Equitrans Midstream falls after pushing back MVP completion to Q1 of 2024

Equitrans Midstream shares are trading lower after the company disclosed last night that following a review of progress achieved since the resumption of forward construction in August and construction activity remaining for completion of the Mountain Valley Pipeline project, Mountain Valley Pipeline, LLC has refined the targeted timing for completing construction of the project from year-end 2023 to Q1 of 2024, with the total project cost anticipated to be approximately $7.2B, which includes approximately $120M of contingency. Certain “unforeseen factors have substantially affected the pace of construction and account for more than half of the increase in estimated project costs,” Equitrans said in a regulatory filing. Through September 30, the company had funded approximately $3B to the MVP joint venture for the MVP project. If the project were to be completed in Q1 of 2024 and at a total project cost of approximately $7.2B, the company expects its equity ownership in the MVP project would progressively increase from approximately 47.7% to approximately 48.8%, and expects it would incur a total of approximately $3.7B over the project’s construction, inclusive of approximately $220M in excess of its ownership interest. Shares of Equitrans Midstream are down 5% to $9.07 in afternoon trading.