expenditure budget.
EQM Midstream said it expects to fund its 2020 plan through retained cash flow and a $3 billion unsecured credit facility, which had roughly $2.7 billion of capacity as of Sept. 30.
While contract negotiations with EQM Midstream's parent company Equitrans Midstream Corp. are ongoing, the companies said they will only enter a deal if it is considered fair in value by the shareholders and unitholders, according to the release. The partnership also said any gathering contract agreements likely will not take effect before the Mountain Valley pipeline is put into service.
EQM Midstream plans to maintain a quarterly distribution of $1.16 per common unit, while Equitrans Midstream plans to maintain a quarterly dividend of 45 cents per share.