EQM Midstream Partners, LP’s Mountain Valley Pipeline project work is around 92% complete. The 303-mile natural gas transmission line is now expected to come online by early 2021. The project has faced delays and cost adjustments due to additional regulatory reviews.
The pipeline is expected to meet the rising demand for natural gas in the mid-Atlantic and southeast regions of the country from Marcellus and Utica shale output. The project is waiting for the Biological Opinion and a green signal from the FERC. The project cost is expected to further rise 5% from its present estimate of $5.4 billion. Construction of the pipeline had started in February 2018, with original project cost estimation of $3.5 billion.
The long-delayed pipeline’s three compressor stations and three original certificated interconnects are fully complete. Notably, 80% of the pipeline is completed by EQM Midstream that incorporates 264 miles of pipe welding and other major completions. The interstate underground pipeline system connects northwestern West Virginia with southern Virginia.
EQM Midstream is the operator of the project with a 45.7% stake. It has NextEra Capital Holdings, Con Edison Transmission, WGL Midstream and RGC Midstream as partners in the project.
EQM Midstream’s units have gained 70.9% since the beginning of the second quarter compared with 38.1% rally of the industry it belongs to.
Zacks Rank & Key Picks
EQM Midstream currently has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Chaparral Energy, Inc. (CHAP - Free Report) , CNX Resources Corporation (CNX - Free Report) and Concho Resources Inc. (CXO - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chaparral Energy’s bottom line for 2020 is expected to rise 57.8% year over year.
CNX Resources beat earnings estimates thrice and met once in the last four quarters, with average positive surprise of 111.5%.
Concho Resources has a positive earnings surprise of 4.9% in the last four reported quarters.
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