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Equitrans Midstream Corp ETRN

Morningstar Rating
$12.22 +0.43 (3.65%)
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Company Report

Equitrans Is Being Acquired by EQT in Good Deal for Shareholders

After a multiyear battle with the courts and concerned stakeholders that had effectively blocked the Mountain Valley Pipeline, the Biden administration finally stepped in to save it. With legislation declaring the pipeline in the national interest and ordering the relevant agencies to issue the required permits by late June 2023, Equitrans now expects the pipeline to be in service in the second quarter of 2024. Equitrans expects to own 49% of the pipeline via a subsidiary as part of a joint venture and will be the operator once it is in service. With the pipeline derisked, EQT has stepped in to acquire Equitrans in an all-stock transaction due to close in the fourth quarter of 2024.

Price vs Fair Value

ETRN is trading at a 2% discount.
Price
$11.75
Fair Value
$93.00
Uncertainty
High
1-Star Price
$82.60
5-Star Price
$9.20
Economic Moat
Lsshd
Capital Allocation
Vdslx

Bulls Say, Bears Say

Bulls

The integration of Rice Energy Midstream offers optimization opportunities, given the geographic closeness of the assets, representing $300 million to $500 million in potential capital avoidance over the next five years.

Bears

There could still be legal challenges to the MVP Southgate and Hammerhead projects, as only the MVP is protected under legislation.

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News

Trading Information

Previous Close Price
$11.79
Day Range
$11.7312.22
52-Week Range
$4.6012.22
Bid/Ask
$11.96 / $12.24
Market Cap
$5.30 Bil
Volume/Avg
10.1 Mil / 6.3 Mil

Key Statistics

Price/Earnings (Normalized)
17.00
Price/Sales
3.82
Dividend Yield (Trailing)
4.91%
Dividend Yield (Forward)
4.91%
Total Yield
4.91%

Company Profile

Equitrans acquired EQM Midstream in mid-2020, consolidating the midstream family. Equitrans now own EQM assets directly versus just unit ownership. EQM Midstream provides gathering, transmission, and water services to primarily Appalachian producers in Pennsylvania, West Virginia, and Ohio.
Sector
Energy
Industry
Oil & Gas Midstream
Stock Style Box
Small Value
Total Number of Employees
773

Competitors

Valuation

Metric
ETRN
WMB
MPLX
Price/Earnings (Normalized)
17.0020.1810.82
Price/Book Value
5.083.79
Price/Sales
3.824.323.97
Price/Cash Flow
8.418.067.88
Price/Earnings
ETRN
WMB
MPLX

Financial Strength

Metric
ETRN
WMB
MPLX
Quick Ratio
0.670.651.00
Current Ratio
0.760.771.07
Interest Coverage
2.024.505.43
Quick Ratio
ETRN
WMB
MPLX

Profitability

Metric
ETRN
WMB
MPLX
Return on Assets (Normalized)
3.67%4.67%10.73%
Return on Equity (Normalized)
40.93%19.77%80.16%
Return on Invested Capital (Normalized)
7.96%8.25%13.87%
Return on Assets
ETRN
WMB
MPLX
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Oil & Gas Midstream Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ENB
Enbridge IncDxbcglvQrdhjy$76.4 Bil
EPD
Enterprise Products Partners LPHvrhfhmhllRxhgn$63.0 Bil
ET
Energy Transfer LPBmgdLmwrj$52.3 Bil
WMB
Williams Companies IncCsydscgsxXrhfxss$47.0 Bil
OKE
ONEOK IncCdhttjzzTpkxzb$46.4 Bil
MPLX
MPLX LP Partnership UnitsTdrrymqvbHkkzkqv$41.8 Bil
TRP
TC Energy CorpKdtrvjdcRxnksrj$41.1 Bil
KMI
Kinder Morgan Inc Class PXqhhpsgbrNpqwdl$40.3 Bil
LNG
Cheniere Energy IncNcrqxhvgXvql$37.8 Bil
TRGP
Targa Resources CorpPqcmvlybBld$24.7 Bil

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