EQT Midstream Partners, LP (NYSE:EQM) Q2 2018 Earnings Conference Call Transcript
Oct 25, 2018 • 11:30 am ET
Ladies and gentlemen, greetings, and welcome to the EQM Midstream Partners Third Quarter Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this program is being recorded.
It is now my pleasure to introduce your host, Nate Tetlow. Thank you. You may begin.
Thank you, operator. Good morning, and welcome to the third quarter 2018 earnings call for EQM and EQGP. A replay of this call will be available for 7 days beginning this evening. The phone number for the replay is 877-660-6853 and the confirmation code is 13674493. The call will also be replayed for 7 days on our website at eqm-midstreampartners.com.
(Forward-Looking Cautionary Statements)
Today's call may also contain certain non-GAAP financial measures. Please refer to this morning's news release and our analyst presentation, which will be posted to our website today, for important disclosures regarding such measures, including reconciliations to the most comparable GAAP financial measure.
Joining me on the call today are Diana Charletta, who will be our COO; Kirk Oliver, who will be our CFO; and Tom Karam, who joined EQM in August as CEO.
With that, I'll turn it over to Tom.
Thanks, Nate. Good morning, everyone. I'm excited to join today's call and the company as CEO.
This morning, EQM reported third quarter adjusted EBITDA of $280 million and distributable cash flow of $219 million. Kirk Oliver, our new CFO, will provide detail behind these numbers in a minute. I'm about 2.5 months in as CEO, and I'd like to share some of my observations and discuss some actions we've already taken.
First and most importantly, EQM is a fantastic business. Our substantial gathering system, connected to multiple takeaway pipes, strong customers and strong contracts, our location on top of some of the best rock and lowest cost production in the United States create a solid platform from which to grow, which is why we are able to announce today that we project our EBITDA will grow by 54% through 2021, even with a slower growth rate by our largest customer.
Second, to be successful in this hypercompetitive environment, we must not only execute, but we must at all times be a commercial solutions partner for our customers. So we've made changes to our senior team to be just that. The company has always had a culture of safety and execution.
Moving forward, we must also have a culture commercially driven as well. Here are a few of the most important and impactful changes we've made to create this culture. Diana Charletta was appointed COO. We recruited Kirk Oliver as our CFO. Cliff Baker was appointed SVP for Commercial Development. And Paul Kress was recruited to serve as VP of Business Development. In addition, we've given Nate Tetlow the added role of leading our corporate development efforts. And we've made other changes inside the organization to support this culture as well.
Diana has over 25